The Latvian Saeima has amended the procedure for renewal of temporary residence permit obtained through investment (effective from 1 July 2016).
The main change is that the renewal of temporary residence permit will require payment of a EUR 5,000 fee. The new provision does not affect all holders of temporary residence permits, but only those who obtained residence permit through acquisition of local immovable property or made a contribution to subordinated capital of a Latvian bank.
The persons who obtained residence permit through immovable property the title to which was registered before 31 August 2014, will pay EUR 5,000 only at subsequent (i.e. the second and further) residence permit renewals. If a person obtained a temporary residence permit, for example, for 5 years (this is the maximum period), then this person is not required to pay the fee at the first renewal. The payment will be required only after 10 years from the initial residence permit obtainment.
While the persons whose title to Latvian immovable property was registered after 31 August 2014 will have to pay the mentioned fee at the first residence permit renewal.
Currently the minimum value of the immovable property required for obtaining a residence permit is EUR 250,000, and the minimum amount to be deposited in a Latvian bank is EUR 300,000.
In the same way a person who made a deposit in a Latvian bank before 31 August 2014 inclusive, does not pay EUR 5,000 at the first residence permit renewal, but pays them only at subsequent renewals. However, if the deposit was made after the abovementioned date, the fee must be paid at the first renewal.
The new requirement does not apply to those who obtained temporary residence permit on other grounds (e.g. through a contribution to Latvian companies’ authorized capital or to non-interest government securities). Similarly, it does not apply to the holders of permanent residence permit in Latvia (which does not require any renewal). Besides this, there is no requirement to pay the fee to renew residence permit for family members of the principal applicant (investor) regardless of the grounds it was issued.
The Government of Latvia has also been empowered to suspend issuance of resident permits to citizens of certain countries in case if their “concentration in certain areas affects national security or economic development."