RIGA, Feb 12 (LETA) - Saeima on Thursday supported in principle legislation that would extend the terms of operation of Rezekne and Liepaja Special Economic Zones until December 31, 2050.

Currently, the two economic zones are set to operate until December 31, 2035.

The matter will now be considered by Saeima Budget and Finance Committee.

As reported, the Economics Ministry called on the Saeima this past January to extend the deadline for applying direct tax incentives to free ports and special economic zones (SEZ) until December 31, 2050, the ministry informed LETA.

The ministry pointed out that the current law sets the deadline at December 31, 2035, which is less than ten years, and accordingly does not provide sufficient legal stability and predictability neither for existing freeport and SEZ capital companies nor for potential investors.

Thus, the ministry has submitted a proposal to the Saeima for a bill on the application of taxes in free ports and special economic zones, calling for the extension of support to free ports and SEZs until December 31, 2050.

Large-scale industrial and infrastructure projects by their very nature require long-term planning, typically 15 to 20 years, including the investment return period and the fulfillment of obligations to financiers. A situation where the application of tax incentives is limited to a period significantly shorter than the life cycle of the investment creates uncertainty about the economic viability of projects over their lifetime, the ministry said.

Economics Minister Viktors Valainis (Greens/Farmers) said that if Latvia wants to ensure rapid growth in the long term, certainty about the available support is a logical and natural precondition.

He also noted that decisions cannot wait until the end of the current aid period but must be taken in good time. The proposal to ensure that investment projects are planned in a timely manner will increase Latvia's competitiveness in attracting investment.

The ministry underlines that in Latvia's neighboring countries, SEZs have significantly longer periods of operation, thus ensuring greater legal stability and predictability for investors. For example, in Lithuania, the Kaunas SEZ is set until 2045, while the Akmene SEZ is set until 2061. The existing regional framework puts Latvia at a competitive disadvantage in attracting long-term investment.

The proposal was discussed on January 15, 2026, in Work Group for Large and Strategically Important Investment Projects, which received support from the Liepaja SEZ, Latgale SEZ, Rezekne SEZ, and Riga SEZ to extend the tax incentives until December 31, 2050. Representatives of the Transport Ministry and the Smart Administration and Regional Development Ministry also expressed conceptual support for such an extension during the meeting.