411

Appendix 1

ABOUT THE AUTHORS

SAM M BAYATBayat Legal ServicesSam Bayat is a Quebec (Canada) licensed attorney with a background in international law and specialising in corporate immigration, with over 20 years of experience in business immigration consultancy. He was the former president and vice-president of International Section of the Canadian Bar, in Quebec. He has lectured in international law at the Concordia University in Montreal. He also offers advice to governments regarding their economic citizenship programmes. Mr Bayat migrated from Iran to Canada in 1974 and is the senior resident lawyer at the Bayat Legal Services (BLS) head office in Dubai, United Arab Emirates.

As the pace of immigration to Canada out of the Middle East increased, Sam Bayat set up a small law practice in Dubai in 1993. Today, BLS is an international law firm working with a network of law firms, legal professionals and trade consultants around the world. The group specialises in corporate, commercial, investment and banking, maritime, arbitration, and off-course immigration and second citizenship laws.

Mr Bayat is an accomplished author who has published several books, including the following: Canadian Immigration Law: All You Need To Know about Moving to Canada (2000); Canada after September 11: Immigration and Settlement (2003); and Canada’s Immigrants, Heroes And Countrymen (Volumes I and II).

BLS has offices in the UAE, Canada, Malaysia, Iran, Saint Kitts and Nevis, and Dominica. The UAE office was chosen as the group’s head office for its strategic location, serving centrally all Middle Eastern countries and the Indian subcontinent.

PHILIPPE FORTINUniversité du Québec à MontréalPhilippe Fortin is an attorney-at-law and a  professor at the Université du Québec à  Montréal (UQAM). He holds a  PhD from the London School of Economics and

The Corporate Immigration

Review

Law Business Research

Fourth Edition

Editor

Chris Magrath

The CorporateImmigration Review

The Corporate Immigration Review

Reproduced with permission from Law Business Research Ltd.This article was first published in The Corporate Immigration Review, 4th edition

(published in May 2014 – editor Chris Magrath).

For further information please emailNick.Barette@lbresearch.com

The Corporate Immigration

Review

Fourth Edition

EditorChris Magrath

Law Business Research Ltd

THE MERGERS AND ACQUISITIONS REVIEW

THE RESTRUCTURING REVIEW

THE PRIVATE COMPETITION ENFORCEMENT REVIEW

THE DISPUTE RESOLUTION REVIEW

THE EMPLOYMENT LAW REVIEW

THE PUBLIC COMPETITION ENFORCEMENT REVIEW

THE BANKING REGULATION REVIEW

THE INTERNATIONAL ARBITRATION REVIEW

THE MERGER CONTROL REVIEW

THE TECHNOLOGY, MEDIA AND TELECOMMUNICATIONS REVIEW

THE INWARD INVESTMENT AND INTERNATIONAL TAXATION REVIEW

THE CORPORATE GOVERNANCE REVIEW

THE CORPORATE IMMIGRATION REVIEW

THE INTERNATIONAL INVESTIGATIONS REVIEW

THE PROJECTS AND CONSTRUCTION REVIEW

THE INTERNATIONAL CAPITAL MARKETS REVIEW

THE REAL ESTATE LAW REVIEW

THE PRIVATE EQUITY REVIEW

THE ENERGY REGULATION AND MARKETS REVIEW

THE INTELLECTUAL PROPERTY REVIEW

THE LAW REVIEWS

www.TheLawReviews.co.uk

THE ASSET MANAGEMENT REVIEW

THE PRIVATE WEALTH AND PRIVATE CLIENT REVIEW

THE MINING LAW REVIEW

THE EXECUTIVE REMUNERATION REVIEW

THE ANTI-BRIBERY AND ANTI-CORRUPTION REVIEW

THE CARTELS AND LENIENCY REVIEW

THE TAX DISPUTES AND LITIGATION REVIEW

THE LIFE SCIENCES LAW REVIEW

THE INSURANCE AND REINSURANCE LAW REVIEW

THE GOVERNMENT PROCUREMENT REVIEW

THE DOMINANCE AND MONOPOLIES REVIEW

THE AVIATION LAW REVIEW

THE FOREIGN INVESTMENT REGULATION REVIEW

THE ASSET TRACING AND RECOVERY REVIEW

THE INTERNATIONAL INSOLVENCY REVIEW

THE OIL AND GAS LAW REVIEW

THE FRANCHISE LAW REVIEW

THE PRODUCT REGULATION AND LIABILITY REVIEW

PUBLISHER Gideon Roberton

BUSINESS DEVELOPMENT MANAGERS Adam Sargent, Nick Barette

ACCOUNT MANAGERS Katherine Jablonowska, Thomas Lee, James Spearing, Felicity Bown

PUBLISHING ASSISTANT Lucy Brewer

MARKETING ASSISTANT Chloe Mclauchlan

EDITORIAL ASSISTANT Shani Bans

HEAD OF PRODUCTION Adam Myers

PRODUCTION EDITOR Robbie Kelly

SUBEDITOR Jonathan Allen

MANAGING DIRECTOR Richard Davey

Published in the United Kingdom by Law Business Research Ltd, London

87 Lancaster Road, London, W11 1QQ, UK© 2014 Law Business Research Ltd

www.TheLawReviews.co.uk No photocopying: copyright licences do not apply.

