Understanding Latvia's Investment Migration Landscape

If you're exploring pathways to European residency and eventual citizenship through investment, Latvia may have crossed your radar. Located in the Baltic region of Northern Europe, this EU member state offers a distinctive approach to investment migration that warrants careful consideration.

Let's start with an important clarification: Latvia does not offer a direct citizenship-by-investment program. Instead, Latvia operates a residency-by-investment scheme, commonly known as a "Golden Visa" program. This pathway grants qualifying foreign investors a temporary residence permit that can eventually lead to citizenship, but only after meeting substantial residence and integration requirements.

The Latvian approach represents a middle ground in the European investment migration space – more accessible than some Western European options, yet requiring genuine commitment to the country beyond mere financial contribution. This makes Latvia's program particularly suited for those looking for a long-term relationship with Europe rather than an immediate passport solution.

In this comprehensive guide, we'll explore Latvia's current investment residency framework as of May 2025, detailing the legal basis, financial requirements, pathways to permanent residence and citizenship, application processes, and recent policy developments that might impact your decision.

Latvia's program has been called "Europe's hidden gem for affordable investment migration," but it comes with "a longer and more demanding path to citizenship" than many other countries. Let's unpack whether this Baltic option aligns with your global mobility goals.

Latvia's investor residency program was established through amendments to the Immigration Law of Latvia that came into effect on July 1, 2010. These amendments introduced provisions (now contained in Article 23 of the Immigration Law) allowing foreign nationals to obtain a temporary residence permit by making qualifying investments in the Latvian economy.

The program was originally conceived as an economic stimulus measure following the 2008-2009 financial crisis. Subsequent amendments in 2014 raised the minimum investment thresholds and added government fees, reflecting Latvia's evolving approach to investment-based immigration.

The legal framework for these investment residence permits is detailed in both the Immigration Law and specific Cabinet of Ministers regulations, which outline the qualifying investment types and criteria for approval. This solid legal foundation means the program operates with transparency and predictable rules – a crucial consideration for any significant investment decision.

Under Latvian law, approved investors (and their immediate family members) receive a temporary residence permit valid for up to 5 years, subject to specific conditions. In practice, the permit is issued for a 5-year term but requires annual ID renewal. This residence status grants the right to live in Latvia and travel freely throughout the Schengen Area.

Importantly, naturalization as a Latvian citizen remains governed by the separate Citizenship Law, which establishes requirements for language proficiency, residence duration, and cultural integration – all of which we'll explore in detail later in this guide.

Current Status: Is Latvia's Program Still Open?

As of May 2025, Latvia's investment residency program remains operational for most nationalities but has been significantly narrowed and faces increasing scrutiny. Here's the current situation:

In April 2022, responding to security concerns following Russia's invasion of Ukraine, Latvia's parliament passed urgent amendments suspending the issuance of first-time investment residence permits to citizens of Russia and Belarus. Since Russians historically comprised over 85% of Latvia's golden visa applicants, this dramatically reduced program participation.

Additionally, in late 2023, the Latvian government approved draft legislation that would eliminate all investment-based residence permit provisions from the Immigration Law, citing national security and money-laundering risks. This draft law would remove the clauses granting TRPs for real estate, bond purchases, or bank investments.

However, as of May 2025, this legislation has not yet been enacted by parliament. Until such reforms pass, the Latvian "golden visa" program technically remains open for non-Russian/Belarusian nationals under the existing rules. That said, policy trends clearly indicate a tightening or possible closure in the near future.

For prospective applicants, this means a narrowing window of opportunity. Anyone considering the Latvian pathway should be prepared for potential program changes and consult with immigration specialists to understand the most current requirements.

Investment Options and Financial Requirements

Latvia offers several investment categories that qualify for residence permits. Each comes with specific financial thresholds and additional requirements. Here's a detailed breakdown of the main investment routes:

1. Real Estate Investment

Investment requirement: Purchase real estate in Latvia valued at a minimum of €250,000.

Additional fees: A state fee of 5% of the property's purchase price (e.g., €12,500 on a €250,000 purchase).

