AUTUMN 2026
Until 2025, I led the Valuation and Financial Advisory service line, covering the valuation of businesses, real estate and movable assets; financial due diligence; and a range of financial advisory projects — from loss assessments to opinions on investment projects and business plans.
Since becoming a Partner, my responsibilities have expanded to encompass the entire advisory business. Alongside financial advisory, this includes tax and legal advisory services. My professional focus remains on valuation and financial advisory, while a strong team and the heads of each service line help deliver our broader advisory offering.
The role of a Partner also involves greater participation in the development of the firm. Since 2026, I have also been a member of the Grant Thornton Baltic Board, contributing to the resolution of strategic matters alongside colleagues in Latvia, Lithuania and Estonia. This allows me to view our operations not only through the lens of one service line, but from the perspective of the entire Baltic region.
One of the most significant changes is the emergence of artificial intelligence. Solutions are evolving so quickly that businesses are still exploring the best ways to use them, testing different possibilities and adapting their processes. The cost of these solutions is also changing, so artificial intelligence is not always as inexpensive or effective as it may initially appear.
I also believe we need to consider the long-term impact on the development of professionals. If technology takes over more technical, day-to-day tasks — the type of work junior colleagues typically begin with — the question is: how will young professionals gain the experience they need to become experts in the future? At present, there are more questions than answers.
In many respects, Latvia offers an investor-friendly business environment. We have a high level of digitalisation in public administration, relatively clear processes and well-organised document flows. We do not always recognise these advantages ourselves, but foreign investors value them when comparing their experience across countries.
At the same time, there are areas that require improvement: professional process and project management, legislative stability, accountability for decisions made and reliable public administration.
The investment and M&A market in the Baltic States is small, which means that a single large transaction can materially alter the overall picture. Lithuania has a larger and more diversified economy, providing a steadier flow of transactions and broader access to local private capital. Estonia stands out for its more developed start-up ecosystem and technology investment market. In Latvia, transactions are more dependent on foreign strategic buyers. However, the Baltic market should often be viewed as a whole, as many companies and transactions span all three countries.
The geopolitical situation is a significant factor. Latvia is located on the eastern border of the European Union, close to an active war zone, and international investors take these risks into account. This affects valuation multiples: a company with unchanged revenue and profit indicators may today be valued lower than it would have been several years ago.
However, risk is not the only consideration. A company’s scale, growth trajectory, profitability, ability to generate cash flow and competitiveness remain highly important. Investors are looking for businesses with a clear development outlook and a sustainable business model.
An owner will usually see greater value in their business than a potential investor does, which is entirely understandable. However, a company’s value is determined not only by its market position and financial performance, but also by how transparently and efficiently it is organised.
For example, assets unrelated to the core business should be separated, and the balance sheet and cost structure should be put in order. A clear governance model is equally important. If a company’s expenses include the owner’s family costs that are unrelated to the business, or if the financial information contains numerous difficult-to-substantiate adjustments, this may raise questions for a potential buyer and reduce their confidence.
Start preparing today, rather than when the decision to sell is made. The company’s structure should be organised, separate business lines and risks should be segregated where necessary, financial reporting should be transparent, and the business should maintain stable and sufficiently strong profitability.
It is equally important to strengthen the company’s market position and demonstrate its potential for development. A good business is one that grows, generates profit and continues to evolve. Such a business will also have value in the eyes of an investor. The more transparent, financially stable and prepared for the future a business is, the stronger its position will be in negotiations with a potential buyer.
In fact, it happened by chance. When I began studying economics, I had not expected to work in this particular field. One of my lecturers offered me the opportunity to write a course paper on business valuation, which opened the door to an international audit and advisory firm. I did have to fight for that opportunity, though, by reminding the lecturer several times of the promise that had been made. That is how I entered an industry that captured my interest and has held it ever since.
Over the years, we have significantly developed our methodology, work planning, quality management and reporting. Today, the quality and methodology of our valuation and financial advisory services are comparable to the best examples in the industry, including the practices of large international advisory firms.
In all three Baltic States, an open-ended employment contract is regarded as the standard form of employment relationship, while a fixed-term contract may only be used where there is a legal basis for doing so.
In Latvia, the total duration of a fixed-term employment contract, including extensions, may generally not exceed five years. In Lithuania, the total duration of consecutive contracts with the same employee for the same job function may generally not exceed two years, while for different job functions it may not exceed five years. In Estonia, the key requirement is an objective reason consistent with the temporary nature of the work, such as replacing another employee or carrying out a specific project.
The permitted length of the probation period also differs. In Latvia and Lithuania, it generally may not exceed three months, while in Estonia it may be set for up to four months. In Latvia, the probation period for fixed-term contracts must be proportionate to the term of the contract: it may not exceed one month for a contract of up to six months, or two months for a contract of up to one year.
Normal working time in all three countries is 40 hours per week; however, overtime limits and compensation arrangements differ significantly.
