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

As reported, Latvian long-term residency permits have been available since July 1 to those investing certain amounts in Latvian companies, banks or real estate. At the time, the measure was predicted to bring in a large volume of foreign investment and rejuvenate the real estate market, LETA reports.

The deputy head of the OCMA, Maira Roze, told De facto that 44 persons had applied so far, with most interest coming from citizens of Russia and other former Soviet republics, and that 26 permits had been issued. Although the benefits had not been as large as initially forecast, LVL 10.9 million had entered the Latvian economy as a result.

However, Roze indicated that in some cases, certain methods were being used to bend the rules. For example, deals were being made using real estate in Latvia which already belongs to Russian citizens. "Real estate is sold within the family, moreover through a foreign bank, and it is very difficult to understand whether the transaction actually took place. What's more, it is very simple to transfer the money back again, and the country only acquires a small tax payment for the entry in the Land Book," said Roze.

For example, in one case a person wished to acquire a residency permit based on the purchase of three square meters of property for LVL 100,000. The OCMA indicates that no applications have been refused at present; however, Roze notes: "There have been no refusals so far, but we are not saying that there will not be any in future."