​​​​Latvian Golden Visa and Latvian Citizenship: A How-to Guide

Update 2024: Russians and Belarusians are excluded from the Latvia golden visa program. Latvia will not issue first-time temporary residence permits to these nationals.

When it comes to investment migration, it doesn’t matter how small or seemingly unattractive a country you are – you can still dish out residency and rake in those investment dollars.

How do we know?

Latvia has gone and done just that.

Latvia’s economy suffered a major blow during the economic crisis of 2008. It was one of the worst-hit countries in the world.

So, it launched a residence by investment (RBI) program to attract foreign investment and help get its economy back ‌on its feet sooner rather than later.

For €250,000 (+5% state fees), it has been successful in getting many non-EEA nationals to sign up. And it turns out that Latvia is not a bad place to invest after all – its economy has experienced rapid growth.

The Latvian residency-by-investment program, which results in applicants getting what is called the Latvian golden visa, offers one of the cheapest residency-by-investment options in Europe.

Plus, it’s one of the cheapest places to live in that part of the world and its residency makes the entire Schengen area your playground.

For years, we’ve been advising global citizens as to where they should obtain residence and citizenship as well as plant other flags .

Now, we’ve created this guide to tell you all that there is to know about this program, why you should apply and guide you through the application process step-by-step.

Latvia Residence by Investment

Believe it or not, Latvia actually has one of the oldest and longest-running RBI programs in Europe, which allows you to obtain a residence permit by investment.

Like other similar programs, it’s specifically geared toward high-net-worth individuals and families, but it offers one of the cheapest ways to obtain residence in Europe.

The Latvia Immigrant Investor Program, also known as the Latvian golden visa or Latvian economic residence permit by investment, offers investors residence in exchange for an investment of a set amount.

It used to charge no government fees, but since the popularity of the investor visa scheme, the government has ‘wised up’ and added extra fees.

Latvia Golden Visa 2024: How It Works

• Time to Citizenship: 10 years
• Residence by Investment: Yes
• Citizenship by Investment: No
• Minimum Investment: €250,000
• Physical Presence: One day per year
• Nationalities Allowed: All (excluding Russians and Belarusians)

Taxes and Costs

• Cost of Living: US$2,5000+ monthly
• Income Tax Rate: Progressive, starting at 20%
• Taxes Foreign Income: Yes

The Latvia Passport

• Travel Opportunities: 172
• Passport Ranking: 21st
• Visit Europe Visa-Free: Yes
• Visit the US Visa-Free: Yes

All in all, Latvia’s golden visa is ideal for those looking to:

• Form a company in the EU
• Obtain EU residency for the whole family
• Obtain EU residency with minimal physical presence
• Get visa-free travel to all Schengen states

So, let’s see exactly how you can take advantage of those investment opportunities and obtain residency in this small yet advantageous country.

Latvia Golden Visa 2024 Options

Real Estate Investment

Invest a minimum of €250,000 in Latvian property

Invest in a Latvian Business

Invest €50,000 or more to start or back a Latvian business

Purchase Government Bonds

Invest €250,000 in non-interest-bearing government bonds

Make a Bank Deposit

Deposit €280,000 in a Latvian bank and hold it for five years

How to Obtain a Latvian Golden Visa

Let us begin by saying that we consider the minimum investment in Latvia to be €250,000, even though there is also a €50,000 investment option.

Why’s that?

Well, as you will see, the dirt-cheap €50,000 option requires you to make a minimum tax payment every year, which doesn’t truly make it the cheapest option.

So, without further ado, here are the four options that could net you Latvian residence.

Option 1: Real Estate Investment

The first Latvian residency by investment route you can take is to buy real estate worth at least €250,000, plus 5% of the property’s value in government fees. So, at the very least, you’re paying €262,500.

However, you cannot buy just any property in any part of the country.

When purchasing property in Riga, the capital of Latvia, or in Jurmala, Latvia’s premier seaside resort (which is where you’ll want to be if you’d like to spend some time in the country), you are limited to purchasing one property.

If you choose to purchase an immovable property determined elsewhere, acquired from a legal person registered in Latvia, the minimum investment may be split to pay for two immovable properties.

The real estate market in Latvia is truly full of great opportunities if you care to look. That also goes for the functionally connected immovable property determined.

Latvia is known for having an insignificant immovable property tax, which can amount to 1.5%.

And for a sum like a quarter of a million euros, you could get a large, top-notch apartment in the
heart of the city centre of Riga.

However, keep in mind that properties are not always very liquid, so when it comes time to sell, you could be playing the waiting game.

Option 2: Business Investment

Is your main objective a European residence for yourself and your family? Then, there is no cheaper option than investing in Latvian business formation.

To invest in Latvia, a minimum business capital investment of €50,000 is required. You can choose to either establish your own company or become a shareholder in an existing Latvian company.

You must maintain your investment for at least five years. There is also a €10,000 government fee to be paid, but the real catch is that the company must pay at least €40,000 annually in tax.

