IValue of which is ≥ 250 000 EUR
Real estate cadastral value ≥ 80 000 EUR (or if below - certified uppraisers property valuation),
State duty: 5% of real estate value
There Are Compulsory Conditions For Receipt Of Temporary Residence Permit Through Real Estate Purchace
- One functionally related built-up real estate and it must not comprise agricultural land or wooded land;
- The real estate which has been acquired from a legal person registered in the Republic of Latvia or a European Union Member State, European Economic Area State or the Swiss Confederation, which is a taxpayer within the meaning of the laws and regulations governing the field of taxes of the Republic of Latvia, or a natural person who is a citizen of Latvia, a non-citizen of Latvia, a citizen of the Union or foreigner who is staying in the Republic of Latvia with a valid residence permit issued in the Republic of Latvia;
- Foreign citizen does not have and never had a debt on payments for the real estate tax in Latvia.
- The payment of the real estate full amount should be made in the form of non-cash payment.
- Upon applying for a first temporary residence permit, the person must pay 5% of the real estate purchase value into the state budget;
Real Estate Investment Process
- Fill application form (We will find properties according to your criteria).
- Trip to Latvia
- Property inspection
- Opening private Bank account in Latvia
- Transferring all payments to your private account in Latvia
- Real Estate Purchase agreement signing
- Property rights registration
- Temporary residence permit registration process
- European ID card
Or To Be More Specific About Process
Buying procces requires to deal with serious legal matters, there are many issues that require specific knowledge in order to make things move quickly. Law require that all official documents have to be filled in Latvian language. The right step by step procedure in would be following:
- After the property is choosen, it is important to chek ownership.
- Inspection about the property and restrictions - loans, servitutes, third person requests, unpaid utilties bills, real estate tax, unauthorized construction, e.t.c.
- After inspection of the property you have to coordinate the buying process. The Parties have to agree on down payment, purchase and escrow account agreement project.
- Purchase Agreement must be done in written form with or without a notarial assurance. Notary fees are from 80 – 300 EUR.
- The Payment for the purchase is highly recomended to settle through the Escrow account in the bank. The Payment could be done also at the moment of signing the contract, at the moment of signing request for corroboration for сhange of ownership and partial payment before and partial payment after corroboration of ownership rights.
- Request for corroboration for сhange of the ownership in Land register, must be signed with notarial assurance.
- If the property consists from the land or includes ownership shares of land, required to obtain consent from local municipalitie. In this case receiving of this document takes from 7 – 20 days.
- Payment of processing fees and real estate tax for сhange of the ownership in Land register. Processing fees are EUR 21.36 and 2% of purchase price.
- After all this previously mentioned documents and payment bills, must be submitted to the Land register department.
- From the start of purchase process until receiving Land register ownership certificate, takes from 14 to 30 days.
What Is Residence Permit
A residence permit is a document in form similar to national ID card. It gives a foreign citizen the right to stay temporary (a temporary residence permit) or permanent (a permanent residence permit) in the Republic of Latvia or in EU for more than 90 days in a six-month period.
Since the July of 2010 Republic of Latvia has approved changes to the Immigration Law which allows non-EU country residents to receive a temporary residence permit for up to 5 years in exchange for investments in Latvia (with possibility to prolong it or receive citizenship as well).
Statistics from the Migration Board show that non-residents who have asked for residence permits have invested nearly EUR 479 million EUR in Latvia in 2014. Most of the investments (EUR 378 million) were made in the world of real estate. 5,186 residency permits were issued to foreign investors and their family members in 2014.
- The right to obtain the Residence Permit in Latvia also belong to his/her family members, namely: spouse, minor children and persons who are under the care or guardianship of the investors;
- Free movement within all 25 Schengen countries (Austria, Belgium, Denmark, France, Greece, Iceland, Italy, Luxembourg, Netherlands, Norway, Portugal, Spain, Switzerland, Finland, Germany, Sweden, Poland, Czech Republic, Slovakia, Slovenia, Malta, Hungary, Estonia and Lithuania) for up to 90 days during every 6 months, i.e. up to 180 days in a year. The same goes for European Union (EU) countries;
- Ease acquisition to the other countries such as the USA and UK;
- Entitled to almost all of the rights normally granted to citizens of Latvia, except the right to vote and to participate in elections and to hold positions in governmental institutions and other state authorities.
- Right to apply for the status of the permanent resident (after 5 years) or to become a citizen of Latvia. Temporary residency permit will be seen as a positive factor in this.
