Since Latvia entered the eurozone in 2014, its Cash-for-Residency program has generated debate. Although it has drawn international investment, particularly from bankers and real estate brokers, detractors contend that it has turned into a point of entry for shady businesspeople from the former Soviet Union looking to enter the EU. These critics are pleading with the Latvian government to swiftly end the initiative.

Three ways exist for wealthy people to take part in Latvia’s Residence by Investment program:

Putting equal capital (a minimum of €50,000 and a one-time payment of €10,000) into Latvian firm funds.

Depositing money (at least €280,000 and a one-time payment of €25,000) in a Latvian bank.

Buying bonds with a special purpose (at least €250,000 and a one-time payment of €38,000).

According to recent government statistics, this scheme has helped almost 7,000 foreigners secure five-year EU residency permits, investing a total of €600 million in Latvia.

Despite the program’s financial advantages, it is frequently thought to be open to criminal activity. Roberts Zile, a member of the European Parliament, has voiced worries regarding possible program abuse. Edgars Sins, the chairman of Latio, the largest real estate company in Latvia, on the other hand, thinks that the initiative was vital in assisting Latvian families and businesses in recovering from the collapse of the real estate market during the 2008–2009 global financial crisis.

Many European nations provide residency and citizenship schemes in an effort to entice wealthy foreigners, despite the fact that these initiatives have come under fire for being linked to unethical practices including corruption and money laundering. For comparable reasons, Latvian authorities decided to cancel the Golden Visa Program last year. Prime Minister Krijnis Kari affirmed this decision and highlighted that the Ministry of the Interior is working on the required legislative changes.