If you do the calculation, then your total investment for the five years is still a minimum of €250,000 (€50,000 initially, plus five years of paying at least €40,000 in tax).

The €50,000 is a valid sum if you invest in a company with a turnover of less than 10 million and the number of employees not exceeding 50. If you wish to invest in a company larger than that, you will need to double the investment to €100,000.

Option 3: Purchase Government Bonds

There is also the option to purchase governmental bonds to the tune of €250,000.

The bonds will be non-interest-bearing, so there won’t be any surprises at the end of the mandatory five-year investment holding period. You will get back what you paid if you choose to withdraw the funds.

Plus, there will be a government fee of €38,000 payable to the state budget if you choose this investment option.

Option 4: Make a Bank Deposit

Finally, you can make a deposit of €280,000 at a Latvian bank or a credit institution to purchase its bonds, which you will need to hold for five years.

Unlike government bonds, you will be able to receive any interest that might be applicable. So, if you trust the financial institutions of Latvia and truly want a set-it-and-maybe-earn-from-it investment, then this could be the right option for you.

Don’t forget that an extra government fee of €25,000 applies if you go this route.

What’s the Best Option?

While we can’t say what the best option is for you, we can discuss a few hypothetical scenarios which you can then apply to your personal situation.

Let’s first start by looking at what the most common investment option is:

• 55% of foreign investors choose to put their money in Latvian property
• 43% invest in forming a company
• Only 2% chose either the government bonds or the deposit option

What does this tell us? Well, the fact that over half of the investors chose to go with property investment has to mean they are getting a lot of value in return.

It might tell us that the Latvian real estate market is full of good deals and that various analysts are predicting Latvian property to increase in value rapidly.

Thus, if you’re a wealthy individual looking to buy a European residence and want to invest in something once and pretty much forget it for the next five years, real estate is the way to go.

Meanwhile, company formation is the best option for those seeking the absolute cheapest investment. However you’ll need to actually partake and generate profit to help offset some of the high taxes you’ll be paying.

Finally, as always, keep in mind that the more you pay, the easier things tend to get. Less headache might be worth a bigger upfront investment for you.

Step-by-Step Guide: How to Apply for the Latvian Golden Visa

One of the great things about Latvia’s residence by investment program is that the process of obtaining residency is uncomplicated.

The entire process takes two to three months, so you could be travelling freely in Europe in pretty much no time. Your family can also come, including a spouse, dependent children and parents/parents-in-law.

However, before you apply, you should determine whether you’re eligible.

One must have:

• Considerable wealth (this, like most RBI programs, is geared towards high-net-worth
• individuals)
• A good character
• A clean criminal record (you will be asked to provide a police clearance from all countries of past residence)
• No tax debts anywhere in the world
• Good health (you will be asked to provide a medical certificate)
• Enough money for oneself (and all family members, if applicable) to maintain your lifestyle in Latvia
• Health insurance for the entire family for at least one year

If you’ve determined that you’re eligible to apply, obtaining residence is then a quick process.

Step 1: Make the Investment

Unlike other places, Latvia requires that you invest before you apply for its residence.

So, once you’ve chosen which type of investment you’re going to make, you will need to travel to Latvia and make it.

Step 2: Apply for Residence in Latvia

Next, you will need to fill out your application and submit it to the Immigration Department of Latvia, along with the accompanying documents that are required of all applicants and their dependents.

After you submit the application, the waiting period is approximately two to three months.

Once you’ve been approved as a Latvian resident and have a valid residence permit issued, you can either move to the country or not.

Step 3: Renew Residence Annually

After your first two years of residence, you must renew your first temporary residence permit every year until year five. This means travelling to the country, filling out paperwork and satisfying the bureaucratic apparatus.

Note that there is no minimum stay requirement to renew your Latvian temporary residence permit. However, you are expected to visit the country once a year to be eligible for an extension.

Your original investment must be kept for the entire period of five years.

Step 4: Get Latvia Residence by Investment

This isn’t a necessary step in your Latvian golden visa journey. Rather, it’s a follow-up if you’re interested in spending more time in the country or eventually qualifying for citizenship.

The Latvian golden visa program is just a residency program, not a Latvia permanent residency by investment. So, if you’d like to obtain permanent residency by investment, you must have (physically) resided in Latvia for at least four years out of five.

In other words, during your time as a resident of Latvia, you must spend four years living in the country for 183+ days a year, which also means you’ll be paying taxes there at a flat 23% rate.

If you see yourself living in the country for a while, then you’ll need a Latvian language certificate at level A2 to be considered for permanent residency.

Step 5: Obtain a Latvian Passport

Finally, after spending at least ten years legally residing in Latvia, you will become eligible to get a Latvian passport via citizenship.

It is by no means mandatory to get a Latvian passport, but we thought you might like to know about it. It is a European passport, after all, and in many cases, it’s a lot stronger than any non- EEA passport.

