On July 1, 2010, amendments to the Law on Immigration of the Republic of Latvia came into force, which expand the possibilities of obtaining a residence permit in Latvia for foreigners who wish to stay and move freely in the Schengen area.

The uniqueness of these changes lies in the introduction of a new method of obtaining a residence permit – investing in real estate. It has attracted a large number of investors as a foreigner investing in real estate (which can be used for profit) has the opportunity to move freely within the Schengen area provided he or she has a passport and sufficient financial means has. Citizens of the Russian Federation are particularly interested in using this opportunity, since Latvia is nearby and is a tourist destination due to its unique cultural monuments, well-known resorts and international festivals.

What is the advantage of a residence permit?
A residence permit is a document granting a foreign citizen the right to reside temporarily (a temporary residence permit) or permanently (a permanent residence permit) in the Republic of Latvia.

A temporary residence permit gives a foreigner the right to:

residence in the Republic of Latvia for a period not exceeding five years;
to freely cross borders of EU member states and non-EU countries;
to relocate and stay up to 90 days within the territory of other EU countries except the UK, Ireland, Cyprus, Bulgaria and Romania;
to obtain a Latvian or EU permanent residence permit after five years;
to obtain a temporary residence permit for the spouse and children.
How do I apply for a residence permit?
A residence permit is required if you intend to stay in the Republic of Latvia or the Schengen Area for more than 90 days within a six-month period.

This document is issued in the form of a visa and is pasted into the passport, indicating the name, surname and identity number of the person.

You can obtain a temporary residence permit from:

Investments in real estate after July 1, 2010;
investments in Latvian credit institutions;
Investing in a company's equity.
Conditions for investing in real estate:

the total amount of the transaction (for one or more properties) must be at least 143,000 euros in large cities and at least 72,000 euros in other locations;
only material resources may be used for the acquisition of real estate;
a foreigner has and has never had debts from real estate tax payments in Latvia;
the transaction will close after July 1, 2010;
a residence permit is issued after the property has been registered in the land register.
Conditions for investing in Latvian credit institutions:

the amount of the investments must be at least EUR 286,000;
The term of the transaction must be at least five years without the right to cancel before the term of the deposit expires. Requirements for participation in the equity of a company:
the investment sum must be at least 36,000 euros;
the tax amount for the following year must be at least 28,600 euros.

Documents for submission
These are the necessary documents to submit to acquire residence permit:

Filled application form
Passport size picture
Document issued by competent authority from the home country indicating that the foreigner has no criminal record
Prove of sufficient financial means
Document indicating place of residence in the Republic of Latvia
Prove that payment for the real estate was in non-cash form (bank transfer)
Document that indicates that person has paid real estate tax if the real estate in owned for more than a year
Document that indicates that State fees for residence permit request are paid
Additionally upon arrival
Valid health insurance
Reference from Latvian medical institution proving that the foreigner does not suffer from tuberculosis in active phase
Documents and application can be submitted

At Immigration office in Republic of Latvia
At Latvian embassy or consular missions outside the Schengen area
Residence permit for the family
Along with the main investor his/her family members can apply for a temporary residence permit.
Qualified family members are the spouse and children under18 years of age.

Financial means to support living expenses
Minimum required financial means for investor – 960 Eur per month
Minimum required financial means for spouse - 320 Eur per month
Minimum required financial means for child - 192 Eur per month
In order to prove possession of sufficient financial means the foreign national should provide a bank statement that indicates amount for one year 12 x 960 = 11520 Eur.

Additionally expected expenses related with buying the real estate
State fee for registration the new owner in the Land Register – 2% from the value of the property
State fee that must be paid to the government when you recive the permit – 5% of the proparty value
Stamp duties, notary fees & other; approximately 80 – 130 EUR
Duration of the process
The time for obtaining a residence permit in Latvia includes the period necessary to review the submitted documents which is 5 to 30 days depending on the amount of fee paid.

If an additional verification by the foreign national is necessary, the term can be extended for up to 90 days.

A foreigner has to visit Latvia to obtain a residence permit no later than three months after being granted the permit.

