Amendments in force as of 1 September 2014
On 1 September 2014, amendments to the Immigration Law will come into force. Transaction amounts for the purchase of property will be increased, which entitle foreigners to claim temporary residence permits in Latvia. Additional requirements have been introduced for these permits. You can read more about these amendments in our previous newsflash here.
The main differences that should be noted when purchasing immovable property with the aim of receiving a temporary residence permit are:
- the value of the immovable property must be EUR 250,000 at least, and the cadastral value EUR 80,000 at least;
- one functionally related immovable property with constructions must be bought;
- an additional 5% of the purchase value of the immovable property must be paid to the state budget.
The new regulation will not apply to previously issued temporary residence permits, because if title to an immovable property has been registered before 1 September 2014, then the previous regulation will be applied when deciding on issue, registration or extension of a residence permit.
At the same time, requirements for other investment situations have been increased. A subordinated loan to a credit institution cannot be less than EUR 280,000, and an additional EUR 25,000 will be payable to the state budget.