However, President Edgars Rinkēvičs declined to promulgate the legislation on June 19, 2026, returning it to the Saeima for reconsideration due to concerns regarding specific provisions governing investment-based residence pathways.
The legislation is currently not in force. Promulgation remains suspended pending the Saeima's reconsideration, with any subsequent vote deferred to the autumn session following the conclusion of the spring session on June 18, 2026.
Structural Changes to Investment-Based Residency Pathways
The revised law fundamentally restructures Latvia's investment-based residency framework through three key modifications: it terminates two existing pathways, preserves a third with significant modifications, and introduces a novel state-fund-based route.
Discontinued Pathways
The current statutory framework permits foreign nationals to obtain residence through two distinct investment mechanisms: acquisition of real estate valued at a minimum of €250,000 (approximately US$285,000) or placement of €280,000 (approximately US$319,000) as subordinated capital with a Latvian credit institution. The revised legislation eliminates both pathways from the grounds list, effectively terminating the real estate route that historically drove Latvia's program and the banking option alongside it.
Notably, the legislation contains transitional provisions ensuring that applications filed and accepted prior to the law's effective date will continue under the existing framework, and all valid permits remain effective until their registration date, after which renewal must comply with the transitional rules.
An attempt to preserve the real estate pathway through a modified framework—proposing a five-year permit for property valued at "at least €250,000" in Riga, Jūrmala, and designated municipalities—was rejected by the committee, along with associated conditions regarding cadastral value, cashless payment, and certified valuations.
New State-Fund Investment Route
Article 27(1)(36) introduces a significant innovation: a five-year residence permit pathway requiring an investment of at least €150,000 (approximately US$171,000) for no less than five years to a state-created alternative investment fund manager, coupled with an additional €10,000 payment to the state budget. However, this pathway remains non-operational as the state-created fund has yet to be established, requiring separate legislative implementation.
This provision was initially proposed by Andris Kulbergs as a member of the Saeima before his appointment as Prime Minister in late May. The committee substantially modified his original proposal, replacing the requirement for private funds to place at least half their assets in Latvian companies with a single state-run manager, eliminating the local investment requirement, and adding the €10,000 budget payment.
The permit's validity is expressly contingent upon the state-created alternative investment fund manager's confirmation that the investment contract remains in force and the investment balance maintains a minimum of €150,000.
Preserved Pathway with Modifications
One pathway survives the revision, albeit with significant modifications. Under Article 27(1)(10), residence permits are granted for up to two years for investments in the share capital of a capital company, provided the applicant pays €10,000 (approximately US$11,400) into the state budget and invests a minimum of €50,000 (approximately US$57,000) in a company with no more than 50 employees and annual turnover or balance sheet under €10 million.
A higher tier requires an investment of €100,000 (approximately US$114,000) in a company, together with its subsidiaries, employing more than 50 people and exceeding €10 million in annual turnover. The legislation limits qualification through any single company to no more than 10 foreign nationals.
The most significant modification is the duration: this pathway previously granted five-year permits, renewable annually through ID cards, but the new law reduces this to two years. The tax conditions—requiring annual payments of at least €40,000 at the smaller tier and €100,000 at the larger tier—remain unchanged.
Rejected Proposals
Several alternative investment frameworks reached the third reading but were ultimately rejected, including:
Presidential Objections
President Rinkēvičs articulated specific concerns regarding the investment provisions, noting that the third reading generated 158 proposals, some technical and others creating "a fundamentally new legal framework" for investment-based residence. His primary objections included:
The law does contain specific restrictions regarding Russian and Belarusian citizens, requiring discretionary permits to be processed through the interior minister and limited to cases where grants "accord with international legal norms or are connected with humanitarian considerations."
Historical Context and Legislative Intent
Latvia introduced its golden visa program in 2010 under Ainārs Šlesers, when the country stood nearly alone in Europe with such a framework. Russian buyers dominated the program until a 2022 ban excluded them, with demand having already declined significantly after 2016.
A critical 2018 Moneyval review prompted Latvia to strengthen its regime and enhance scrutiny through its financial intelligence service. The current revision terminates the property and bank routes that characterized the early program, reflecting ongoing efforts to align with international anti-money laundering standards.
The timing of this revision is significant, as investigators were examining more than 20 firms for suspected abuse of the share-capital route in the weeks preceding the vote. The Progressives party, which requested the President to return the law, specifically cited this record of money laundering risk as justification.
Next Steps
The Saeima must now determine whether to re-adopt the law unchanged (which would compel the President to promulgate it), amend it to address the President's objections, or leave it unresolved through the recess. Until the Saeima acts, the company investment route remains Latvia's sole operational investment-based migration pathway, while the state fund intended to anchor the future framework has yet to be established.
The NATLAN will promptly inform you of any new developments. If you have any questions or require an individual assessment of your situation, you may schedule a consultation with our company
The legislation is currently not in force. Promulgation remains suspended pending the Saeima's reconsideration, with any subsequent vote deferred to the autumn session following the conclusion of the spring session on June 18, 2026.
Structural Changes to Investment-Based Residency Pathways
The revised law fundamentally restructures Latvia's investment-based residency framework through three key modifications: it terminates two existing pathways, preserves a third with significant modifications, and introduces a novel state-fund-based route.
