bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Wednesday 18.07.2018 | Name days: Rozālija, Roze
LatviaLatvia

Latvia's non-residents have created 2 500 jobs in three years

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

Аuthor: Edijs Pālens/LETAWithin three-years’ time since the beginning of the residential permit program, non-residents have invested more than 300 million LVL in Latvia. Their total economic activity has helped create nearly 2.5 thousand jobs.

However, according to experts, the attraction of investors and the issue if residential permits in exchange for the purchase of real estate property is unrealized potential. By offering additional opportunities for business and popularizing this in foreign countries, Latvia would be able to attract an even larger amount of foreign capital, the Latvian Real Estate Association (LREA) reports.

Transaction statistics show that Latvian residents spend a little over 20 000 LVL on real estate property, while non-residents’ investments are more than seven times larger. In addition to real estate invested resources, foreigners continue to invest money in maintaining their property, DNB Group Salvus company’s Executive Officer Girts Zalitis reports.

“Recipients of residential permits are mostly people that have been economically active in their countries and have managed to accumulate enough money for the purchase of real estate property. They hold managing positions and seek investment opportunities for starting a business”, – Zalitis says.

Ektornet Chairman Andris Kovalchuks admits: “The volume of transactions with domestic buyers has not changed in the last half-year, but the proportion of money coming from non-residents forms more than half of the total volume. This shows the non-residents’ role in the real estate industry and Latvia’s economy”.

According to experts, the state does not use all opportunities to attract new investors. Information availability regarding residential permits is limited outside of Latvia’s borders – foreigners usually learn of such opportunities from their friends.

“While people in Russia have heard about this law, those living in Kazakhstan or Ukraine are not aware of it. Latvia should invest additional funds in the popularization and improvement of this opportunity. Also, it should be remembered that other European countries are beginning to secure identical measures for attracting foreign capital”, – New Europe Real Estate investor relations manager Inese Jurevica says.

Experts also advise diversifying the investment volume to Latvia’s regions. “The law was approved without first evaluating the ability of regions to attract investments. In order to receive a residence permit in Latgale, investors need to purchase three to seven different pieces of property. This is why investors mostly prefer Riga, Jurmala or Jelgava, where transactions above 100 000 LVL are much less of a hassle. I recommend Riga and Jurmala to increase requirements for the issue of residential permits. The minimum price of real estate property in Latgale should be reduced to 30 000 LVL”, – says Lif Board member Aivars Birulis.

As it is known, July 1, 2009 marked the coming into force of amendments to the Immigration Law. These amendments included the issue of residential permits to foreigners in exchange for the purchase of real estate property in Latvia.

Ref: 102.109.109.6980


Leave a reply

NCP picks Jurašs, Strīķe, Bordāns, Feldmanis and Šuplinska as its headliners

Latvia’s New Conservative Party has picked Juris Jurašs, Juta Strīķe, Jānis Bordāns, Krišjānis Feldmanis and Ilga Šuplinska as its headliner candidates for Saeima elections.

Bank: residents spend an average of 50 to 100 euros on health every quarter

84% of residents aged 18 to 74 have used medical services in the past three months. Only 5% of all costs were covered by health insurance, according to a survey by Norvik Banka.

Countries sign third Rail Baltica co-financing agreement

Connecting Europe Facility co-financing agreement for the construction of Rail Baltica railway infrastructure was signed by participating member states on 13 July. The value of the agreement is EUR 130 million. CEF’s contribution will reach EUR 110 million, which is equal to 85% of all applicable costs, as confirmed by RB Rail communication consultant Ligita Brodiņa.

Saeima plans to increase compensations for child victims

Saeima’s Legal Affairs Committee supported for the third reading amendments that provide for increasing state compensations to child victims.

Sweden asks for help to fight wildfires behind Arctic Circle

Sweden has called for help of European Union neighbours to put out wildfires, some raging in territories behind the arctic circle.

Latvijas Krajbanka administrator recovered EUR 1,038 million in June

The administrator of the liquidated Latvijas Krajbanka recovered EUR 1,038 million in June, which is 6.9 times more than a month prior, according to the official outlook published in Latvian Herald.

Estonians warned of heat wave, high UV radiation

Weather forecasters in Estonia have warned the population of hot weather conditions, because temperatures are forecast to reach 30-31 degrees Celsius this week.

Minister says police have leads in Bunkus murder case

Police have found new leads in the murder case of former insolvency administrator Mārtiņš Bunkus, said Interior Affairs Minister Rihards Kozlovskis in an interview to 900 seconds programme of LNT.

