Residence permit in Latvia based on real estate purchase

Obtaining a residence permit based on the acquisition of real estate is one of the most popular methods based on investment to obtain a Latvian residence permit. According to statistics provided by the Office of Citizenship and Migration Affairs, in 2012 alone 2,435 foreigners applied for a residence permit based on the acquisition of real estate in Latvia, and in 2013 - 3,085 foreigners.

From the types of investment eligible for a residence permit, real estate investment provides the best liquidity and security, while also being the most effective way to obtain approval from the Office of Citizenship and Migration Affairs, with the highest level of approval.

To obtain a residence permit for 5 years in Latvia, with the possibility of a later extension, some requirements must be met by law:

Property must be purchased after 01.09.2014. And at the time of applying for a residence permit, you must have a land registry certificate verifying your title;

The total purchase price may not be less than EUR 250 000;

The contract of sale and the land register certificate must be completed in the name of the person applying for the residence permit;

The cadastral value of the property (as well as the property tax assessment in the US) must be greater than EUR 80,000.

Immigration Law states that real estate should have been purchased from a legal or natural person registered in the Republic of Latvia who is a Latvian citizen, non-citizen of Latvia, a citizen of the European Union or another foreigner residing in the Republic of Latvia with a valid residence permit who are not on this list, the application for a residence permit is likely to be rejected.

The buyer has to pay from his funds, which means that the loan or financial assistance cannot be obtained from another person or institution, but such funds must be in the buyer's account before the purchase, for example by paying the property directly to the individual.

All applicable property taxes must be paid.

Payment must be made in cash. 

What does Schengen means?

You might have been heard the word schengen, Schengen area or Schengen visa, but do you know what it actually means? If the answer is no, keep reading and after this article, you will know everything you need about Schengen.

 

What is the Schengen area?

It is the territory of 26 European countries which have officially abolished all passports and all other forms of border control at their borders. This area largely functions as a single jurisdiction for international travel with a common visa policy. The Schengen area is named after the 1985 Schengen Agreement.

26 Schengen countries include:

Austria

Hungary

Norway

Belgium

Iceland

Poland

The Czech Republic

Italy

Portugal

Denmark

Latvia

Slovakia

Estonia

Liechtenstein

Slovenia

Finland

Lithuania

Spain

France

Luxembourg

Sweden

Germany

Malta

Switzerland

Greece

Netherlands

What is the Schengen visa?

A Schengen visa is a short stay visa that allows a person to travel to any member of the Schengen area for a single stay of up to 90 days for tourism or business purposes.

The Schengen visa is the most common visa in Europe. It allows its holder to enter, travel freely within and outside the Schengen area from any Schengen Member State. In the Schengen area, there are no border controls.

However, if you intend to study, work or live in a Schengen country for more than 90 days, you must apply for a national visa for that European country, not a Schengen visa.

The Schengen Agreement is the treaty leading to the creation of the European Schengen area, which has been largely repealed. It was signed on June 14, 1985, near the Schengen city of Luxembourg by five of the ten Member States of the then European Economic Community.

Changes in Schengen Visa Regulations

A Schengen visa is a short-stay visa that allows a person to travel to any members of the Schengen Area up to 90 days. Schengen visa regulations was established relatively long time ago and did not make huge changes.

Schengen visa regulation is changing because it adapts to the events in the world. One of the change is that Switzerland becomes the first Schengen Member to adopt increased visa fees. Traveler who will apply for Schengen Visa will need to pay higher visa fees starting from January 2020, due to the Schengen visa code changes. The Schengen visa fees will increase from 60 euros to 80 euros once the amended regulation comes into force, in a bid of the EU to increase the tools available to respond to the challenges posed by illegal migration.

Second change that will come to the force is that passports of non-EU travelers entering the Schengen borders will no longer be stamped after 2022. 

Thirdly,Brussels is introducing a new system called the European Travel Information and Authorization System (ETIAS).The new scheme of the European Union called Entry/Exit System (EES) is a system that will register entry and exit data and refusal of entry data of third-country nationals crossing the external borders of the Member States and determining the conditions for access to the EES for law enforcement purposes. ETIAS will come into force by early 2021. 

