Provisions for receiving the residence permit in Latvia
On July 1, 2016, amendments to the Immigration Law of the Republic of Latvia came into force, modifying the provisions for receiving temporary residence permit and reissuance of the temporary residence permit.
With the amendments to the law it is established that a foreign individual may apply for a temporary residence permit valid for up to five years if:
- The person purchases real estate, the value of which is not less than EUR 250`000.
- The person purchases not more than two functionally linked and built-up real estates outside the districts that are near Riga, for which the collective value is at least EUR 250`000.
Amendments have also changed the order of receiving the residence permit by performing the investment in the capital company:
- The person has to invest in the capital company EUR 50`000, if in the company are employed up to 50 employees and annual turnover or annual balance does not exceed EUR 10 million.
- The person has to invest in the capital company at least EUR 100`000, if the company employs more than 50 employees and the annual balance exceeds EUR 10 million.
- EUR 100`000 can be invested in the share capital of the company, which together with one or several subsidiary companies registered in Latvia, will employ more than 50 employees and their total annual turnover or annual balance exceeds EUR 10 million.
It is established that in order to receive residence permit by performing the investment, additional fee in the amount of EUR 10`000 has to be paid into the State budget.
The rights to receive the residence permit upon investing in the capital company will be granted for not more than ten foreigners, if each of them has performed the investment in the amount of EUR 50`000 and paid EUR 10`000 in the state budget.
If the investments are performed in the share capital of the companies, the law establishes that the amount of EUR 40`000 - EUR 100`000 yearly has to be paid as taxes in the state or municipal budget. The amount of the taxes differ depending to the level of investment.
Furthermore investors and the owners of the real estate who would like to prolong the temporary residence permits, have to pay EUR 5`000 in the state budget.
The latest amendments to the law are essential, as the Cabinet of Ministers will have the right to evaluate the influence of granting the residence permits to the national security or economic development.
To find out more about the residence permit in Latvia, please contact our English speaking attorneys at law at email@example.com.
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