The information provided in this publication is general and may not apply in a specific situation, nor does it necessarily represent the views of authors’ firms or their clients.

Legal advice should always be sought before taking any legal action based on the information provided. The publishers accept no responsibility for any acts or omissions contained herein. Although the information provided is accurate as of May 2014, be

advised that this is a developing area.Enquiries concerning reproduction should be sent to Law Business Research, at the

address above. Enquiries concerning editorial content should be directed to the Publisher – gideon.roberton@lbresearch.com

ISBN 978-1-909830-02-8

Printed in Great Britain by Encompass Print Solutions, Derbyshire

Tel: 0844 2480 112

i

The publisher acknowledges and thanks the following law firms for their learned assistance throughout the preparation of this book:

ADVOKATFIRMAN ÖBERG & ASSOCIÉS AB

ARTON CAPITAL

BAYAT LEGAL SERVICES

BDO TAX

BECH-BRUUN

BOEKEL DE NERÉE NV

CHOW KING & ASSOCIATES

ELVINGER, HOSS & PRUSSEN

ENRIQUE ARELLANO RINCÓN ABOGADOS, SC

FISCHER & SCHICKENDANTZ

GIBNEY, ANTHONY & FLAHERTY LLP

GLOBETROTTERS LEGAL

IMMIGRATION SOLUTIONS LAWYERS PTY LTD

KAN-TOR & ACCO

KARL WAHEED AVOCATS

KHATTARWONG LLP

KING & WOOD MALLESONS

KONDWANI C WILLIAMS CHAMBERS/WHITCO INC

ACKNOWLEDGEMENTS

Acknowledgements

ii

LABORDA ABOGADOS SPA

LAW OFFICES DR F SCHWANK

LCA LEGA COLUCCI E ASSOCIATI

MAGRATH LLP

MALHOTRA & MALHOTRA ASSOCIATES

MIFSUD & MIFSUD ADVOCATES

MITCHAM & BENJAMIN

MÜTZE KORSCH RECHTSANWALTS GESELLSCHAFT MBH

NAKAI IMMIGRATION SERVICES TOKYO/OSAKA LPC

OT AGBAJOH & CO (TRIUMPH CHAMBERS)

ROBERTS & CO, ATTORNEYS AT LAW

RODRIGO, ELÍAS & MEDRANO ABOGADOS

TASSOS PAPADOPOULOS & ASSOCIATES LLC

VWEW ADVOCATEN VOF

iii

Editor’s Preface ..................................................................................................viiChris Magrath and Ben Sheldrick

Chapter 1 ANTIGUA AND BARBUDA ....................................................1Clare K Roberts, Andrea Roberts Nicholas and Sam M Bayat

Chapter 2 AUSTRALIA ...............................................................................6Anne O’Donoghue and Esther En Jung Shin

Chapter 3 AUSTRIA .................................................................................24Sabine Straka, Merran Loewenthal and Silvia Siebenstich

Chapter 4 BELGIUM ................................................................................37Henry Hachez

Chapter 5 BULGARIA ..............................................................................51Lora Videva

Chapter 6 CANADA .................................................................................60Sam M Bayat, and Philippe Fortin

Chapter 7 CHILE ......................................................................................73Cristian Laborda

Chapter 8 CHINA .....................................................................................85Jiang Junlu and Jin Shan

CONTENTS

iv

Contents

Chapter 9 CYPRUS ...................................................................................99Maria Clappa and Despina Papaefstathiou

Chapter 10 DENMARK ............................................................................111Mette Klingsten, Thomas Christian Thune and Sandro Ratkovic

Chapter 11 DOMINICA ...........................................................................121Kondwani C Williams and Sam M Bayat

Chapter 12 FRANCE ................................................................................126Karl Waheed

Chapter 13 GERMANY ............................................................................139Gunther Mävers

Chapter 14 GHANA ..................................................................................155Paa Kwesi Hagan

Chapter 15 HONG KONG ......................................................................167Eugene Chow

Chapter 16 INDIA ....................................................................................180Ranjit Malhotra and Anil Malhotra

Chapter 17 ISRAEL ...................................................................................194Tsvi Kan-Tor, Amit Acco and Yoav Noy

Chapter 18 ITALY .....................................................................................203Benedetto Lonato and Alessia Ajelli