Some changes are for good but some of them doesn’t look so pleasant.  You just need to know about changes and to adapt to them like to everything in this life. It should not stop you from travelling and enjoying benefits of staying in the Schengen Area.

Moving between countries

Schengen visa is like tickets to another EU countries.The rules that apply to enter or stay in another EU country will depend on what type of visa or residence permit you have, how much time you plan to spend in the other EU country and the rules that apply there. 

If you are a non-EU citizen already staying in one EU country, you may be able to go to another EU country. This applies to any kind of stay.

Short-term visit – less than 90 days

If you have entered an EU country with a Schengen visa, you can travel throughout the Schengen area for as long as your visa is valid, and for a maximum of 90 days during an 180 day period. You will not need a separate visa for each Schengen area country and you will not need to show your passport at each internal border.

The borderless Schengen area includes 22 EU countries, excluding Croatia, Bulgaria, Cyprus, Ireland, Romania and the UK. If you wish to travel to one of these six countries for a short stay, you must get a separate national visa. If you wish to travel from one of these six countries to the Schengen area, you will need to apply for a Schengen visa.

Long-term stay – more than 90 days

When you stay in an EU country for a long stay, it means, for more than 90 days, you will generally be issued with a long-stay visa and/or a residence permit.

If your long-stay visa or residence permit has been issued by a Schengen area country, you can travel to another Schengen area country for 90 days per 180 day period. You must:

• justify the purpose of your stay;
• have sufficient financial resources for your stay and travel back;
• not be considered a threat to public policy, public security or public health.

You can also pass through other Schengen area countries on the way to your host country.

To move from one EU country to another for more than 90 days, you will need a long-stay visa or a residence permit for that country. If you wish to work, study or join your family in the second country, you may have to fulfil more conditions.

Certain categories of non-EU residence permit holders, and their family members, may be able to move more easily from their EU country of residence to another EU country, where both countries have adopted applicable EU rules.

Long-term visa - an opportunity for employers

From July 1, 2019, the Amendments to the Immigration Act allows employers to employ third-country nationals on the basis of a long-stay visa. In order to recruit a third-country national, the employer must register a vacancy with the State Employment Agency and issue an invitation at any Customer Service Center of the Office of Citizenship and Migration Affairs.

The documents required to validate the invitation may also be submitted with a secure electronic signature. Upon approval of the invitation, the third-country national shall apply for a long-stay visa at the Latvian diplomatic mission or consular post. The visa will be issued for the expected period of employment, but for no longer than one year.

During the first five months of 2019, 5 386 employment rights were granted, including TOP 3 occupations for foreign nationals: 

• truck driver; 
• cook 
• construction worker. 

In turn, TOP 3 sectors employing foreigners were land transport and pipeline transport respectively; building construction and computer programming consultancy activities.

The process of applying for a visa is simpler, cheaper and faster than applying for a residence permit, thus allowing employers more flexibility in attracting the necessary workforce. 

It could be one of the reason to come to Latvia.

A residence permit in Latvia

A residence permit is a document, which provides a foreigner with the right to reside - live, work, study or do business - for a definite or indefinite period depending upon the type of permit issued.

If you want to spend longer than 90 days in Latvia as well as making your travel to other Schengen countries easier, a residence permit makes your life much easier, since any person holding a residence permit in one Schengen country does not require any further visas or documentation to visit another Schengen state for business or tourism.

Types of  residence permit in Latvia

Currently, there are two kinds of a residence permit issued by the Republic of Latvia which are Permanent and Temporary.

Advantages

The biggest advantage of the residence permit in Latvia, is that you are entitled to enter other Schengen countries without any visas or other formal registration, which makes it trouble free for you to oversee your business in Europe as well as to travel without ever needing to think about preparing documents and visiting an embassy.

Other advantages include:

The opportunity to invite relatives for visa purposes, up to and including second-degree relatives.

A simplified procedure for receiving visas for many countries outside the Schengen zone.

Automatic issue of a residence permit to your spouse and minor children.

Eligibility for a discount or free education in the European Union.

New commercial opportunities within the European Union.

The Latvian residence permit holder is also entitled to social benefits such as medical treatment, maternity benefit, unemployment benefit, etc.

The holder of a Latvian residence permit is entitled to almost all of the rights normally granted to citizens of Latvia, except the right to vote and to participate in elections and to hold positions in governmental institutions and other state authorities.

