The opportunity to obtain a temporary residence permit in exchange for investing in the Latvian economy was seized by 4,744 foreigners, investing a total of LVL 318.3 million over two and a half years, shows a summary by the Office for Citizenship and Migration Affairs (OCMA). Statistics ).

The most popular types of investments
In 2012, foreigners were mainly interested in the possibility of obtaining a residence permit by buying real estate (apartment) in Latvia. Last year (2012) 2,435 foreigners applied for a residence permit based on the fact that they themselves or their family members bought real estate in Latvia for at least 100,000 LVL or 50,000 LVL.

Latvian Migration Law - Family
The apartment is often bought as a buy-in, especially for families with children over the age of 18. The Latvian Migration Law provides that spouses and adolescent children (children under 18 years old) are entitled to a residence permit together with the main investor and do not need to make additional investments.

Foreigners showed the greatest interest in housing in Riga and Jūrmala, where 487 and 303 properties were bought, respectively. The most marketable and popular option chosen by foreigners are apartments in pre-war buildings in Riga city center or newly built projects in micro-districts in Riga city with residential plots of 60-100 m². Practice shows that foreigners tend to buy an apartment in good condition with repairs or decorations carried out, preferably with furniture. The property consisting of a house with a garden is relatively rare. Foreigners usually choose cities near Riga like Babīte, Mārupe, Garkalne, Carnikava, Saulkrasti. Ādaži, the other cities outside the planning regions of Riga are: Ozolnieki, Amata, Cēsis, Iecava, Madona, etc.

property
In 2012, foreigners invested LVL 145.2 million by buying real estate. A total of LVL 252.9 million has been invested in real estate since the amendments to the Immigration Law came into effect on January 1 of this year.

Last year, a much smaller amount, namely LVL 19.8 million, was invested in banks' subordinated capital, which also gives foreigners the right to apply for a residence permit in Latvia. In 2012, 208 investors and their families took advantage of this opportunity. In the period from 2010 to January 1 of this year, LVL 53.3 million was invested in the subordinated capital of banks.

Investment statistics
OCMA statistics show that foreigners' interest in the opportunity to invest in company capital is relatively low. Last year, 268 people applied for residence permits based on investments worth LVL 9.4 million. Since the amendments to the Immigration Law came into effect, LVL 12.1 million has been invested in corporate fixed capital. The investors came from different countries of the world: China, Iran, Lebanon, Egypt, Nigeria, Dominican Republic, Philippines, Vietnam, Serbia, Afghanistan, Dagestan, USA, Sri Lanka, Australia and Korea.

Aliens Law - Contribution to Equity
The Immigration Law prescribes the right to apply for a residence permit if the foreigner has invested LVL 25,000 or LVL 100,000 in the company's equity. If the foreigner contributes LVL 100 000 to equity, the law does not imply any additional requirements such as paid taxes, employed workers or other benefits for the Latvian economy. However, it is acknowledged that the so-called “sleeping investors” should be verified and scrutinized in the same way as other investors. It is recommended to analyze the financial and economic indicators of the activities pursued and determine whether the company is conducting business and providing other benefits to the Latvian economy. If the above-mentioned circumstances are not proven, this can be a basis for examining the cancellation of the residence permit that has been issued.

Results of Immigration Law Amendments
On July 1, 2010, amendments to the Immigration Law came into force, which, among other things, provide for the possibility for foreigners to obtain a temporary residence permit if they have purchased real estate in Latvia for a certain amount of money, invested in the subordinated capital of banks or invested in the registered capital increase of a company.