Latgale SEZ Extension & Expansion: Investment Boost for Latvia to 2050

Latgale SEZ Expansion Approved, Aiming for Long-Term Investment

The Latvian Saeima has voted to extend the operational period of the Latgale Special Economic Zone (SEZ) until December 31, 2050, and to include the municipality of Alūksne within its boundaries. The decision, adopted on Thursday, February 12th, is intended to foster entrepreneurship and attract investment to Latvia’s eastern region.

According to a Saeima release, the extension will provide businesses with “long-term stability and predictability,” considered essential for attracting new investments, developing manufacturing capabilities, and creating jobs. The move is particularly significant for regions outside of the economic hub of Rīga.

The inclusion of Alūksne municipality is expected to broaden support opportunities for businesses in the eastern border region, promote infrastructure development, and bolster both regional and national security. This expansion aims to increase the competitiveness of businesses operating in the area.

The Saeima also indicated conceptual support for extending the operating periods of the Liepāja SEZ and the Rēzekne SEZ until the end of 2050. However, these extensions require a second reading and subsequent approval by the Saeima to take effect.

The decision follows a period of strong performance for the Latgale SEZ. Last year, 2025, was one of the most successful in the zone’s history, with 11 investment agreements signed totaling almost EUR 40 million. These investments are projected to create approximately 80 new jobs in the Latgale region. The Latgale SEZ was initially established in 2017.

As of July 2025, 38 capital companies were operating within the Latgale SEZ, with 91 investment agreements signed representing over EUR 106 million in planned investment. More than 700 new jobs are anticipated as a result of these investments, with around 500 already created.

Iveta Maļina-Tabūne, the manager of the Latgale SEZ, described 2025 as a particularly active year, noting that the EUR 40 million in contracts signed represented a “very significant financial investment for the Latgale region.” This year, 2026, is also showing promise, with six new companies already joining the zone and 12 contracts signed for investments of €5 million and around 40 new jobs.

The industries attracting investment are diverse, including optics, fiber optics, electronics, chemical fibers, metalworking, woodworking, and textiles. The expansion of the Latgale SEZ, and the potential extensions for Liepāja and Rēzekne, signal a continued commitment to utilizing Special Economic Zones as a tool for regional economic development in Latvia.

On February 3rd, 2026, the Economic, Agricultural, Environmental and Regional Policy Committee of the Saeima supported the legislative amendments proposing the extension of the Latgale SEZ’s operating period. The Committee Chair, Kaspars Briškens, indicated a request for urgent consideration of the amendments by the Saeima.