Investments, Latvia, Legislation, Real Estate

March 12, Zatlers returned amendments to the Immigration Law, that the Saeima had passed on March 4, to the parliament for a second review. In a letter to the Saeima, Zatlers pointed to several potential risks that the amendments might pose to national security.

At the second review of the amendments to the Immigration Law on April 22, the Saeima significantly altered several conditions in the amendments in accordance with Zatlers' suggestions.

The Saeima decided that temporary residence permits could be issued for up to five years to persons with investments of no less than LVL 25,000 in the fixed capital a Latvian company, and if the said company has paid no less than LVL 20,000 into state and municipal budgets.

The provision originally stated that the amount of tax payments by a given company must be LVL 10,000, and that the company must employ no less than five people. Saeima deputies decided to change this provision, because it would be hard to check how many people are actually employed by the company, and therefore taxes paid by the company is the most important criterion.

Five-year temporary residence permits will also be available to persons who buy property in Riga with a total transaction value of no less than LVL 100,000, or a property outside Riga where the total value of the transaction is no less than LVL 50,000.

The provision previously accepted by the Saeima but not promulgated by the president had based the property value not on the value of the transaction, but on the property's cadastral value.

The Saeima also decided to prolong the period for reviewing applications for temporary residence permits, so the authorities would have more time for examining applicants' background. The Saeima also introduced a new provision, that the Cabinet of Ministers would have to review implementation of the Immigration Law, its effect on the state and municipal budget and the economic development of Latvia, on an annual basis.