Corruption, Investments, Latvia, Legislation, Real Estate

The deadline for the submission of MPs proposals has been extended taking into consideration the Interior Ministry's amendments to the same law following the State Audit Office's conclusions about possible violations of the law on the part of the Office of Citizenship and Migration Affairs in prolonging the term of such residence permits.

Interior Minister Rihards Kozlovskis (Unity) previously informed Saeima Defense, Internal Affairs and Corruption Prevention Committee in writing that the Immigration Law had to be upgraded in order to eliminate the shortcomings established by the Audit Office. To do this, the Interior Ministry has been consulting the Economy Ministry and State Revenue Service, but the ministry's amendments are taking some time.

As reported, according to the Audit Office's findings, the Office of Citizenship and Migration Affairs has violated the law by extending temporary residence permits for foreign citizens who received the permits based on their investments in Latvian companies or working on the companies' boards.

The Audit Office has established several cases when the Office of Citizenship and Migration Affairs extended residence permits even if the holders thereof they did not meet the relevant requirements. For example, an unnamed third-country citizen had to pay no less than EUR 28,460 in taxes in a period of 12 months, while the actual payment was under EUR 3,000. Furthermore, the said person had his residence permit extended also for 2016, despite the fact that the necessary payment had not been made. The Audit Office has informed the Corruption Prevention Bureau about such cases.

Auditors also found that cancellation of residence permits is often delayed. 20 percent of expired temporary residence permits and 75 percent of permanent residence permits were cancelled with a delay.

The Immigration Law states that the aim of such residence permits is to facilitate Latvia's economic growth – the recipients have to be involved in business activity in Latvia and pay a certain amount of tax money in the budget.