Chapter 19 JAPAN ....................................................................................215Masahito Nakai

v

Contents

Chapter 20 LATVIA ..................................................................................226Gita Avotina

Chapter 21 LUXEMBOURG ....................................................................238Pierre Elvinger and Laura Favas

Chapter 22 MALTA ...................................................................................251Malcolm Mifsud and Joseph Mizzi

Chapter 23 MEXICO ................................................................................262Enrique Arellano Rincón

Chapter 24 NETHERLANDS ..................................................................274Sascha Kuit

Chapter 25 NIGERIA ................................................................................285Olivia Tagbajumi Oghoke Agbajoh

Chapter 26 PERU ......................................................................................295Iván Blume Moore

Chapter 27 SAINT KITTS AND NEVIS .................................................306Constance V Mitcham and Sam M Bayat

Chapter 28 SINGAPORE .........................................................................311Leon Kwong Wing and Elisa Soh Hui

Chapter 29 SWEDEN ...............................................................................324David Loveday

Chapter 30 UNITED ARAB EMIRATES .................................................347Sam M Bayat and Allison Obaro

Contents

Chapter 31 UNITED KINGDOM ...........................................................358Chris Magrath and Ben Sheldrick

Chapter 32 UNITED STATES .................................................................383Stephen J O Maltby and Ellen L Poreda

Chapter 33 URUGUAY .............................................................................399Federico Formento

Appendix 1 ABOUT THE AUTHORS .....................................................411

Appendix 2 CONTRIBUTING LAW FIRMS’ CONTACT DETAILS ...431

vi

vii

EDITOR’S PREFACE

One of the benefits of being immigration practitioners is that our subject is never out of the news. Our discipline has been a hot political topic for over a decade and the current climate provides no exception. Across the globe political parties perceive the immigration debate as a mechanism with which to gain the attention of the voting public. In the UK, with an eye on the 2015 election, all of the political parties wish to stake their ground on immigration policy. The desire to provide a robust response to perceived public concern over migration flows, combined with a fear of the UK Independence Party (UKIP) vote, means that 2014–15 is unlikely to see any relaxation of immigration policy.

It appears that the only point on which all the major political parties agree is that unrestricted immigration is a bad thing. As the global economy showed little sign of growth in 2012–13, political leaders persuaded themselves that restricting the flow of overseas labour is, if nothing else, a means of deflecting from their own economic failures.

Our present leaders are focused on numbers and they hope to brandish a huge reduction in net migration to the electorate in two years’ time. Their ability to contain migrant flow is constrained by the provisions of international treaties (most importantly the Treaty of Rome) and the development of human rights laws with associated protections of the family unit. It has, therefore, been the working and business populations that have been most affected by the drive to bring down numbers. The UK points-based system is no longer the clear and transparent attributes assessment that was heralded in 2008: it is a criteria-based system with hundreds of pages of policy guidance. The mechanisms used by the government to quantify the headline figures remain nebulous, with issues such as freedom of entry at port for EU nationals and the lack of exit checks for all travellers being largely ignored. Net migration figures are in truth a ‘best guess’ exercise.

The relative easing in the economic crisis globally does not yet appear to have had a favourable impact on immigration policy. It will be some time before politicians are comfortable with a more flexible approach to international labour flows. Throughout the chapters of this book you will see a marked tendency towards increased regulation and constraint. President Obama in particular is unlikely to find the political capital needed

Editor’s Preface

viii

to deliver on immigration reform. The tone of debate in Australia has changed markedly since the election of Prime Minister Abbott last September.

We are again immensely grateful to our contributors from around the world for bringing their insights into the immigration schemes of their respective jurisdictions. We believe that you will find their contributions an invaluable guide to international immigration systems.

Chris Magrath and Ben SheldrickMagrath LLPLondonMay 2014

226

Chapter 20

LATVIA

Gita Avotina1

I INTRODUCTION TO THE IMMIGRATION FRAMEWORK

i Visas, residence permits and citizenship

In accordance with the immigration regime applicable in Latvia, a  foreign national is allowed to reside in Latvia with a visa or with a residence permit.

VisasDifferent types of visa may be granted to a foreign national: depending on the purpose of his or her visit to Latvia, he or she may be granted a transit visa, an airport transit visa, a  short-term visa or a  long-term visa. A  long-term visa is a  national visa issued according to the procedure prescribed by Latvian national law; all other types of visas are governed by the Visa Code.2

The maximum term of stay in Latvia that is permitted on a visa may not exceed 90 days in a six-month period. (Under exceptional circumstances, the length of stay may exceed 90 days.)

Visas may be single entry, double entry or multiple entry, and individual or group.The main categories of visas applicable in Latvia are:

a Category A visa: airport transit visa. This type of individual visa is designed for those foreign nationals who wish to cross the airport transit zone and is valid for a maximum of three months;

b Category B visa: transit visa. This visa enables a foreign national to enter Latvia, transit through its territory and subsequently depart from the country. The

1 Gita Avotina is a senior tax consultant at BDO Tax.2 Regulation of the European Parliament and of the Council No. 810/2009 of 13 July 2009

establishing a Community Code on Visas; applicable from 5 April 2010.

