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Residence permit in Latvia: new possibilities

Santa Garsniece, lawyer of the Law Office INLAT PLUS, 31.05.2010.Print version
Question: When will the new regulations regarding residence permits come into lawful effect and what shall be considered in the process of receiving a residence permit?

Answer: New amendments to the Immigration law will come into lawful effect on the 1st of July 2010 offering new possibilities of receiving residence permit by third-country nationals who wish to move freely in Schengen zone. At the same time, there are several issues worth consideration.

 

According to the amendments, there are three new options for receiving residence permit in Latvia.

 

First option: To become owner of the company. Foreigner shall contribute LVL 25000 to the equity capital of the company registered in Latvia and pay not less than LVL 20000 in taxes throughout the year.

 

Second option: to become co-owner of a bank. Foreigner shall invest not less than LVL 200000 in the Latvian credit institution’s subordinated capital. It is of vital importance that the term for such transaction shall not be less than 5 years without the right of pre-term termination of the contract.

 

Third option: to buy real estate. Foreigner shall buy one or more real estates in Riga or other cities for a sum not less than LVL 100000. If the real estate is located outside of Riga, the sum shall not be less than LVL  50000. The most important provision of such transaction is that the payment shall be made with the use of non-cash funds.

 

Attention shall be brought to the way of executing the transaction. If a foreigner comes to Latvia from a country that doesn’t have a visa regime with Latvia, the documents can’t be submitted in any country of the Europe, excluding cases, when a person already received a residence permit in one of EU’s countries.

 

The terms for considering and issuing of residence permits is extended from 30 day term to 90 days.

 

Provision regarding the necessity of staying in Latvia for 180 days per year has been excluded from the Immigration Law. However if the person, who received a residence permit, after first five years wishes to receive constant residence permit, he or she will have to prove its continuous stay in Latvia, i.e. he or she didn’t spend abroad more than 6 months successively during last five years.

 

New provision for receiving temporary residence permit is good for those, who think 5 years ahead. At the same time those who would want to receive constant residence permit or citizenship of Latvia in the future, will find this provision too complicated. Still we would like to remind all people who wish to receive residence permit in Latvia that Schengen is open for all. Benefit for Latvia. In the meantime, new Cabinet regulations regarding the order for receiving residence permit are being drawn up. It will prescribe the order for government to control and fulfil the procedures of registration and execution of the Immigration law. It stands to mention that a company, established by a foreigner, shall do good to the Republic of Latvia. For example, the company shall employ not less than 3 local employees, not less than LVL 10000 shall be paid in taxes per year. There are also many other provisions offered by the government, but it still remains only a draft yet.

 

Law Office INLAT PLUS

Latvia, Riga, Brivibas 40-15

+371 67505970

+371 26403577

[email protected]






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