Latvia Restructures Its Residency by Investment Programme

Latvia has moved to significantly reshape its residency by investment programme. On 11 June 2026, the Saeima passed a new Immigration Law by 65 votes to 17, replacing the legal framework governing foreign residency since 2002. Eight days later, the president declined to sign the legislation and returned it for parliamentary review. The law is not currently in force.

Two Routes Removed

The proposed legislation removes two of Latvia’s long-standing investment pathways under the Residency by Investment Programme, marking one of the most significant changes to the scheme in recent years. If the law enters into force, the following routes will no longer be available to new applicants:

• Real Estate Investment Route requiring a minimum property purchase of €250,000.
• Bank Capital Investment Route, requiring a minimum of €280,000 placed as subordinated capital with a Latvian credit institution.

To safeguard legal certainty, the legislation includes transitional provisions for existing participants. Investors who already hold residence permits, as well as applicants whose submissions were formally accepted before the new law takes effect, will continue to be processed under the current legal framework and will not be affected by the proposed changes.

A New Fund Route, Not Yet Operational

The legislation introduces a new pathway linked to a state-managed alternative investment fund. A permit valid for five years would be available to investors who commit a minimum of €150,000 to the fund for at least five years, along with a €10,000 government fee. The permit remains valid only while the fund confirms the investment contract is active and the balance is maintained at the required level.

The fund itself has not yet been established. Separate legislation is required to create the vehicle, meaning this route cannot accept applications at this stage.

The Share Capital Route Continues

The existing company investment pathway survives in the new legislation, albeit with notable adjustments to its validity period. The framework continues to offer two distinct investment tiers:

• A minimum of €50,000 in a small or medium-sized enterprise with under 50 employees and a turnover or balance sheet below €10 million, 
• A minimum investment of €100,000 in a larger-scale enterprise.

In both cases, a €10,000 government fee is applicable, in addition to standard tax obligations.

Under the proposed changes, the duration of the residence permit would be reduced from five years to two years. However, until the new law formally enters into force, this investment pathway continues to operate under the existing regulatory framework, including the current five-year validity period.

What Happens Next

Because the president returned the legislation, it cannot come into force until the Saeima completes a further reading. The parliamentary spring session closed on 18 June, so any second vote falls to the autumn session at the earliest. Parliament may re-pass the law unchanged, revise it to address the president’s stated concerns, or leave the matter unresolved through the recess.

The president’s concerns include the completeness of the fund route’s legal framework, the exclusion of real estate as an investment option, and the pace at which amendments were introduced during the final legislative stages.

This transitional phase presents both risk and opportunity. Those considering Latvia residency by investment should act with careful timing, particularly while existing pathways remain accessible under current rules. 

At the same time, the final shape of the programme will depend heavily on the Saeima’s next steps and whether the president’s concerns lead to meaningful revisions.

As Latvia repositions its offering, staying informed is essential. For the latest updates, expert insights, and strategic guidance on Latvia and other residency by investment programmes, follow Karibi Consultants and stay ahead of every development in this evolving landscape.