Latvia

227

maximum length of stay in Latvia is three days (five days for foreign sailors). The maximum term of validity is six months;

c Category C visa: short-term visa. This visa enables a  foreign national to enter Latvia and to stay in the country for the period indicated therein. The maximum length of stay in Latvia is 90 days in a six-month period, counted from the day of entry, and the visa is valid for a maximum of one year. Under certain conditions, the maximum term of validity of a multiple-entry short-stay visa may be extended to two years; and

d Category D visa: long-term visa. This type of visa is issued in accordance with Latvian national law to a foreign national to enter Latvia and stay in the country for the period indicated therein. The maximum term of stay may exceed 90 days.

Residence permits and citizenshipThere are several types of residence permits available in Latvia. As a first step, a foreign national may apply for a  temporary residence permit. After a five-year residence, the foreign national may apply for a permanent residence permit or EU long-term resident status; after a 10-year residence, the foreign national may apply for citizenship of Latvia.

The main reasons for granting a temporary residence permit are:a commercial activities (e.g., individual merchant, executive of a  foreign or local

corporate entity);b employment relationship;c investment in a Latvian company;d real estate ownership;e investment in a Latvian credit institution;f studies and scientific research; andg religious activities.

A temporary residence permit allows a foreign national to reside in Latvia for a period exceeding 90 days in a  six-month period. A  temporary residence permit is usually granted for one to five years. No Latvian language knowledge is required when applying for a temporary residence permit. It must be re-registered annually (i.e., compliance with the eligibility criteria for the permit must be demonstrated every year). The spouse of the foreign national, the minor children (also those under guardianship) and persons under trusteeship have the right to request a temporary residence permit for the duration of the temporary residence permit issued to the foreign national (i.e., the initial applicant).

A foreign national who has continuously resided in Latvia with a  temporary residence permit for at least five years has the right to request a permanent residence permit. The term ‘continuously resided’ refers to cases where the foreigner’s continuous absence from Latvia during the five-year period does not exceed six months, or his or her absence in shorter terms during a five-year period together does not exceed one year. It is necessary to pass a Latvian language exam to be granted a  permanent residence permit in Latvia.

If a third-country national wishes to stay without a time limit and to work in other EU Member States (as EU nationals are entitled to), he or she needs to obtain the status

Latvia

228

of long-term resident of the European Community in the Republic of Latvia.3 To obtain this status, a foreign national has to prove his or her continuous residence in Latvia for five years, existence of sufficient resources and knowledge of the Latvian language.

According to Section 12(1) of the Citizenship Law,4 under certain conditions a person who has continuously resided in Latvia for 10 years (first with a  temporary residence permit, then with a permanent residence permit) may be admitted to Latvian citizenship through naturalisation.

There are no quotas in Latvia; consequently, the number of visas and residence permits is not limited.

ii Legislation and policy

The main law regulating immigration matters in Latvia is the Immigration Law,5 which came into force on 1 May 2003. The Immigration Law, together with a  number of significant Cabinet of Ministers Regulations subordinated thereto, prescribes the conditions for entry of foreign nationals into Latvia, their stay, transit, the grounds for refusal of an application for a visa or residence permit, as well as the grounds for cancellation of visas and temporary residence permits.

The most significant event affecting legal migration issues in Latvia was the accession of Latvia to the EU on 1 May 2004 and its joining of the Schengen Agreement on 21 December 2007.

Another important date in the history of Latvia’s immigration policy is 1 July 2010, when amendments to the Immigration Law came into force, supplementing it with several provisions prescribing additional grounds for granting temporary residence permits in Latvia, including the purchase of real estate in Latvia, investment in a Latvian company and investment in a Latvian credit institution. The aim of said amendments was to attract foreign investment.

Asylum procedures are regulated by the Asylum Law,6 together with the Cabinet of Ministers Regulations subordinated thereto.

The Law on the Status of Permanent Residents of the European Union in the Republic of Latvia7 adopts the provisions of Council Directive No. 2003/109/EC8 on the status of third-country nationals who are regularly residing persons. This Law regulates the procedures applicable to the granting and losing of the status of permanent resident of the EU in the Republic of Latvia.

3 Law on the Status of a Long-term Resident of the European Community in the Republic of Latvia. The Latvian Herald, No. 107 (3475), 7 July 2006 (in force since 21 July 2006).

4 Citizenship Law. The Latvian Herald, No. 93, 11 August 1994 (in force since 25 August 1994).5 Immigration Law. The Latvian Herald, No. 169, 20 November 2002 (in force since

1 May 2003).6 Asylum Law. The Latvian Herald, No. 100, 30 June 2009 (in force since 14 July 2009).7 Law on the Status of Permanent Residents of the European Union in the Republic of Latvia.

