Residence permit through investments

A residence permit is a document that gives a foreign citizen the right to temporarily (a temporary residence permit) or permanently (a permanent residence permit) stay in the Republic of Latvia.

A residence permit is necessary if you are willing to reside in the Republic of Latvia for a period of time exceeding 90 days within half a year counting from the first day of entrance.

Latvian business migration program

Latvian business migration program was introduced in 2010. The amendments to the Immigration Law of the Republic of Latvia came into force expanding the possibilities to obtain a residence permit in Latvia for foreigners who want to stay and move freely within the Schengen area.

The temporary residence permit is issued for up to five years. It should be registered each year at Latvian Migration Office.

The uniqueness of these amendments lies in the fact that a new method for obtaining a residence permit was introduced – investing in real estate. It has attracted a large number of investors, because a foreigner investing in real estate (that can be used for profit) has the possibility to move freely within the Schengen area under the condition that he or she has a passport and sufficient financial means. Citizens of the Russian Federation are especially interested in using this possibility, as Latvia is located in the vicinity and is a tourist destination due to its unique cultural monuments, well-known resorts and international festivals.

Law requirements for foreign investors

A temporary residence permit may be obtained by:

*) Investing in real estate after 1 July 2010;

*) Investing in Latvian credit institutions;

*) Investing in the equity capital of an enterprise.

The residence permit should be registered each year. At the registration moment Migration Officer examines whether the foreigner qualifies with law requirements.

Conditions on investing in real estate:

*) the total amount of transaction (involving one or several real estates) must be at least LVL 100,000 (approx. EUR 143,000) in large cities or at least LVL 50,000 (approx. EUR 72,000) in other places;

*) only non-cash funds may be used for purchasing real estate;

*) a foreigner does not have and has never had any debts of payments of real estate tax in Latvia;

*) the transaction is concluded after 1 July 2010;

*) a residence permit is issued after registering the ownership in the Land Register.

Conditions on investing in the equity capital of Latvian company:

*) the amount of investment must be at least LVL 25,000 (approx. EUR 36,000);

*) the amount of taxes payable for the next year must be at least LVL 20,000 (approx. EUR 28,600).

Conditions for residence permit for foreign directors and board members:

*) Company is registered with Commercial Registry one year before, with some exceptions

*) Company runs real business

*) Activity of the company gives economic benefit for Latvian economy in terms of taxes and employment.

The officials of the company receives a mark BUSINESS in the residence permit, thus it is not necessary to apply for work permit.

Conditions on investing in Latvian credit institutions:

*) the amount of financial investments must be at least LVL 200,000 (approx. EUR 286,000);

*) the term of transaction must be at least five years without the right to terminate it prior to the term of repayment of the deposit. Conditions on investing in the equity capital of an enterprise:

*) the amount of investment must be at least LVL 25,000 (approx. EUR 36,000);

*) the amount of taxes payable for the next year must be at least LVL 20,000 (approx. EUR 28,600).