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Investor Golden Visa In Latvia

Latvia introduced its golden visa programme in 2010. If the foreigner in Riga or Jurmala, or in Adazi, Babite, Baldone, Carnikava, Garkalne, Ikskile, Kekava, Marupe, Olaine, Ropazi, Salaspils or Stopini municipalities has acquired and owns one functionally connected immovable property (with exception of the case when the immovable property represents a vacant land), which value is at least EUR 250 000, or outside the said administrative territories – no more than two immovable properties (with exception of the cases when the immovable property represents a vacant land) and each of them represents one functionally connected immovable property, total value whereof is at least EUR 250 000, if conditions as follows are present at the same time:

He or she does not have and has never had payment debts of immovable property tax,
the total value of immovable properties was paid for by non-cash settlement,
immovable property which has been acquired from a legal person registered in the Republic of Latvia or a European Union Member State, European Economic Area State or the Swiss Confederation, which is a taxpayer in the Republic of Latvia within the meaning of the laws and regulations governing the field of taxes of the Republic of Latvia, or from a natural person who is a citizen of Latvia, a non-citizen of Latvia, a citizen of the European Union or a foreigner who is staying in the Republic of Latvia with a valid residence permit issued in the Republic of,
The cadastral value of immovable property at the time of acquisition thereof was not less than EUR 80 000. If a foreigner has acquired two immovable properties outside Riga or Jurmala, or in Adazi, Babite, Baldone, Carnikava, Garkalne, Ikskile, Kekava, Marupe, Olaine, Ropazi, Salaspils or Stopini municipalities, cadastral value of each immovable property at the time when it is acquired is at leastEUR 40 000. If the cadastral value is less than that indicated in this Sub-paragraph, the value of immovable property may not be less than EUR 250 000 according to the market value of immovable property determined by a certified assessor of immovable or, if a foreigner has acquired two immovable properties, — the market value of each immovable property may not be less than EUR 125 000,
upon requesting the first temporary residence permit, he or she pays five per cent of the value of immovable property into the State budget,
the composition of the immovable property does not include land for agricultural use or forest land

In addition, there is a government processing fee of €25,000 or 5% of the property value.

KEY FACTS

Investment of €250,000

Full family residency

Flexible. No requirement to reside.

Renewable after 5 years

EU Schengen visa travel

Eurozone currency

Latvia is part of the Eurozone and is also a Schengen visa zone country. Hence residency in Latvia enables investors to travel throughout the EU Schengen visa zone. Applicants can apply for permanent residency after five years but must have lived in the country for most of that time. The Latvian capital Riga is just 90 minutes by air from Moscow.  Most of the residents in Latvia speak Russian and Latvia is a popular destination for Russians seeking investor visas, residency and citizenship in Europe.

Permanent residence

The applicant can apply for Latvian Permanent Residence after they have resided in the country for a minimum of five years. They must have resided in the country for a minimum of four of those years, have knowledge of the language, general history and national anthem.

Citizenship

Applicants can apply for citizenship in Latvia after 10 years of residence.

Residence permit in Latvia based on financial investment in a Latvian bank

Acquisition of a residence permit based on investment a Latvian bank is often a superior option for those who are looking to obtain a residence permit while ensuring a stable investment with a guaranteed return, rather than exposing themselves to the possible variable gains sometimes seen when investing in real estate. Statistics show that this type of investment is generally a less common way to obtain a residence permit when compared to purchasing real estate, however, there are several peculiarities of the scheme available in Latvia that makes this option the best solution for some investors.

Financial investment in a Latvian bank

In order to apply for a residence permit in Latvia based on financial investment in a bank you need to place with a bank at least EUR 280,000 in the form of subordinated capital and pay a state fee of EUR 25 000 to the government. The subordinated capital is funds that the bank is borrowing from a customer for a term of at least 5 years (Like a Corporate Bond – but where the corporation is a bank). If you choose this option, then you should know that the term of your residence permit will be the same as the term of the subordinated capital (The length of the Bond). The banks usually take all the risks. Also, it’s worth noting that the bank pays you interest, like with any other bond, so it can be a good, low risk way to ensure a return on your investment and increase your capital over time at the same time as obtaining your residence permit. The interest rate will be agreed in advance, and therefore this option effectively guarantees the amount of return on your investment, while perhaps not providing the same level of liquidity you see with a real estate purchase – where you have the option to sell at any time

During the last year only 208 investors submitted a request for a residence permit based on investment made in Latvian banks. Since 2010 the total amount of investment is estimated to be around 75.7 million euros

Choosing between the available options can be difficult and requires a close examination of your needs and circumstances. We can help you choose the most suitable solution to satisfy your needs by providing a consultation and making all necessary calculations. We can also provide full legal support for any other part of the process of getting set up so that your investment and residency is a pleasant and stress-free experience

Each of these routes comes with its own pros and cons. We can help you choose the best option for you.

According to statistics from the State Land Service, since the regulations regarding the granting of residence permits based on the acquisition of real estate came into force, almost 500 million Lats have been invested in Latvia. According to reports from the Office of Citizenship and Migration Affairs, only 3.4% of applications based on real estate were denied, and all of these were due to the provision of false information during the application process or for other exclusions which are listed in the official regulations which meant that the investor did not originally qualify to apply.

For many, the biggest advantage of the residence permit in Latvia, is that you are entitled to enter other Schengen countries without any visas or other formal registration, which makes it trouble free for you to oversee your business in Europe as well as to travel without ever needing to think about preparing documents and visiting an embassy.

However, there are other advantages as well:

The opportunity to invite relatives for visa purposes, up to and including second degree relatives.

A simplified procedure for receiving visas for a number of countries outside the Schengen zone. (USA, Canada, New Zealand etc.)

Automatic provision of a residence permit for your spouse and underage children.

The right to receive discounted or free education within the European Union.

New commercial opportunities within the European Union.

The holder of a Latvian residence permit is also entitled to social privileges, such as medical treatment, maternity benefit, unemployment benefit, etc.

The holder of a Latvian residence permit is entitled to almost all of the rights normally granted to citizens of Latvia, except the right to vote and to participate in elections and to hold positions in governmental institutions and other state authorities.

The opportunity to receive a driver’s license in Latvia.