One of the main factors in promoting foreign investment in a country is the creation of legal provisions guaranteeing an equal footing for domestic and foreign investors. To achieve this, the Law On Foreign Investment in the Republic of Latvia has been in force since 1991 to regulate the application of national legislative norms to foreign investors.

Overseas investors can be assured that these investment provisions will not suddenly disap-pear. Their application is guaranteed by legal provisions which stipulate that, even if subsequent legislation worsens the conditions for foreign investment, legislative enactments that were in force at the time of the initial investments will continue to apply for a period of 10 years. Upon joining the European Union (EU), the principles of freedom of establishment and freedom to provide services also became applicable in Latvia.