Important Information about Residence Permits in Latvia

KOM-INVEST invites you to learn interesting information related to residence permits and to the Immigration Law that will take effect on September 1.

1) Investment volume: As of June 12, the volume of financial investments related to the residence permit program exceeded one billion euros. 82.3% of this amount was spent on real estate acquisition; 12.4% of this amount was invested in banks; 5.3% was invested in Latvian companies.

The number of investors who acquired real estate and requested a residence permit is 4,300 people (excluding family members).

The total number of investors who have obtained a residence permit based on real estate, bank deposits, and business (as of early July): 12,150 people (including the investors themselves as well as their family members).

2) Nuances related to Immigration Law amendments:

In the new version of the law, it is stated that for the amount of 250,000 euros, one real estate object can be purchased. Often, in new construction, a buyer purchases an apartment, a parking space, as well as shares of land. Is this considered one object or three different objects?

The Department of Citizenship and Migration recently clarified that such property (apartment, parking space, and land shares) will be considered one object. Thus, if the purchase price of an apartment is 240,000 euros, the purchase price of a parking space is 6,000 euros, and the purchase price of land is 4,000 euros (totaling 250,000 euros), a residence permit can be obtained provided the required criteria are met.

In the new version of the law, it is stated that for the amount of 250,000 euros, a developed real estate object can be purchased. Clients sometimes ask the question: can a residence permit be obtained if a building or house is purchased that is already registered in the land register (more information about the land register - http://kominvest.com/mehanizm-sdelki/ ), but that has not yet been put into operation?

The Department of Citizenship and Migration recently clarified that a residence permit can be obtained based on such an object provided the required criteria are met.

However, a residence permit cannot be obtained if a land plot is purchased that has only the foundation of a house or building (since this is only a foundation, the land register indicates only an empty and undeveloped plot of land).

3) Rating of the 5 most popular countries whose citizens have obtained residence permits in Latvia: Russia, China, Ukraine, Uzbekistan, Kazakhstan.

4) Interesting cases related to obtaining a residence permit.
The Department of Citizenship and Migration recently reported on several interesting cases related to obtaining a residence permit.

20 people (Chinese citizens) invested money in the share capital of one company (all "investors" made contributions to the share capital of the same company).

Amendments have now been introduced stipulating that no more than three investors can be in one company.

Documents were submitted for a transaction where a foreigner purchased an apartment in a Soviet-era panel building for 142,300 euros.

Naturally, the foreigner was denied a residence permit because this was a fictitious transaction. Formally, the transaction met the criteria of the Immigration Law; however, it is obvious that the fair market value of an apartment in an unrefurbished Soviet-era building cannot be 142,300 euros.