In Latvia, overtime work is generally permitted with the employee’s written consent and may not exceed an average of eight hours within a seven-day period. Overtime must be compensated with a premium of at least 100% or, by agreement between the parties, with paid time off.
In Lithuania, overtime work also generally requires the employee’s written consent. Up to eight overtime hours per week are permitted without additional consent, while up to twelve hours are allowed with the employee’s consent. The overtime premium may not be less than 50% of the employee’s agreed remuneration.
In Estonia, overtime work is permitted by agreement between the parties and must primarily be compensated with equivalent paid time off. Where the parties agree on monetary compensation, overtime must be paid at a rate of at least 1.5 times the employee’s regular pay.
The minimum length of annual paid leave is broadly similar across the Baltic States, although it is calculated differently. In Latvia, employees are entitled to at least four calendar weeks, excluding public holidays. In Estonia, the minimum annual leave is 28 calendar days, while in Lithuania it is 20 working days for a five-day working week or 24 working days for a six-day working week.
There are greater differences in the rules governing leave for fathers. In Latvia, fathers are entitled to ten calendar days of leave, which may be taken within six months of the child’s birth. In Lithuania and Estonia, paternity leave is 30 calendar days. The time limits for taking this leave and the level of state-paid benefit also differ.
The 2026 guide lists the monthly minimum wage as EUR 780 in Latvia, EUR 1,153 in Lithuania and EUR 946 in Estonia, effective from April 2026.
The structure of social security contributions also differs significantly. In Latvia, the employer’s mandatory state social insurance contribution is 23.59%. In Estonia, employers pay a 33% social tax and an unemployment insurance contribution. In Lithuania, the employer’s direct contribution rate is considerably lower, but a greater share of the social insurance burden is borne by the employee. Labour costs can therefore only be compared accurately as a whole, taking into account both employer and employee payments as well as the design of each country’s tax system.
In Latvia, the grounds on which an employer may give notice are specifically defined by law. Where employment is terminated for reasons unrelated to the employee’s conduct, severance pay ranges from one to four months’ average earnings, depending on the employee’s length of service with the employer.
In Estonia, an employer must have a legally justified extraordinary reason to terminate employment. The notice period ranges from 15 to 90 calendar days, depending on the duration of employment. In the case of redundancies, the employer generally pays compensation equal to one month’s salary, while in certain cases additional compensation is provided through the unemployment insurance system.
Lithuanian law provides for several models of termination by the employer. Of particular note is the possibility, in certain circumstances, to terminate employment on grounds that are not covered by the standard grounds for employer-initiated termination, by giving three working days’ notice and paying severance of at least six months’ average remuneration.
For an international employer, a unified Baltic HR policy can provide a useful foundation. However, employment contract templates, working-time records, leave procedures, remuneration systems and termination documentation must be adapted to the legal framework of each country. Timely assessment of local requirements is key to reducing the risk of disputes, financial claims and reputational damage.
Corporate income tax payers whose total controlled transactions with related foreign companies exceeded EUR 250,000 in 2025 must prepare supporting transfer pricing documentation and submit a Controlled Transactions Report through the SRS Electronic Declaration System by 31 December 2026.
Amendments to the Law “On Taxes and Duties” took effect on 1 January 2026. Their aim is to simplify transfer pricing documentation requirements and reduce the administrative burden for taxpayers. The amendments apply to transactions carried out from the 2025 reporting year onwards.
Transfer pricing documentation requirements now apply to Latvian taxpayers conducting transactions with:
The materiality threshold for controlled transactions has increased from EUR 20,000 to EUR 90,000.
Controlled transactions: transactions with related parties, including goods, services, loans and interest, guarantees, intellectual property licence fees, management, IT and marketing fees, cost allocations and others.
Related parties: two or more natural or legal persons — except companies whose relationship arises solely from shares or equity interests directly held by the state or a municipality — or a group of such persons connected by agreement, or representatives of such persons or groups. A detailed definition is available in Section 1, Paragraph 18 of the Law “On Taxes and Duties”.
Where the circumstances affecting the methodology have not changed materially: update the transfer pricing analysis, including the method and comparable data, every three years; update financial data, including the tested party’s results and the performance indicators of comparable companies, annually.
Annual maintenance: update financial data and review material changes in the business.
Grant Thornton Baltic has been named a finalist in the ITR Europe Tax Awards 2026, an international awards programme organised by the tax industry publication International Tax Review (ITR).
ITR has recognised Grant Thornton Baltic for its professional work in transfer pricing. The nomination reflects our tax advisory team’s ability to provide high-quality services to internationally active clients across the Baltic States.
“For more than 20 years, we have worked as one team, combining the knowledge and experience of experts from Estonia, Latvia and Lithuania. We are pleased that our team’s achievements are also being recognised internationally,” says Mārtiņš Lubgans, Head of Tax at Grant Thornton Baltic.
