According to Open4business, Latvia’s so-called “golden visa” programme has once again found itself at the centre of a scandal after the country’s Financial Intelligence Service discovered more than 20 companies that, according to its assessment, were used for fictitious investments in order to obtain a residence permit. This was reported by Latvian public media LSM with reference to the De Facto investigative programme.
According to the investigation, about 200 foreigners invested more than 10 million euros in the authorised capital of such companies. At the same time, as it is noted, the funds were often not used for real economic activities, but were redirected to the organisers of the scheme or moved around between related persons, without creating a noticeable benefit for the Latvian economy, but formally giving grounds for applying for a residence permit.
The programme provides for the possibility of obtaining a temporary residence permit in Latvia upon investment of 50 thousand or 100 thousand euros in the capital of a company. In 2025, this procedure brought the country almost 6 million euros, and a total of 341 people, including investors and their family members, received residence permits under the programme. At the same time, as LSM emphasises, the state does not systematically assess how significant the actual contribution of these companies is – in terms of turnover, number of employees or actual activity.
Interest in the programme has been growing in recent years. According to the Latvian Citizenship and Migration Board, 109 applications were submitted last year – more than five times more than in 2021, when there were 20. However, only about a third of the applications received a favourable decision, as applicants undergo security and security checks.
The investigation also cites the example of L Hotels, a company set up about a year and a half ago. Nine of its investors applied for residence permits last year, and the company’s shareholder list includes 30 people from India, Afghanistan, Pakistan, Turkey, Chile, Malawi, Syria, Vanuatu and other countries. Most of them invested 100,000 euros each, but received B shares, which, according to the articles of association, do not give voting rights.
Toms Platatsis, head of the Financial Intelligence Service, said that in some cases the statutorily required 50k Euros was actually the very money that had been repeatedly used in circles. The LSM stresses that this story has again intensified criticism of the programme, which was originally meant to stimulate investment and attract wealthy foreigners, but has been accompanied from the start by accusations of abuse.