Industry 4.0 is arriving across sectors and around the world, promising to transform the way we live, work and play. Also known as the fourth industrial revolution, the dawn of industry 4.0 sees industries increasingly reliant on advanced technologies like automation, blockchain and the internet of things, and powerful computing capabilities including edge and cloud computing.
As industries undergo unprecedented technological transformation, ICT infrastructure is crucial. This sector promises to see extraordinary investment and innovation in the coming years. According to industry-leading consulting company Deloitte, the industry cloud market alone could reach a value of $640bn in the next five years.
Latvia, an ICT superpower
Latvia is recognised as a growing ICT superpower. Located on the eastern coast of the Baltic Sea, the country is home to the sixth-fastest broadband connection in the world and the third-largest fintech cluster in Europe. As digital transformation forges ahead, Latvia is defining itself as a key player on the regional and global stage. This is one of the fastest-growing economies in the EU, making it an exciting and dynamic location in which to do business.
The city of Rēzekne is the economic, historical, cultural and educational centre of Latvia’s Latgale region. It is home to Rēzekne SEZ, the largest multisectoral industrial territory in eastern Latvia, which hosts a wealth of technical infrastructure, industrial facilities and vast greenfield areas, ideal for burgeoning ICT investment and innovation. Its location facilitates access to more than 500 million consumers in the international market.
A launchpad for ICT innovation
For ICT companies seeking to grow, Rēzekne SEZ is an empowering, enabling platform. Rēzekne SEZ enterprises have seen remarkable growth: an average 20.5% annual increase in turnover and 25.4% increase in profit.
ICT specialist SIA Midis RSEZ is one organisation taking advantage of this opportunity. Operating since 2010, the company implements innovative software solutions in data systematisation, management, distribution and maintenance processes. It became an Rēzekne SEZ company in 2020.
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Rēzekne SEZ enterprises receive up to 60% return on investment costs in the form of tax incentives. This includes up to an 80% discount on corporate income tax and as well as between an 80% and 100% discount on real estate tax.
Further support is available in the form of the Rēzekne SEZ entrepreneurship support fund. Designed to facilitate and support entrepreneurship within the zone, the fund offers enterprises subsidies for investments for new workplaces, modern technologies and certain agricultural products.
These companies operating in Rēzekne SEZ also benefit from direct access the region’s specialist talent pool. The Rēzekne Academy of Technologies and Technical School are developing a highly qualified labour force across industries, with a focus on STEM and future industries, that is prepared to drive the next generation of technological innovation.
With the outstanding support of Rēzekne SEZ, SIA Midis RSEZ plans to expand the range and scope of its ICT services. The business aims to build new premises for commercial activities within the zone, employing 30 new specialists by 2024 and investing more than €1m.
Becoming a Rēzekne SEZ enterprise
As long as a company has real estate owned or rented within Rēzekne SEZ, conducts commercial activity within the zone and has concluded an agreement with the RSEZ Authority, including a permit, they can become a Rēzekne SEZ enterprise.
Rēzekne SEZ enterprises are able to perform commercial activities in Rēzekne SEZ and receive all the available benefits and opportunities.
In order to become a Rēzekne SEZ enterprise, a company can submit an application to the RSEZ Authority. They must file a business plan, investment and workplace information, registration certificate, statutes, confirmation of location and information on any structural units.
The enterprise must then re-register in the Register of Enterprises of the Republic of Latvia, with ‘Rēzekne Special Economic Zone’ now in its name.
Once commercial activities are agreed upon, the business is granted a permit for commercial activities within the zone. They then have the right to apply for direct tax incentives by submitting an application.
To begin investment activity, the enterprise must submit an application, along with an investment project concept and declaration of compliance. To receive an agreement on the performance of expected salary costs, the enterprise must submit an application, along with expected salary costs and declaration of compliance.
To find out more about operating in Rēzekne SEZ, download the whitepaper below.