The Latvian Herald, No. 107, 7 July 2006 (in force since 21 July 2006).8 Council Directive No. 2003/109/EC of 25 November 2003 concerning the status of third-

country nationals who are long-term residents. The Latvian Herald, L 016, 23 January 2004.

Latvia

229

As a  Member State of the EU, Latvia applies Article 21 of the Treaty on the Functioning of the European Union (TFEU) providing that any ‘citizen of the Union shall have the right to move and reside freely within the territory of the Member States, subject to the limitations and conditions laid down in the Treaties and by the measures adopted to give them effect’. Thus citizens of the EU, the European Economic Area (EEA) and Switzerland are free to enter and reside in Latvia for an unlimited time.

The other major EU legislative instruments regarding migration and asylum applied by Latvia are:a Regulation (EEC) No. 1612/68 OJ 1968 L257/2 of October 1968, on freedom

of movement for workers within the Community;b Regulation (EC) No. 810/2009 of the European Parliament and of the Council

of 13 July 2009 establishing a Community Code on Visas (Visa Code);c Council Regulation (EC) No. 539/2001 of 15 March 2001 listing the third

countries whose nationals must be in possession of visas when crossing the external borders and those whose nationals are exempt from that requirement; and

d Regulation (EC) No. 562/2006 of the European Parliament and of the Council of 15 March 2006 establishing a Community Code on the rules governing the movement of persons across borders (Schengen Borders Code).

iii The immigration authorities

In addition to other state and municipal institutions, the leading administrative institutions in the immigration field are:a the Office of Citizenship and Migration Affairs (OCMA), which is the authority

responsible for the implementation of the migration and asylum policy in Latvia;b the State Border Guard; andc Latvian diplomatic and consular representations abroad.

The OCMAThe OCMA is an institution subordinated to the Ministry of the Interior that implements Latvia’s migration and asylum policy, determines the legal status of individuals in the country, keeps records of the population, and issues personal identity and travel documents.9

The key functions of the OCMA are:a maintenance of the population register;b issuance of identification and travel documents;c visa issuance for entry into Latvia and the crossing of its territory;d developing and implementing the repatriation policy;

9 Cabinet of Ministers Regulations No. 811 By-law of the Office of Citizenship and Migration Affairs of 3 October 2006. The Latvian Herald, No. 160, 6 October 2006 (in force  since 7 October 2006).

Latvia

230

e developing and implementing the asylum policy;f determination of the legal status of persons and their naturalisation; andg implementation of the migration policy.10

The State Border GuardThe State Border Guard is an armed, directly administered institution subordinate to the Ministry of the Interior, which implements the security policy of the state, as well as – within the scope of its competence – state migration policy. Its aims include safeguarding the inviolability of the state border and the prevention of illegal migration.11

Diplomatic and consular missionsLatvia has 44 diplomatic and consular missions: 35 embassies, six permanent representations, one consulate general and two consulates. At the end of 2013, Latvia had 151 honorary consuls and 16 consuls general stationed abroad.12

The main tasks of the diplomatic and consular service are to ensure the protection of the interests of Latvia and its citizens, non-citizens and stateless persons who have a permanent residence permit for Latvia and who are residing in foreign states to perform consular functions.13

Main authorities with responsibility for policing the legal right to workEconomic migration is within the competence of the Ministry of Welfare, the Ministry of Economics and the State Employment Agency – an institution that implements state policy on the reduction of unemployment and supports the unemployed, people subject to the risk of unemployment and jobseekers.14 In the event that a  Latvian employer wishes to employ a foreigner, it must register the vacancy with the State Employment Agency. The foreigner may be employed after the vacancy has been open for one month.

iv Exemptions and favoured industries

The decisive factor influencing the right to enter Latvia is a person’s nationality.Visas are not required for:

a nationals of the EU, EEA and Switzerland (30 countries in total);b nationals of countries and territorial authorities that do not require a  visa in

accordance with Council Regulation (EC) No. 539/2001 of 15 March 2001 listing the countries whose nationals must be in possession of visas when crossing

10 The OCMA: www.pmlp.gov.lv/en/home/about-ocma/functions.html.11 Cabinet of Ministers Regulations No. 122 By-law of the State Border Guard of 15 February 2005.

