Obtaining a residence permit based on an investment from a Latvian bank is often a better option for those looking to obtain a residence permit while ensuring a stable investment with a guaranteed return rather than the possible variable profits that sometimes come with real estate investments. Statistics show that this type of investment is generally a less common way of obtaining a residence permit compared to buying real estate, however there are several peculiarities of the system available in Latvia that make this option the best solution for some investors.

Financial investment in a Latvian bank
To apply for a residence permit in Latvia based on an investment in a bank, you must invest at least EUR 280,000 in subordinated capital with a bank and pay a state fee of EUR 25,000 to the government. Subordinated capital is money that the bank borrows from a customer for a term of at least 5 years (like a corporate bond - but where the company 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 (length of the bond). The banks usually assume all risks. It's also worth noting that like any other bond, the bank pays you interest, so this can be a good, low-risk way to get a return on your investment and increase your capital over time, while also getting your residence permit . The interest rate is agreed in advance, so this option effectively guarantees the size of the return on your investment, but may not offer the same liquidity as buying a property - where you always have the option to sell.

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

Choosing between the options available 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 assistance for any other part of the set-up process so that your investment and stay is a pleasant and stress free experience.

http://www.immigration-residency.eu/residence-permit-latvia/bank-de...