Property requirements: The property must be a single functionally usable unit (or at most two units outside major cities, each meeting half of the value requirement). Agricultural or forest land does not qualify.

Additional conditions: The investor must have no real estate tax debts, and the transaction must be conducted via bank transfer. The 5% government fee must be paid into the state budget upon applying for the first residence permit.

The real estate route has historically been popular due to the potential for capital appreciation and rental income alongside residency benefits. However, it requires significant upfront capital and carries market risks like any property investment.

2. Business Investment (Latvian Company Shares)

For small or medium enterprises (≤50 employees and ≤€10 million annual turnover/balance sheet):

  • Investment requirement: Minimum €50,000 in a Latvian registered company's equity.
  • Additional fees: One-time government fee of €10,000.
  • Ongoing conditions: The company must pay at least €40,000 in annual taxes.

For larger enterprises (exceeding 50 employees or €10m turnover):

  • Investment requirement: Minimum €100,000 investment.
  • Additional fees: The €10,000 state fee may not apply in this case.

Additional conditions: No more than 10 foreign investors can qualify per company under this route, and each must individually meet the full investment and fee requirements.

The business investment route is often considered the most cost-effective entry point, given the relatively low €50,000 capital threshold. However, it comes with ongoing compliance requirements, as the business must remain operational and meet tax obligations each year.

3. Government Bonds (Special Purpose Securities)

Investment requirement: €250,000 in Latvian government special-purpose interest-free bonds, designated specifically for immigration investors.

Additional fees: One-time contribution of €38,000 to the state.

Bond characteristics: The bonds carry a zero coupon (no interest), meaning the investor forgoes potential earnings as an additional cost.

Process note: The bonds must be purchased after receiving approval (to ensure funds come through vetted channels).

This option was introduced in 2014 as an alternative to real estate but has seen limited uptake. The high state fee effectively functions as a donation to the Latvian government, making this a more expensive option without the potential returns of real estate or business investment.

4. Bank Deposit (Subordinated Loan to a Latvian Bank)

Investment requirement: €280,000 in a subordinated capital deposit (or bonds issued by a Latvian bank) for a minimum of 5 years.

Additional fees: One-time state fee of €25,000.

Deposit conditions: The deposit must be subordinate debt, meaning the funds act as Tier 2 capital for the bank and are not withdrawable on demand.

This route similarly yields no interest or below-market interest to the investor. Due to the high outlay and fee, it has been one of the least utilized options, with virtually no applications in some recent years.

Alternative "Special Contribution" Route

Since 2022, Latvian authorities have also discussed or implemented special contribution options as alternatives to the traditional routes. These include:

  • A donation of €100,000 to a state development fund, or
  • An investment of €100,000 as subordinated capital in a Latvian bank (a reduced amount from the standard bank deposit option).

These alternatives were reportedly created amid post-Ukraine war adjustments, particularly to allow certain investors who could no longer use the real estate route to qualify via a direct economic contribution. In practice, these contribution-based routes are not standard pathways and were likely aimed at specific cases or as temporary measures.

Additional Financial Requirements

Beyond the primary investment, applicants must demonstrate sufficient ongoing financial means to support themselves and their dependents in Latvia. Official guidelines require evidence of steady income or savings – for example, at least €15,480 per year for a single applicant, increasing to €20,640 for a couple, and more for families with children.

Applicants must also have no serious criminal record, obtain health insurance valid in Latvia, and (for real estate investments) get an independent appraisal confirming the property value meets the minimum threshold.

From Residency to Citizenship: The Long Path Forward

One of the most important aspects to understand about Latvia's program is the timeline and requirements for transitioning from temporary residence to permanent residence and, eventually, to citizenship. This is not a quick passport solution, but rather a structured path toward European citizenship for those willing to make Latvia their home.

