latvia eastern europe, bordering the baltic sea, between estonia and lithuania location

LATVIA

Eastern Europe, bordering the Baltic Sea, between Estonia and Lithuania

Location

LATVIA

Full country name: Republic of Latvia Government type: parliamentary democrasy Area: 64,589 sq km Population: 2 290 237 (July 2005) Capital city: Riga (pop. approx. 867 700) Official language: Latvian Currency: Latvian Lat (LVL) Ethnic groups: Latvian 57,7%, Russian 29,6%, others

12,7% Religions: Lutheran, Roman Catholic, Russian Orthodox Independence Day: 18 November Most speaking languages: Russian, English, German

General information

Latvian Labour Market

Unemployment rate divided by regions:

Riga region 3,5% Zemgale 4,6% Vidzeme 4,6% Latgale 9,4% Kurzeme 4,5%

Labour force: 1.71 million (2006) Labour force by occupation: agriculture 15%, industry 40%, services 45%

Average unemployment rate is 4,8% (September 2007)

Economy

LATVIA

MAIN SECTORS OF INDUSTRY• Wood processing • Food producing • Metalfabricating industry • Machine and ecquipment building plant • Light industry• Chemical industry• Production of electrical and optical equipment• Electric and heat power generating

Economy

Most prospective production sectors

•Information technologies •Electronics and mechanical engineering•Chemical pharmaceutical industries•Wood processing•Food processing idustry•Textiles idustry •Construction •Tourism

Major trading partners: UK, Germany, Sweden, Lithuania, Estonia, Russia, Denmark, Finland, Poland, Belarus.

Labour force shortages

State Emplyment Agency information:

• Qualified workers and craftsmen,• Sales and services workers,• Machine and equipement operators,

assemblers,• Low skilled workers,• Security officers, drivers, sewers.

Labour force shortagesDifferent labour market surveys information: • Construction specialists,• Engineering and electrical engineering

specialists,• Metal processing specialists,• IT specialists,• Technologists,• Pharmacology specialists, doctors, nurses• High qualified managers

Prerequisites to find a job in Latvia

- Emphasise your education and practical experience - Latvian employers value a good academic background, linguistic (Latvian and Russian or English) and computer skills – depends on profession

- CV as a marketing tool, adapted to market - Often an application letter is replaced by less formal

phone or e-mail contact - Driving licence is an advantage - Motivation and rediness to acquire new skills and

experience

Recognition of qualifications Academic recognition is necessary if you: want to study or to work in non-regulated profession in LatviaRecognition of foreign professional qualifications is necessary if:• the profession is regulated in Latvia • you want to practice this profession in Latvia

Regulated professions in Latvia:www.aic.lv/rec

WHERE TO GET INFORMATION?

ACADEMIC INFORMATION CENTRE VALNU Str. 2, rooms 209, 210, RIGA, LV-1050

TEL +371 7225155 FAX +371 7221006

e-mail: diplomi@aic.lv (academic recognition) izglitiba@aic.lv (professional recognition)

www.aic.lv

Looking for a job in Latvia

• State Employment Agency, EURES - www.nva.gov.lv, www.nva.gov.lv/eures

• Job ads in newspapers and on the internet – www.diena.lv, www.latvijasavize.lv, www.nra.lv,

www.reklama.lv, www.cvmarket.lv, www.cv.lv, www.workingday.lv, www.cv.fonte.lv, www.edarbs.lv, www.vakance.lv, www.estudents.lv etc.

• Private recruitment agencies • Personal contacts• Speculative applications to internationally oriented

firms

A minimal understanding of Latvian will make life a lot easier!

Is allowed to carry out business activitiesin the form of:

- a limited liability company - a stock company - a brunch of a company

Nature of Procedure:• Complete signatories’ cards and companies deeds, certify cards by a notary• Open a bank account and get a receipt of reference from the bank • Register at the Ministry of Justice, Register of Enterprises

• Register with State Revenue Service (tax authority) for VAT

• Register employees for mandatory state social insurance contribution with the State Revenue Service

Information: www.ur.gov.lv (Commercial Register), www.liaa.gov.lv (Latvian Investment and Developement Agency)

Starting a Business in Latvia

Management culture

• Interviews are the most important part of the application procedure

• Most companies are very hierarhical in structure

• Communication in Latvian companies is top down

• Important business issues always need to be discussed in person

• Meetings in Latvia take place in a rather formal setting

• It is important to establish a general sense of mutual trust

Most Latvian businesses are eager to adapt their processes to West European standards!

