Advantages of Residency and Investment with Latvian Real Estate

Within the European Union, there are very few countries that offer residency rights, strong rental yields, and long-term citizenship opportunities in the same package at relatively low costs. Latvia remains a prominent option for investors looking to obtain residency through real estate investment as of 2025, but it must be managed carefully.

nn

Why Latvia? Investment, Residency, and EU Access at the Same Time

n

Latvia’s “Residency by Investment” (RBI) program is often referred to as the “Latvia Golden Visa” and provides citizens of non-EU countries with a temporary residency permit for up to 5 years in exchange for a specific investment.

nn

The key features of the program include:

n

n
• Schengen free movement: Visa-free entry to 27 Schengen countries.

n

• No residency obligation: No requirement for actual residence in Latvia to maintain residency.

n

• Affordable investment threshold: Lower entry amounts compared to Western European programs.

n

• Fast process: Most applications are processed within 1–3 months.

n

• Long-term roadmap: Possibility of permanent residency after 5 years and citizenship after 10 years (subject to language and integration requirements).

n

nn

In this context, real estate investment has become the primary channel for investors seeking residency, as it offers both tangible assets and Euro-based rental income.

nn

Key Investment Options in the Latvian Residency Program

n

According to current data from 2025, two main routes stand out in the Latvia RBI program:

nn

n
• Real estate investment

n

• Company / capital investment

n

nn

Common basic requirements for both routes include:

n

n
• Maintaining the investment for at least 5 years.

n

• Proving that you can financially support yourself and your family without needing Latvian social assistance. For example:
  n
  n
  • For a single person, an annual income of at least approximately €15,480

  n

  • For a family of three, an annual income of approximately €22,188

  n

  n

n

nn

1. Residency through Real Estate Investment

n

The real estate route is the most well-known and tangible aspect of the program from an investor’s perspective. However, as of 2025, some sources indicate that the real estate option ended in early 2022, while others state that it is still active. Therefore, it is essential to confirm the situation through the Latvia Migration Office (OCMA) and current official regulations before making a decision.

nn

According to recent international analyses (for example, NTL Trust 2025 guide), when the program is considered active, the conditions are summarized as follows:

nn

n
• Minimum investment: Real estate valued at least €250,000 in total.

n

• For Riga / Jurmala:
  n
  n
  • A single property can be purchased.

  n

  • The cadastral value of the property must be at least €80,000.

  n

  n

n

• In other cities and regions:
  n
  n
  • Multiple properties can be acquired.

  n

  • The cadastral value of each property must be at least €40,000.

  n

  n

n

• Ineligible properties: Agricultural land and forest lands are not considered valid for residency.

n

nn

In the total cost calculation, the following are also added:

n

n
• 5% state fee

n

• 2% property (stamp) tax

n

n

Thus, the total minimum cost rises to approximately €262,500+.

nn

2. Residency through Company / Capital Investment

n

As an alternative to the real estate route, you can also obtain residency by investing in a company in Latvia.

nn

The main framework is as follows:

n

n
• Minimum €50,000 capital investment:

n

n
• The company you invest in must pay at least €40,000 in taxes annually.

n

n

n

• For larger companies:
  n
  n
  • In companies with more than 50 employees or a turnover of €10,000+, the investment threshold generally increases to €100,000.

  n

  n

n

• In many structures, a €10,000 state contribution / donation is required.

n

nn

Therefore, the total minimum cost typically falls in the range of €60,000–100,000+. This route offers a more flexible model for those looking to establish an operational business or expand within the EU through an existing Latvian company.

nn

Rights and Family Benefits Provided by Residency in Latvia

n

The temporary residency permit you will obtain under the Latvia RBI program, when structured correctly, becomes a strong mobility and security tool not only for you but also for your family.

nn

n
• Duration: Initially, a temporary residency is granted for up to 5 years; it can be extended as long as the investment continues.

n

• Family coverage:
  n
  n
  • Spouse

  n

  • Children under 18

  n

  • In some cases, dependent children continuing their education up to 24 years old

  n

  • Depending on the source, sometimes parents may also be included.

  n

  n

n

• Right to work and live: Grants the right to live and work in Latvia.

