Latvia is a baltic country, EU member state and a member of Schengen area.
Latvia has one of the earliest countries that established GV program in Europe. The Latvian golden visa scheme officially known as “Latvia investor visa” was launched in July 1, 2010 amending the Immigration Act, to offset 2008 economic crisis. The main idea behind this scheme was to attract foreign investors in order to facilitate Latvia’s economic recovery and growth by activating the real estate market and creating new jobs.
Latvia offers golden visa (residence) to foreign investors who invest in the Latvian economy. Family members also qualify for temporary residence permits in Latvia. Since the launch of the scheme, over 10,000 golden visas have been issued to foreign investors. The PMLP is the only State authority competent to decide on granting residence permits and visas. Latvian diplomatic and consular missions in other countries support the PMLP by acting as intermediaries between applicants and the PMLP.
Latvia has the most affordable golden visa scheme in Europe with a minimum investment. Real estate and bond option are the most popular options.
Benefits
- Cheapest European Golden Visa Program.
- No physical presence required.
- Temporary residence permit for a maximum of 5 years.
- Free movement in Schengen area. Those who hold a residency permit issued in Latvia are allowed to circulate freely in the Schengen area for up to 90 total days in a 180-day period.
- Advantageous tax regime. Latvian residents are liable for personal income tax (PIT) on their worldwide income. Personal income tax rate at 23 %. Dividends received by individuals are taxed at 10 %. Capital gains on disposal of capital assets (e.g. property, shares) are taxed at 15 %.
The following investment options to receive a golden visa in Latvia which offers investment options in real estate , business and guaranteed government stocks.
1. Business Capital
Temporary Residence permit is granted, If the foreigner has invested in the equity capital of a capital company by increasing it, or has invested in the equity capital of the capital company, founding a new capital company, and requesting for the first temporary residence permit has paid EUR 10 000 into the State budget, as well as the investment made is at least:
a) EUR 50 000, and it has been performed in a capital company, which employs no more than 50 employees, the annual turnover or annual balance of which does not exceed EUR 10 million. Upon investing in the equity capital of one capital company, a temporary residence permit shall be issued to no more than 10 foreigners, if each of them has made the investment laid down in this paragraph and paid EUR 10 000 into the State budget,
- 50,000 EUR nonrefundable Share Investment
- 10,000 EUR Sate fee
- 30,000 EUR Security checks, legal fees, processing fee.
b) EUR 100 000 and it has been performed in the capital company, which employs more than 50 employees and total annual turnover or annual balance thereof exceed EUR 10 million,
c) EUR 100 000 and it has been performed in the equity capital of a capital company, which together with one or several subsidiaries registered in the Republic of Latvia employs more than 50 employees and total annual turnover or annual balance thereof exceed EUR 10 million;
Residence permit issued for 5 years under this option
2. Real Estate
Permanent residence is granted, 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:
a) he or she does not have and has never had payment debts of immovable property tax,
b) the total value of immovable properties was paid for by non-cash settlement,
c)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 Latv ia 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,
d) 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,
e) upon requesting the first temporary residence permit, he or she pays five per cent of the value of immovable property into the State budget,
f) the composition of the immovable property does not include land for agricultural use or forest land:
Residence permit granted for 5 years
3. Bank deposit
Permanent residence is granted, if the foreigner has deposited cash with a credit/financial institution of the Republic of Latvia in an amount of not less than 280,000 euros and the term of transaction entered into with such a credit institution is not less than five years and, can request the first temporary residence permit, plus he or she pays EUR 25 000 into the State budget. The bond sum is refundable investment after 5 years (returned).
Biometric Residence permit for 5 years
4. Government bonds
If a foreigner purchases interest-free state securities dedicated to a specific purpose with the nominal value EUR 250 000 and pays EUR 38 000 into the State budget:
- 250,000 EUR interest free Government Bonds
- 38,000 EUR State fee
- 30,000 EUR Security checks, legal fees, processing fee
- 2-4 Month processing time depending on Nationality
- Extendable after 5 years**
Security Checks
The Immigration Law requires prior checks for clean criminal record/ background checks as a criterion for granting a residence permit to investors. The Security Police checks the background of all foreign investors . If the Security Police have concerns about the origins of money , they ask the Latvian FIU to investigate the matter.
In Latvia, tighter background checks were introduced in 2014 following a flood of applications for its RBI scheme that unveiled information leading to an increase in refusals – and even revocation of some permits already granted. The reasons given were the risk of spying and risk to economic security (as many of the applicants could not prove the origin and the legality of their money).
Applicants are screened by the competent authorities. More serious concerns about an individual’s background are handled by the security police. The impact of the Latvian golden visa scheme ‘on the real property market of Latvia was significant. In some regions of Latvia, the share of real property transactions in which foreigners were involved reached more than 50%.
Family members
Relatives can be invited up to second degree relations. Family* is Spouse and Children up to 18 years of age are included and even longer if they are not marred and still depending on the parents.
Permanent residence
After five years of legally living with uninterrupted residence.
Latvian Citizenship
Investors interested in Latvian Citizenship can be obtained in the general procedure. If the investor has resided in the territory of Latvia without interruption for five years with a temporary residence permit, he or she is entitled to request a permanent residence permit, and after another five years to obtain citizenship through the general naturalisation procedure.
To be admitted to the citizenship of Latvia under the naturalisation procedure the person (after 10 years), pursuant to the Law on Citizenship, must:
- be fluent in the Latvian language;
- know of the basic principles of the Constitution (Satversme); know the text of the National Anthem, and the basics of the history and culture in Latvia;
- must prove that he/she has a legal source of income;
- sign a pledge of loyalty to the laws and nation of Latvia;
- provide proof that he/she has renounced his/her former citizenship; this does not apply to citizens of NATO Member States, Australia, Brazil, New Zealand and other countries with whom Latvia has agreements regarding recognition of dual citizenship.