WORKING HOURS – 40 h/ per weekANNUAL LEAVE – 4 weeks (28 calendar days)

Employment contract:

• Must be concluded in writing • Permanent, probation period 3 month• Temporary

INCOME TAX – 25%SOCIAL INSURANCE TAX – 9% (9% - employee, 24.09% employer)

The main part of the employers are small companies (staff of 20 – 50 people)

Working conditions

Average monthly wagesMinimum salary – 170 EUR/month(from 1st January 2008 – 227 EUR/month)

2nd quarter, 2007

Average gross wage 553 EUR/month including: public sector – 659 EUR/month private sector – 503 EUR/month

Divided by regions:Riga region – 591 EUR/month

Vidzeme region – 431 EUR/month Kurzeme region – 471 EUR/month Zemgale region – 454 EUR/month Latgale region – 383 EUR/month

Average monthly wagesdemanded sectors

Manufacturing – 632 EUR/monthConstruction - 780 EUR/monthWholesale and retail trade – 437 EUR/monthTransport – 619 EUR/monthHotels and catering – 432 EUR/monthHealth and social care – 576 EUR/monthPublic, social and individual services – 491 EUR/monthEducation – 494 EUR/monthTransport and communications – 619 EUR/month

Official statistical information: www.csb.gov.lv

Taxation calculation

Currency: 1 LVL = 0,7028 EUR

Gross income 500

Less: personal allowance (LVL 50 per month)(from 1st January 2008 – 80 LVL/month)

50,00

Less: allowance per dependants (LVL 35 per month per dependant)(from 1st January 2008 – 56 LVL/month)

35,00

Less: (on a monthly basis) social security tax of 9% 45,00

Equals: taxable income 401,00

Tax rate of 25% 100,25

Gross income less social tax and personal income tax equals: income after taxes

354,75

Social insurance

State Social Insurance AgencyProvides social insurance services Responsible authority for E forms (301,303, 100...,200...,400...,600...) which content information about pensions and benefits

Where to get information? International Services Department Address: Lacplesa str.70 a, Riga, LV-1011

Telephone: +371 7013685 Fax: +371 7011813

www.vsaa.lv

Health care

Health Compulsory Insurance State Agency Responsible authority for E forms which content information about services

EHIC (E 111), E 121, E112, E109, E 106...

Where to get information? EU Relations Unit Baznicas street 25, Riga, LV – 1010 Tel. +371 7043700, +371 7043767 Fax +371 7043701 www.voava.lv

Prices of food in average

Meat 5 EUR/kgChicken 4,50 EUR/kgSausage 4 EUR/kgCheese 6 – 15 EUR/kgMilk 0,80 EUR/lBlack bread 0,70 EUR/500gWhite bread 0,50 EUR/300gPotatoes 0,60 EUR/kg10 eggs 0,80 EURBeer 0,70 – 2 EUR/0,5l)Mineral water 0,60 EUR/1,5lMain course in the restaurants 10 – 30 EUR)

Living conditions

• Real estate agencies• Personal contacts• Ads in the newspapers and on the internet

Average prices:• rent prices of flats in Riga vary from 200 EUR to 600 EUR/ month (depends on area), in Daugavpils 100 – 350 EUR/ month.• to buy a 2 rooms flat in Riga costs 1300 – 4000 EUR/ m², in Daugavpils 800 – 2000 EUR/ m²

Where to get information? www.lanida.lv, www.latio.lv, www.rnf.lv, www.dzivoklis.lv, www.nekustamaisipasums.lv, www.hostellinglatvia.com

Sometimes foreigners can be overcharged!

Looking for accomodation

10 reasons why foreigners should be interested to move to Latvia???

1. Beautiful nature

2. Historical architecture and places

3. Blue cows

4. Good beer

5. Developed tourism

6. Climate stays tropical7. Lots of millionaires 8. Best ice- hockey fans in world

9. Wonderful singing and dancing festival

10. Famous people often come to Latvia

10 reasons why foreigners should not be interested to move to Latvia???

1. Expensive level of living

2. Quite low level of income

3. Greedy people

4. Bumpy roads

5. It's almost always raining in the Midsummer night

6. Long queues in shops

7. Inexpensive higher education – quality in question

8. Lack of tolerance

9. Society is passive concerning political activities

10. Too lazy to think of 1 more reason

EURES contacts

www.nva.gov.lv/eures

eures@nva.gov.lv

• Rīga +371 7210189• Daugavpils +371 54 35460• Liepāja +371 34 29422• Cēsis +371 41 27769• Rēzekne +371 46 07807

Welcome

Thank you for attention!