We present to your attention a report prepared by the Ministry of Internal Affairs regarding the issuance of investment residence permits.
The report includes statistical data and dynamics of residence permit processing.
When the "golden visa" program was launched, it attracted a large volume of investments.
As the program tightened and the geopolitical situation deteriorated, there were fewer applicants for residence permits.
From 2018 to 2022, the amount of investments attracted through residence permits averaged 31.9 million euros per year.
This is only 10.3% of the investment volume that was attracted in the first years of the program.
Another comparison - in 2014, investments by non-residents applying for residence permits accounted for 11% of the total volume of direct foreign investment in Latvia's economy.
After 2018, this figure does not exceed 0.5%.
This indicates that the "golden visa" program has lost its significance, and residence permits are not a motivating tool for attracting foreign capital to Latvia.
According to the Office of Citizenship and Migration (OCM), non-resident investments directed at obtaining residence permits from July 1, 2010 to December 31, 2022 totaled 1.61 billion euros.
From July 1, 2010 to December 31, 2022, the OCM received residence permit requests from 20,632 people within the investment program (of which 197 were investors and 12,435 were family members).
The majority of investments directed at obtaining residence permits are investments in real estate (the volume of which has significantly declined since 2014). One of the reasons is the changes made to the Immigration Law, which increased the amount of the real estate purchase transaction. An equally important factor is the deterioration of the political and economic situation in the countries where non-residents live.
Given that the majority of residence permit applicants (investors) since the program's inception have been Russian citizens, the decline in investments is related to the economic situation in Russia and the geopolitical situation in the region.
It should be noted that in 2022, amendments to the Immigration Law were adopted, after which the processing of primary residence permits based on real estate was suspended indefinitely (for Russia and Belarus).
The number of foreigners wishing to obtain a residence permit through investment in subordinated obligations of Latvian banks for at least 280,000 euros has also sharply declined. In 2016, 13 applications were received; in 2017 - 12 applications; in 2018 - 2 applications; in 2019 and 2020 no applications were received. In 2021, 2 applications were received; in 2022 no applications were received. This can be explained by measures taken due to enhanced state supervision of the financial sector and strengthened oversight of non-resident deposits in Latvian commercial banks.
As for the geography of investors, 85% of residence permit holders are citizens of former Soviet Union countries. The next large category is citizens of Asian countries.
In 2022, the State Security Service implemented a series of measures within its competence to identify and prevent threats to state security in connection with the entry and stay of foreigners in Latvia. In total, 1,278 people were checked in 2022, and negative conclusions were issued for 152 people.
Despite all the difficulties, we continue to advise our regular clients and resolve various issues related to residence permits!
Source: https://www.pmlp.gov.lv/lv/jaunums/izsniegto-terminuzturesanas-atlauju-skaits-pret-investicijam-latvijas-tautsaimnieciba-ar-katru-gadu-samazinas
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