Basis/Deadlines For Requesting Temporary Residence Permit In Latvia
Temporary residence permit :
Due to the family unification:
At the first submission of documents – a temporary residence permit for one year; at the second submission of documents – a temporary residence permit for four years; at the third submission of documents – a permanent residence permit;
Due to a labour agreement:
for the period of employment; however, not exceeding five years;
As an individual merchant registered in the Commercial Register:
for the period not exceeding five years. A business plan is required. Mandatory provision: has paid EUR 15,000 in total in the form of taxes and duties;
As a member of a partnership with rights to represent a partnership, member of the management board or the supervisory board, managing clerk, administrator, liquidator or a person authorised to represent the merchant (a foreign merchant) in the activities related to the branch office:
for the period of office; however, not exceeding five years. Mandatory provisions: taxes paid for the total amount of at least EUR 20,000 per annum; an invitation processed by the OCMA is required;
As a self-employed person:
for a period of time not exceeding one year. A business plan is required. Mandatory provision: has paid EUR 10,000 in total in the form of taxes and duties;
As a representative of a foreign merchant:
for the period not exceeding four years;
Due to scientific collaboration:
for the period of time stipulated in the scientific cooperation plan; however, not exceeding five years;
Due to the implementation of an international treaty or a project, where the Republic of Latvia, a government direct administration body or derived public person is a partner:
for the period of time necessary for implementation of the agreement or the project;
Due to providing assistance to government or municipal institutions of the Republic of Latvia:
for the period of time necessary for providing assistance; however, not exceeding one year;
Due to treatment in inpatient medical establishment:
for the period of time indicated in the treatment contract;
Due to religious activities:
for the period of time required for religious activities; however, not exceeding one year;
Due to joining a monastery registered in accordance with the procedure prescribed in the regulatory enactments:
for the period not exceeding five years;
Due to studies at an accredited educational establishment:
for the period of studies; however, not exceeding one year;
Due to studies practice, student exchange or traineeship:
for the period of time stipulated in the cooperation agreement; however, not exceeding one year;
Due to dissolution of a marriage and if in the marriage there is a child, who is a citizen of Latvia or a non-citizen of Latvia:
for period of time until the date of court judgement of a divorce and of a settlement of a residence place of a child coming into force, or until the date of a notary public issuing a certificate on dissolution of marriage; however, no longer than for a period of one year;
If pre-trial investigation institutions or the court require the foreigner staying in the Republic of Latvia until completion of the investigation of the criminal case or its adjudication at the court:
for period of time not exceeding one year;
Due to acquiring citizenship of another state, if the foreigner resides in the Republic of Latvia and has been a citizen of Latvia or a non-citizen of Latvia prior to the acquisition of the citizenship of the other state:
a permanent residence permit;
If a secondary education certificate is received in the Republic of Latvia upon completion of a programme of the secondary education in the official language:
a permanent residence permit;
If a foreigner was a citizen of the Republic of Latvia on 17 June 1940 or if one of his or her parents is a citizen of the Republic of Latvia:
1. At the first submission of documents – a temporary residence permit for one year; at the second submission of documents – a temporary residence permit for four years; at the third submission of documents – a permanent residence permit;
If a foreigner has been continuously residing in the Republic of Latvia with a temporary residence permit at least for 5 years (this provision does not apply to a foreigner, who has received a temporary residence permit for the period of studies):
a permanent residence permit; Permanent residence permit:
If a foreigner has made investment into the share capital of a Latvian company for at least EUR 35,000, as well as has transferred into the state budget at least EUR 40,000per annum in the form of tax deductions:
for the period not exceeding five years; Mandatory provisions: the capital shall be mandatorily increased or a new company shall be established; no more than 50 employees shall be employed in the company; the annual turnover or balance sheet shall not exceed EUR10 million;
If a foreigner has invested EUR 150,000 into a company, where more than 50 employees may also be employed and the annual turnover or balance sheet whereof exceeds EUR10 million:
for the period not exceeding five years; Mandatory provision: the capital shall be mandatorily increased or a new company shall be established;
If a foreigner has purchased a real property in Latvia the value whereof is at least EUR 250,000 for the period not exceeding five years;
Mandatory provisions: the real property has been purchased after 1 July 2010; the real property has been purchased from a legal entity registered in Latvia or a private individual, who is a citizen of Latvia, a non-citizen of Latvia, a citizen of the EU or a person staying in Latvia based on the valid residence permit; the cadastral value of the real property is at least EUR 80,000; Comments: A foreign citizen, who has received a permit, is entitled to work for any employer; A spouse is entitled to work for any employer, if a residence permit has been obtained;
If a foreigner has made an investment in a credit institution in the form of a subordinated loan (loan, funded loan) for a period of at least 5 years, and provided that the investment may not be reclaimed prior to expiry of the agreement, that the amount of investment is at least EUR 300,000, that the amount of the subordinated loan is included in the calculation of the additional capital of the credit institution:
for period of time not exceeding five years.
Country Name : Latvia
CAPITAL : Riga (740,000)
NATIVE LANGUAGE : Latvian
OTHER LANGUAGES : Russian, English (Business)
GOVERNMENT : Parliamentary Democracy
Population : 2,050,000
Area : 64,589 sq.km
MONENTARY UNIT : EURO
TYPE OF ECONOMY :
Upper-middle-income economy, Ex-Transition country, member of the EU, member of NATO. An economy built around transport activities for goods and petroleum products; Strategic geographical position which allows the country to trade with CIS countries and Europe
FORM OF COUNTRY : Republic
PRESIDENT : Raimonds Vejonis
PRIME MINISTER : Laimdota Straujuma
TIME ZONE : UTC+2
COUNTRY CODE : LV
CALLING CODE : +371
INTERNET TLD : .LV (.EU)
TIME ZONE : Laimdota Straujuma
WEIGHTS AND MEASURES : Metric
COUNTRY HISTORY IN BRIEF
The name “Latvija” comes from the ancient Latgallians, one of four Indo-European Baltic tribes, who along with Couronians, Selonians and Semigallians formed the ethnic core of today’s Latvian people.
The Republic of Latvia was founded on November 18, 1918. It has been continuously recognized as a sovereign state since 1920 despite occupations and rule by the Soviet Union (1940-1941, 1945-1991) and Nazi Germany (1941-1945).
Latvia reestablished its independence on August 21, 1991 following the breakup of the Soviet Union. Although the last Russian troops left in 1994, the status of the Russian minority (some 28% of the population) remains of concern to Moscow.
Latvia joined the WTO in 1998 and in 2004 became a member of the European Union and NATO.