State fee 143 Eur – decision by Immigration office is issued in 30 days;
State fee 285 Eur – decision by Immigration office is issued in 10 days
State fee 427 Eur – decision by Immigration office is issued in 5 days

Gibraltar is one of the British Overseas Territories that we recommend for an offshore company. Gibraltar is located at the southern end of the Iberian Peninsula on the Mediterranean Sea. Gibraltar is known for its Rock with a densely populated urban area at the foot of the Rock. The official language of Gibraltar is English, but Spanish and Llanito are also widely spoken.

Company information
The nature of the company is non-resident which means that the director of the company does not have to be on site, the board meetings and shareholders' meetings have to be held in Gibraltar. The most important company characteristics in Gibraltar:

Company formation (registration process in Gibraltar takes about 5-8 days
Minimum share capital of EUR 1.21 and usual authorized share capital of EUR 2,420
At least one director and one shareholder are required
A local qualified company secretary is required.
Submitted accounts are not publicly available
An office must be maintained within Gibraltar

Company formation
In order to entertain a non-resident company in Gibraltar, the following is required:

Submission of annual accounts
Create and deposit accounts
an annual minimum license fee of 55 EUR

Control system
Gibraltar has no double tax treaty with any country and has no corporate tax. Only the annual license fee has to be paid. Also, there is no wealth tax, capital gains tax, gift tax or VAT in Gibraltar.

According to the World Bank Group, Latvia ranks 22nd out of 189 countries in terms of ease of doing business. The country ranks among the top 20 for obtaining credit for businesses; in the top 30 starting a business, construction and registration of real estate, easy and efficient tax payment, international trade and enforcement of contracts; and among the top 50 for resolving bankruptcies and protecting minority investors. The weakest point of Latvia's business environment is by far its ease of getting electricity for newly built properties, for which the country ranks 65th.

Overall, Latvia is the most favorable for companies that do not plan to build new infrastructure. Ease of starting a business, paying taxes and getting credit combine well with cheap but skilled and educated labor and low cost of infrastructure and facilities. Because of this, Latvia is a very popular country to start a business, especially for entrepreneurs from outside the EU, as overall it takes a lot less investment to start a business in Latvia than most other EU member states, while the bottom line (in terms of quality) is the same. The entrepreneurial risks for such entrepreneurs are comparatively low as long as they consider the possible competition on the local market.

Legal framework
Since Latvia joined the European Union in 2004, it has adopted most of the Union's laws and policies. One of the examples is the Schengen agreement, which allows free international trade with other EU member states (more about Latvian market access from the EU here).

Latvian politics favors the free market and consistency with EU policies. Some analyzes classify Latvian legislation as conservative, meaning that new policies take a long time to be accepted by the government and are generally treated with caution. Legislative initiatives proposed by the EU are excluded from this. Latvia aspires to be an active member of the European Economic Area and tries to align its policies with European standards.

Economic geography
Most companies are concentrated in the Latvian capital Riga and the surrounding cities. Other major cities often devote themselves to specific market sectors, e.g. The port cities of Ventspils and Liepāja offer ice-free ports (read more about logistics in Latvia), while Daugavpils is a major rail hub.

Cities of regional importance also play their role in Latvia's economic environment. For example, the Rezekne Free Economic Zone is located in the city of Rezekne. The EPZ contributes to the development of the region and attracts companies with up to 100% real estate tax breaks, corporate tax breaks of 80% and return of investment costs through tax incentives of up to 55%. Rezekne is also an important railway junction.

The most urbanized regions of Latvia are the central, eastern and western regions. However, it must be noted that if the central region is thoroughly urban, the east and west are urban in the sense that the majority of the population lives near large cities, with small rural areas in between. The southern and north-eastern regions are predominantly rural.

Market freedom
Latvia is a free market economy, which means that economic policies are aimed at reducing state intervention and preventing the emergence of monopolies. According to the Wall Street Journal and the Heritage Foundation, Latvia is the 37th freest economy in the world. Latvia's score in this case is supported by high levels of tax, trade, investment and business freedoms, but is dragged down somewhat by corruption and government spending.

In Europe, Latvia ranks 17th in terms of market freedom. This position is getting stronger and stronger every year as Latvia takes steps to integrate into the European Economic Zone and catch up with the main member states.