Real Estate in Latvia - Property Ownership
A title to real estate in Latvia provides specific benefits for its holder. The purchase of real estate is an excellent option if you wish to receive a residence permit in Latvia, if you seek new business opportunities or if you are simply looking for a good investment.
According to the annual review conducted by the Latvian State Land Service (SLS), during the period July 2011 to July 2012 almost 50% of the total turnover in the local real estate market was related to sale and purchase of buildings and apartments. According to the same annual review by the SLS, of all the groups involved in the local real estate market, the second most active group were foreign investors. Experts also pointed to continued growth in demand for Latvian real estate as a driver for the ongoing increase in sales prices.
Latvian laws provide an opportunity for foreign investors who have purchased qualifying real estate in Latvia to apply for a residence permit in Latvia. In order to qualify, very specific requirements (set forth in the regulations) must be met - So it would be sensible to take advice before begining your real estate search.
Residence permits in Latvia can be very valuable, since Latvia is part of both the European Union and the Schengen area. The holder of a Latvian residence permit may not only Work, reside, run a business and study in Latvia, but can also travel to other countries of the Schengen area for up to 90 days without any further registration or visas - Residents of Latvia need never worry about Schengen visas for tourism or business trips anywhere in the Schengen zone.
After you have become the legal owner of real estate in Latvia, you may use it however you wish - including to start or expand your business if that is what you desire. This could be quite profitable.
If you have purchased a commercial property (factory, warehouse, hotel, office etc.), you may run your business there or lease it to any other company.
If you have purchased a house or an apartment, you may rent it out. Renting can prove to be very profitable in such cities as Riga, Jurmala or Ventspils. There are a large number of foreign businessmen constantly looking for a place to stay during their visit to Latvia instead of staying in a hotel. Also, these cities are visited by thousands of tourists each year and demand for rental apartments is high. (read more)
Real estate is an excellent way to invest your money. It is usually considered safer than a bank deposit when looking at the long term. For the last two decades the local real estate market in Latvia has been quite dynamic, which has provided an opportunity for real estate owners to earn money by selling their property for a healthy profit.
According to the data provided by the SLS the Riga real estate market is the largest in Latvia. Real estate transactions in Riga account for half of all the transactions carried out in the whole of Latvia. SLS data proves what anyone familiar with the Latvian market already knows - Real estate in Riga is in high demand and this is reflected in high property values. (read more)
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