Latvia Residency By Investment Program | A Complete Guide
Latvia’s Residency by Investment Program: An Overview
Latvia has been operating what is arguably the most cost-effective residency by investment program in the EU since 2010. This initiative allows non-EU investors to swiftly secure a five-year Latvian residency permit through various avenues, including purchasing real estate, making bank deposits, investing in businesses, or acquiring government bonds.
Currently, Latvia’s Residency by Investment Program offers four distinct investment pathways for applicants from outside the European Union:
1. Real Estate Acquisition: Invest a minimum of €250,000 in local real estate (excluding agricultural or forest land) and incur a one-time 5% property acquisition tax.
Investors are required to purchase property from an EU citizen residing in Latvia or an existing Latvian residency permit holder; direct purchases from Latvian citizens are not permitted under this program.
2. Company Share Investment:
Invest €50,000 into the share capital of a local company that generates at least €40,000 in annual tax payments and has an annual budget under €10 million. This option also entails a one-time government fee of €10,000.
Alternatively, an investment of €100,000 can be made into a Latvian company or a Latvian branch of an international company, provided it has an annual budget exceeding €10 million and employs more than 50 people.
3. Bank Deposit: Place a deposit of €280,000 into a Latvian bank account, alongside a one-time government fee of €25,000.
4. Government Bond Purchase: Acquire €250,000 worth of specially designated, zero-interest government bonds, accompanied by a one-time government fee of €38,000.
To maintain the Latvian residency by investment status, permit holders must continuously uphold their chosen investment until they qualify for permanent residency or citizenship.
Beyond the investment criteria, applicants must also demonstrate sufficient financial capacity to support their living expenses in Latvia:
- For a single applicant: an annual income exceeding €15,480.
- For a married couple applying jointly: an annual income exceeding €20,640.
- For a family of three: an annual income exceeding €22,188.
Program Status: Investor Trends
Statistics up to 2023 reveal that over 19,100 investors secured Latvian residency through the investment visa program between 2010 and 2023. The breakdown of preferred investment methods during this period shows:
55% of investors chose the real estate investment option.
43% opted to invest in establishing a company.
Only 2% of investors selected either the bank deposit or government bond options.
This trend continued into 2024, with 30 investment visa applications approved. Of these:
22 applications were for the business investment option.
8 applications were for the real estate option.
Notably, no applicants chose the deposit or bond options during this period.
For the 2023-2024 fiscal year, the primary countries of origin for these investors were Vietnam, China, Ukraine, Turkey, and India.
Application Process: A Step-by-Step Guide
The application for Latvia’s Residency by Investment program operates on a “prior investment, then review” model. The procedure primarily involves two key stages:
1. Application Submission
Applicants must first compile all requisite documentation, select and complete their chosen investment, and accurately fill out the application forms. Subsequently, an appointment should be scheduled for submission at either a Latvian embassy or consulate abroad, or directly at the Office of Citizenship and Migration Affairs within Latvia. The applicable fees must also be settled at this stage.
Required documents for the application includes:
Applicant Identification: This necessitates copies of passports for all primary and dependent applicants, along with one passport-sized photograph per individual. Documents verifying relationships, such as birth or marriage certificates, are also required for dependents.
Completed Application Forms.
Proof of Funds: Documentation, issued within the preceding three months, must be provided to attest to the legitimate and sufficient origin of funds for both the investment and the sustenance of living expenses in Latvia.
Proof of Investment Completion.
Medical Examination Certificate.
Criminal Record Certificate: All primary and dependent applicants aged 14 and above must submit a criminal record certificate from any country where they have resided for over one year within the last decade.
Health Insurance Coverage: Proof of valid Schengen-area health insurance, covering each primary and dependent applicant for each year of the visa’s validity, is mandatory.
2. Residence Card Issuance
Upon approval by the Latvian government, the primary applicant and their family will be issued a Type D visa, facilitating entry into Latvia. Upon arrival, a visit to the relevant local authorities is required for fingerprinting and the subsequent issuance of the five-year Latvian residence card.
Typically, the Latvian government aims to process applications within 30 to 90 working days. Following approval, the production of the residence card is generally completed within an additional 10 working days.
Dependents:
With Latvia’s Investment Visa, the main applicant can include their spouse, children under 18, and other direct relatives with physical or mental disabilities as dependent applicants to receive the visa together.
Visa Validity:
Latvia’s Investment Residency permit is valid for five years. After it expires, permit holders can continue to renew it indefinitely under the original conditions, provided they meet the minimum residency requirement of visiting Latvia at least once per year.
After legally residing in Latvia for five years, spending at least six months there each year, and with total absences not exceeding 12 months within those five years, foreigners become eligible to apply for Latvian permanent residency, provided they also achieve at least an A2 level in Latvian.
If you reside in Latvia for more than 183 days each year, you’ll become a Latvian tax resident, and For annual income up to €105,300, the personal income tax (PIT) rate is 25.5%. For income exceeding that, it’s 33%..
Latvian permanent residents can apply for naturalization after another five years of legal residency, again spending at least six months there annually with total absences not exceeding 12 months. They’ll also need to pass a basic test on Latvian history, culture, and government, demonstrate an A2 or higher level of Latvian proficiency, and be able to sing the Latvian national anthem.