Latvian Golden Visa: the Premier choice for EU Residency in 2024

Regarded as the fastest and most cost-efficient residency program in the EU and across Europe, the program has navigated through various challenges since its inception. Despite its ups and downs, current trends in the European market suggest the program could see notable success from 2024 onwards. This potential is supported by consistent state regulations and well-known yet underappreciated benefits and features compared to rivals, which we will explore further in this article.

In 2010, Latvia introduced its Golden Visa program, officially termed the Residence Permit for Investment (RPI) program. This program was designed to attract foreign investment into the Latvian economy, especially in the real estate sector, by offering residency permits to non-European Union (EU) citizens and their families in return for investments in Latvian properties.

Key Benefits Include:

• 5-year residency with right of renewal
• Visa-free access to Europe’s Schengen Area
• Eligibility for the applicant's immediate family, including spouse and children under 18, to be included in the application.
• Minimal physical presence requirement

But what sets the Latvian program apart from others?

Let's explore some competitive advantages of the Latvian program that might not be widely known.

1. Quickest processing time from application to granted residency

One of the standout features of Latvia's program is its rapid processing time. Applications for residency are processed and issued within just 1-3 months, a timeline that significantly outpaces the average processing times of similar programs in Greece and Portugal, which typically range from 7-8 months, and Malta's 3-4 months.

2. Cost-wise, the most affordable European program

As we covered in another article, EU residency programs have seen significant changes due to pressures from various fronts, including government reforms. Notably, Greece has increased its investment threshold to EUR 800,000 for prime locations such as Athens and Mykonos, while Portugal has phased out its real estate scheme in 2023.

Amid these shifts, Latvia emerges as a more affordable option. With Greece setting a high bar in desirable areas, Latvia offers residency for a real estate investment starting at EUR 250,000.

This makes Latvia the most cost-effective European program, presenting an attractive proposition for investors looking for value and the benefits of EU residency.

3. A market of hidden gems

Few realize the unique position of Latvia in the European residency market, with its real estate sector not yet overwhelmed by international demand. This contrasts sharply with the crowded markets of Portugal and Greece, making Latvia a land of hidden opportunities.

The real estate landscape in Latvia is remarkably diverse, offering everything from the architectural elegance of Art Nouveau buildings in the prestigious Riga’s embassy district to charming, historic wooden houses nestled along the pristine shores of Jurmala. Such variety ensures that every investor can find a property that speaks to their personal aesthetic and lifestyle preferences, whether they're drawn to the historic charm of Old Town Riga or the modern sophistication of new developments.

4. Ensuring fair property pricing through legal requirements

Latvia's Immigration Law, specifically provision 29.d, mandates adherence to specific property valuation criteria:

• The property's cadastral value at the time of purchase must be a minimum of 80,000 euros.
• Should the cadastral value fall below 80,000 euros, a certified real estate appraiser's assessment is required, indicating a market value of at least 250,000 euros.

The cadastral value, determined by the government, reflects the property's financial worth, factoring in its location, size, and intended use. This valuation is pivotal for tax purposes and property transactions, typically yielding higher figures in urban areas like Riga due to strong demand, and lower in rural locations where demand wanes.

It is essential to understand that the cadastral value does not always reflect the property's market price. In the majority of cases, the market value is significantly higher than the cadastral value, often by three to four times.

Properties that satisfy the 80,000-euro cadastral value criterion are usually larger apartments (100 square meters or more) in the most desirable locations of Jurmala and Riga. This regulation plays a vital role in protecting investors from overpaying, ensuring that the properties they invest in are priced fairly within the market framework.

Latvia's detailed property valuation criteria set it apart from Portugal's golden visa program, which initially offered a more permissive investment environment without rigorous valuation oversight, and from Greece, which historically set a straightforward €250,000 real estate investment minimum without enforcing strict appraisal requirements

Exploring Alternatives Beyond Real Estate: The Business Investment Path

While the real estate pathway is a popular choice, it is not the sole avenue for those looking to invest in Latvia and obtain residency. A significant alternative is the business investment option, which involves investing in qualified Latvian companies.

To qualify for the business investment route, applicants must:

• Invest a minimum of EUR 50,000 in the equity capital of a Latvian company, ensuring that the company contributes at least EUR 40,000 annually in taxes
• Contribute a one-time fee of EUR 10,000 to the state budget

This pathway stands out as the most cost-effective among the current residency by investment programs available in Europe.

Data from the Latvian Office of Citizenship and Migration Affairs for 2021 and 2022 shows that the business investment route was chosen in 20% and 25% of all approved applications, respectively, totaling 46 across both years. A significant portion of these applicants were from Vietnam, courtesy of the active promotion by a local agent in the region. Since 2020, Vietnamese applicants have ranked as the program’s second-largest group.

While the complete dataset for 2023 is pending, preliminary feedback from local expert firms suggests a steady interest in the program, attributed to its competitive investment threshold for EU residency.

Over the past few years, our reliable partner has assisted 10+ foreign investors in navigating this scheme, ensuring investments in Latvian companies that are duly established and fully compliant with local regulations.

For those exploring either this pathway or the real estate option, we provide comprehensive support and in-depth insights to streamline your investment journey. Contact us to get started!