Latvia’s Residence Permits for Real Estate to Be Abolished from September 15

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Latvia has approved a new Immigration Law that will come into force on September 15, 2026, ending investment-based residence permits through property purchases and bank deposits. Applications submitted by September 14 inclusive will be reviewed under the previous rules, while the new mechanism has not yet been launched in practice, IMI Daily reports.

Foreigners in Latvia: New Law

The Saeima of Latvia initially adopted the new law on June 11 by 65 votes to 17. President Edgars Rinkēvičs returned the document to parliament for reconsideration and proposed retaining the possibility of obtaining a residence permit through real estate for citizens of the EU, NATO, OECD, the European Economic Area and other countries that Latvia considers friendly.

On August 20, lawmakers approved the draft again with minor changes, including additional security checks for investors. The President’s proposal to retain real estate as a basis for obtaining a residence permit was not included in the final version.

Under the rules in force until September 15, foreigners can obtain a temporary residence permit by purchasing property worth at least €250,000 or placing a subordinated bank deposit of €280,000. Both options will be closed after the new law comes into force.

Applications received by Latvia’s Office of Citizenship and Migration Affairs by September 14 inclusive will continue to be reviewed under the previous legislation. In this case, investors will be able to qualify for a five-year temporary residence permit.

Programs for Investors in Latvia

The new law retains the possibility of obtaining a residence permit through investment in Latvian companies. For a small business, the minimum equity investment is €50,000. For companies with more than 50 employees and annual turnover exceeding €10 million, the amount is €100,000. In both cases, an additional €10,000 must be paid to the state. The validity period of the residence permit under this program is reduced from five years to two. Citizens of Russia and Belarus will not be able to use this option.

At the same time, the legislation introduces a new mechanism. An investment of €150,000 for at least five years through the manager of a state-created alternative investment fund will be allowed. An additional €10,000 payment to the budget is required, while a residence permit may be issued for up to five years.

Access to this program is also closed to Russians and Belarusians. In the original version of the law, the fund option remained available to them, but this gap was closed by an amendment of June 18. Citizens of these countries lost the possibility of obtaining a residence permit through investment in Latvia back in 2022. Since July 3, 2025, they have been prohibited from purchasing real estate in the country, except in certain cases. After these changes, Russians and Belarusians began selling property more actively. At the same time, Latvia’s Interior Ministry considers the impact of such transactions on the real estate market insignificant.

Latvia’s Residence-by-Investment Program Is Losing Demand

Latvia’s residence-by-investment program has been operating since 2010. By the end of 2025, 21,525 people had submitted applications under the program, including 8,570 investors and 12,955 members of their families. Total investment over this period reached €1.67 billion, of which €1.39 billion, or about 83%, went into real estate.

The peak of the program is in the past. In 2014, investment-based residence permits accounted for 53% of initial applicants, while by 2025 their share had fallen to 1.44%. The lowest volume of new investment was recorded in 2023 at €10.5 million. Last year, investment rose to €30.3 million, with real estate again accounting for 73% of the total.

The new €150,000 investment mechanism through a fund has already been included in the law, but it will probably not be possible to use it immediately after September 15. Issues related to identifying the source of funds and anti-money-laundering requirements remain unresolved. As a result, the right to apply will formally appear after the law comes into force, but investors should not expect the entire system to start operating in the near future. At the same time, investors who submitted applications earlier and are at the final stage of a transaction may still have time to enter the program. Starting the process from scratch and completing it within the remaining period is practically unrealistic.

Reasons for the Changes in Latvia

EU Law Firm lawyer Viktorija Tomaševiča explains parliament’s refusal to support the President’s proposal by a change in lawmakers’ attitude toward Latvia’s property-based residence permit model. The program is often viewed as a source of migration and security-related risks rather than as an economic instrument that could be retained for a limited group of foreigners.

The opposition National Alliance pointed to the weak economic returns from the inflow of investors before 2022. The Jaunā Vienotība party, which led the government until May, linked the scheme to the previous “golden visa” model and Russian elites.

Tomaševiča also points to the approaching October Saeima election and disagreements within the coalition over migration issues. In such a political situation, in her view, lawmakers had practically no incentive to restore a mechanism that could be presented as reopening a controversial program.

What Changes for Investors

International Investment analysts note that Latvia is consistently separating its housing market from investment migration. This reduces the role of buyers for whom real estate was a way to obtain legal status and makes demand more dependent on standard market factors such as yields, prices and liquidity.

For Russians and Belarusians, the market is practically closed, while some owners are selling or renting out properties purchased earlier. So far, this exit has not had a noticeable impact on the market as a whole, but in expensive segments and locations with a high share of foreigners, an increase in the number of properties for sale may have a stronger impact on transaction times and prices.

For new investors, Latvia is becoming less attractive specifically as a migration destination. The prospects of the new model will depend on how quickly the fund mechanism starts operating and whether it proves sufficiently clear and profitable to replace the previous interest in real estate.