Residence permit in Latvia based on financial investment in a Latvian bank

Acquisition of a residence permit based on investment a Latvian bank is often a superior option for those who are looking to obtain a residence permit while ensuring a stable investment with a guaranteed return, rather than exposing themselves to the possible variable gains sometimes seen when investing in real estate. Statistics show that this type investment is generally a less common way to obtain a residence permit when compared to purchasing real estate, however, there are several peculiarities of the scheme available in Latvia that makes this option the best solution for some investors.

Financial investment in a Latvian bank

In order to apply for a residence permit in Latvia based on financial investment in a bank you need to place with a bank at least EUR 280,000 in the form of subordinated capital and pay a state fee of EUR 25 000 to the govenment. The subordinated capital is funds that the bank is borrowing from a customer for a term of at least 5 years (Like a Corporate Bond – but where the corporation is a bank). If you choose this option, then you should know that the term of your residence permit will be the same as the term of the subordinated capital (The length of the Bond). The banks usually take all the risks. Also, it's worth noting that the bank pays you interest, like with any other bond, so it can be a good, low risk way to ensure a return on your investment and increase your capital over time at the same time as obtaining your residence permit. The interest rate will be agreed in advance, and therefore this option effectively guarantees the amount of return on your investment, while perhaps not providing the same level of liquidity you see with a real estate purchase - where you have the option to sell at any time.

During the last year only 208 investors submitted a request for a residence permit based on investment made in Latvian banks. Since 2010 the total amount of investment is estimated to be around 75.7 million euros.

Choosing between the available options can be difficult and requires a close examination of your needs and circumstances. We can help you choose the most suitable solution to satisfy your needs by providing a consultation and making all necessary calculations. We can also provide full legal support for any other part of the process of getting set up so that your investment and residency is a pleasant and stress free experience. (read more)