Discontinued Pathways
The current statutory framework permits foreign nationals to obtain residence through two distinct investment mechanisms: acquisition of real estate valued at a minimum of €250,000 (approximately US$285,000) or placement of €280,000 (approximately US$319,000) as subordinated capital with a Latvian credit institution. The revised legislation eliminates both pathways from the grounds list, effectively terminating the real estate route that historically drove Latvia's program and the banking option alongside it.
Notably, the legislation contains transitional provisions ensuring that applications filed and accepted prior to the law's effective date will continue under the existing framework, and all valid permits remain effective until their registration date, after which renewal must comply with the transitional rules.
An attempt to preserve the real estate pathway through a modified framework—proposing a five-year permit for property valued at "at least €250,000" in Riga, Jūrmala, and designated municipalities—was rejected by the committee, along with associated conditions regarding cadastral value, cashless payment, and certified valuations.
New State-Fund Investment Route
Article 27(1)(36) introduces a significant innovation: a five-year residence permit pathway requiring an investment of at least €150,000 (approximately US$171,000) for no less than five years to a state-created alternative investment fund manager, coupled with an additional €10,000 payment to the state budget. However, this pathway remains non-operational as the state-created fund has yet to be established, requiring separate legislative implementation.
This provision was initially proposed by Andris Kulbergs as a member of the Saeima before his appointment as Prime Minister in late May. The committee substantially modified his original proposal, replacing the requirement for private funds to place at least half their assets in Latvian companies with a single state-run manager, eliminating the local investment requirement, and adding the €10,000 budget payment.
The permit's validity is expressly contingent upon the state-created alternative investment fund manager's confirmation that the investment contract remains in force and the investment balance maintains a minimum of €150,000.
Preserved Pathway with Modifications
One pathway survives the revision, albeit with significant modifications. Under Article 27(1)(10), residence permits are granted for up to two years for investments in the share capital of a capital company, provided the applicant pays €10,000 (approximately US$11,400) into the state budget and invests a minimum of €50,000 (approximately US$57,000) in a company with no more than 50 employees and annual turnover or balance sheet under €10 million.
A higher tier requires an investment of €100,000 (approximately US$114,000) in a company, together with its subsidiaries, employing more than 50 people and exceeding €10 million in annual turnover. The legislation limits qualification through any single company to no more than 10 foreign nationals.
The most significant modification is the duration: this pathway previously granted five-year permits, renewable annually through ID cards, but the new law reduces this to two years. The tax conditions—requiring annual payments of at least €40,000 at the smaller tier and €100,000 at the larger tier—remain unchanged.
Rejected Proposals
Several alternative investment frameworks reached the third reading but were ultimately rejected, including:
- A €150,000 stake in companies founded by Latvia's special economic zone and freeport authorities
- A revival of a zero-interest government-bond route
- Two separate proposals to extend the company permit from two to five years
- A proposal to allow investors to become Latvian taxpayers through an annual flat payment of €60,000 (approximately US$68,000)
Presidential Objections
President Rinkēvičs articulated specific concerns regarding the investment provisions, noting that the third reading generated 158 proposals, some technical and others creating "a fundamentally new legal framework" for investment-based residence. His primary objections included:
- Real Estate Pathway: He requested reconsideration of whether citizens of NATO, OECD, and EEA member states, and "possibly other countries friendly to Latvia" should be permitted to request residence based on property acquisition.
- Fund Route: He questioned whether the rule in point 36 is "complete and sufficient" and whether delegation to the Cabinet of Ministers is necessary for verifying investment sources and permissible investment purposes.
- Russian and Belarusian Nationals: He highlighted a significant oversight that had already been addressed through a separate amendment on June 18, 2026, which closed a loophole allowing Russian and Belarusian citizens to qualify under the fund route. The President viewed this last-minute amendment as indicative of a hastily assembled legislative package.
The law does contain specific restrictions regarding Russian and Belarusian citizens, requiring discretionary permits to be processed through the interior minister and limited to cases where grants "accord with international legal norms or are connected with humanitarian considerations."
Historical Context and Legislative Intent
Latvia introduced its golden visa program in 2010 under Ainārs Šlesers, when the country stood nearly alone in Europe with such a framework. Russian buyers dominated the program until a 2022 ban excluded them, with demand having already declined significantly after 2016.
A critical 2018 Moneyval review prompted Latvia to strengthen its regime and enhance scrutiny through its financial intelligence service. The current revision terminates the property and bank routes that characterized the early program, reflecting ongoing efforts to align with international anti-money laundering standards.
The timing of this revision is significant, as investigators were examining more than 20 firms for suspected abuse of the share-capital route in the weeks preceding the vote. The Progressives party, which requested the President to return the law, specifically cited this record of money laundering risk as justification.
Next Steps
The Saeima must now determine whether to re-adopt the law unchanged (which would compel the President to promulgate it), amend it to address the President's objections, or leave it unresolved through the recess. Until the Saeima acts, the company investment route remains Latvia's sole operational investment-based migration pathway, while the state fund intended to anchor the future framework has yet to be established.
The NATLAN will promptly inform you of any new developments. If you have any questions or require an individual assessment of your situation, you may schedule a consultation with our company