Baltic States – CIS, Investments, Latvia, Legislation, Real Estate

The Office of Citizenship and Migration Affairs (OCMA) has already approved two of the applications, while three more are still being processed. Three of the applications were received from citizens of Russia, with one from Ukraine and another from Israel, informs LETA.

As the newspaper was told by OCMA spokesman Andrejs Rjabcevs, two of the foreigners applied on the basis of owning real estate in Latvia worth more than LVL 100,000, while two more applied on the basis of investments of more than LVL 25,000 in the fixed capital of a Latvian company. The fifth applicant applied on the basis of investments of more than LVL 200,000 in the subordinate capital of a Latvian firm.

The OCMA notes that while the number of applications is small, there is huge interest in the new conditions, with inquiries received every day from both businesses and private individuals. Most interest is shown in receiving a permit by investing in luxury properties in the Riga area and in Jurmala. Most potential buyers are citizens of Belarus, Ukraine, Kazakhstan and other C.I.S. countries.

Even before the new amendments came into effect, a string of advertisements appeared in the streets of Riga and Jurmala in which Rietumu banka publicized the possibility of obtaining an EU residence permit by investing in Latvia.

According to Rietumu banka press secretary Eleonora Gailisa, each day the bank receives an average of ten inquiries related to residence permits. Rietumu banka aimed its advertising campaign in particular at visitors to the "New Wave" music festival in Jurmala last month, which features a large number of artists from C.I.S. countries. The bank did not reveal the number of new clients it had attracted, but indicated that the deals were worth several million euros.

Rietumu banka Vice President Vadims Aleksejevs indicated: "We have already received about a thousand serious inquiries. The first clients have already began the application process for residence permits. They are mainly choosing subordinate deposits – investments in the bank's subordinate capital".

The banker indicated that at present, the main benefit to the state from the new amendments was through attraction of resources into the banking sector, which makes up a significant sector of the state economy, providing employment for thousands of people and generating significant tax revenue.

However, according to Aizkraukles banka, not too many hopes should be pinned on the new permit conditions. "Potential clients have other alternatives for finding a way to live in the EU without investing in Latvia – there is also the possibility of quite easily acquiring a multi-entry visa," indicated the bank's spokesman Ilmars Jargans.

As reported, the Saeima endorsed controversial amendments to the Immigration Law this past spring, which stipulate that citizens from third countries can receive five-year Latvian residence permits if they invest a certain amount of money in real estate, businesses or banks in Latvia.