Legal advice

I am planning to buy real estate in Riga or Jurmala with the purpose of further obtaining a residence permit in Latvia. What should I take into account when looking for such a real estate?

08.07.2024 Aleksandr Lenkovskis, member of the board

There are criteria that must be taken into account when searching for real estate in Riga or Jurmala in order to subsequently obtain a residence permit in Latvia:
• Real estate can be only one object (not several objects), it must be built-up (i.e. it cannot be an empty plot of land);
• The property must be purchased from a citizen of Latvia, or a citizen of an EU-member state, or a foreigner who holds a valid residence permit in Latvia, or a legal person registered in Latvia or an EU member state, a country of the European Economic Area, or the Swiss Confederation;
• The purchase price of the property should be at least €250,000;
• A cadastral value of the property must be at least €80,000 (the cadastral value is the value set by the state for various purposes, such as calculating property taxes; the cadastral value can be significantly lower than the purchase price, which is normal).
• The property must be free of liens (mortgages), or the liens must be removed by the seller at the time of the purchase transaction.
• The purchase price of the property can only be paid as non-cash settlement, i.e. by bank transfer from a personal bank account; in addition, it is necessary to prove the source of origin of the funds used to purchase property with all possible documents – this will be required by the seller’s bank and/or the bank servicing the transaction account, or the notary accepting funds for safekeeping;
• You will have to pay a state fee for the registration of property rights in the amount of 1,5% of the property purchase price, as well as notary fees (approximately €300), a bank fee for servicing the escrow account (approximately 0.5% of the property purchase price) and fees for processing the residence permit application (€150). Additionally, there may be expenses for translations and notarization of documents into Latvian.
• After receiving a residence permit, you will have to pay 5% of the property purchase price from your personal bank account into the state budget of Latvia. Then, every 5 years, if you want to renew your residence permit for another 5 years, you will need to pay another 5000 EUR as a state fee into the state budget of Latvia.

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