The opportunity to receive a driver’s license in Latvia.

Residence permit in Latvia based on real estate

One of the most popular methods based on investment to obtain a Latvian residence permit is obtaining a residence permit based on the purchase of the real estate. According to statistics provided by the Office of Citizenship and Migration Affairs, in 2012 alone 2,435 foreigners applied for a residence permit based on the acquisition of real estate in Latvia, and in 2013 - 3,085 foreigners.

Of the types of investment eligible for a residence permit, real estate investment provides the best liquidity and security, while also being the most efficient way to obtain approval from the Office of Citizenship and Migration Affairs with the highest level of approval.

To obtain a residence permit for 5 years in Latvia, with the possibility of a later extension, some legal obligations have to be fulfilled:

• The property must be bought after 01.09.2014 and at the time of filing the request for a residence permit you must possess the certificate from the Land Register which confirms your title;
• The total price of the purchase must not be less than EUR 250 000;
• The purchase contract and the Land Register certificate must be completed in the name of the person requesting the residence permit;
• The cadastral value (Like a property tax valuation in the US) of the property must be higher than EUR 80 000;
• Payment must be made in non-cash form. (i.e. bank transfer of funds);
• Immigration law states that property should have been bought from a legal person or natural person registered in the republic of Latvia, who is citizen of Latvia, a non-citizen of Latvia, a citizen of the European Union or other immigrant, who is staying in the Republic of Latvia with a valid residence permit, if a foreigner has purchased the real estate from a person who is not in above mentioned list - Most probably the request for a residence permit will denied;
• The purchaser has to pay from his/her funds - that is not to say that a loan or financial assistance cannot be obtained from another person or institution, but such funds would need to be in the buyers's account prior to the purchase, such that payment for the property comes direct from with individual from funds available to him/her;
• All relevant real estate taxes must be settled;

First Steps for Entrepreneurship

Process of becoming an entrepreneur shouldn’t be difficult. If you are going to start your own business, carefully consider your wishes and options. Just follow 4 steps.

1st register form of business.

Before starting commercial activities natural persons must get registered at the State Revenue and become performer of economic activities. 

Others forms as individual merchant, general or limited partnership, capital company (private limited company (Ltd.) and public limited company (Plc.)) of business should be registered at Enterprise Register.

Form of business also could be registered through electronic system.

2nd Choose mode of tax treatment regime.

The performer of economic activities need to choose one type of paying the personal income tax:

Tax for income and micro-enterprise tax;

Licence fee for the performance of particular types of economic activity;
Reduced licence fee for the performance of particular types of economic activity;
Payment of the tax, having notified on non-registration of economic activity.

Company shall pay the following taxes and fees in Latvia:

• Corporate income tax;
• Personal income tax;
• Mandatory state social insurance contributions;
• Micro-enterprise tax.

3rd registration of employees, workplace and working tools.

4th everyone must perform cooperation with the SRS via the SRS EDS.

Every entrepreneur, regardless of the chosen form of business, must perform his/her cooperation with the SRS via the SRS Electronic Declaration System (EDS). 

Please note that anyone conducting any business must comply with the requirements of the Accounting Act. 

Do you have enough information to make your first steps?

Travel History

Lucky you if you are the owner of strong passport that offers visa-free access to most countries in the world. Others should worry about minimization of visa rejection reasons and making travel history.

Mostly, first visa is issued for short-time period. It’s important to know that visa to one country can bring you access to other countries. For example, if you receive visa to Latvia, it would be Schengen visa. Schengen visa allows people to move across national borders of 26 European countries. 

If you are person with no travel history you are like white peage for officers. No travel history isn’t a reason for rejecting visa. Applicant should meet the requirements that are more essential such well-grounded reason for visit, proof of financial ability.

Residence permit in Latvia makes a simplified procedure for receiving visas for a number of countries outside the Schengen zone. More welcome countries for immigration or as travel destination are:

• USA (in the top of world’s destinations for immigration)
• Canada
• New Zealand
• Australia.

Some suggestions connected with travel history:

Start make travel history from countries there you can get visa easier.

Don’t miss expiration date of the visa.

Studies or work in foreign country also can play good game for you a specially if you returned back to your home country after contract.

