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Residence permits in Latvia

In Latvia, a residence permit is a document issued by the Office for Citizenship and Migration Affairs to foreigners, granting the right to reside in Latvia either for a specified period of time, usually between six months and five years, or permanently. Residency in Latvia gives you the opportunity to live, work and/or study in the country and use the medical, public and other services available to Latvian citizens. Latvian residency not only offers you the opportunity to travel visa-free to all countries within the Schengen zone, but also facilitates the visa process for other countries, such as the USA and the UK. The main advantages of obtaining a temporary residence permit in Latvia are:

Be able to stay in Latvia without restrictions (according to the conditions of your temporary residence permit)
The ability to travel to any country within the Schengen area for a period of up to 90 days within a period of six months
After obtaining your residence permit, your family members (husband/wife and any children under the age of 18) are entitled to obtain a residence permit and enjoy the same benefits as Latvian citizens.
After five years of temporary residence in Latvia, you can apply for a permanent residence permit, and after ten years, you have the right to apply for Latvian citizenship through the naturalization procedure.
Secondary deposit: a ticket for a temporary residence permit
One option is to place a subordinated deposit with a credit institution; this is a legal way to obtain a temporary residence permit for a period of five years. In order to apply for such a residence permit, you must make an investment of at least EUR 280,000 in the form of subordinated capital - e.g. subordinated debentures or a subordinated loan — to a credit institution, becoming its partner for a period of time.

Various Latvian credit institutions offer subordinated deposits as a service to non-residents, and each offers individual terms and conditions for subordinated loans. The most common conditions are as follows:

The deposit currency can be either EUR or USD; Some banks accept RUB and other currencies.
The minimum deposit is usually EUR 100,000 or USD 150,000, but if you receive the subordinated loan to apply for a temporary residence permit, the investment must be at least EUR 280,000.
An additional government fee of EUR 25,000 is required to process your residence permit application, regardless of which bank you invest with.
The term offered is typically five, seven or ten years. In contrast to other investments, a subordinated deposit cannot be canceled during this period.
Due to the non-cancellability of subordinated deposits, banks can offer significantly higher interest rates compared to other types of deposits.

Procedures and requirements for child deposit requests
If you have decided to apply for a temporary residence permit in Latvia through the subordinated deposit route, you must first contact one of the banks that offer this service. After acquiring the subordinated capital of a Latvian credit institution, you can prepare the documents to be submitted to the Office for Citizenship and Migration Affairs in Latvia. The most important documents include:

Proof of sufficient assets and residence in Latvia
Criminal record reference letter from your home country
Completed questionnaire with attached photos
Confirmation of marriage and/or birth of children, if applicable
Confirmation that all government fees have been paid
After receiving your residence permit, you must obtain medical insurance and a medical certificate issued by a medical institution registered in Latvia. Most banks that offer subordinated deposits to obtain a residence permit have set up extensive advisory and support services to make this process easier for their customers.

Benefits of acquiring subordinated deposits
Aside from the residence permit itself, which is of course the main purpose and benefit of investing in the subordinated capital of one of the Latvian credit institutions, another notable benefit is the larger profits that can be made due to the higher deposit rates offered compared to other types of deposits . This is because these deposits are non-callable, meaning you cannot withdraw your money before the agreed maturity date. However, on the Maturity Date you can get back your original balance in addition to the interest paid periodically throughout the investment period. The only non-retrievable payment is the government office fee of EUR 25,000. In addition, banks usually consider subordinated deposits to be the most convenient way to obtain a residency permit.