Acquiring a residence permit based on an investment in a Latvian bank is often a better option for those who want to obtain a residence permit while ensuring a stable investment with a guaranteed return, rather than exposing themselves to the potential variable returns that are sometimes seen in investing are real estate. Statistics show that this type of investment is a less common method of obtaining a residency permit compared to buying real estate in general. However, there are some peculiarities of the system available in Latvia that make this option the best solution for some investors.

Investment in a Latvian bank
To apply for a residence permit in Latvia on the basis of a financial investment in a bank, you must deposit at least EUR 280,000 in subordinated capital in a bank and pay a government fee of EUR 25,000 to the government. Subordinated capital is funds that the bank borrows from a customer for a minimum of 5 years (like a corporate bond – but if the corporation is a bank). If you choose this option, you should know that the term of your residence permit corresponds to the term of the subordinated capital (duration of the bond). The banks usually assume all risks. It's also worth noting that just like any other bond, the bank will pay you interest, so this can be a good, low-risk way to ensure a return on your investment and grow your capital over time, while also getting your residency status. The interest rate is agreed upfront, and therefore this option effectively guarantees the size of your investment's return, while it may not offer you the same level of liquidity that you see with a property purchase - where you have the option to sell at any time.

Last year only 208 investors applied for a residence permit based on investing in Latvian banks. Since 2010, the total investment sum is estimated at around 75.7 million euros.

Choosing between the available options can be difficult and requires careful consideration of your needs and circumstances. We can help you choose the most suitable solution for your needs, by advising you and making all the necessary calculations. We can also provide full legal support for every other part of the incorporation process to ensure your investment and stay is a smooth and hassle free experience.