As of July 1, 2010 foreigners may obtain a temporary residence permit in Latvia, for a period of up to 5 years, by purchasing real estate or by investing in companies or credit institutions. Additionally, family members of this person may also acquire residence permit (spouse and children under 18).
Temporary residence permit in Latvia serves as a gateway to all other member States of the Schengen zone. A person, holding a temporary residence permit for one of the member States of the Schengen Agreement, has the rights to reside in other Schengen Agreement member States as well. Most of the European Union member States are also parties to the Schengen Agreement, with the only exceptions being – Bulgaria, Ireland, Cyprus, Britain and Romania. European countries which are not members of the European Union but are parties to the Schengen Agreement are –Iceland, Norway, Switzerlandand and Liechtenstein.
Purchase of real estate
There are two options of how to acquire a temporary residence permit on the basis of a real estate purchase:
1. Purchasing real estate in Riga Planning Region or any of the cities of the Latvian Republic (these are – Daugavpils, Riga, Jelgava, Jurmala, Liepaja, Rezekne, Valmiera and Ventspils), if the total value of the property is not less than LVL 100 000 (approximately USD 175 000 or EUR 143 000). Cadastral value should not be less than LVL 30 000.
2. Purchasing real estate in other places in Latvia if the total value of the property is not less than LVL 50 000 (approximately USD 87,000 or EUR 71 000). Cadastral value should not be less than LVL 10 000.
It should be taken into account, that when making purchase of a land plot, foreigners first need to acquire consent from the local municipality.
Investment in Latvian companies
To receive a temporary residence permit by investing in an already existing Latvian company or by establishing a new company in Latvia, the person must:
- invest at least LVL 25 000 (approximately USD 44,000 or EUR 36 000) in a company with no more than 50 employees and with the annual turnover not exceeding LVL 7 000 000, and which pays at least LVL 20 000 in taxes per year, or
- make an investment of at least LVL 100 000.
Investment in Latvian credit institutions
Residence permit in Latvia can be obtained by investing in a Latvian credit institution, which means that the person gives the bank a subordinated loan of LVL 200 000 (approximately USD 350 000 or EUR 286 000), provided that the period of the loan is not less than 5 years and the loan can not be redeemed before maturity.
The necessary documents
The person submits all the necessary documents in the Latvian embassy, regardless of the fact whether the person at the time of the document submission is situated in any of the Schengen zone countries (in case the person has a visa or a temporary residence permit for any of the Schengen Agreement countries) or somewhere outside the Schengen zone. The new regulation which is currently in force stipulates that a person may acquire a temporary residence permit in a Latvian embassy in Latvia, whereas the previous regulation required that a person could obtain a temporary residence permit only in a Latvian embassy outside Latvia.
Regardless of the particular way, in which the person is seeking to obtain the residence permit – through real estate purchase, investment in Latvian company or investment in Latvian credit institution – the following documents must be submitted:
- passport copy (original passport has to be produced by the submission of the copy);
- completed form with a photo;
- documents confirming that the person will have the necessary funds to sustain himself/herself while staying in Latvia – the minimal amount of the necessary funds is specified in law (e.g., bank statement);
- documents indicating the exact place of residence in Latvia(lease agreement, consent of a lessor, statement from the Land Book registry etc.);
- documents which prove the existence of the particular transaction, which has to be made in non-cash payment is the basis for acquiring the residence permit – real estate purchase, investment in Latvian company or investment in Latvian credit institution;
- marriage certificate and/or childrens’ birth certificates (if the person is also seeking to obtain temporary residence permits for family members);
- document indicating the payment of the state fee;
- Land Book registry document stating that the person is a property owner in Latvia(if the person is seeking to obtain the residence permit through real estate purchase);
Document indicating that the person has not been charged with any kind of criminal offence and which has been issued less then 6 months ago (only has to be submitted by persons who are more than 14 years old and who need to be holding a visa for entering Latvia)
All documents issued abroad must be legalized.
Receipt of the temporary residence permit
The particular State institution where the person must go to receive the residence permit will be indicated in the decision, regarding the issuing of the temporary residence permit, which will be sent to the person. If the person is holding a visa or a temporary residence permit for entering Latvia, then the person may travel to Latvia and receive the residence permit there. However, if the person is holding no valid document for entering Latvia, then the person must go to Latvian embassy and request a visa for Latvia.
Upon the receipt of the temporary residence permit the person must produce a valid health insurance document (with a limit of LVL 30 000 per year) and a statement from Latvian health care authorities stating that the person does not suffer from tuberculosis.
Person who has received a temporary residence permit must travel to Latvia each year and register the residence permit.
