latvia eastern europe, bordering the baltic sea, between estonia and lithuania location
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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: [email protected] (academic recognition) [email protected] (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
• Rīga +371 7210189• Daugavpils +371 54 35460• Liepāja +371 34 29422• Cēsis +371 41 27769• Rēzekne +371 46 07807
Welcome
Thank you for attention!