Benefits of Latvia’s Golden Visa Program: A Comprehensive Overview
Latvia’s Golden Visa program offers numerous benefits to foreign investors seeking residency in the country. The program does not require a physical presence, except for those applying for permanent status. Temporary residence permits are granted for up to five years, allowing free circulation in the Schengen area for 90 days within a 180-day period. Latvian residents are subject to personal income tax on their worldwide income, with rates of 23% for personal income and 10% for dividends received by individuals. Capital gains on the disposal of capital assets are taxed at 15%.
The Golden Visa program in Latvia provides various investment options, including real estate, business capital investment, bank deposits with financial institutions, and government bonds/stocks. Each option has specific requirements and benefits.
- Business Capital Investment: Foreigners investing in the equity capital of a capital company can obtain a temporary residence permit. The minimum investment required is EUR 50,000 for a capital company employing fewer than 50 employees and with an annual turnover or balance not exceeding EUR 10 million. The investment should be at least EUR 100,000 for a capital company with more than 50 employees and a total annual turnover or balance exceeding EUR 10 million. Temporary residence permits are issued for five years under this option.
- Real Estate Investment: Foreigners purchasing immovable properties in specific areas of Latvia can qualify for a residence permit. In Riga or Jurmala, or in certain municipalities, owning a property valued at least EUR 250,000 is required. Outside these areas, owning up to two properties with a total value of at least EUR 250,000 is necessary. Additional conditions include non-payment of immovable property tax, non-cash settlement for property purchases, and acquisition from eligible legal or natural persons. Residence permits are granted for five years based on this option.
- Bank Deposit with Financial Institution: Investors with subordinate obligations of at least EUR 280,000 in a Latvian credit institution for a minimum of five years can obtain a residence permit. A payment of EUR 25,000 into the State budget is also required.
- Government Bonds/Stocks: Foreigners purchasing interest-free state securities worth EUR 250,000 and paying EUR 38,000 into the State budget can qualify for a residence permit. This option provides instant five years residency, with no need to renew biometric ID cards.
Latvia has implemented stricter background checks since 2014 to address concerns regarding the origin and legality of funds. The program’s impact on the Latvian real estate market has been significant, with foreigners involved in more than 50% of real estate transactions in certain regions.
Family members can also be included in the application, including spouses and children up to 18 years of age or longer if they are unmarried and dependent on their parents. After five years of legal residence, individuals can apply for permanent residence, while Latvian citizenship can be obtained after nine years of legal residence and integration into Latvian culture and language. Latvia allows dual citizenship in certain cases and has one of the most powerful European passports.
In conclusion, Latvia’s Golden Visa program offers attractive investment options, flexible residency permits, and the opportunity to explore business and real estate opportunities while enjoying the benefits of Schengen area travel and potential long-term settlement in the country.
Here in the below table, I summarised the different visa programs, tenure, terms and conditions, investment amount, refundable/non-refundable and other aspects are covered.
