Start-ups can receive up to EUR 300 000 to attract highly qualified specialists

To boost the competitiveness and growth of Latvian start-ups, a support programme offering co-financing for hiring highly qualified specialists and tax breaks on labour taxes is being implemented. As part of the programme, each start-up can apply for up to EUR 300 000 in co-financing over three years, helping to attract highly skilled professionals. The Investment and Development Agency of Latvia (LIAA) is accepting applications for this support tool; for more information entrepreneurs can consult the programme’s terms and conditions and application procedure. 

Since announcement the call for applications for the Start-up Programme, the Investment and Development Agency of Latvia (LIAA) has already approved six applications, granting a total of EUR 525 451 in assistance. Several innovative Latvian companies developing unique and promising solutions in their field have received funding in this round of applications. 

These include Sonarworks, which is developing an artificial intelligence-based vocal transducer, Rhino R, which is developing an electric scooter for cargo transport, and self-service kiosk creators TAPBOX, who have created solutions for the financial, transport and medical sectors. Support has also been granted to Spell, the developer of a SaaS payment processing solution, and Swotzy, a logistics platform that offers courier service comparison capabilities. 

One of the most promising start-ups in the defence sector NATRIX which has used co-funding to hire professionals in the past, stresses that this was a crucial step in the early stages of product development. NATRIX is developing unique unmanned platforms for the delivery of ammunition, equipment and food in military conflict zones. 

"Co-funding for salaries allowed us to attract highly qualified mechanical and software engineers. Experienced specialists are already working in other companies and motivating them to join a brand-new project starting from scratch without competitive salaries would be difficult. This kind of support gives you the opportunity to compete with large employers and successfully develop your product,” Kristaps Puķe, CEO of NATRIX, explains. 

How to apply?  

Start-ups can receive support from two programmes: 

• 45% co-funding for covering salaries for highly qualified workers. 

• Through tax breaks, i.e., by applying a lower labour tax rate. 

A new round of applications for the highly skilled workers’ salaries programme is now open. Priority support is given to Latvian start-ups developing or planning to develop innovation-related products and meeting the eligibility criteria. The support period can be up to 12 or even 24 months, providing total co-financing of up to EUR 300 000 per start-up. 

Support is provided in accordance with the Law on Aid for the Activities of Start-up Companies. The highly skilled workers’ salaries programme is co-funded by the European Regional Development Fund, while tax incentives are provided from the state budget. The total funding available to Latvian start-ups to attract workers is EUR 2 626 000, which is available until 30 April 2027. 

Applications are to be submitted online via website business.gov.lv. 

This article has been produced with financial support from the European Regional Development Fund.