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One of the most logical options to invest in is property. Investing in the right property, in the right country can result in far more than your expectations. At this point, Latvia stands out which has recently shined like a star in Europe. Latvia, the new center of entrepreneurs, draws attention with its different advantages and incentives. Why should I invest in a property in Latvia? How much capital is required? What are the advantages it provides?
1. Buy Property for Renting During Holidays
To get more income from the property you bought, you may want to consider the holiday rental option. For this, you can rent your property for a while to those who come for holiday. By doing so, you will be able to get a much higher rental income. It is also possible that your property will increase in value over time. In this way, you can both increase your capital and get regular and high rental income.
There are some risks involved in purchasing a property for holiday rental. First of all, the rentals here are shorter and you may need to be in constant work to find tenants. Besides, for doing this you may be asked for a license by the relevant institutions of the country in which you invest. You may have to pay extra for the license. When you buy property in areas that are heavily preferred for the holiday, you can solve the tenant problem to a great extent.
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2. Buy Property to Rent
One of the preferred property options for investment is rental properties. These properties both increase their value over time and provide continuous rental income. In other words, it allows your investment to contribute to you in two different ways. Because of this situation, it has become one of the most popular instruments of investors. Latvia’s continuous development indicates that the need for rental properties will increase. Thus, it can be said that the relevant investment will not upset you. Property taxes in Latvia are quite low and there are many incentive reductions. This is another advantage of Latvia in the property sector. [1]
Some details need to be kept in mind before purchasing a property for rental. First of all, the cost of a rental property may be higher than you expect. Such a situation will push you in terms of cost. Another issue is uncertainty. In other words, there may be a situation where you cannot find tenants for the property. Finding tenants is not a problem in Latvia because there is a constantly increasing qualified population due to the job potential. You also pay more reasonable rates for the property.
3. Buy and Restore an Affordable House
If you want to generate high income from your investment in the short term, consider restoring an affordable house. In general, the prices of houses that are in bad condition are very affordable. Owners who own such properties make extra efforts to sell them as soon as possible. In such cases, you can lower the amount you will pay for the property.
The detailed restoration of the house you bought will ensure that the house gets the value it deserves. Thus, you have the opportunity to sell the house you bought cheaply at a high price. However, at this point, you need to do your calculations correctly. [2] The sum of the amount you will pay for the house and the restoration costs should be less than the sales price. Otherwise, you may suffer serious damage.
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4. Get Property Investment Consultancy
Property investments seem to be simple. However, steps taken without knowing all the details can cause serious problems. As InvestLatvia.net, we provide consultancy with our teammates who have expertise in property investment.
Our expert consultants stand by you in all processes and give you the most accurate information. They handle almost all transactions on your behalf. In this way, you do not have to deal with routine details while saving time.
At the same time, you can minimize the risk you have taken and make your investment more profitable. Besides, thanks to the information provided by our consultants, you will handle your official transactions quickly without any problems.
Property Investment and Residence Permit in Latvia
One of the most important advantages of investing in property in Latvia is obtaining a residence permit. When this permission is obtained, it will be possible to have the right of free movement in the EU countries. However, it should not be forgotten that the investment made to obtain a residence permit must meet certain conditions.
If the property purchased is in Riga or Jurmala, which are accepted as the developed regions of the country, its value must be at least 250,000 Euros.
A similar situation is valid for other regions of the country. However, because the prices of properties in other regions are lower, there is a different requirement. Two properties must be purchased in the mentioned regions and the value of each of them must be at least 125,000 Euros. The total value of the two should not be less than 250,000 Euros. When these conditions are met, a residence permit can easily be obtained from Latvia. More importantly, you will be able to apply for citizenship only 5 years after receiving a residence permit.
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Igors Krumins continues his activities as a commercial and international lawyer within the body of “Jurmala Invest”. He has more than 10 years of experience, especially in the investment sector, and has provided consultancy services to numerous companies with his legal expertise. He successfully completed his undergraduate studies at Baltic International Academy and graduate studies at Latvijas Universitate. Apart from his native Latvian language, he can also speak Russian and English fluently.