The ITR Europe Tax Awards are among the best-known awards in the European tax sector and have been presented since 2005. In 2026, tax and transfer pricing teams across 33 jurisdictions were assessed, with attention also given to innovation in tax technology, compliance, and the promotion of diversity, equity and inclusion.
Raitis Logins, Managing Partner of Grant Thornton Baltic in Latvia, has become an independent expert on matters relating to the development of Latvia’s national airline, airBaltic, its financial stability and the state’s role in the company’s future. His public commentary draws on his experience in finance, corporate governance and business development.
He has taken part in several television and radio programmes, including Latvian Television’s Kas notiek Latvijā? and Latvian Radio 1’s Krustpunktā. Alongside experts in industry, politics and economics, Raitis Logins has assessed recent decisions and their potential impact on the airline, the state budget and Latvia’s economy.
Raitis Logins has analysed possible scenarios for airBaltic’s development, the rationale for state investment and the prerequisites for the company’s long-term stability. Discussions have focused on the need for well-considered decisions that protect the public interest, strengthen the company’s competitiveness and provide a clear direction for its future development.
“At this stage, it is important to understand not only how much has already been invested in airBaltic, but also what its future business model will look like and how it can achieve sustainable operations. State decisions must be based on clear analysis and set achievable financial and governance objectives,” says Raitis Logins.
As the new financial year began on 1 July, we are providing real estate valuation services to the State Defence Military Facilities and Procurement Centre, JSC “Latvijas valsts meži”, LLC “Rīgas Dzemdību nams”, LLC “PRIMEKSS”, Riga Technical University, LLC “Vidzemes slimnīca”, LLC “Rīgas 1. slimnīca”, JSC “Vector IP”, LLC “Riga Port City”, the City Development Department of Riga City Council, SJSC “Latvijas dzelzceļš”, LLC “Ogres Namsaimnieks”, LLC “Ikšķiles māja”, LLC “Tiesu namu aģentūra” and LLC “Latvijas Mobilais Telefons”.
“Our work is grounded in independent, data-driven and professionally substantiated valuations. We value the trust placed in us by clients across both nationally significant and commercial projects, where precision, industry insight and timely delivery are essential,” says Raimonds Dommers, Head of the Real Estate Valuation Group at Grant Thornton Baltic.
Grant Thornton Baltic’s Real Estate Valuation Team helps businesses and public sector organisations make informed decisions about real estate and assets. Our certified experts provide professional valuations for properties across a broad range of industries — from land and commercial buildings to industrial and engineering infrastructure.
Grant Thornton’s team includes certified experts in the valuation of real estate, movable property, technological equipment and businesses, with more than 25 years of international experience. Our professional standards and expertise are recognised across the industry: our valuation experts are certified by the Latvian Association of Property Appraisers (LĪVA), hold internationally recognised valuation certificates issued by The European Group of Valuers’ Associations (TEGoVA), as well as real estate valuation certificates issued by the Audit, Accounting, Property Valuation and Insolvency Management Service under the Ministry of Finance of the Republic of Lithuania.
Gunita Leite, Accounting Project Manager and Chief Accountant, and Ivanda Liepiņa, Chief Accountant at Grant Thornton Baltic, attended the Grant Thornton International Business Process Solutions (BPS) service line conference in Warsaw. The conference brought together Grant Thornton professionals from 37 countries, providing an opportunity to share experience and discuss the future direction of the industry.
The programme covered change management, the use of artificial intelligence to optimise work processes, and Grant Thornton International’s Global Advisory strategy. Particular attention was given to combining technological development with high-quality client service and the involvement of professional experts.
During practical sessions, participants discussed the use of common digital platforms to serve international clients. Such solutions enable Grant Thornton member firms to share developed products, accumulated experience and best practices more effectively. The conference also explored opportunities to strengthen collaboration between teams in different countries and develop joint solutions for attracting new clients.
One of the conference’s key takeaways was that new technologies must be applied purposefully, with a clear assessment of the benefits they deliver and the investment they require. Artificial intelligence can be a valuable tool for improving the efficiency of everyday processes; however, it cannot replace professional judgement, the ability to assess information and make decisions. Alongside technology adoption, the continuous development of employee competencies therefore remains essential.
Grant Thornton Baltic’s annual leadership conference took place in Vilnius, bringing together partners and service line representatives from Latvia, Lithuania and Estonia. On the first day, working groups discussed the development priorities of each service line; on the main conference day, participants shared their conclusions and agreed on priorities for future collaboration.
The Grant Thornton Global CEO Meeting 2026 took place in Amsterdam, bringing together 120 leaders from across the network. Latvia was represented by Raitis Logins, Managing Partner of Grant Thornton Baltic.
The seminar “Nordic-Baltic Tax Outlook 2025–2026: Tax Authority Practice, Case Law and Legislative Outlook” took place in Tallinn, attracting an audience of more than 400 participants interested in the latest tax developments and upcoming changes across the Nordic-Baltic region.
