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.