Real estate activities
The Lithuanian tax system is basically made up of direct and indirect taxes, and they have basically not changed in the past years. Lithuania’s main tax types are personal income tax, corporate tax, value added (VAT), excise tax, property tax, land tax, as well as tax on gambling and lotteries.
2016 was not the most successful year for Latvia’s economy, mostly due to uncertainty in external markets. Even though at the beginning of the year Latvia’s growth figures were projected at around 3%, in reality Latvia’s GDP increased by only 1.6% last year.
Foreign direct investment in equity, reinvested earnings and other forms of capital has grown rapidly since Latvia regained its independence in 1991 until the rates of growth slowed because of the financial crisis. However, in the first nine months of 2011, the volume of foreign direct investment was almost three times higher than the total foreign direct investments in all of 2010. The ...
Even though the real estate market has not recovered from when the bubble burst, there have been some positive signs over the past year. Most of the talk about the real estate market is about stabilization, with stagnation mentioned less often.
Estonia’s labour market has recovered quite rapidly from the recent recession in 2011. While the unemployment level is still higher than in the boom years 2006–2007, employment has increased fast mostly due to a bloom in exporting industry.
Lithuania, similarly to neighboring country Latvia, struggling with state budget deficit, started to undertake tax changes in 2012.
The financial services sector in Latvia suffered most gravely from the crisis: losses of the banking sector for two years have "eaten away" profits for the previous five years. The number of bad loans has increased, including outstanding loan liabilities.