The Latvian Residency by Investment programme, also known as the Latvian ‘Golden Visa’, provides non-European investors with a low cost, fast and efficient pathway to establishing alternate or primary residence in Europe.
About Latvia
Located in the Baltic region of north-eastern Europe, Latvia is a full member of the European Union and is within the Eurozone. As a small country, the Latvian government seeks to attract foreign investment to foster economic growth. It has pursued liberal economic policies and developed infrastructure to position itself as a transportation and logistics hub.
Latvia boasts a stable economy, a strong legal framework for investors and a business-friendly approach. As an EU member state, Latvia applies EU laws and regulations, and foreign investors generally enjoy the same rights and obligations as local investors. Non-European foreign investors are entitled to invest in a qualifying Latvian company and apply for a temporary residence permit.
Latvia’s workforce is highly educated and multilingual, and its culture promotes hard work and dependability. Labour costs in Latvia are the fourth lowest in the EU and Latvia ranked second in the 2024 International Tax Competitiveness Index Rankings. To further boost its competitiveness, the Latvian government has abolished taxes on reinvested profits and has established special incentives for foreign and domestic investment.
Latvia offers residents a high quality of life, characterised by an affordable cost of living, a rich cultural scene, access to an abundance of nature, safe cities with international schools and universities, an expanding economy and modern infrastructure, making it very attractive for both professionals and families.
Benefits of the Latvian Golden Visa
The benefits of the Latvian Golden Visa include, but are not limited to:
- The right to live and work in Latvia.
- Applicants may include their spouse and qualifying dependant children.
- Visa-free travel throughout the Schengen area for 90 days in any 180 days.
- Multiple investment options.
- Low minimum annual stay requirements. *
- A fast-track application process of three to six months.
- A pathway to permanent residency and citizenship.
- No tax on global income if resident for less than 183 days per year.
- Attractive corporate and personal income tax rates for tax residents.
* Annually renewable residency permit holders must visit each year to renew their permit which, when planned correctly, will require that they spend a day or two in Latvia.
Qualifying Investment Options
To qualify, the main applicant must demonstrate that they have completed an investment in one of the qualifying investments listed below:
- Investment into a Local Business
Applicants who make an investment into an existing small or large qualifying Latvian company receive an annually renewable residency visa.
- Minimum investment of €50,000 of share capital into qualifying a Latvian company.
- Investors must also pay a one-time government fee of €10,000.
- Upon successful completion of initial due diligence checks, interested parties are introduced to a panel of qualifying companies, for discussion and review.
- Investment in a Latvian Bank Fixed Deposit Account
Applicants who invest in a qualifying fixed deposit bank account receive an annually renewable visa in return for:
- A minimum Investment of €280,000 in a five-year bank deposit account
- Investors must also pay a one-time government fee €25,000.
Qualifying banks are currently offering fixed deposit rates of up to 8% per annum.
- Investment in Local Real Estate
Applicants who invest in qualifying local real estate receive an annually renewable visa in return for:
- A minimum Investment of €250,000 in one or more properties.
- Investors must also pay a one-time state tax of 5% of the property’s value.
- Investment in Latvian Government Bonds
Applicants who invest the in Latvian Government Bonds receive a five-year renewable visa in return for:
- A minimum Investment of €250,000 in five-year non-interest-bearing government bonds.
- Investors must also pay a one-time state fee of €38,000.
Latvian Residency by Investment – Planning and Implementation
Working with professional local services partners, Sovereign provides clients with comprehensive advice and support throughout the residency application preparation and submission process. Depending upon your chosen investment route, this may include:
- Introductions to qualifying investment option providers.
- Application preparation and processing.
- Immigration meeting coordination and support.
- Assistance with identifying suitable investment or rental property.
- Establishing local bank accounts (if required).
- Tax efficient planning and structuring.
A pathway to Permanent Residency and Citizenship
Temporary residency permit holders are eligible to apply for permanent residency after five years and, provided they have lived in Latvia for at least eight months of each of the previous four years, permanent residency visa holders are eligible to apply for Latvian Citizenship after an additional five years (10 years in total) living in Latvia full time.
Applicants are also required to show that they have passed a Latvian Language test to level A2, a history test, and that they know the Latvian national anthem.
Contact Sovereign for further information
The Sovereign Group’s global network of offices, experienced client advisers and professional services partners ensures it is well-placed to assist, advise and support individuals, families, businesses and their advisers to plan, implement and manage their assets, as well as to unlock the potential of benefits of alternative residence or citizenship.
For further information or to discuss your or your clients’ requirements, please contact us at RCBI@sovereigngroup.com
