5-Year Residence Permit

(as of 01.09.2017)

Starting from 2010 foreign inverstors have been able to receive a 5-year residence permit in Latvia by:

  • investing in the share capital of a company
  • investing in real estate
  • investing in state securities
  • investing in a credit institution

 

Why Latvia

  • Residence permit allows to travel freely within the Schengen area. Having a Latvian residence permit you don’t have to reside in the country.
  • Residence permit is issued for 5 years. All procedures take just from 5 up to 30 days.
  • After the expiry of a 5-year temporary residence permit you can apply for a permanent residence permit in Latvia, and after the expiry of a 5-year permanent residence permit – for Latvian citizenship (EU).
  • Residence permit in Latvia can be also received by a foreign investor’s spouse and minor children or children of an investor’s spouse (including children under the guardianship), and persons that are under the custody of such investor.

 

 

Investing In The Share Capital Of A Company


  • investment by increasing the share capital of a Latvian company
  • investment by creating a new Latvian company
  • payment of 10 000 Euro to the state budget when applying for a residence permit for the first time

 

50 000 Euro, provided that

  • a Latvian company has no more than 50 employees
  • the annual turnover or annual balance does not exceed 10 million Euro
  • when making investment in the share capital of one company, a residence permit is issued to max 10 investors, if each of them has invested and paid to the state budget 10 000 Euro
  • a total of taxes annually paid by a company to the state or local budgets amouts to at least 40 000 Euro
  • an average total of taxes monthly paid by a company to the state or local budgets for the first incomplete tax year as from the date of issue of a residence permit amouts to at least 3300 Euro
  • if an investor is a company’s employee – his/her monthly salary shall be at least 818 Euro

 

100 000 Euro, provided that

  • a Latvian company has more than 50 employees
  • the annual turnover or annual balance exceeds 10 million Euro
  • a total of taxes annyally paid by a company to the state or local budgets amouts to at least 100 000 Euro
  • an average total of taxes monthly paid by a company to the state or local budgets for the first incomplete tax year as from the date of issue of a residence permit amouts to at least 8300 Euro
  • if an investor is a company’s employee – his/her monthly salary shall be at least 818 Euro

 

100 000 Euro, provided that

  • investment is made in the share capital of a Latvian company, which together with one or several subsidiaries registered in the Republic of Latvia employs more than 50 employees
  • their annual turnover or annual balance exceeds 10 million Euro
  • a total of taxes annyally paid by the companies to the state or local budgets amouts to at least 100 000 Euro
  • an average total of taxes monthly paid by the companies to the state or local budgets for the first incomplete tax year as from the date of issue of a residence permit amouts to at least 8300 Euro
  • tax payments made by the subsidiaries registered in the Republic of Latvia are also included into the total tax amount
  • if an investor is a company’s employee – his/her monthly salary shall be at least 818 Euro

 

 

Investing In Real Estate


250 000 Euro, provided that

  • an investor has acquired and owns one functionally connected real estate in Riga or Jurmala, or in Adazi, Babite, Baldone, Carnikava, Garkalne, Ikskile, Kekava, Marupe, Olaine, Ropazi, Salaspils, Saulkrasti or Stopini.

250 000 Euro, provided that

  • an investor has acquired property outside the abovesaid administrative territories
  • there are no more than two real estate acquired (except where the real estate represents vacant land)
  • each of them represents one functionally connected real estate

 

The following conditions shall be observed at the same time:

  • an investor has no outstanding real estate taxes
  • the toal value of real estate is paid by non-cash transfer
  • real estate is acquired from a legal entity registered in the Republic of Latvia or in the EU Member State, European Economic Area State or the Swiss Confederation, which is a taxpayer in the Republic of Latvia, or from an individual, 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 Latvia
  • cadastral value of real estate at the time of its acquisition amounts to at least 80 000 Euro. If an investor has acquired two real estate outside Riga or Jurmala, or outside Adazi, Babite, Baldone, Carnikava, Garkalne, Ikskile, Kekava, Marupe, Olaine, Ropazi, Salaspils, Saulkrasti or Stopini, cadastral value of each real estate at the time of acquisition is at least 40 000 Euro. If the cadastral value is less than that indicated in this clause, the value of real estate shall not be less than 250 000 Euro in accordance with the market value of real estate determined by a certified appraiser or, if a foregner has acquired two real estate – the market value of each real estate shall not be less than 125 000 Euro
  • when applying for a residence permit for the first time, an investor pays 5% of the value of real estate to the state budget
  • real estate does not include agricultural lands and forests

 

 

Investing In Credit Institution


280 000 Euro

  • investment in a Latvian credit institution in the form of subordinated deposit
  • the term of deposit is not less than 5 years
  • when applying for a residence permit for the first time, an investor pays 25 000 Euro to the state budget

 

 

Investing In State Securities


250 000 Euro, provided that

  • an investor, in accordance with the securities regulations, for a specific purpose purchases interest-free state securities at nominal value
  • when applying for a residence permit for the first time, an investor pays 38 000 Euro to the state budget
  • the Cabinet of Ministers is entitled to decide to suspend the issue of securities, if according to the Minister of Finance such issue threatens to the national debt ceiling at the end of the year, which was determined by the law in the annual state budget

An investor has a right to apply for a residence permit for the second time subject to the necessary requirements, and when receiving his/her second residence permit he/she shall pay 5000 Euro to the state budget. If the second residence permit is requested after 90 days from the expiry of the previous residence permit or the investment object has been changed, it is needed to follow the requirements as if applying for a residence permit for the first time.

 

Residence permit – other options

 

An officer in a company or subsidiary – a residence permit for 5 years


  • for the term of office, but not more than 5 years
  • if an investor is registered with the Register of Enterprises of the Republic of Latvia as a member of the board, attorney-in-fact (procurator), administrator or liquidator with the right to represent a company
  • or a person authorized to represent a company in matters concerning its subsidiaries
  • if a company or its subsidiary has been registered with the Register of Enterprises for at least one year prior to application for a residence permit
  • if a company actively conducts its business, thereby providing economic benefits to the Republic of Latvia
  • if an officer is employed at a LLC registered with the Register of Enterprises, this provision shall apply when a LLC’s share capital amounts to at least 2800 Euro
  • when applying for the second residence permit, an investor shall confirm that during the whole validity period of his/her residence permit the company has paid the total of taxes in the amount of at least 21 350 Euro to the state or local budgets for each previous tax year. And that for the first incomplete tax year from the moment of issue of a residence permit the company has paid the average total of taxes in the amount of at least 1750 Euro to the state or local budgets
  • if an investor is a company’s employee – his/her monthly salary shall be at least 1636 Euro

 

 

If you have any further questions, please contact the specialists of Eurocollegia.

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