Amendments to the Latvian Immigration Law Have Been Introduced

Today, on 16 June 2011, amendments to the Immigration Law of the Republic of Latvia which anticipate additional conditions for obtaining a temporary residence permit in Latvia took effect. The amendments pertain primarily to the procedure of obtaining the residence permit via purchase of a real property or by investment into the statutory capital of Latvian enterprises.

Thus, in future, a foreign resident who has bought real property in Latvia can apply for a residence permit only when the transaction is concluded with a legal entity registered in Latvia, a Latvian resident, an EU citizen or foreigners who stay in Latvia based on a valid residence permit.

Furthermore, when considering an application for obtaining a residence permit, not only the transaction amount will be taken into consideration, but also the cadastral value of the real estate: in Riga, the Riga District and cities of republican status, it should exceed LVL 30 thousand (~ EUR 43 thousand), and in the rest of the country, it should exceed LVL 10 thousand (~ EUR 15 thousand). If the cadastral value is below the required amount, the total cost of the real property should not be below the market value indicated by a certified appraiser.

The conditions regarding investments of foreign residents into the statutory capital of Latvian enterprises have been changed as well. In accordance with the adopted amendments, investments into an existing Latvian company in the amount of LVL 25 000 can now be the basis for obtaining a residence permit only when the funds are invested in a small enterprise (with the staff not exceeding 50 persons, and the annual turnover not exceeding LVL 7 million). In all other cases, the minimum amount of investments should be LVL 100 thousand.

The Article of the Law regarding obtaining a residence permit based on placing funds in a bank as a subordinated capital is left with no changes. In this case, the investor is still required to invest LVL 200 000 (about EUR 285 thousand) for a minimum term of five years.

In spite of contradictory assessments of the adopted amendments in the professional environment, experts of Baltic International Bank believe that the changes in the law will allow regulating the residence permit procedure and will make it more transparent.

The amendments to the Immigration Law of the Republic of Latvia which opened new opportunities for foreign investors to obtain a residence permit in Latvia for the period of five years were adopted on 1 July 2010.