A strong travel history is a key requirement in most visa applications, and it is not hard to understand why. With travel history you always look better and make trust you more.

Why apply for European Blue Card?

The European Blue Card proved potent in offering good work conditions to qualified workers who didn’t have chance to reach full potential and to fully practice their professions in their home countries because of some reasons.

 

In October 2007, the European Commission adopted two proposals for the purpose of the admission of skilled and educated migrants to the EU  (EU Blue Card directive) and directive to simplify migration procedures by funneling applicants into a single application procedure (single permit directive).

What are the benefits?

• European Blue Card isn’t for all. It’s unique in some way. Excluded from the EU Blue Card are OMR and OCT nationals, EU nationals, EEA and EFTA nationals as well as UK, Ireland, Denmark, Japan, Israel, South Korea, New Zealand, Australia, Canada and USA.
• Working and salary conditions equal to nationals, but it depends mostly on the company you have been admitted in.
• You don’t need to seek employment and worry about financial side, because you must find it before arrival .
• Free movement within the Schengen area (26 Schengen countries).
• Entitlement to a series of socio-economic rights (e.g. unemployment benefit)
• You can give a chance for your family to live, study or travel. If applying simultaneously then you can include them in your online application or they can fill their own online application later.
• Perspective to apply for permanent residence. You must work for 33 months in the hosting state or 21 months while also earning the B1 language certificate which enables you to qualify for the permanent residency permit earlier. Furthermore, if you work in different EU member states and gather 5 years of work experience altogether then you are a strong candidate for the permanent residency permit.
• Age is not an important factor nor strongly considered, but it is good to be around the age of 30-40.

Are you still thinking or acting?

Steps to become foreign worker in Latvia

People shouldn’t age in place when they have idea to see the world and challenge themselves by moving out of the comfort zone. If you want to work in Latvia, everything is possible step by step. 

Steps of procedure:

1. Announcing the vacancy (employer). Before inviting an employee from a non-EU or non-EEA country, an employer must announce the vacant position to the State Employment Agency. The vacant position must be registered in the State Employment Agency for one month before the employer can proceed with submitting request for an invitation.
2. Agreement on conclusion of the employment contract. While the vacant position is announced at the State Employment Agency (30 days), employer and employee can work on an employment contract and collect all the necessary documents.
3. Collecting documents (employer or employee). In order to apply for the residence permit, the foreign worker will need to submit documents to the OCMA.
4. Submitting request for an invitation (employer). 30 days after announcing the vacant position to the State Employment Agency, concluding the employment contract and collecting the necessary documents, the employer can apply for the invitation of the foreign worker. During the next five business days the OCMA will make the decision on the approval of the invitation. In the case if the additional examination is necessary, the employer will be informed, and the decision will take another ten days.
5. Applying for the residence permit with the rights to work (employee). After the invitation is approved, the employee shall submit his application for the residence permit.
6. Notification of the decision
7. Applying for visa to enter in Latvia (employee)
8. Arrival to Latvia

Good luck! Note that consultancy companies have contacts with employer and information about necessary documents. Immigration Europe definitely has!

One of adaptation step is learning language

You immigrate to Latvia and you are so expected about that but something is not so well as you want. It’s language barrier.

86 % of people in Latvia speak Latvian as a mother tongue or foreign language. 63 % know Russian. Of course, Latvians use English and German but not all know foreign languages, for example, old generation.

If you are foreigner who wants to live in Latvia more useful will be to learn Latvian.

We suggest you some ways to learn Latvian.

Latvia offers free Latvian courses through projects at least twice a year. You also can find non-free courses that could be in group or individual and for different purpose.

It’s possible to find and visit  “Language cafe” organized by libraries, NGO. In the cafe you also can meet new people and make new friends.

Listen radio and TV channels. Brilliant chance to be informed, get information and to explore culture.

Read all texts that you see and buy magazines to read articles again and again. You can write down unknown words and search for translation.

Learn language not only through speaking but also through singing. Don’t be shy to train your tongue muscles that way. Latvians are singing nation.

Language is all around you. Brick by brick and the language barrier will be broken. As soon you will learn Latvian as faster you can pass language exam for A2 that is necessary for permanent residence residence permit.