The Russian news media have been reporting that Latvia is no longer issuing temporary residency permits (TRP) as part of the real estate programme. This information is false. On May 8, 2014, the Latvian Saeima approved a law that took effect on September 1 and says that a TRP can be received as part of the real estate programme if the recipient invests EUR 250,000 in real estate. No changes have been made to those rules!
On September 11 and 18, the Saeima reviewed and rejected several proposals from certain political parties on amending the law on immigration so as to suspend the issuance of temporary residency permits to Russian citizens who purchase real estate. On October 2, the Saeima did send to committees amendments to the law that would review the process of issuing TRPs to Russian citizens in return for real estate investments. It is likely that this is what led to the flood of false information in the Russian media, but we emphasise once again that the existing rules remain in force at this time!
The Latvian Association of Real Estate Transactions (LANĪDA) is also upset about the false information in the Russian media, because this has created confusion among potential clients. “Representatives of local companies and partners in Russia have been asking us to explain the situation with residency permits for Russian citizens,” says LANĪDA executive director Irina Sjarki. “The Saeima did not limit the right of Russian citizens to obtain residency permits in Latvia, including in the context of purchasing real estate in our country. The issuance of residency permits has not been halted, and no new rules have been implemented since the vote on October 2. We very much hope that false and misleading information will no longer be disseminated.”
For more information
Amendments to the law on temporary residency permits took effect on September 1, 2014, and the most important change is that the sum of the necessary transaction has been raised to EUR 250,000. The cadastral value of the property must be at least EUR 80,000, and if the value is below that, a real estate appraisal is necessary to confirm that the sum of the transaction is in accordance with the market value of the property. These rules apply not just to the Rīga planning region and to the country’s largest cities, but to the whole territory of Latvia. The real estate may not include farmland or forestland, and it must include a structure. Here it must be noted that the concept of a structure will include foundations or buildings that have not yet been fully finished. In any event, however, the structure must be registered in the Land Book. Also as of September 1, the investor must contribute 5% of the sum of the transaction to the Latvian Economic Development Fund.