n

• Schengen access: Provides visa-free or entry at the border to 27 Schengen countries.

n

• Residency without physical presence requirement: Unlike many programs, there is no requirement to stay a certain number of days in Latvia to maintain residency.

n

• Path to permanent residency and citizenship:
  n
  n
  • Application for permanent residency after 5 years.

  n

  • After 10 years of legal residence, the right to apply for citizenship by passing language and integration tests.

  n

  n

n

• Fast assessment: Applications are generally processed within 1–3 months.

n

nn

Latvian Real Estate Market: Returns, Opportunities, and Risks

n

Understanding the factors that make Latvia attractive not only in terms of residency but also as a real estate investment allows you to establish your strategy correctly.

nn

High Rental Yield and Price Advantage

n

According to 2025 data, Latvia offers a remarkable level of gross rental yield compared to many other EU capitals:

nn

n
• Average gross rental yield: 7.9–8 range.

n

• Average unit price in Riga: Approximately €892/m².

n

• Recently, a decrease of approximately 8.42% in prices has been observed, creating a “buying at the bottom” opportunity for new investors.

n

nn

This scenario offers a significant advantage compared to the 2–4% yield range often seen in Western European capitals. Especially for investors diversifying their portfolios in the medium to long term, the combination of rental income and potential value appreciation in Latvia, when combined with residency rights, creates a strong package.

nn

Market Size and Future Projections

n

The size of the Latvian housing market is projected to reach approximately $159.36 billion by 2025, with an expected annual compound growth rate (CAGR) of about 4.27% until 2029, and a volume expected to progress to $188.34 billion.

nn

This growth is supported by economic stability, urbanization, increased demand, and continued mobility within the EU. Thus, the investor can aim not only for short-term residency advantages but also for long-term capital gains.

nn

Rules and Restrictions on Purchasing

n

When purchasing real estate for residency purposes in Latvia, certain technical restrictions must be considered:

nn

n
• In many cases, it may be necessary to make the purchase through a legal entity in Latvia.

n

• In Riga and Jurmala, generally, only a single property is allowed to be purchased.

n

• In other regions, more than one unit can be purchased; however, each must meet the minimum cadastral value requirement.

n

• Agricultural and forest lands are generally not suitable for RBI.

n

nn

Taxation: Size of Tax on Purchase, Ownership, and Sale

n

Latvia offers a transparent but carefully planned tax framework for real estate investors.

nn

n
• At the time of purchase:
  n
  n
  • Approximately 5% state fee on property purchase.

  n

  • 2% property / stamp tax

  n

  n

n

• Annual property tax:
  n
  n
  • Generally charged at rates of up to 2% on land and commercial properties.

  n

  • No additional asset taxes such as wealth, inheritance, or property tax; this is a plus in terms of wealth protection.

  n

  n

n

• Capital gains tax:
  n
  n
  • A standard 20% capital gains tax applies.

  n

  • However:

  n

  n
  • If the property has been used as a primary residence for at least 12 months or

  n

  • If it has been held for more than 60 months and the sale proceeds are reinvested,

  n

  n certain exemptions and exceptions may apply.

  n

  n

n

nn

This tax framework allows for maximizing net rental yield and optimizing long-term exit strategies when structured correctly.

nn

The Business, Life, and Wealth Protection Dimension of Latvian Residency

nn

Business Development and Corporate Opportunities

n

Latvia serves as a gateway to the EU internal market in the Baltic region. With a GDP of approximately $60 billion, a business environment compliant with EU regulations, and a relatively low level of bureaucracy, it creates an attractive ground, especially for:

nn

n
• IT and software companies

n

• Logistics and storage

n

• Manufacturing and light industry

n

• Services and consulting

n

nn

With a €50,000+ capital investment in the RBI program, it is possible to establish a company in Latvia and obtain residency through this company while also planning billing, employment, and growth strategies within the EU.

nn

Here, professional-level international tax and legal planning is critically important. A poorly structured company can:

n

n
• Unnecessarily increase the tax burden in Latvia,

n

• Exacerbate double taxation risks with Turkey or your other residence countries,

n

• Risk the residency permit due to failure to meet annual tax payment requirements.