The Latvian Herald, No. 28, 18 February 2005 (in force since 19 February 2005).12 Ministry of Foreign Affairs: www.am.gov.lv/en/mission.13 Diplomatic and Consular Service Law. The Latvian Herald, No. 155 (438), 10 October 1995

(in force since 24 October 1995).14 Cabinet of Ministers Regulations No. 425 By-law of the State Employment Agency of

29 July 2003. The Latvian Herald, No. 111, 6 August 2003 (in force since 1 October 2003).

Latvia

231

the external borders and those whose nationals are exempt from that requirement (41 countries);

c recognised refugees, stateless persons and other persons without citizenship who permanently reside in one of the EU Member States and who hold a travel document issued by the Member State (except Great Britain and Ireland); and

d British nationals (overseas) – holders of British passports (persons who are British subjects by virtue of Part IV of the British Nationality Act 1981 and who have the right of abode in the United Kingdom and are therefore exempt from United Kingdom immigration control).15

Simplified visa regimes exist for certain groups of nationals of the following countries: Albania, Bosnia and Herzegovina, Macedonia, Moldova, Montenegro, Russia, Serbia and Ukraine.

II INTERNATIONAL TREATY OBLIGATIONS

i Nationals of the EU, EEA and Switzerland

As a Member State of the EU, Latvia observes the principle of free movement of workers as provided in Article 45 of the TFEU forbidding any ‘different treatment based on nationality between workers of the Member States as regards employment, remuneration and other conditions of work and employment’.

The procedure for entry into and residence in Latvia of nationals of the EU, EEA and Switzerland (Union nationals) is prescribed by Cabinet of Ministers Regulation No. 675 on Procedures for the Entry and Residence in the Republic of Latvia of Citizens of the Union and their Family Members, of 30 August 2011.

According to this Regulation, Union nationals and their family members are allowed to enter Latvia without visas and stay in the country for an unlimited time, subject to certain registration provisions. Union nationals are also allowed to work without having to apply for a work permit – a mandatory requirement for third-country nationals.

ii Privileged third-country nationals

Nationals of certain third countries may also enter Latvia without having to apply for a visa, and may stay in the country not more than 90 days in a six-month period. These countries are mentioned in Council Regulation (EC) No. 539/2001 of 15 March 2001 listing the countries whose nationals must be in possession of visas when crossing the external borders and those whose nationals are exempt from that requirement.

Moreover, according to the agreements concluded by Latvia with Canada and New Zealand, several exemptions related to the entry and residence conditions in Latvia are applicable to certain groups of nationals of these two countries.

15 List available from the OCMA: www.pmlp.gov.lv/en/home/services/visas-and-invitations/list-countries.html.

Latvia

232

III THE YEAR IN REVIEW

In accordance with the amendments to the Latvian Immigration Law that came into force in July 2010, the Law was supplemented by three means of obtaining a temporary residence permit: investment in the share capital of a  Latvian company, investment in the subordinated capital of a  Latvian credit institution and investment in real estate located in Latvia.

As a natural process of the development of the Law in 2011, amendments were made to the substantive and procedural law under the new immigration programme aiming at preventing abuse of the Law. For instance, in July 2011 the provision on the minimum value of real estate sufficient to be grounds for obtaining a residence permit was supplemented by the requirement of a minimum cadastral value of the real estate to be acquired to prevent schemes whereby low-value real estate is acquired for the amount formally necessary to obtain a temporary residence permit.

At the same time, amendments were made to make the procedure of obtaining a  temporary residence permit more convenient; for example, as of 2011, in certain cases it is possible to submit the documents necessary to obtain an investment-based temporary residence permit not only at diplomatic and consular representations abroad, but also in Latvia.

In July 2012, new amendments to the Regulations Regarding Residence Permits16 came into force. The major aim of these amendments was to change the qualifying conditions for obtaining a temporary residence permit in Latvia on the basis of commercial activities: for example, the requirement regarding the minimum number of employees was eliminated, whereas the minimum amount of tax to be paid to the government was increased from 10,000 lati (€14,229) to 15,000 lati (€21,343).

Amendments to the Immigration Law were introduced and came into force as of 1 January 2014. Several minor amendments were devoted to the conversion of thresholds in the national currency following the changeover to euros. The Immigration Law also saw the introduction of supplementary requirements increasing the amount of investment required to qualify for a residence permit in relation to certain criteria. Henceforth, in respect of investments in share capital, the amount of tax to be paid to the government was increased to €40,000. Additionally, in such cases of share capital investment, a  limit of three was set on the number of shareholders entitled to receive a residence permit if investment is made in the amount of €35,000.

In October 2013 the Latvian parliament (the Saeima) adopted new amendments to the Immigration Law. The Law was supplemented with two further options for obtaining a  residence permit: a  payment into the state budget and an investment in interest-free government debt securities. Additionally, it was foreseen to introduce a quota for residence permits with regard to investments in real estate. However, the president has exercised his rights and has returned the amendments to the Saeima for review. Thus, the amendments have not come into force and are to be reviewed in April 2014.

16 Cabinet of Ministers Regulations No. 564 Regulations Regarding Residence Permits of 21 June 2010. The Latvian Herald, No. 101, 29 June 2010 (in force since 1 July 2010).