Temporary Residence Permit (TRP)

Successful investors and their families initially receive a temporary residence permit valid for 5 years. The TRP allows holders to:

  • Live, work, and study in Latvia
  • Travel visa-free throughout the Schengen Area
  • Include family members (spouse and minor children) under the main applicant's permit

The permit is issued for a 5-year term upfront but requires an annual in-country visit to renew the residence ID card. Unlike some countries, Latvia does not mandate a minimum stay (such as 183 days annually) to maintain the permit. However, physical presence becomes critical if your goal is to progress to permanent residency or citizenship.

During this temporary residence period, you must maintain your qualifying investment (e.g., not sell the property or withdraw the deposit) and remain in good legal standing.

Permanent Residence (PR)

After five years on a temporary investor residence permit, you become eligible to apply for permanent residence, which in Latvia corresponds to EU long-term resident status. However, obtaining PR is not automatic – you must meet additional requirements:

  1. Actual residence requirement: You must have physically resided in Latvia for at least 4 out of the 5 years of temporary residency. This means a minimum stay of 4 years (48+ months) in Latvia, with absences not exceeding 6 months per year.
  2. Language requirement: You must pass a basic Latvian language exam at A2 level, demonstrating elementary proficiency.
  3. Integration requirement: You must pass a test on the fundamentals of Latvia's history, constitutional principles, and the national anthem (usually combined with the language test).
  4. Financial means and clean record: You must continue to demonstrate sufficient financial resources and maintain a clean legal record.

If these conditions are fulfilled, you and your family can be granted permanent resident status, which confers an indefinite right to reside in Latvia (with renewable ID cards every 5 years) and greater security of status. As a permanent resident of Latvia, you also gain the right to live in other EU countries under certain conditions.

If you do not meet the residency or language requirements after your initial 5 years, you cannot obtain PR at that time. Instead, you have the option to renew your temporary permit for another term by paying an additional fee of €5,000 and continuing to fulfill investment criteria. This provides flexibility for those who just want ongoing residency without local integration, but it also means the clock to citizenship does not start until PR is obtained.

Citizenship Through Naturalization

Obtaining Latvian citizenship through the investment route requires following the standard naturalization process – there is no shortcut or direct "investor citizenship." Under Latvia's Citizenship Law, a foreign national may apply for naturalization only after 10 years of legal residence in Latvia, interpreted as 5 years of temporary residence plus 5 years as a permanent resident.

The requirements for naturalization include:

  1. Extended residence: At least 10 years of legal residence, including the last 5 years with permanent resident status. Time spent on the initial investor TRP counts toward the total, but substantial physical presence is expected during this period.
  2. Advanced language proficiency: Passing a more advanced Latvian language test (approximately B1 level) demonstrating intermediate proficiency.
  3. Civic knowledge: Passing examinations on the basic principles of the Constitution, national history and culture, and being able to write and recite the Latvian national anthem.
  4. Loyalty oath: Taking a solemn oath of loyalty to the Republic of Latvia.

The Dual Citizenship Consideration

A major consideration for potential applicants is Latvia's stance on dual citizenship. Latvian law requires new citizens to renounce their previous citizenship, with limited exceptions. Dual citizenship is only allowed if the other country is:

  • An EU member state
  • An EFTA member state
  • A NATO member state
  • Certain other specifically allowed countries (e.g., Australia, New Zealand, Brazil)

Most other investors (e.g., from CIS countries, China, etc.) would be required to renounce their original citizenship as part of the naturalization process. Proof of renunciation (or an official undertaking to renounce upon receiving Latvian citizenship) must be provided before the final grant of citizenship.

This policy significantly impacts whether investors ultimately choose to naturalize or simply remain permanent residents. Given the length (around 10 years) and difficulty of this path, many golden visa investors do not end up becoming Latvian citizens – the program is more commonly used as a means to residency and Schengen access, with citizenship as a distant option for those who truly settle in Latvia.

The Application Process: Step-by-Step

Obtaining a Latvian residence permit by investment involves a multi-stage process with strict documentation requirements. Here's a detailed walkthrough of what to expect:

1. Choose an Investment and Prepare Documentation

First, decide which investment option best suits your financial situation and goals. Unlike some programs, Latvia requires you to complete the investment before applying – proof of the completed investment is required upfront.

