Latvia’s planned overhaul of its investment immigration program has been delayed after President Edgars Rinkēvičs returned the newly passed Immigration Law to parliament for further review.

The Saeima approved the new Immigration Law on June 11 by a vote of 65-17, replacing the legislation that has governed foreign residence permits since 2002. At the heart of the bill are three major changes to Latvia’s residence-by-investment framework: eliminating the real estate and bank investment routes, retaining the company investment pathway, and introducing a new state-created investment fund option.

However, on June 19, President Rinkēvičs declined to promulgate the law, citing concerns over the investment-based residence permit provisions. Because parliament’s spring session ended on June 18, lawmakers are expected to reconsider the legislation during the autumn session. 

Latvia Plans to End Property and Bank Investment Residence Routes

The proposed legislation would remove the real estate and bank investment pathways from Latvia’s Immigration Law. The current law includes a residence permit route based on the purchase of real estate worth at least €250,000, as well as a bank investment route requiring a €280,000 subordinated investment in a Latvian credit institution. Neither route is included in the bill passed by the Saeima.

Applications submitted and accepted before the new law takes effect would continue to be processed under the existing rules. Existing residence permits would remain valid until their expiration, after which renewals would be handled under the law’s transitional provisions.

During the legislative process, Economy Minister Viktors Valainis proposed restoring the real estate investment route with revised eligibility requirements, but the responsible parliamentary committee rejected the proposal.

New €150,000 State Investment Fund Route Proposed

The proposed legislation would create a new residence-by-investment pathway that is not available under the current statute. Under the bill, foreign nationals could obtain a residence permit by investing at least €150,000 in a state-created alternative investment fund for a minimum of five years and paying an additional €10,000 to the state budget.

The residence permit could be granted for up to five years. However, the investment route cannot become operational until the government establishes the state-created fund through separate legislation.

The permit would remain valid only if the investment contract remains in force and the investor maintains a minimum balance of €150,000 in the fund throughout the required investment period.

Company Investment Route Would Remain 

While the proposed legislation would remove the real estate and bank investment pathways, it would retain the company investment route with revised permit terms.

Under Article 27(1)(10), foreign nationals could qualify for a residence permit by investing at least €50,000 in the share capital of a Latvian company with no more than 50 employees and an annual turnover or balance sheet of less than €10 million. Applicants would also be required to pay €10,000 to the state budget.

A second investment tier would require a minimum investment of €100,000 in a company that, together with its subsidiaries, employs more than 50 people and has an annual turnover exceeding €10 million. Under both tiers, no more than 10 foreign nationals could obtain residence permits through the same company.

The main change is the permit’s validity period. The company investment route currently provides a residence permit valid for up to five years, subject to annual registration through identity cards. Under the proposed law, the maximum permit period would be reduced to two years, while the existing tax requirements—at least €40,000 annually for the lower investment tier and €100,000 for the higher tier—would remain unchanged. 

Several Investment Proposals Were Rejected

The version of the Immigration Law passed by the Saeima reflects only some of the investment measures considered during the legislative process, with several proposals falling away before the final vote.

Among them was a proposal by Andris Kulbergs to create a separate €150,000 residence-by-investment route linked to companies established by Latvia’s special economic zones and freeport authorities. His proposal to revive the government’s former bond investment route also failed to gain support.

Efforts to restore the company investment residence permit to five years met the same outcome. Both Kulbergs and Economy Minister Viktors Valainis submitted separate amendments seeking to reverse the proposed two-year limit, but neither was adopted.

Kulbergs also proposed allowing qualifying investors to become Latvian taxpayers through a flat annual payment of €60,000. That measure was likewise omitted from the final legislation approved by parliament.

President Requests Further Review

President Rinkēvičs asked lawmakers to reconsider several investment-related provisions before the law takes effect.

Among his concerns was whether citizens from NATO, OECD, European Economic Area countries, and potentially other countries considered friendly to Latvia should be eligible to obtain residence permits through real estate purchases.

He also questioned whether the proposed rules governing the new €150,000 investment fund are complete enough without additional regulations, particularly regarding verification of investment funds and how the money may be used.

The president also pointed to an issue identified shortly after parliament approved the law. The original version of the new investment fund route did not exclude Russian and Belarusian citizens. Parliament passed a separate amendment on June 18 to address the omission before the law reached the president.

The legislation separately provides that discretionary residence permits for Russian and Belarusian citizens may only be granted under limited circumstances involving international legal obligations or humanitarian considerations.

How Latvia’s Investment Immigration Policy Reached This Point

Latvia launched its golden visa program in 2010, with Russian nationals accounting for a large share of applicants until they were barred from the program in 2022. Demand for the program had already declined after 2016.

Following a 2018 Moneyval review, Latvia strengthened oversight of its residence-by-investment framework and increased scrutiny of investors. More recently, investigators examined more than 20 companies over suspected misuse of the company investment route.

The next decision now rests with the Saeima, which can re-adopt the law without changes, amend it to address the president’s concerns, or leave it unresolved until a later session.

Until parliament reaches a decision, Latvia’s existing company investment route remains the country’s only active investment-based residence pathway. The proposed €150,000 state investment fund route cannot begin until the required fund is established through separate legislation.