A Latvian passport comes with many benefits, such as the ability to live, work and travel freely across all of Europe.

To qualify for your Latvian passport, you must be a tax resident in Latvia for all those ten years, and five of those years must be as a permanent resident.

Furthermore, you must have some knowledge of the Latvian language, know the basic historical facts of the country and be able to recite the national anthem. In other words, you will need to pass the citizenship exam.

If you’ve spent a good portion of your time in the country for an entire decade, this shouldn’t be an issue.

And it’s handy to know that Latvia allows dual citizenship, as you won’t have to renounce your first citizenship to get a Latvian passport.

The Pros of The Latvian Golden Visa

Whether you’ve already decided to go for this program or you remain on the fence, you can still appreciate all of the benefits that a Latvian residency offers, which can lead to citizenship.

Travel all over Schengen. As a European Union Member State, Latvia’s permanent residency gives you visa-free access to the entire Schengen area . The Latvian passport grants visa-free travel to 184 countries, which is great, especially for third-country nationals who want to improve their travel freedom.

Bring your family. Any direct family member of the applicants (children and spouse) can apply for the Latvia long-term residence permit together with the applicant.

An affordable residency option. With investment routes starting at just €250,000, the Latvia golden visa is one of the cheapest ways to get residency in an EU country.

A five-year residency. Some countries only offer residency for only two years and then require you to extend it with the risk of getting rejected.

Fast processing. Get your residence after a processing time of only two to three months.

Minimum physical residency requirement. You only need to visit the country at least once a year to maintain your residence permit.

A favourable tax environment. Latvia has a minimum corporate tax rate of 20% and reasonable personal income tax rates.

High quality of life. You will be able to live like a king in Latvia, a country that’s safe, affordable and European. That is if you choose to reside there at all – which isn’t necessary.

No jumping through hoops. No interviews, no need to have Latvian language skills, and certainly no need to travel to Latvia to obtain your residence permit.

Latvia is well-connected. Just 90 minutes away from Moscow by air, and with so many flight connections to all of the European hubs, Latvia has great links to other countries.

Part of the Eurozone. The single currency zone is advantageous for many different reasons, but primarily because it saves you money and time. There will be no foreign exchange fees, no time spent hunting down the best exchange rates, and so on.

An outstanding passport. If you go for Latvia citizenship in ten years, you will be glad to know that its passport is ranked 21st in the Nomad Passport Index for 2024, which is better than that of the United States, Canada and Spain. This means you’ll get visa-free access to 172 countries in the world, including the visa-waiver program to the United States.

Dual citizenship is allowed. ‘Does Latvia allow dual citizenship?‘ Yes, Latvia allows its citizens to have two (or more) passports. So, if you get Latvia citizenship through naturalisation, you won’t have to give up your first passport.

EU Citizenship. If you’re one of the people wondering how to become a Latvian citizen, this is it. You’re eligible to apply for Latvian citizenship ten years after your permanent residence permit has been issued.

Benefits. Latvian residents are entitled to social privileges, such as health insurance, maternity benefits, unemployment benefits, and more.

The Cons of The Latvian Golden Visa

Even though the Latvia golden visa is generally great and really affordable, it has some drawbacks that are worth mentioning.

You must renew your permit annually. This can be a real drag, especially if you don’t reside in Latvia physically. You will have to fly yourself, as well as your spouse and other dependents to Latvia for at least one day every year to renew your residence permit.

Alternatives to Latvia’s Golden Visa Program

Not all residence-by-investment programs are the same. Here are a couple of alternative golden visa programs that you can choose if you feel that Latvia just isn’t doing it for you.

● Greece: Although it costs the same – €250,000 – to get residence in Greece by investing it directly into real estate, Latvia is a place that’s more politically and economically stable than Greece. Remember Greece’s European bail-out talks or its economic collapse a decade ago? Learn more about Greece’s golden visa program .
● Portugal: Portugal offers one investment option via its golden visa in which the minimum investment is €250,000 – the same as Latvia’s (or potentially even lower if you invest in a low-density area). The process can take a lot longer than in Latvia. However, with Portugal, you get a warmer climate, arguably an even better quality of life and the ability to apply for citizenship in just five years. Learn more about Portugal’s golden visa program .

Latvia Golden Visa and Latvian Citizenship: FAQs

Is the Latvian Golden Visa for You?

If the Latvia golden visa program is not for you, there are plenty of other programs that are more suitable. But it’s very important to move fast and lock in today’s prices.

The world is fast-paced, and the requirements for programs are getting more difficult every day.

We’ve helped hundreds of people move their businesses overseas, legally reduce their taxes, become dual citizens, bank and invest offshore and create a life of financial and personal freedom.

But one truth keeps on repeating itself in this industry – not everything that works for others will work for you.

Our entrepreneurial global team will tailor an offshore holistic plan that matches your needs and those of your business and family.

Reach out. We’ll be happy to serve you.