Currently, the Latvian government is considering amendments to the residence permit law. These changes may affect foreign nationals who purchased real estate and wish to obtain a temporary residence permit.
These issues will not affect foreign nationals who already have a temporary or permanent residence permit.
KOM-INVEST has prepared a summary of the issues being considered by the government. The summary was prepared based on publicly available information (news from the official Latvian government website, media reports).
Main Issue: Changes to temporary residence permit criteria.
As is known, on November 9, 2013, Latvian President Andris Berzins did not approve the amendments to the Immigration Law initiated by the Latvian Saeima, which provided for the introduction of quotas for applicants seeking a temporary residence permit based on acquired real property, as well as the introduction of a new additional requirement - a one-time contribution of 25,000 euros to a special state fund.
Since Latvian President Andris Berzins did not approve the aforementioned amendments, the Latvian Saeima was scheduled to review the president's remarks on January 30, 2014, and agree on amendments that would satisfy both the Latvian Saeima and the president. However, on January 30, 2014, consideration of the amendments was postponed to April 10.
Today, April 9, it became known that the amendments will come into force no earlier than July 1 (currently the government is still discussing the date, with possible dates of July 1, August 1, or January 1, 2015).
Information about current criteria for obtaining a temporary residence permit based on acquired real property can be found
The amendments provide for:
1) Increase in the real estate purchase amount. Now, the purchase amount will be uniform throughout Latvia. The real estate purchase amount will increase and will be no less than 250,000 euros. Thus, the condition that allows purchasing real estate in certain Latvian regions for 71,150 euros will be eliminated. The purchase amount, regardless of location, will be no less than 250,000 euros.
2) Increase in the cadastral value of real property. Now, the cadastral value of the property will be uniform throughout Latvia. The cadastral value will increase and will be 80,000 euros. If the cadastral value is lower, an appraisal of the market value of the real property will be required for an amount of no less than 250,000 euros.
3) Introduction of a new criterion. In addition to the purchase amount, the real estate buyer will be required to pay 5% of the purchase amount to a special state fund. This amount will be paid once and will not be refunded.
For example: if the real estate purchase amount is 250,000 euros, the buyer will need to pay an additional 12,500 euros to the special state fund. Thus, total expenses will amount to 262,500 euros.
As noted above, the amendments will not affect foreign nationals who already have a temporary or permanent residence permit.
The exact dates when the amendments come into force will be announced shortly.