latvian property proving attractive to russians
News Posted On: 11 March 2011
Prices look set to increase in this Baltic state due to a controversial new scheme. Much of this interest is coming from Russian buyers, as the Latvian government has implemented a scheme which enables property buyers to get European Union residency rights. According to estate agents in Latvia this policy has completely changed the property market with sales having increased substantially since the law was introduced last July.
Under this law non-EU citizens who buy a property worth more than £60,000, or who invest in a business can get EU residency rights. This doesn't enable them to work in other European Union countries, but it does enable them to travel freely between the 25 countries that make up the Schengen area.
While this move delighted estate agents it hasn't gone down so well with the citizens of Latvia who feel that the rising prices will make housing unaffordable for many native Latvians, and that the people buying these properties are not interested in living in Latvia. The Latvian government insists that all applicants are carefully screened and that properties cannot be bought for cash to prevent money laundering.
The Latvian government has given 145 residency rights to property purchases so far with each permit lasting five years. It has to be renewed every year as the owner must prove that they still own the property and haven't acquired any debt. These measures haven't pleased Roberts Zile who is the Latvian member of the European Parliament as he feels the scheme is effectively selling visas to non-EU citizens, and that the government would have been much better off to have stimulated the property market with incentives for first-time buyers.
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