Obtaining a residence permit The uniqueness of these amendments lies in the fact that a new method for obtaining a residence permit was introduced – investing in real estate. It has attracted a large number of investors, as a foreigner investing in real estate has the possibility to move freely within the Schengen area. Citizens of the Russian Federation are especially interested in using this possibility, as Latvia is located in its vicinity and is a popular tourism destination due to its unique cultural monuments, well-known resorts and international festivals.
Benefits of holding temporary residence permit to stay in the Republic of Latvia for a period of time not exceeding five years to freely cross borders between EU Member States and non-EU countries to move and stay up to 90 days within a 6 month period to other EU countries except for the United Kingdom, Ireland, Cyprus, Bulgaria and Romania to obtain a Latvian or EU permanent residence permit after five years to obtain temporary residence permits for the spouse and children What is residence permit? A residence permit is a document that gives a foreign citizen the right to temporarily (a temporary residence permit) or permanently (a permanent residence permit) stay in the Republic of Latvia. Invest wisely, invest in real estate which value is predicted to increase!
Temporary residence permit Issued for up to 5 years Must be re-registered every year Notice: According to amendments to the Immigration Law of the Republic of Latvia, adopted on 1 July 2010, expanding the possibilities to obtain a residence permit in Latvia for foreign nationals who want to stay and move freely within the Schengen area. Conditions on investing in real estate.
This area is governed by the Handling of Alcoholic Beverages Law, Cabinet Regulations No. 662 “Procedures for the Circulation of Excisable Goods” and the Law on Excise Duties. Sale of alcoholic beverages and tobacco products requires a special authorization – licence. (The Law on Excise Duties mentions the types of alcoholic beverages and tobacco products requiring a licence.) For example, the retailers of alcoholic beverages selling beer need only a licence for retail sale of beer. A licence gives the right to sell alcoholic beverages or tobacco products only at the place indicated therein. A licence may be used only by the person to whom it was issued.
The Licensing Commission of the State Revenue Service issue licences to merchants registered in the Commercial Register for the following activities:
wholesale of alcoholic beverages and tobacco products; retail sale of alcoholic beverages and tobacco products. The procedure for obtaining a licence includes following activities:
documents for obtaining a licence are submitted by an official representative of the merchant whose signatory powers are registered in the Commercial Register or a person authorised by the official representative of the merchant; the samples of the application form is available in the Appendix No. 7 and No. 8 of the Cabinet Regulations No. 622 “Procedures for the Circulation of Excisable Goods”; in the application for obtaining a licence, the preferable means of receiving the permit (in paper or electronic form) should be specified (in compliance with the legal provisions on circulation of electronic documents); a licence shall be issued for an indefinite period of time; if a merchant additionally applies for retail sale of alcoholic beverages and beer in a booth, then the retail sale shall be allowed for a period of time specified by the binding regulations of the local government; the application must be submitted with the following documents: documents confirming the right to use the business premises; explanation of the process of economic transactions and the financial security in case if the application is submitted to obtain a wholesale licence; confirmation by the merchant that the local government has agreed on retail sale of alcoholic beverages in the booth, if the application is submitted to obtain a licence for this exact purpose; the administrative commission considers applications and issues authorizations or makes a reasoned decision to refuse issuance of a licence; the licence becomes valid on the next day after the decision is made; the licence can be used only by the merchant to whom it was issued. The merchant is not entitled to transfer the licence to another person; in case of refusal, the application can be re-submitted. A licence may not be issued in the following cases:
the relevant licence of the merchant has been revoked or the record of the place designated for the sale of alcohol beverages or tobacco products has been deleted during one year before submitting the application due to violations of legal provisions related to circulation of excise goods; a merchant has carried out commercial activities involving excise goods without a relevant licence; the merchant or an official of the merchant's administrative body has not paid the fine imposed due to violation of legal provisions related to circulation of excise goods; the application or accompanying documents contain false information, or accompanying documents are forged; the merchant has been avoiding taxes during three years before submitting the application; the merchant's administrative body includes individuals who during three years before submitting an application have been members of the administrative body of the merchant that has avoided tax payments; the merchant has excise duty debt, except for the cases when the deadlines are extended in accordance with the tax laws and regulations, and payments are made in due time; not all of the information or documents to be accompanying the application are submitted upon request by the Licensing Commission; operations involving excise goods are conducted in places where such activities are prohibited according to the legal provisions governing the circulation of excise goods; state fees referred to in the laws and regulations have not been paid.
By road Driving licence A valid driving licence issued in an EU country is valid throughout the EU. In some countries, in addition to carrying a valid driving licence, you will need to have your vehicle registration document with you.
Motor insurance Wherever you are travelling in the EU your car insurance policy will automatically provide the minimum cover (third party liability) required by law. This also applies to Iceland, Liechtenstein and Norway. If you have comprehensive insurance at home, check that the cover extends to travelling in other countries.
Driving safely In all EU countries seat belts must now be worn in all vehicles, including tourist coaches and minibuses. Children must also have appropriate child restraints in cars and lorries and, where possible, in other vehicles as well.
Using a mobile phone while driving greatly increases the risk of an accident and it is either explicitly or implicitly forbidden in all EU countries.
Tolls There are toll roads in many countries including Austria, the Czech Republic, France, Greece, Hungary, Ireland, Italy, Poland, Portugal, Slovakia, Slovenia, Spain and the United Kingdom. Payment of tolls in some countries (Austria, Czech Republic, Hungary, Slovakia and Slovenia) is by 'vignette' or toll label which has to be affixed to the windscreen.
