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Latvian Prime Minister Andris Kulbergs proposed a new business immigration model allowing foreign investors to secure tax resident status in Latvia by paying an annual fee of 60,000 euros directly into the state budget. The initiative accompanies an overhaul of the country’s controversial “golden visa” residency-by-investment framework.
Overhauling the Residency-by-Investment Framework
Latvia is restructuring its long-debated residency program, which previously granted temporary residence permits in exchange for investments. Under the newly proposed legislation, the option to acquire a residence permit through real estate investments is entirely removed. Instead, the framework introduces Kulbergs’s proposal permitting foreign nationals to obtain a residence permit by investing 150,000 euros into a state-established fund manager.
Prime Minister Kulbergs aims to complement this investment route by introducing the annual tax residency fee. “They would pay specially for the tax regime every year as a subscription fee, which would come automatically into such a fund,” Kulbergs explained, noting that the model targets wealthy international investors to boost state revenues.
Political Pushback and Fiscal Concerns
The new proposals face cautious resistance from political partners. Interior Minister Jānis Dombrava, representing the National Alliance, stated that the idea regarding fund investments arrived on the agenda at the last minute and lacks sufficient evaluation.
Meanwhile, the Progressives party questioned the financial validity of the projected budget gains. “I have read these proposals, there is a bit of tossing around tens, hundreds of millions, behind which I do not see backing,” said Andris Šuvajevs, head of the party’s faction.
Common Questions About Latvia’s Proposed Tax Residency Model
How much will the new Latvian tax residency status cost investors?
Under the proposed model, foreign investors would pay an annual fee of 60,000 euros into the state budget to maintain tax resident status.
What happened to the previous Latvian golden visa program?
The updated legislation removes the previous option allowing foreign nationals to receive residence permits in exchange for real estate investments.
What is the alternative investment threshold for residence permits?
Foreign nationals can secure a residence permit by investing 150,000 euros into a state-established fund manager, according to the legislative proposal.
Which political parties have raised concerns about the changes?
The National Alliance, through Interior Minister Jānis Dombrava, and the Progressives party, through faction leader Andris Šuvajevs, have both expressed caution and criticized the lack of thorough evaluation and financial backing for the plan.
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