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Latvia’s Golden Visa: Which Investment Is Right For You?

EU Law Firm

Latvia is home to one of the EU’s quickest, simplest, and most affordable Golden Visas. It is a hidden gem in investment migration that provides investors with a unique opportunity that blends elevated global mobility and contingency planning with potentially profitable investments.

The Latvian Golden Visa is well known for having the most affordable minimum investment amount: A €50,000 equity investment in a Latvian company. Combined with the €10,000 fee, the total of €60,000 is by far the most affordable investment category across all of the EU’s Golden Visas.

However, the program has other investment options that can be very profitable and are pretty interesting. The complete list of Latvia’s investment options are:

  • €50,000 equity investment in a Latvian company that annually pays at least €40,000 in taxes and a one-time government fee of €10,000.
  • €250,000 investment in real estate and a one-time government fee equivalent to 5% of the purchase price.
  • €280,000 capital deposit in a Latvian bank for five years and a one-time government fee of €25,000.
  • €250,000 investment in special-purpose, interest-free bonds and a one-time government fee of €38,000.

In this piece, we will cover the basics of these investment categories to help you determine which is best for you.

The Equity Option

The equity option has the lowest overall price point of any EU Golden Visa. Before going into any details, this option is best for investors who want to obtain a residency in an EU country through the most affordable price point available.

But that isn’t to say that the equity investment isn’t a potentially profitable venture. 

Latvia’s GDP is forecasted to recover after a slow 2023, and that gradual growth in 2024 means that the market can provide exciting investment opportunities.

Simply Wall Street predicts that the Latvian Stock Market (OMX) will witness an earnings growth of 64% YoY. On January 31st, the price-to-earnings ratio (PE) stood at a whopping 249x, significantly higher than the already impressive 23.9x average during the past three years.

The stock market index grew 28% between August 2022 and August 2023 and is forecasted to continue growing. 

The equity option is an affordable, simple option, and it is potentially highly profitable. It is excellent for investors who want a higher-risk and higher-reward asset but prefer a minimal outlay under the Golden Visa.

The Real Estate Option

Real estate investment in Latvia is currently at an enticing point. The government’s decision to continue to raise interest rates has lowered the local population’s demand for acquiring real estate. For the first time in 14 years, housing prices have dropped significantly.

Residential property prices in Riga, the country’s capital, have dropped 8.42%, averaging €892 per sqm. This decline comes after consistent housing price increases for the past decade. 

The country reportedly registered an inflation rate of 9.6% last year, and the government’s actions to reduce that inflation have led to low demand in the housing market.

However, the construction of new properties is still going strong as the number of new homes authorized in Latvia grows, registering a 10.1% increase in 2022. 

This increased supply, coupled with the low demand, has lowered prices further, opening the door for investors to swoop in and purchase real estate for excellent value.

Forecasted inflation in 2024 is about 3.2%. As the government continues its plan to curb inflation, investors can utilize a resurging housing market to resell their investments later for considerable capital gains. 

The lowered demand for property acquisition creates a profitable domino effect for investors. As people now look to rent instead of buy, rental returns in Latvia remain strong.

Gross rental yields in Riga stand at an impressive average rate of 7.81%. In London, the average is 5.75%, and Paris can only manage an average of 4.72%. This highlights the potential profitability a real estate investment in Riga boasts. 

This option is excellent for those who want to invest at a higher price point than the share option – but still competitive compared to other Golden Visas – and has the potential for massive gains through rental yields and capital gains. 

The Deposit Option

The deposit option is another excellent category offering substantial returns through a simple and passive investment. EU Law Firm has agreements with financial institutes that can provide returns ranging between 7-11% on a €280,000 investment.

This can amount to an ROI between €98,000 and 154,000 during a five-year holding period, highlighting how profitable the deposit option can be for international investors looking for a solid investment that provides a residency in an EU country. 

It is also a very safe option as financial institutes in Latvia are highly regulated and monitored by the government, ensuring the safety of the investor’s money.

The Bond Option

This option is a “means-to-an-end” investment, but it also has the advantage of being easily liquidated.

The low-risk and simplified exit strategy means that the bond option is perfect for investors whose only goals are to obtain a Golden Visa quickly and efficiently while being able to liquidate their investment instantaneously.

Want To Know More About Investing In Latvia?

Latvia is home to a ripe investment environment and boasts the most straightforward and quickest Golden Visa process in Europe. The entire procedure takes three months on average, and the varied investment categories mean that the Latvian Golden Visa is a suitable option for every investor.

To learn more about the Latvian Golden Visa, contact EU Law Firm. As specialists in Latvian immigration, we can help you choose the right investment option that matches your objectives and budget and guide you through the process of obtaining your Latvian Golden Visa.

You can contact us via our website or email us directly at investments@eulawfirm.eu