Financial Services, Good for Business, Investments, Latvia, Legislation, Real Estate

DNB Group Salvus Executive Director Girts Zalitis explains that, according to the company's data, Latvia's residents spend slightly more than LVL 20,000 on buying property, whereas non-residents – over seven times more. Besides the money they invest in buying properties in Latvia, they continue to invest in property maintenance and development, guaranteeing long-term contribution to the Latvian economy.

"We need to remember that the recipients of the residence permits are, for the most part, people who have been economically active in their home countries where they were able to accumulate enough money to buy a property in Latvia – they work in high positions and look for investment opportunities to start up new businesses," said Zalitis.

Swedbank Group real estate company Ektornet Management Latvia CEO Andris Kovalcuks says, commenting on the new construction projects, that the market share of non-residents is more than one-half, which proves that non-residents play an important role in the real estate sector and the overall economy.

LANIDA representatives say that, while foreign investors' contribution to the Latvian economy is unquestionable, the state is not using all opportunities to attract more investors. Information about the legislation under which foreigners who invest in Latvia are granted residency permits is very limited beyond Latvia, and the state should invest more into popularizing and upgrading legislation. Besides, other European countries have introduced similar regulations, therefore Latvia must also emphasize its cultural and economic advantages – opportunities for business development, low property maintenance costs, stable political environment, residents speaking several languages, cultural traditions, believes New Europe Real Estate investor relations manager Inese Jurevica.

Experts also recommend diversification of minimum investment amount necessary for applying for Latvia's residency permit, so that non-residents would invest in not only Riga and Jurmala but also in other regions of Latvia.