Latvia
AI Agent Legal Status: undefined · Autonomy: low
Legal Framework
Latvia is subject to the EU AI Act and GDPR. No specific national AI strategy or dedicated AI regulation beyond the EU framework. The regulatory environment for AI is still developing.
Key Laws & Regulations
- ◆EU AI Act
- ◆GDPR
- ◆Commercial Law
Business Formation
SIA (Sabiedrība ar ierobežotu atbildību) is the standard limited liability company with minimum capital of EUR 2,800. Formation process is straightforward.
Tax Implications
Corporate tax rate is 20% applied only on distributed profits (similar to Estonia's model). Retained earnings are tax-free, incentivizing reinvestment.
Opportunities
Tax-efficient reinvestment model supports capital-intensive AI development. Lower costs provide a competitive base for AI operations targeting the broader EU market.
Highlights
Distribution-only corporate tax model (similar to Estonia) is favorable for growth-stage companies. Lower operational costs than Western Europe.
Risks & Challenges
Limited AI-specific regulatory guidance. Smaller tech ecosystem with less venture capital availability. EU AI Act compliance adds overhead without specific local support structures.