In just over 4 years since the temporary residence issue program’s launch real estate investments have reached 1,010 MEUR (831m EUR through real estate).
From 1 July 2010 to 1 July 2014 12,893 temporary residence applications were submitted to Citizenship and Migration Board by the foreign investors (including through purchase of real estate –10,147).
The vast majority of real estate appealing to foreigners (up to 80%) is located in Riga and Jurmala. A little more than 15% – not farther than 50 km away from Riga. Purchases in other regions are rare in comparison.
The residence permit of the Republic of Latvia automatically guarantees free movement of persons within the Schengen area, currently consisting of 25 European countries. Temporary residence permit will be available both for investors and their family members – spouses, underage children and persons that are under the surveillance/official care of such investors. Upon expiry of the term of residence permit investors and their family members are eligible to apply for the renewal.
According to amendments to the Immigration Act, which came into force on September 1, 2014, foreigners who bought real estate or placed a subordinated deposit with the Latvian Bank or invested in the fixed capital of an legal entity – resident of Latvia – can qualify for the Residence Permit (RP) in Latvia. In all three cases, the foreigner may obtain the RP for 5 years, which can be renewed annually and gives the right to move freely within the Schengen zone. The RP is also issued to all investor’s family members – his/her spouse, children (including those under guardianship) and persons under care. Furthermore, the investor and his/her spouse receive a permission to work in Latvia.
Fulfilment of one of the following criteria gives the right to apply for a 5-year residence permit in Latvia:
1. Placement of term deposit (12% of issued RP’s)*
|2. Investment in real estate (83% of issued RP’s)*||3. Business establishment (5% of issued RP’s)*|
|Subordinated term deposit ≥ 200 000 LVL or equivalent in EUR, USD at the current rate of the Bank of Latvia (~ 280 000 EUR, ~ 400 000 USD) Term ≥ 5 years||Cost ≥ 250 000 EUR in Riga, in big cities of Latvia and regions.||
Invest in Latvian enterprise ≥ 35 000 EUR. Taxes per year ≥ 40 000 EUR.
+ Fast registration
+ Small but relatively stable income
-Exposure to the risk of the credit institution where deposit placed
– Freezing of assets for at least 5 years
– The most expensive way to get the RP
– One-time RP request fee in the amount of 25 000 EUR
+ Fast registration
+ Elite property for work and relaxation in the EU
+ High-quality assets with versatile income possibilities
– Requires a certain participation of the investor when choosing real estate
+ The least expensive way to get the RP
– The most prolonged procedure for obtaining the RP (up to 1 year)
– Such company needs to be managed and monitored
– Restricting criteria during the registration/purchase of the company
– to travel freely within the Schengen zone.
– to stay on the territory of other Schengen states, as well as in Switzerland, Norway and Iceland for a period of 90 days during each half-year period.
– to acquire vehicles registered in Latvia and use them on the territories of other countries without paying customs duties.
– to receive a driver’s license valid in all EU countries without any restrictions.
– to work in Latvia. This right does not apply to other Schengen countries.
– to receive (after 5 years) a Permanent Residence Permit in Latvia granting a status of the permanent resident of the European Union.
2. The following necessary papers must be gathered:
b. A document certifying a place of residence in Latvia;
c. A document certifying the availability of funds for living expenses in Latvia (bank statement).
4. A state duty for the review of documents must be paid.
5. All necessary documents are submitted to the Ministry of Internal Affairs of the Republic of Latvia.
6. When receiving the Residence Permit, you must have a health insurance policy and a medical certificate stating that you have no tuberculosis in active phase.