Latvia

233

IV EMPLOYER SPONSORSHIP

i Work permits

The institutions responsible for the implementation of the immigration policy related to the employment of third-country nationals are:a the OCMA;b the State Employment Agency;c the Latvian diplomatic and consular representations abroad;d the State Labour Inspectorate; ande the State Border Guard (control function).

A foreign national wishing to establish a legal employment relationship by entering into an employment contract, to be employed on the basis of another civil legal contract (including as a member of a commercial company’s administration or executive body) or to be a self-employed person shall need a work permit.17

Third-country nationals allowed to work and not required to obtain a  work permit are those persons who:a have received a permanent residence permit;b have received a  temporary residence permit under a pupil or student exchange

programme, practice or apprenticeship and do not receive remuneration for the work performed;

c arrive in Latvia as performers, authors, administrative or technical workers to ensure a performance, and the intended length of stay does not exceed 14 days;

d arrive in Latvia for scientific research or to participate in the implementation of an educational programme, and the intended length of stay in Latvia does not exceed 14 days;

e have received a  residence permit as a  long-term resident of the European Community in the Republic of Latvia;

f are under a  cooperation agreement with a  scientific institution to perform scientific activities in Latvia;

g are crew members of ships on international voyages and registered in the Latvian Ship Register; or

h are legally employed in another EU Member State, a Member State of the EEA or Switzerland and the employer seconds him or her to Latvia.

ii Labour market regulation

To protect the local labour market, Latvia has established the following procedure to be observed by local employers for the employment of third-country nationals: they must first register a vacancy with the State Employment Agency, indicating the required skills of the potential employee (profession, education, work experience, language skills, etc.).

The vacancy does not need to be registered if the third-country national is employed under a  contractor agreement or is engaged in commercial activities (as

17 The Immigration Law.

Latvia

234

a board or council member, procurator, administrator, liquidator, individual merchant, self-employed person, etc.).

The registered vacancy must be made known to Latvian and EU nationals who are registered as unemployed. After one month, the employer may submit documents to the OCMA to confirm the invitation or written request for a visa or residence for a foreign national. The documents certifying the qualifications and education, or both, of the third-country national should be enclosed with the application. After the invitation or the written request is approved by the OCMA, the foreign national may submit his or her documents for obtaining a  visa or residence permit in the Latvian diplomatic or consular representation abroad or in Latvia.

If the foreign national has applied for a visa with a work permit, the work permit needs to be picked up personally at the OCMA within three business days after arrival in Latvia. In the case of a  residence permit, the work permit is issued together with the residence permit.

The State Labour Inspectorate and the State Border Guard monitor employed third-country nationals.

Although the maximum term of validity of a  temporary residence permit is five years, a foreign national must annually register his or her residence permit. When registering a  residence permit obtained on the basis of an employment contract, the OCMA checks that the foreigner is still employed by the Latvian employer and that all payroll taxes have been paid by his or her Latvian employer.

iii Rights and duties of sponsored employees

Employment of third-country nationals is restricted by the conditions specified in the work permit. For instance, according to the applicable regulation,18 it is allowed to employ a  foreign national only in the profession or a  position specified in the work permit. If, within the term of validity of the work permit, the conditions under which the work permit was issued change (for instance, the employer, profession, position, working hours or place of employment), the foreign national should obtain a new work permit.

Option to apply for permanent statusAccording to the general provisions, a foreign national who has continuously resided in Latvia with a temporary residence permit for at least five years has the right to request a  permanent residence permit. It is necessary to pass a  Latvian language exam to be granted a permanent residence permit.

V INVESTORS, SKILLED MIGRANTS AND ENTREPRENEURS

i Investors

Since July 2010, it has become possible to obtain a temporary residence permit in Latvia for a five-year period on the basis of an investment in the Latvian economy.

18 Cabinet of Ministers Regulations No. 553 Rules on the work permits for foreign nationals of 30 August 2011. The Latvian Herald, No. 100 (4292), 28 July 2010 (in force since 1 July 2010).

Latvia

235

A residence permit shall be granted to investors on the following conditions:a a foreign national invests at least €35,000 in the share capital of a Latvian company

(either increasing it or founding a new company) that:• employs fewer than 50 people;• has an annual turnover or annual balance that does not exceed €10 million; and• pays taxes to state or municipal budget of at least €40,000 per year;

A  maximum of three shareholders (foreign nationals) are entitled to request a residence permit for their investment in the share capital of such a legal entity;

b a  foreign national invests at least €150,000 in the share capital of a  Latvian company that:• employs more than 50 people;• has an annual turnover or annual balance that exceeds €10 million; and• pays taxes to the state or municipal budget of at least €40,000 per year;

c a foreign national contributes at least €280,000 to the subordinated capital of a Latvian credit institution (bank), where the term of the transaction is at least five years without the right of an early termination; or

d a foreign national acquires one or several pieces of real estate in the Riga region or a city in Latvia, worth €142,300, or real estate worth €71,150 in other areas in Latvia, where:• the person has no real estate tax debts;• the transaction has been executed via a bank transfer; and• the real estate has been acquired from a  legal entity incorporated in the

Republic of Latvia or other EU Member State, EEA or Switzerland that is considered a tax resident in Latvia or from a person – a citizen or a non-citizen of Latvia, a  citizen of another EU Member State or a  foreigner – who has residence permit in Latvia.