Gather all required documents, including:

  • Valid passport
  • Proof of the qualifying investment (such as a property deed or bank confirmation letter)
  • Evidence of sufficient financial resources and income
  • Police clearance certificate from your country of residence
  • Health insurance coverage valid in Latvia
  • Marriage and birth certificates (if applying with family)

Documents must be translated to Latvian and apostilled or legalized as required. You'll also need an invitation letter approved by the Office of Citizenship and Migration Affairs (OCMA) – typically a local bank, law firm, or the company in which you invest can register an invitation on your behalf.

2. Submit the Residence Permit Application

You can file your application either:

  • In person at a Latvian embassy/consulate in your home country (or nearest country if no Latvian mission is present)
  • Directly in Latvia at the OCMA office, either personally or via a legal representative

The submission involves:

  • Completing the official residence permit request form
  • Attaching all required documents
  • Paying the application processing fee

Latvia offers three processing speed options:

  • Standard service: 30 calendar days (approximately €160)
  • Expedited: 10 business days (approximately €260)
  • Urgent: 5 business days (approximately €560)

Your application must include proof of payment of both the processing fee and the applicable state fee for your investment category (such as the 5% for real estate or the €10,000 for business investment).

Once submitted, the OCMA and Latvian security services will review your file, perform background checks, and verify your investment compliance.

3. Await Approval and Visa Issuance

If your application is approved within the set timeframe, you'll receive an approval notice. If you applied from abroad, the Latvian embassy will then issue a D visa (temporary entry visa) allowing you and your family to travel to Latvia to complete the process. Those who applied from within Latvia will already be present.

The approval is typically valid for a few months, during which you must arrive in Latvia.

4. Complete Arrival Formalities in Latvia

Upon arrival in Latvia, you must visit the OCMA office in person to provide biometrics (fingerprints and photo) and formally receive your temporary residence permit card. Latvian law requires that you enter Latvia within 3 months of approval to claim the permit.

At the OCMA appointment, present your passport and approval letter; your residence permit card is then typically issued on the same day or within a few days. The TRP card will be valid for five years from the date of initial issuance, but it must be registered each year.

5. Maintain Residency Status

During the 5-year temporary residence period, you must:

  • Maintain your investment and comply with Latvian laws
  • Visit Latvia at least once annually to renew/extend your ID card
  • Pay any applicable renewal fees
  • Consider learning the Latvian language if you plan to pursue permanent residence

If you're aiming for citizenship or long-term status, you should establish substantial residence in Latvia to meet the continuous residence requirements for permanent residency.

6. Transition to Permanent Residence or Renewal

At the end of the five-year TRP term, you have two options:

Option A: Apply for permanent residence If you meet eligibility criteria (including the 4-out-of-5-year residence requirement and passing the A2 language exam), you can apply for permanent residence. This grants you a permanent residence card that needs renewal only every 5 years and removes the tie to your original investment.

Option B: Renew your temporary residence permit If you choose to continue on a temporary permit for another 5-year period, you must make an additional €5,000 contribution to the state and prove that your investment is still in place. This extends your golden visa status but maintains the investment obligation.

Many investors who do not plan to naturalize opt to renew their TRP, especially if they wish to keep their original citizenship and just maintain Latvian residency as a mobility option. Those pursuing citizenship will typically go for permanent residence as soon as they qualify.

7. Naturalization (Optional, after ~10 years)

If your ultimate goal is Latvian citizenship, you must first hold permanent resident status for at least 5 years. After a total of approximately 10 years in Latvia (5+5) – and assuming you have continuously resided and integrated – you can apply for naturalization.

This involves:

  • Submitting a citizenship application to OCMA
  • Passing the Latvian language B1-level exam and civics tests
  • Formally renouncing prior citizenship if required
  • Taking the citizenship oath

The application process for citizenship typically takes up to a year, culminating in a citizenship oath ceremony. Upon becoming a Latvian citizen, you can apply for a Latvian passport and enjoy all rights of EU citizenship.

