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jimej60255 Posted: 05-Jun-20 12:32
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AndreaLeBron Posted: 16-Jun-20 15:54
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In order to apply for a residence permit in Latvia based on financial investment in a bank you need to place with a bank at least EUR 280,000 in the form of subordinated capital and pay a state fee of EUR 25 000 to the government. The subordinated capital is funds that the bank is borrowing from a customer for a term of at least 5 years (Like a Corporate Bond but where the corporation is a bank). If you choose this option, then you should know that the term of your residence permit will be the same as the term of the subordinated capital (The length of the Bond). The banks usually take all the risks. Also, it's worth noting that the bank pays you interest, like with any other bond, so it can be a good, low risk way to ensure a return on your investment and increase your capital over time at the same time as obtaining your residence permit. The interest rate will be agreed in advance, and therefore this option effectively guarantees the amount of return on your investment, while perhaps not providing the same level of liquidity you see with a real estate purchase - where you have the option to sell at any time.


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