Purchase of a property in Latvia with cost from 250 000 euros gives to the buyer the right to obtain a temporary residence permit of stay
Residence permit allows the holder to reside, work and study in Latvia 365 days a year and freely, without visas, travel within the Schengen area (26 European countries), staying in there up to 90 days every six months.
Business in Europe
After obtaining residence permit in Latvia, one gets the opportunity to start own European company that is able to freely operate in the euro area, to have an account in any of the European banks. It is convenient for business and for organizing optimal tax strategy. In addition, there is the possibility of commercial use of the acquired property (e.g. renting).
Conditions for obtaining a residence permit through the purchase of real estate
To obtain a residence permit in Latvia through the purchase of real estate, an object worth of at least 250 000 euros must be purchased. This value must be confirmed by a certified appraiser. Transaction to the seller of real estate should be made by the bank transfer.
Upon requesting a residence permit, the property owner is obliged to pay a one-time fee in amount of 5% of the property value.
During the registration of ownership of the purchased property buyer should pay 2% real estate tax.
The residence permit may be issued to the buyer, his / her spouse and children.
The permit has a temporary status and is granted for general period of 5 years with an annual extension. Every year, the property owner is obliged to submit documents to the Immigration Service proving that he /she owns real estate, that does not have tax arrears and a proof that he/she has a valid health insurance.
The investor is obliged to submit the documents in person. Annual renewal procedure does usually take 3 days.
Residence permit entitles the holder to reside, work and study in Latvia, issue invitations to obtain long-term visas for relatives and friends.
After the expiration of five years, investor has the right to apply for an extension of a residence permit for another 5 years, subject to the rights of tenure.
In the case of the sale of real estate investor loses the residence permit. Therefore, if an investor is willing to change the property while maintaining a residence permit, he/she needs first to purchase a new property and reissue a residence permit changing the real estate information in it, and then sell the previous property. This will ensure the continuity of the validity period of the residence permit.