Residence permit in Latvia based on business investment
Acquisition of a residence permit based on business investment is most suitable for those who wish to establish or develop their business within the European Union, while taking advantage of the benefits of having legal residency within the EU - with all the convenience that it brings in terms of travel. Statistics show that business investment is a less popular way to obtain a residence permit compared to purchasing real estate, however, there are several peculiarities that make this option the best solution for some investors.
Financial investment in local business
During the last year the Office of Citizenship and Migration Affairs in Latvia received 268 residence permit applications based on investments made in local companies. The amount of investment is estimated at around 13.5 million lats. Qualifying Investors who complete a successful application receive a residence permit for an initial period up to 5 years, with further extensions possible.
When it comes to the size of investment required, there are two possible options, but since the changes to the immigration law that took place on September 1st 2014, the second option becomes almost impossible to accomplish.
- a. The first option is a contribution to the equity of a Latvian company in the amount of more than EUR 50,000. However, to qualify with this smaller investment, there are additional requirements: you must invest in the equity of a joint stock company or a limited liability company, and this company has to pay taxes in the amount of not less than EUR 40,000 per year.
- b. The second option is contributing EUR 150,000 to the equity of a Latvian company (joint stock or limited liability company). While this option requires a greater initial investment, the advantage is that there are no requirements as to the amount of taxes that the company pays annually. The company must employ at least 50 employees and have at least 10 million EUR of annual turnover.
Choosing correctly between these two options may be strategically important when it comes to making plans for your future business. We can help you to choose the best possible solution that satisfies your needs by making all the necessary calculations for you and providing any needed consultations regarding applicable opportunities. We can also provide full legal support for the whole process - including your residency permit. (read more)