Those foreign nationals who have obtained a temporary residence permit as a result of the acquisition of real estate or an investment in the subordinated capital of a Latvian credit institution do not need to obtain a work permit to perform commercial activities or engage in an employment relationship in Latvia.

Foreign nationals with a  temporary residence permit obtained on the basis of an investment in a Latvian company may obtain a work permit without the employer having to register a vacancy with the State Employment Agency.

ii Skilled migrants

Highly qualified third-country nationals may apply for an EU Blue Card as provided by Council Directive 2009/50/EC of 25 May 2009 on the conditions of entry and residence of third-country nationals for the purposes of highly qualified employment. A European Blue Card is a special type of temporary residence permit.

The necessary requirements for an EU Blue Card are:a existence of an employment relationship with a Latvian employer in Latvia;b a remuneration of at least 1.5 times the average gross annual salary in Latvia; andc a higher education in the applicant’s field of employment, where the length of the

study programme has been not less than three years.

Latvia

236

It is not necessary to register a vacancy with the State Employment Agency when applying for a work permit for such a highly qualified migrant.

VI OUTLOOK AND CONCLUSIONS

The most recent significant amendments to the Latvian Immigration Law were adopted in 2010.

Since July 2010, Latvia has introduced a new immigration programme aimed at attracting foreign investment. The Latvian Immigration Law has been supplemented by three additional means of obtaining a temporary residence permit: by investment in the share capital of a Latvian company, investment in the subordinated capital of a Latvian credit institution and investment in real estate in Latvia. Two other means of obtaining a temporary residence permit were expected to be introduced by the Saeima: by making a  payment into the state budget and an investment in interest-free government debt securities. However, the president has requested that the amendments be reviewed by the Saeima and there is no schedule for their future implementation.

The new programme opened the Schengen area to wealthy third-country individuals who previously have not had sufficient nexus to Latvia to obtain a residence permit here.

Thanks to the immigration programme, significant investment has been attracted into the Latvian economy, with 9,686 foreign citizens taking advantage of the programme during the past four years. The total amount of investments made exceeds approximately €816 million. In 2013, 4,501 foreign investors obtained a temporary residence permit in Latvia via this route, investing nearly €360 million as follows:

Number of investors Amount of investment (€)Real estate 3,680 297 million

Credit institution 257 34 million

Company 564 29 million

Total 4,501 360 million

Taking into account the latest amendments to the Immigration Law adopted by the Saeima, it is expected that in the following years the immigration programme will be extended and will introduce more options for investors. However, there are plans for more detailed criteria for obtaining a residence permit. Thus, while overall the number of residence permits to be issued should increase, the amount of the investments to be made by sole investors will also be increased.

Latvia

237

Because of the comparatively high level of unemployment, the problem of attracting a larger labour force to Latvia is not currently a subject of discussion at the political level. However, on the basis of available forecasts of Latvia’s economic and demographic development (with continuing emigration of the workforce and an ageing population), it is possible that in the future Latvia will need to adopt an immigration programme to attract foreign labour.

411

Appendix 1

ABOUT THE AUTHORS

GITA AVOTINABDO TaxGita Avotina is a  senior tax consultant at BDO Tax – leader in the tax planning field in Latvia.

Ms Avotina obtained a master’s degree in European Business and Trade Law at the University of Manchester and became a certified tax consultant approved by the Latvian Tax Consultant Association in 2010. Gita Avotina is a sworn solicitor.

Ms Avotina has considerable experience in domestic immigration law, primarily focusing on assisting clients in obtaining temporary residence permits and work permits. Since the new Latvian immigration programme came into force, she has been actively engaged in the family office business, helping foreign nationals move their residence to Latvia as well as assisting them with managing business and family-related matters in Latvia. Thanks to her excellent knowledge of international tax law and several years of practical experience, Ms Avotina is also able to advise clients on tax and asset management issues.

Ms Avotina speaks fluent English, Russian and Latvian.BDO Tax was founded in January 2013 by the tax team leaders of attorneys-at-

law BDO Zelmenis & Liberte, which has represented the international BDO network since 2008.

BDO TAX15 Kaļķu Str1050 RigaLatviaTel: +371 67222237Fax: +371 67222236gita.avotina@bdotax.lvwww.bdotax.lv/en