If you're searching for high-quality living at affordable prices, Latvia's Investor Program is an excellent choice. You can acquire European residency by investing either €50,000 in a business venture or €250,000 in real estate. This program offers numerous benefits for you and your family.
Read this article to learn why Latvia’s Investor Program is a great option for those seeking affordable residency by investment in Europe.
Here’s what we’ll cover:
- A brief overview of Latvia’s Investor Program
- Seven reasons why Latvia is the top destination for a high-quality, yet affordable lifestyle today
- FAQs about Latvia, its property market, and other important aspects of life in the country.
Let’s begin.
What is the Latvian Investor Program in a Nutshell?
The Latvian Investor Visa, often referred to as the residency by investment program, offers non-EU nationals an opportunity to obtain legal residency in Latvia through investment. Initiated to attract foreign capital and boost economic growth, the program is tailored to accommodate investors who seek not only financial returns but also the benefits of residing in a European country.
The core of the program is straightforward: by investing a certain minimum amount into business development or property, eligible individuals can secure a temporary residency permit, which can eventually lead to permanent residency and potentially citizenship.
Two investment options that exist are:
- A €50,000 investment in a business.
- A €250,000 investment in property.
7 Reasons Why the Latvian Investment Program is an Ideal Option for Those Seeking a High-Quality, Affordable Lifestyle
1. EU Residency
By investing in Latvia, individuals gain residency within the European Union, which offers extensive benefits including visa-free travel across the Schengen Zone. This residency facilitates easier access to all EU countries, enhancing travel aspects and letting you enjoy vacations in different European nations.
In addition, having a Latvian Investor Visa provides another significant advantage: easier access to conducting business within the European Union.
2. Cost-Effective Investment
Latvia's investment threshold is attractively low compared to other EU nations, which often require larger sums for similar residency programs. This cost-effectiveness does not compromise the quality of investment opportunities, particularly in thriving urban centers like Riga and the scenic beach town of Jurmala.
In Riga, investors can explore upscale real estate in the historic Art Nouveau district while Jurmala offers luxury seaside properties ideal for those seeking a retreat or a family home in a prestigious location.
3. Legal and Economic Stability
Investors are drawn to Latvia for its economic resilience and strong legal frameworks that protect foreign investments. The nation’s commitment to maintaining a stable economic environment reassures investors of the security of their assets. This stability extends into everyday life, where residents benefit from comprehensive public services, low crime rates, and a well-structured legal system that upholds their rights and freedoms efficiently.
4. Strategic Location
Latvia's prime geographic location offers unique business opportunities as a gateway to both the EU and Eastern markets. This strategic position is enhanced by Latvia's well-developed infrastructure, featuring modern transport facilities and telecommunications networks.
For those living in Latvia, this means enjoying the cosmopolitan lifestyle of Riga, the capital, known for its vibrant nightlife, extensive cultural scene, and luxury shopping, along with the serene beauty of coastal towns like Jurmala and Liepāja.
5. Quality of Life
Latvia ranks highly in terms of quality of life, which is evident in its excellent public services, advanced healthcare system, and high educational standards. The country combines the allure of modern living with the tranquillity of natural landscapes.
Riga, known for its dynamic cultural life and historical architecture, and Jurmala, famed for its luxurious spas and sandy beaches, are perfect for those seeking both active urban lifestyles and peaceful retreats.
Latvia also has many top locations to rest and relax, including Veczemju Cliffs, Abava River Valley Nature Park, Venta Rapid, and Dauda Waterfall, which makes it a great destination for investors and their families.
6. Growing Real Estate Market
The real estate market in Latvia, particularly in Riga and Jurmala, is expanding with potential. Riga offers a mix of historical and modern luxury properties, while Jurmala is renowned for its high-end, spacious villas that cater to a luxurious lifestyle. The market's growth is supported by an increasing demand for property, driven by both local and international buyers, making it a wise choice for investment with promising returns.
7. Favorable Tax Regime
Lastly, Latvia's favorable tax regime is particularly advantageous for investors. The country offers a competitive corporate tax rate of 20% and incentives such as non-double taxation, which prevent taxation of income in multiple countries. This favorable tax environment is especially beneficial for those looking to maximize the profitability of their investments while enjoying the high standard of living that Latvia offers.
FAQs About Latvia’s Investor Program and Property Market
1. What is the price per m² for a property in Latvia compared to other EU countries?
In Latvia, particularly in Riga, the price for luxury accommodation ranges from €1,069 to €4,000 per square meter. More typical mid-range new-build flats in Riga cost between €980 and €1,200 per square meter. In prime locations like downtown Riga, prices can go as high as €2,500 to €3,500 per square meter. This is significantly lower compared to major Western European cities with much higher prices, making Latvia an attractive option for investors seeking value in a European context.
2. Can this be a commercial property as well or residential only?
The Latvian Investor Program allows investments in both commercial and residential properties. This flexibility enables investors to diversify their portfolios according to their specific business strategies and preferences, making it suitable for various types of investment plans.
3. What would be considered a good return on investment? Property appreciation and rental income?
In Latvia, especially in cities like Riga, investors can expect rental yields to vary. Typically, gross rental yields in the city center are around 4.28%, while outside the city center, they are slightly higher at about 4.59%. These percentages represent a healthy return, especially when combined with the potential for property appreciation, which remains a robust aspect of the Latvian real estate market.
4. What components are included in the property purchase? Is there any VAT, what about the transfer fees, title deed fees, or legal fees?
Purchasing property in Latvia generally involves additional costs beyond the purchase price. VAT is applicable at 21% on new commercial properties or new builds. Buyers should also account for transfer fees, title deed fees, and legal fees, which typically total about 2-5% of the property's purchase price. These costs are necessary to consider when calculating the total investment.
5. Is there a property management company available to assist owners with the upkeep and rental of their property post-purchase?
Yes, numerous property management companies in Latvia provide comprehensive services for both residential and commercial properties. These services can include maintenance, tenant placement, rent collection, and more, facilitating a hassle-free ownership experience for investors, particularly those who do not reside in Latvia full-time.
Wrapping Up
Latvia’s Investment Visa offers not only financial advantages but also lifestyle and residency benefits within the EU. Whether you're drawn by the economic stability, strategic location, or high-quality yet affordable lifestyle, we think Latvia presents a compelling case for investors.
Many European and Caribbean countries are tightening their citizenship and residency by investment programs. In this light, Latvia stands out as a strong option for those looking to secure residency via affordable property or business investment. It’s relatively easy and fast to obtain, meaning you can start enjoying the benefits right away.
If you are considering taking the next step, get in touch with our team here at High Net Worth Immigration. We can help you with the entire process of securing residency in Latvia, from document preparation to collecting your permit. Furthermore, thanks to our access to a wide network of property developers and brokers, we can help you secure the best property deals.