Pros and Cons of Latvia's Investment Migration Program

As with any investment migration program, Latvia's offering comes with distinct advantages and challenges. Let's examine these to help you make an informed decision:

Advantages

Relatively affordable entry point: The business investment option starting at €50,000 (plus fees) makes Latvia one of the more accessible European residency programs. This is significantly lower than many Western European alternatives.

EU and Schengen access: The temporary residence permit grants the right to travel visa-free throughout the 27-member Schengen Area, providing substantial mobility benefits from day one.

Family inclusion: Spouse and dependent children can be included in the main applicant's investment, making it a family solution.

No physical residence requirement for permit maintenance: Unlike some countries, Latvia does not require you to spend a minimum number of days each year in the country to maintain the temporary residence permit (though residence is necessary for advancing to permanent status).

Legal certainty: The program is established in Latvian law and has operated for over a decade, providing a level of stability and predictability.

Path to EU citizenship: For those willing to commit to residing in Latvia and learning the language, the program offers a structured path to EU citizenship, albeit a longer one than some alternatives.

Lower cost of living: Latvia offers a high quality of life at costs significantly lower than in Western European capitals, making it an attractive place for actual residence.

Challenges

Not a direct citizenship program: Unlike some Caribbean or even European programs (Malta), Latvia offers only residency with a long path to potential citizenship.

Substantial physical residence required for PR and citizenship: To advance beyond temporary residence, you must actually live in Latvia for a significant portion of time (minimum 4 out of 5 years for PR).

Language requirements: Learning Latvian (a challenging Baltic language with around 1.5 million speakers) is mandatory for permanent residence (A2 level) and citizenship (B1 level).

Potential requirement to renounce original citizenship: Unless you're from an EU, NATO, or specifically exempted country, you would likely need to give up your original citizenship to become Latvian.

Program instability: With suspended access for Russian/Belarusian nationals and pending legislation that could end the program entirely, the long-term availability of this pathway is uncertain.

Limited investment options: Some investment routes (like the government bonds and bank deposits) offer little to no return on investment beyond the residence permit itself.

Annual renewal requirement: While the permit is valid for 5 years, you must visit Latvia annually to renew your ID card, which adds a logistical obligation.

Recent Policy Developments and Future Outlook

Latvia's investment residency program has undergone significant changes in recent years, reflecting both domestic political sentiment and broader EU pressures regarding "golden visas." Understanding these developments is crucial for assessing the program's future stability.

Suspension for Russian and Belarusian Investors

In response to Russia's invasion of Ukraine in 2022, Latvia quickly restricted Russian and Belarusian participation in its residence-by-investment scheme. The Latvian Parliament adopted urgent amendments to the Immigration Law temporarily suspending the issuance of first-time temporary residence permits to citizens of Russia and Belarus under the investment categories.

This moratorium initially ran until June 30, 2023, and has since been extended given the ongoing conflict. Effectively, since 2022, no new applications from Russians or Belarusians are accepted for the golden visa. Those nationals also faced tighter scrutiny or limits on renewing existing permits.

This had a dramatic impact on program uptake – historically over 85% of Latvian golden visas were granted to Russians, so new approvals dropped to near zero after this change.

Draft Law to Abolish the Golden Visa Program

In November 2023, Latvia's Ministry of Interior announced a comprehensive reform of immigration law, including the elimination of all investor residence permit provisions. The Cabinet of Ministers approved draft amendments that would remove the clauses allowing temporary residence permits for investments in real estate, interest-free bonds, or bank subordinated deposits.

According to the Interior Ministry's statement, these investment-based provisions "will be eliminated," essentially shutting down the golden visa program entirely. The rationale given was national security and reducing risks of illicit funds, especially since the program's economic benefits had waned.

As of May 2025, this law has not yet been enacted, so new (non-Russian) investors can still apply under existing rules. However, it is possible that during 2025 the Parliament will ratify these changes, formally ending new golden visa admissions.

If passed, Latvia would join countries like the UK, Ireland, and Bulgaria, which have shut down their investor visa schemes in recent years. Current permit holders would likely be grandfathered until expiry, but no new applications would be accepted once the law takes force.

