Latvia is in the process of overhauling its immigration framework, particularly its investment-based residence system. Although the Saeima (parliament) passed a new Immigration Law on June 11, President Edgars Rinkēvičs has delayed its promulgation, sending it back for reconsideration. As a result, the law is not yet in force and will likely be revisited in the autumn session.
Legislative Status and Core Changes
The proposed law represents a major shift in Latvia’s investment migration policy. At its core, it eliminates two existing residence-by-investment routes, retains one, and introduces a new pathway. However, implementation is currently on hold pending further parliamentary review and potential amendments.
Closure of Real Estate and Banking Routes
Under the current law, foreign investors can obtain residency by purchasing real estate worth at least €250,000 or by placing €280,000 as subordinated capital in a Latvian bank. The new law removes both options entirely. While existing permit holders are protected under transitional provisions, no new applications will be accepted through these routes once the law takes effect.
Introduction of the €150,000 Fund Route
A key addition is a new investment pathway requiring a minimum investment of €150,000 into a state-created alternative investment fund, held for at least five years, along with an additional €10,000 contribution to the state budget. However, this route is not yet operational, as the required state-managed fund has not been established and depends on separate legislation.
The Remaining Company Investment Route
The only existing pathway that remains allows investors to obtain a residence permit by investing in a Latvian company. The minimum investment ranges from €50,000 to €100,000 depending on company size, with an additional €10,000 state fee. However, the duration of the residence permit under this route has been reduced from five years to two years, making it less attractive than before.
Rejected Proposals and Missed Alternatives
Several alternative proposals were considered but ultimately rejected. These included reintroducing real estate investment options, government bond schemes, and extending the company investment permit duration back to five years. A proposal for a flat €60,000 annual tax option for investors was also declined.
Presidential Concerns and Objections
President Rinkēvičs raised multiple concerns regarding the law, particularly its investment provisions. He questioned whether certain friendly countries should be allowed access to property-based residence and highlighted gaps in the new fund route, including the need for clearer rules on fund management and source-of-funds verification. He also criticized the rushed legislative process, especially after a late amendment was needed to exclude Russian and Belarusian citizens.
Context and Policy Direction
Latvia’s tightening approach reflects broader concerns about financial transparency and security. Following international scrutiny, including a Moneyval review, the country has been moving toward stricter controls on investment migration. The removal of real estate and banking routes marks a significant departure from the program’s earlier structure.
Next Steps
The future of the law now depends on the Saeima. Parliament may choose to pass the law unchanged, amend it in line with presidential concerns, or delay it further. Until then, the company investment route remains the only active pathway, while the newly proposed fund-based route awaits the creation of its legal and operational framework.
Summary
Latvia’s new Immigration Law signals a major shift in its investment migration strategy by eliminating real estate and banking routes and introducing a state-managed fund option. However, the law is currently on hold due to presidential objections and unresolved legal and operational issues. Its final shape will depend on parliamentary reconsideration, leaving uncertainty around the future of investment-based residence in Latvia.
