Investments, Latvia, Law and Regulations, Legislation, Markets and Companies, Real Estate

One of the provisions supported by MPs today gives the Cabinet of Ministers the right to assess the effect of temporary residence permits on the national security or economic development of Latvia, and impose restrictions on issuing such permits for up to five years.

The restrictions may apply to all third-country citizens as well as to citizens of one specific third country, according to the amendments proposed by the Interior Ministry.

The Cabinet will only use this right in order to avert risks related to national security, unity of society, increasing rates of organized crime and others.

Saeima also supported part of the Interior Ministry's proposals concerning third-country citizens' payments for temporary residence permits, agreeing that these funds would primarily be spent on the Economic Development Program's administration and Security Police's operations.

At the moment, third-country citizens who apply for a temporary residence permit based on purchase of real estate in Latvia have to pay 5% of the value of the property into the state budget. Those who apply for residence permits on the grounds of having invested in the capital of a Latvian credit institution have to pay into the budget EUR 25,000, and foreigners who buy Latvian state securities also have to pay the same amount into the budget.

The parliament also approved a proposal specifying which purchases of real estate in Latvia entitle third-country citizens to apply for Latvia's residence permits.

Another provision approved by Saeima today lays down minimum investment amounts in companies of various sizes that will entitle a third-country investor for Latvia's residence permit.

Saeima also decided today that a third-country national may be stripped of his or her residence permit if the person's tax debts exceed EUR 150.

Remaining in force will be that in order to request a residency permit, a foreigner will have to purchase a property in Latvia with a value of no less than EUR 250,000.

Several proposals were turned down by Saeima today, including a proposal by All For Latvia-For Fatherland And Freedom/LNNK stating that third-country nationals buying real estate in Latvia could not receive residence permits, or that a foreigner should own real estate in Latvia for a period of at least twelve months before he or she may apply for Latvia's residence permit.

The amendments approved today will come into force on July 1, 2016.