Latvia to check whether foreign nationals obtained residence through fictitious investment

In brief

• On 26 October 2026 Interior Minister Jānis Dombrava instructed the Office of Citizenship and Migration Affairs and the Financial Intelligence Unit to examine publicly reported information about help given to several dozen third-country nationals in obtaining residence permits.
• The aim is to establish whether those involved supported genuine business activity or created fictitious grounds for staying in Latvia.
• The documents filed for the permits, the accuracy of the information in them, the financial circumstances of the deals and the role of each person and company will be examined.
• The instruction is linked to a scandal over citizenship that Latvia granted for special merit to a foreign national and then revoked within a week.
• Since 15 September 2026 Latvia has had a new Immigration Law: residence through property is closed, and permits through company investment have been cut to two years.

What the minister ordered

The minister instructed two agencies to examine information reported in the Latvian media. It concerns several entrepreneurs and a representative of a research institution who, according to the reports, were involved in preparing residence documents for several dozen non-EU nationals. The Office of Citizenship and Migration Affairs issues permits; the Financial Intelligence Unit is responsible for anti-money laundering. Each agency will examine its own part.

The instruction sets out specific questions. Were the deals backed by real investment and business activity, or was their purpose to create a formal basis for a right of residence? How accurate is the information in the documents? What financial circumstances are linked to the deals? What was the actual role of each person and company? A Latvian researcher has publicly suggested that the investments were fictitious and served only to let the foreign nationals formally qualify for temporary residence.

It is important to understand the status: this is an instruction to investigate, not an accusation and not a decision to revoke anyone's permit. Conclusions will follow the check. But the wording itself shows what Latvia looks at first: not the size of the investment, but whether the money is working in the country's economy.

What this means for you. If you obtained a Latvian permit through a company, the check does not mean your permit is at risk. But it is a signal to keep documents proving the company's real activity in order: they are likely to be examined more closely at renewal.

Where the check comes from

The minister's instruction follows a scandal that began in October. Latvia granted citizenship for special merit to an Indian national and then, according to press reports, revoked it within a week. The media highlighted links between people who prepared documents for that decision and companies and organisations involved in the story. The president of the Latvian Academy of Sciences explained that the citizenship recommendation was based on information from a research institute whose management is now also mentioned in connection with residence permits.

The scandal coincided with a major reform. On 15 September 2026 a new Immigration Law entered into force in Latvia, replacing the 2002 law. We covered it in detail in our news story on Latvia closing residence through property. The reform follows the same logic as the check: the state is abandoning passive investments and wants to see money that works and can be traced.

For a sense of scale: Latvia's investor permits were for many years among the most accessible in the EU. Residence for a flat from EUR 250,000 existed from 2010, and a capital contribution of EUR 50,000 is still one of the lowest thresholds in Europe. That is why, after closing the property route, the Latvian authorities have focused on companies: with a small contribution, the key is to prove that a real business stands behind it, not just an entry in the register.

What may follow the check. If the agencies find breaches, renewals may be refused and permits obtained on the basis of false information revoked, and where there are signs of money laundering, the files may be passed to law enforcement. If no breaches are found, the check will end with no consequences for permit holders. The minister did not give a timeline.

What this means for you. The Latvian check is part of a general move towards strict control of investor residence. Similar processes are under way in many EU countries, and this is worth bearing in mind when choosing a programme.

Which investor permits remain in Latvia

After 15 September an investor in Latvia has two grounds for temporary residence. The first is capital in a company: EUR 50,000 in a small company or EUR 100,000 in a large one, plus EUR 10,000 to the state budget. The permit term has been cut from five years to two. The second is a new option: at least EUR 150,000 for a minimum of 5 years in a state-managed fund plus EUR 10,000 to the budget, with residence for up to 5 years. The second option is closed to Russian and Belarusian citizens.

It is residence through company investment that is now under the closest scrutiny. The amount is small by European standards, and with weak oversight it is easy to turn into a formality: the money goes into the capital and is then taken out through a loan or payments. That is why checks look at the whole chain: where the money came from, where it went, whether the company has real activity, staff and taxes. We have a separate service on establishing a company's real substance.

What this means for you. If you hold residence through a Latvian company, make sure it has real activity: turnover, taxes, contracts. A two-year permit means frequent renewals and frequent checks.

What current permit holders should do

If you obtained Latvian residence through a company and followed the rules, there is no cause for alarm. But it is sensible to prepare for more questions at renewal. Collect documents showing the company's real work: contracts with clients and suppliers, account statements, tax returns, staff records. Check that the capital contribution has not been taken back through a loan to the shareholder or in any other way.

Also check who prepared your documents. If you used an intermediary mentioned in connection with the check, it makes sense to obtain an independent legal assessment of your case in advance. This does not mean anything is wrong with your documents, but it does mean they may be requested. If your permit was granted for property before 15 September, a transitional rule applies: a repeat permit can be obtained if you apply while the current one is valid and the investment still meets the conditions. Help with residence permit renewal is one of our services.

What this means for you. Do not wait for a letter from the agency. Build the company file and check your documents in advance. If you used intermediaries mentioned in the press, get an independent assessment.

If you are choosing EU residence through investment

Latvia is no longer an easy option: property no longer gives residence, company investment gives a permit for just two years under closer control, and the state fund is closed to Russian and Belarusian citizens. If you need EU residence through investment, it is worth comparing other countries. The Greece golden visa gives a five-year permit through property, although controls have tightened there too. The Hungarian guest investor programme works through funds and property. Portugal keeps its golden visa through funds. Italy offers an investor visa. Cyprus permanent residence is issued indefinitely.

If you plan to run a business, look at options for residence through business: in many countries they require real activity but also give more freedom. For those living on passive income there is residence for the financially independent, and for specialists talent programmes. All options are collected in the guide to all residence routes and on the residence programmes page. Neighbouring Czechia is also changing its foreigners law; see our news story on the new Czech law. There is also a country page for neighbouring Estonia.

What this means for you. When choosing a country, look not only at the amount but also at how stable the rules are and how strictly the reality of the investment is checked. Formal schemes in the EU are coming to an end.

How investments are checked in the EU today

The Latvian case is not an exception. EU countries are checking investor residence ever more strictly: they look at the beneficial owner, the origin of funds and whether the money stayed in the investment. Due diligence now covers not only sanctions lists but also an analysis of the whole payment chain. What is checked before filing is described in the guide to checks before an application and in the due diligence guide.

The key document in almost any programme is evidence of the source of funds. The procedure is described in detail in the source of funds guide. Similar checks happen outside the EU too: in the Caribbean they have been tightened under European pressure; we covered this in the article on due diligence in Caribbean programmes.

What to do

The new permanent residence rules for Ukrainian citizens in Latvia are covered in our news story on permanent residence for Ukrainians. How to obtain status for the whole family is explained in the guide to family residence. To discuss your case, book an online consultation; if you need a company in the EU, we can help with company registration. The term residence permit is explained in the glossary; all BRIDGES services are on the home page.

How this article was prepared

Sources: a statement by the Latvian Interior Minister's adviser to the LETA news agency on 26 October 2026 about the instruction to the Office of Citizenship and Migration Affairs and the Financial Intelligence Unit; Latvian press reports of 26 October 2026; Latvia's Immigration Law in force since 15 September 2026 and the Office of Citizenship and Migration Affairs statement on its entry into force. We do not name the private individuals mentioned in the reports: the check is not complete and no charges have been brought. This article does not replace a consultation.