New Opportunities for Foreign Investors
Changes to the Immigration Law of the Republic of Latvia came into effect on 1 July 2010. The revised law greatly expands the opportunities of obtaining a valid residence permit by foreign nationals (investors) and their family members.
The amended law enables foreign nationals to apply for a temporary residence permit in connection with the purchase of real property, investments in the secondary capital of credit institutions (subordinated debt investments) and equity investments in companies and enterprises (the amendments are applicable to real estate transactions and investments made after 1 July 2010). Foreign nationals are granted the right to apply for a temporary residence permit allowing them to reside in Latvia 5 years if they satisfy the following eligibility criteria:
The total value of real estate purchases in Riga, the Riga District and major cities is not less than 100,000 lats (~ EUR 145,000) and not less than 50,000 lats (~ EUR 72,000) if the property is located outside the designated areas. Subordinated debt investments in any credit institution in Latvia is not less than 200,000 lats (~ EUR 285,000), with investment horizons of not less than 5 years. Equity investments in Latvian companies (enterprises) total not less than 25,000 lats (~EUR 35,000), subject only to the condition that the amount of taxes the company (enterprise) pays during a business year is not less than 20,000 lats (~ EUR 28,000).
For more information about the legislative changes and these featured opportunities, please get in touch with your private banker.