Investments, Latvia, Legislation, Real Estate

This proposal may be seen as an "absolute minimum", VL-TB/LNNK co-chairman Raivis Dzintars told LETA.

Under the proposal, the total number of real estate transactions that entitle the buyer to a temporary residence permit would be gradually reduced. Next year, the quota could be set at 700 to 750 permits next year, and decrease by 510 to 200 transactions annually. In 2017, the government could consider terminating the program.

Starting next year, at least fifty real estate transactions that entitle the buyer to a temporary residence permit of Latvia would have to be at least EUR 0.5 million worth. The minimum transaction amount for regions would be EUR 150,000, and LVL 25,000 from each such deal would be paid into the budget: these funds will be used for implementation of the re-emigration plan measures and improving the demographic situation in Latvia.

Also, the number of applicants per country must not exceed 30% of all applications, stipulates the new proposal.

Dzintars considers Dombrovskis' offer "a minimum", and believes that if no restrictions were introduced, the number of such real estate deals will increase dramatically.

The fact that such proposals are being discussed means "significant progress", said Dzintars. At the same time, he fears that Unity and the Reform Party may change their viewpoint, taking into consideration "the influence of the business groups involved in the process".

Dombrovskis' press secretary Martins Panke confirmed to LETA that this was a possible model that would be discussed during Unity and VL-TB/LNNK representatives' meeting tomorrow. He also said that the proposal could be altered, and that the Economy Ministry's opinion on the matter would also have to be considered.