Average EU market prices for dairy products grew in May

Compared to April, dairy product prices in Latvia did not increase in May. In the EU, however, average market prices continued growing in May, according to information compiled by Agriculture Ministry’s Market and Direct Support Department.

ECHR: Russia violated human rights in Pussy Riot and Politkovskaya cases

The European Court of Human Rights (ECHR) has found Russia guilty of human rights violations in its handling of two high-profile cases – its arrest and conviction of Pussy Riot protest group in 2012 and the investigation into journalist Anna Politkovskaya's murder.

Draft making eID card a compulsory document from 2023 onward remains inactive

Latvia’s government has yet to review the legislative draft that makes electronic ID card a compulsory personal identification document for all residents of Latvia older than 15.

Latvia imported 7% less cigarettes in five months of 2018 than it did a year ago

In the first five months of 2018, Latvia imported 1.828 billion cigarettes, which is 7% less than the amount imported in the same period of last year, according to data compiled by the State Revenue Service.

EU's largest free trade agreement signed with Japan

A free trade agreement between the European Union and Japan has been signed and is to apply to close to a third of the world's gross domestic product and the economic activity to 600 million people.

Will Latvians know who elects their president? Draft on open vote «on the move»

On Tuesday, 17 July, Saeima’s Legal Affairs Commission decided to submit for the first reading amendments to the Constitution of the Republic of Latvia that provide for holding election of the country’s president in the Saeima through an open vote, as reported by the parliament’s press-service.

Schengen information system to help prevent tractor theft cases in Latvia

Latvia’s Cabinet of Ministers has supported amendments to the Operation of the Schengen Information System developed by the Interior Affairs Ministry. The aim of those amendments is providing access to the system to ensure public order and security in member states, the ministry explains.

Ministry declares no more free plastic bags for shoppers

From 1 January 2019 onward supermarkets will no longer provide plastic bags to customers free of charge. This will not apply to very light plastic bags, as confirmed by Latvia’s Environment Protection and Regional Development Ministry.

EY auditor’s work in ABLV Bank’s liquidation will be managed by its Polish office

The work of EY work in ABLV Bank’s liquidation process will be managed by its Polish office, as confirmed by company’s representatives.

Estonia sees no geopolitical change after U.S.-Russian summit in Helsinki

Estonian Foreign Minister Sven Mikser has commented cautiously that the U.S.-Russia summit in Helsinki is unlikely to bring fundamental change in the relations between the West, NATO military alliance and Russia.

airBaltic carried record large number of passengers in June

Latvia’s national airBaltic airline carried 1,876,839 passengers to destinations in Europe, Scandinavia, Russia, CIS countries and the Middle East in the first six months of 2018. This is 20% more when compared to the same period of last year, as BNN was told by the company.

Police to investigate possible MPC fraud at Tukums DH CHP plant

One of the largest CHP plants in Kurzeme – SIA Tukums DH – may have been squandering produced heating energy for a long time, which is a serious breach of mandatory procurement component governing rules, TV3 news reports.

Estonian holidaymakers die in Ukraine, media report

Three Estonian holidaymakers in Ukraine, have been found dead in a hotel in the Black Sea resort town of Odessa last weekend, Estonian media report without identifying the three young men.

Languages «a must-have». An interview with ex-president about political market methods and communist approach

There are two ways a political market is realized during closed presidential elections: one involves approval of candidates in exchange for votes, and the other – for money. If it’s the latter, it is best for no one to know how elections are performed. Harmony, which now stays quiet about open elections, has always been against this proposal, because it does not allow for creating a political market – sale of votes in exchange for influence, which has been done before...

Migration from Baltics, Eastern Europe to UK lowest in years

Migration to the UK from the Baltics and other member states of the European Union has been the lowest it has been for nearly four years in 2017, Britain's official statistics show.

Putin in Helsinki denies U.S. election meddling, Trump doesn't object

At the Russia-U.S. summit Helsinki, a key development has been differences in the attitude by U.S. federal officials to Russian interference in the American election process. Days after Washington charged 12 Russians with hacking the computer systems of U.S. officials, U.S. President Donald Trump has accepted the denial of Russian responsibility expressed by Russian President Vladimir Putin.

Stock exchange indexes showing varied trends; oil prices decline

Stock exchange indexes in USA and Europe showed varied trends on Monday, 16 July. Bank profit rise was reported for Q2.