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Riga and Jurmala are the most attractive places to buy real estate in Latvia.
The amount of investments made by foreigners in the Latvian real estate exceeded almost 340 million EUR
Latvia is a recreation area with beautiful forests, the sea, the dunes, pine trees, fresh air, unique nature where having purchased a real property, and meeting certain conditions, you can apply for a residence permit and, in turn, obtain possibility of free travelling within the Schengen Countries.
"Most often, the decision on purchase of a real estate is informed and well-considered as after reviewing the proposals and the benefits of buying a property in different countries, the concerned person finds out that Latvia clearly has a number advantages", informed Olesja Bogodistaja, Head of international real estate brokerage service department
Riga and Jurmala are the most attractive places to buy real estate in Latvia. The motivation for buying property in Latvia may be different. Though part of foreigners are interested in Latvia as a place for investment, many property owners after the purchase of the property do not apply for a residence permit at all, but purchase housing for themselves or their children and parents. Many people feel nostalgic when being in Latvia.
Jurmala is notable for its unique nature, the environment, the atmosphere. Jurmala is versatile - it can be quiet and silent, and may be the epicentre of activity and parties, so everyone can find exactly what they like best. Riga attracts people by its architecture, harmonious environment, culture, traditions, relatively leisurely pace of life, peace, short distances.
"The amount of investments made by foreigners in the Latvian economy in order to obtain a residence permit, exceeded 425 million EUR at the end of November 2012, including almost 340 million EUR invested in real estates", informed O.Bogodistaja
During the period from July 1, 2010 till the beginning of December 2012, there were submitted in total 2058 applications for a residence permit (127 applications in 2010, 836 applications in 2011 and 1095 applications in 2012), of which 1,650 applications were submitted on the basis of the applicant's real property. As it is known, on the basis of ownership of real property, the investor, his/her spouse and their minor children can obtain a residence permit. In total, 4892 persons have submitted application for residence permit (3919 persons - based on the ownership of real property), and the residence permit was issued to 4513 persons (including 3619 persons – on the basis of the ownership of real estate).
The total amount of investment in real estates is LVL 238,329,860 compared to the total amount of investment, accounting for LVL 301,030,538. In order to obtain a residence permit, the total of LVL 51,105,736 has been invested in the subordinated capital of Latvian banks. In addition, investors in the share capital of Latvian enterprises have paid the total of LVL 11,594,942. In late November, the number of countries, citizens of which are interested in the possibility of obtaining Latvian residence permits reached 40. Among them are such countries as the Dominican Republic, Philippines, Vietnam, Nigeria, Serbia, Afghanistan, Iran, Dagestan, USA, China, Lebanon, Egypt, Sri Lanka, Iran, Australia, and Korea.
The most popular locations as to obtaining residence permit on the basis of ownership of property in Latvia during this period were Riga (801) and Jurmala (531). Also Babīte (53), Ozolnieki (42), Mārupe (28), Cēsis, (23), Saulkrasti (20), Amata (17), Garkalne (17), Ādaži (10), Carnikava (8), Iecava (7), Madona (5) and other places have been popular.
Applications for residence permit for the same period were submitted from citizens of Russia (3566), Ukraine (433), Kazakhstan (289), Uzbekistan (149), Belarus (118), China (106), Azerbaijan (56), Israel (24) United States (22), Kyrgyzstan (21), Georgia (10) Turkmenistan (9) and other countries.
From July 1, 2010 a Latvian residence permit for up to 5 years (with an option of prolongation), based on ownership of real estate, can be obtained by purchasing property in Riga or Riga district at a price not lower than LVL 100 000 (EUR 142 888) but in the other largest cities of the country - at a price that is not less than LVL 50 000 (EUR 71 144).
Since August 6, 2011 the procedure of obtaining residence permits in Latvia is simplified for property buyers. Now, documents for a residence permit can be submitted in Riga – to the Office of Citizenship and Migration Affairs, immediately after the purchase of real estate.
Additional information:
Oļesja Bogodistaja
ARCO REAL ESTATE Head of international real estate brokerage service department
Phone +371 2868 8666
olesja.bogodistaja@arcoreal.lv
14.12.2012.