Amendments to the Immigration Law of the Latvian Republic which became effective on September 1, 2014, introduced corrections to the procedure of granting a temporary residence permit to the citizens of other countries. It is still possible to obtain temporary residence permit investing into real estate, however, now the minimal amount of the real estate transaction is 250 000 EUR, and the cadastral value of the real estate is 80 000 EUR.
Also additional restriction was enacted: to gain the temporary residence permit only one object of real estate can be purchased. The requirement of prepayment of 5% of the transaction amount to the Latvian Fund of Economic Development is also new. It is a one-time instalment referring to the investor only; family members can still obtain the temporary residence permit without additional instalments (this instalment is non-refundable).
Currently the legislation of the Latvian Republic determines the following restrictions of the types of real estate:
- These can only be completed projects, but not the land;
- Farming land and forest cannot be the objects of the acquirable property
The owner of the real estate company Baltic Sotheby`s International Realty Vestards Rozenbergs says: “With regard to temporary residence permit even after introduction of the mentioned corrections Latvia with its temporary residence permit programme remains one of the most attractive European countries. The following positive aspects distinguish the programme of acquiring real estate for temporary residence permit: the amount of the acquirable real estate is reasonable, the minimal period of stay is not determined, non-residents are allowed to participate in the labour market, it is allowed to finance purchase of the real estate, there is no restriction of the location, size and condition of the property, moreover, it is allowed to rent out the real estate. Taken together such conditions still keep up sufficiently high interest of the non-residents to the Latvian real estate market”.
Comparing to other European countries, in Bulgaria, for instance, the amount of acquirable real estate to get the temporary residence permit is 511 000 EUR, the investments are transferred mainly to the business area. In Spain and Portugal the amount of the real estate transaction is 500 000 EUR, moreover, in Spain it is not allowed to finance the purchase of the real estate, while in Portugal the minimal period of stay in the country is strictly determined. Whereas in Ireland the amount of the transaction must start from 500 000 EUR, besides, it is necessary to invest additionally in the purchase of a mortgage certificate for another 500 000 EUR. In the Netherlands the minimal amount of investments into gaining of the temporary residence permit is 1.25 million EUR, in Great Britain – 1 million £, and in France – 10 million EUR.
To secure a more comprehensive offer for its clients the real estate company Baltic Sotheby’s International Realty started a new programme: we offer to use a similar programme at the Mediterranean island of Malta.
The new offer is being implemented in cooperation with Malta Sotheby’s International Realty, it can be distinguished by the opportunity to choose the most concordant with wishes and the most attractive residence programme. Overall, there are four such programmes in Malta – a combination of opportunities creating powerful choices for those concerned:
- Residence Program – this programme allows obtaining the temporary residence permit by making the following investments:
- Fixed income tax with the attractive 15% rate. The minimal amount of payment has been determined as 15 000 EUR, revenues can be generated outside Malta and after that transferred to the finance institutions of Malta.
- Purchase of the real estate for the amount not less than 275 000 EUR, excluding the eastern district of Malta Gozo, where the minimal amount of the acquirable real estate is lower – 220 000 EUR; or
- Rent of the real estate for the amount not less than 9600 EUR a year (or 8750 EUR a year in Gozo).
- Global Residence Program – is a specific programme for the third-country nationals and actually, it is also a “tax residency”. Similar to the mentioned residence programme it also stipulates that the applicant pays a fixed 15% tax rate from the income. The applicant must also purchase the real estate for at least 275 000 EUR or rent the real estate for at least 9600 EUR a year.
- Highly Qualified Persons Program – is a particular programme for the head officers and top management officials which holds out the opportunity to become a tax resident of Malta. The programme covers such sectors as gambling games and civil aviation licensed by the finance institutes of Malta. The applicants must pay a fixed 15% tax on a definite sum of income a year, but not less than 81 205 EUR a year, moreover, revenues must be generated in Malta
- Individual Investor Program – this programme offers to obtain citizenship of Malta by naturalization and stipulates the following investments:
- Residential real estate
– Purchase of residential real estate in Malta worth not less than 350 000 EUR for the period not less than 5 years; or
– Rent of the residential real estate in Malta with the minimal annual fee of 16 000 EUR for the period not less than 5 years
- Investments
– Investments in Malta in total amount of not less than 150 000 EUR, including shares, bonds, debt instruments, special purpose vehicles and other investment structures, the list of which is periodically subject to review, for a period not less than 5 years.
- Deposit
– Principal applicant: 650 000 EUR;
– Spouse: 25 000 EUR;
– Per each sole child of 18 to 25 years dependent on the applicant: 50 000 EUR;
– Per each parent from 55 years of age dependent on the applicant: 50 000 EUR;
The application request about naturalization in the capacity of a citizen of Malta under the Individual Investor Program is submitted to the Agency Identity Malta by a person accredited at the Agency acting on behalf of the applicant.
Submitting the application for citizenship by naturalization, it is necessary to provide proofs of capability to make these investments, and actually, the investments are made only after receipt of approval from the state institutions that the application is received.
In case of additional questions about the opportunities of obtaining a resident status and citizenship of Malta, please write to electronic mail moc.rislab@sgrebnezor.sdratsev.
About Malta:
Malta is an insular state located in the very heart of the Mediterranean sea easily accessible from all major European cities, North Africa and neighboring countries. The main currency in Malta is EUR. Official languages: the English and the Maltese languages. The real estate market in Malta offers excellent value for money giving the investors wider opportunities to find their ”des res”. Perfect geographic location, warm climate, the bright sun, clean sea, rich history, ancient culture, magnificent architecture, hospitable English-speaking local population and safe environment – all these features make Malta a strong attraction.
Finance and economic magazine Forbes rates this miniature delicate island as one of the best countries to meet one’s old age, while World Risk Report research acknowledged Malta to be second best safe country in the world.