European Commission Pressure

The European Commission has called on Member States to curtail investor citizenship and residency schemes due to security, money laundering, and tax evasion risks. Latvia was among the countries that heeded these warnings post-2022.

In a noteworthy regional development, on April 3, 2025, Spain officially closed its golden visa program (which had been based largely on real estate investment). This leaves Latvia as one of the few remaining EU countries still offering an investor residency pathway – albeit one under legislative review.

Investors considering Latvia in 2025 should therefore be aware that policy winds are blowing against "golden visas" in the EU, and Latvia's door may close soon. Anyone interested should seek updated legal advice on the current status of the law before proceeding.

Impact on Existing Investors

For those already holding Latvian investment residence permits, recent legal changes have imposed additional hurdles. For example, many long-term resident Russians in Latvia (some of whom originally obtained residence via investment) were required in 2023-2024 to reapply for permanent residence by a deadline and prove A2 language knowledge or face loss of status.

The OCMA sent letters informing certain permanent residence permit holders that their status would become void unless they passed the language exam and submitted renewal documents. This caused a rush among affected residents to take Latvian classes or leave the country.

While this specific measure targeted a particular group, it exemplifies Latvia's increasingly stringent approach. Investor permit holders should anticipate thorough vetting upon renewals and a requirement to show genuine connection to Latvia (language, residence, etc.) if they plan to settle permanently.

Alternative European Investment Migration Options

With Latvia's program facing an uncertain future, prospective investors might consider alternative European pathways. Here's a brief overview of comparable programs still operating as of May 2025:

Portugal's Golden Visa: Recently reformed to eliminate the real estate option in high-density areas, Portugal now focuses on job creation, cultural investments, and investments in less developed regions. The program offers a 5-year route to permanent residence and 6 years to citizenship eligibility, with minimal physical presence requirements.

Greece's Golden Visa: Based primarily on a €250,000 real estate investment, Greece offers a renewable 5-year residence permit with a path to citizenship after 7 years of legal residence and language requirements. Physical presence requirements are minimal for maintaining the permit.

Malta's Permanent Residence Programme: Requires a combination of property investment/rental and government contribution. While not directly leading to citizenship, it offers stable permanent residence status in an EU country.

Cyprus' Permanent Residence: Following the closure of its citizenship program, Cyprus maintains a permanent residence option based on a €300,000 real estate investment, requiring just one visit every two years.

Ireland's Immigrant Investor Programme: Requires substantial investments (€1 million+ in various categories) but offers a relatively straightforward path to Irish permanent residence.

Each of these alternatives has its own advantages and limitations compared to Latvia's program, particularly regarding investment thresholds, physical presence requirements, and timelines to permanent residence or citizenship.

Conclusion: Is Latvia's Program Right for You?

Latvia's residency-by-investment program represents a unique position in the European investment migration landscape – more affordable than many Western alternatives, but with a longer and more demanding path to citizenship.

The program is best suited for investors who:

  • Seek European residency with a moderate investment (particularly the €50,000 business option)
  • Value Schengen mobility but don't need immediate citizenship
  • Are willing to learn a new language and potentially establish actual residence
  • Have a long-term perspective on European integration

However, it may not be ideal for those seeking:

  • A quick path to EU citizenship
  • Minimal physical presence requirements for advancement
  • The ability to maintain dual citizenship (if from non-exempted countries)
  • Long-term program stability

As of May 2025, Latvia's program remains operational but significantly constrained, with potential for full closure pending legislation. The suspension for Russian and Belarusian nationals and the proposed abolition of the entire scheme reflect shifting priorities in Latvian immigration policy and broader European trends away from investor migration programs.

For those still interested in pursuing this path, working with experienced immigration counsel is essential to navigate the changing landscape and ensure compliance with all requirements. The window of opportunity may be narrowing, but for the right investor, Latvia's program still offers a gateway to European residency with the potential for citizenship for those willing to embrace the country's language, culture, and residence requirements.

Whatever your decision, understanding the full implications – from initial investment to the lengthy naturalization process – is crucial for aligning this program with your global mobility and investment goals.