Nai Pickard

Latvia – the most attractive country to get a residence permit in Schengen area

Last year the amendments to the immigration law of Latvia came into effect, which allows foreign investors and their families to obtain a 5-year residence permit in Latvia and consequently the possibility of visa free travel in the Schengen countries.

For those willing to get registered in Latvia there are 3 options:

1). To make a deposit to one of the Latvian banks of not less than 200,000 Lats ( about EUR 285,000)

2). To invest not less than 25, 000 Lats (EUR 35, 000) in Latvian company share capital, which legally employs not less than 10 people in each particular year, and pays in corporate income taxes every year of not less than 20, 000 Lats (EUR 28, 000). However, in this case it is only possible to apply for a residence permit after a year – this method of investment attraction was designed for those who really want to open business in Latvia.

3). To acquire a property in Latvia (residential or commercial): in large cities – for no less than 100, 000 Lats ( EUR 143, 000), in other cities – not less than 50, 000 Lats (EUR 72, 000).

Unlike in other countries, in Latvia there is no demand for a minimum term of residence. Apart from the main owner of the property the residence permit also applies for wife/husband and children younger than 18 years. Father/mother of the main owner (adult) are not included in the list.

The annual yield is 5-7% for residential properties, and 11-12% for commercial.
Accompanying property costs are 2-4% state duty, + EUR 1000 legal services and minor other costs. Some properties are VAT (22%) applicable, in this case it is recommended to use a different ownership structure – indirect.

From the 3 described options real estate investment is now recognized as the most popular and easiest way to obtain a residence permit.  Considering that the economic situation in Latvia is gradually improving and property prices are still much lower than before the crisis, property acquisition in Latvia can be a profitable investment.

Pickard Exclusive Homes can give its clients exhaustive information re property acquisitions in Latvia. In partnership with NAI Baltics, the leading property consultancy company in Latvia, we can offer a variety of residential and commercial properties.