n

nn

Quality of Life and Family Benefits

n

As an EU member country, Latvia offers the following advantages for families:

n

n
• Low cost of living: Housing and basic expenses are lower compared to many Western European countries.

n

• Education and health: Access to a universal healthcare system and public education; international schools are available in Riga.

n

• Safety: Relatively low crime rates and a calm city life.

n

• Language: The official language is Latvian, but English and Russian are widely spoken in Riga and major cities.

n

nn

The residency card provides access to EU universities and flexible mobility, especially for the future of children.

nn

Wealth Protection and Flexible Exit Options

n

Real estate in Latvia offers a high level of ownership security within the framework of EU property law. One of the standout advantages of the program is:

n

n
• After holding the investment for at least 5 years, if you do not wish to renew your residency permit,

n

• You can sell the property and transition to another country or investment strategy.

n

nn

This flexibility allows for a medium-term, controlled commitment instead of “permanently locked capital”.

nn

Risks and Points to Consider

n

As with any investment and migration program, it is essential to act consciously in Latvia:

nn

n
• Status of the program: Especially regarding the real estate route, there is conflicting information about changes after 2022. Be sure to check the current official regulations and Latvia Migration Office (OCMA) statements before making a decision.

n

• Regional restrictions: The single property limit in Riga and Jurmala may restrict portfolio diversification.

n

• Tax criteria in the company route: The company entered with a €50,000 investment must ensure at least €40,000 in tax payments annually; otherwise, residency is at serious risk.

n

• Liquidity risk: The market is not as deep as major European capitals; sales times may be longer.

n

• Geopolitical sensitivity: The proximity of the Baltic region to Russia may increase risk perception for some investors; this situation requires professional risk analysis.

n

nn

How Can You Structure Your Strategy with Corpenza in Latvia?

n

The Latvia RBI program encompasses multi-layered elements such as real estate, corporate structuring, residency, and long-term citizenship, making it critical to design the process correctly. Especially:

nn

n
• The tax and legal interactions between Turkey (or another residence country) – Latvia – third countries,

n

• The compliance of the selected real estate with residency requirements and investment quality,

n

• If a company is established in Latvia, the integrated planning of international accounting, payroll (payroll/EOR) and posted worker model dimensions

n

nn

individual investors often make frequent mistakes in these areas.

nn

As Corpenza, we provide end-to-end consultancy to investors and business people in Europe and globally:

n

n
• Company establishment and international tax optimization

n

• Residency & golden visa strategies in Latvia and other EU countries

n

• International accounting, payroll, and EOR (employer of record) solutions

n

• Tax planning with posted worker model and sending personnel abroad

n

• Comparative analysis of investment-based residency and citizenship programs

n

nn

Thus, you can not only obtain residency in Latvia but also:

n

n
• Position your company in the right country and structure within the EU,

n

• Minimize costs and tax risks while sending your personnel abroad,

n

• Design your real estate and company investments within a single integrated international mobility strategy.

n

nn

Conclusion: Residency with Latvian Real Estate Can Be a Strategic Gateway to Europe

n

In summary, as of 2025:

n

n
• €250,000 real estate threshold,

n

• 7.9–8 rental yield range,

n

• 5 years of temporary residency and path to citizenship in 10 years,

n

• Schengen free movement and the possibility to establish a business within the EU

n

n

offers a strong alternative in terms of both living and capital when managed correctly.

nn

However, the program, especially in terms of real estate, involves numerous technical details such as status changes, cadastral value requirements, tax obligations, and annual tax criteria on the company investment side, which require a professional eye. Considering Latvia as part of a broad-scale international mobility and corporate strategy in Europe reduces risk while increasing returns.

nn

Disclaimer

n

All information contained in this text is of a general nature and does not constitute legal, financial, or tax advice. The Latvian residency program and real estate regulations may change over time; especially, there are differences among sources regarding the current status of the real estate investment route. Before making any investment and migration decisions, always review the latest regulations published by the official Latvian authorities and seek support from a qualified lawyer, tax advisor, or professional migration consultant. Corpenza contents should not be used as the sole and final reference for your investment decisions.