Bus and coach travel Bus and coach passengers will enjoy new rights wherever they travel within the EU from 1 March 2013. All passengers will have the right to receive adequate information. Passengers travelling 250 km or more will have additional rights such as assistance, reimbursement or rerouting in case of delay and cancellation. Passengers with a disability or reduced mobility will get free assistance at terminals and on board buses or coaches.
By air Creating a single European market for air transport has meant lower fares and a wider choice of routes and services for passengers.
Air passenger rights As an air passenger you have certain rights if your flight is delayed, cancelled or if you are denied boarding. These rights apply to all scheduled and chartered flights, both domestic and international, when departing from an EU airport (or from Iceland, Norway and Switzerland). When arriving at an EU airport from a non-EU country, they apply only to flights operated by an airline licensed in the EU (or Iceland, Norway and Switzerland).
Air carriers are liable in the event of accidents or for lost, damaged or mishandled luggage.
Security In order to ensure a high level of security throughout the EU, common rules and standards have been laid down for such things as passenger security controls, hand luggage and checked luggage, when departing from EU airports.
By rail The EU has over 212 000 km of railways with extensive international passenger services. There are over 6 000 km of high-speed lines in several countries with trains reaching speeds of up to 350 km/h and the network is being extended with new links in Austria, Belgium, France, Germany, Greece, Italy, the Netherlands, Portugal, Spain and the United Kingdom. Huge financial support is going into trans-European projects such as enhancing the rail links from Rotterdam to Genoa, Lyon to Hungary’s border with the Ukraine, from Stockholm to Palermo, from Dresden to Bucharest and from Warsaw to Tallinn.
By water There are many key sea routes between EU countries offering regular, high-quality services as an alternative to, or in combination with, road, air or rail. There are also 41 000km of navigable inland waterways in 20 of the 27 EU countries. Enjoy a sea or river cruise or use the water as a practical and pleasant way of getting around.
Metro If you plan to use the metro, familiarise yourself with maps of European city metros.
On May 2, 2012, the Cabinet of Ministers revised 3 draft regulations related to residence permits, the procedure for approval and drafting of an invitation letter and the procedure by which foreigners and their family members enter and reside in the Republic of Latvia.
According to this, legal entities inviting officials registered in the Commercial Register must provide fewer details in the application for the letter of invitation, but those who employ natural persons on the basis of an employment contract must also submit documents confirming that such invited foreigners are taxpayers. The electronic service "Approval of the invitation to apply for a visa" will be available only from January 2, 2014.
These draft regulations align the regulatory framework for immigration with previous changes. Since July 26, 2011, the entry “Komercdarbība (business transactions)” (in the residence permit) or “Business” (in a visa) has been included in the residence permit or visa of officials entered in the commercial register (board members, managing directors, managing directors or liquidators). , and separate work permits are no longer issued. Therefore, a foreigner does not need to obtain a separate work permit for each type of company in Latvia. In the future, employment information will not be included in the work permit register, so these officials do not need to provide information about the scheduled working hours and do not need to come to the Office of Citizenship and Migration Affairs to obtain a work permit, since the endorsement in a visa or residence permit of theirs proven existence.
In addition, information about the level of education, country of origin, length of stay and employment rights of the foreigner are included in the residence permit register. As a result, no documents to prove the level of education have to be submitted again if a foreigner is questioned repeatedly or if the residence permit is registered. If a document proving the intended place of residence in the Republic of Latvia was presented upon confirmation of the invitation, it does not have to be submitted later.
These changes require any inviter who invites an individual to work on the basis of an employment contract to provide proof that the individual is registered as a taxpayer and has no tax liability, except in cases where this information can be obtained public information system.
If the residence permit in Latvia is issued as an electronic ID card, it is not attached to the foreigner's travel document or is issued as a separate document - ID card - instead of in the form of a sticker. In the next 5 years, when the foreigner will have two types of residence permits - stickers or cards, if the foreigner has a residence permit, the foreigner must present the new travel document to get a new residence permit, but a foreigner who has an identity card , only needs to present the new travel document so that the Office for Citizenship and Migration Affairs can update the information in the population register.
The draft decree stipulates that the application for the letter of invitation can only be submitted by a foreign legal entity that has registered an authorized person, a branch or an agency in the Republic of Latvia.
Currently, labor rights are not transferred to family members of foreign investors; However, family members of foreign investors (spouses) now have the right to be employed by any employer. The possibility of obtaining an identity card is available to EU citizens residing in the Republic of Latvia with a registration certificate. The procedure for approving and drafting the letter of invitation and the regulation on the residence permit in Latvia came into force on May 9, 2012, but the amendments to the regulation on the work permit for foreigners will be reviewed at the meeting of state secretaries.
Medicinos Bankas is a financial institution, providing banking services to private persons and business customers.
The bank started its activities on 24 November 1992 in Vilnius City. From 1995, the principal office of the bank is located in Vilnius, Pamėnkalnio Street 40.
The bank performs activities of commercial bank: accepts deposits, grants loans, carries out monetary and documentary settlements, exchanges currencies, grants guarantees to its clients.
Presently the bank has 67 customer service departments in entire Lithuania: Vilnius, Kaunas, Klaipėda, Šiauliai, Panevėžys, Marijampolė, Alytus, Tauragė, Telšiai and Utena counties. The whole network consists of 7 branches, 55 customer service divisions and subdivisions and 5 currency exchange points.
The opportunity to obtain temporary residence through investments was used by a total of 1,956 foreigners who invested almost LVL 123 million.
Similar to last year, foreigners were the most concerned about the possibility of obtaining a Latvian residence permit by buying real estate in Latvia this year - a total of 1,549 foreigners applied for a residence permit on the basis that they or their family members had bought real estate Discount in Latvia for at least LVL 100,000 or 50,000.
The activity of foreigners was recorded mainly from apartments in Riga and Jūrmala, where they bought 325 and 225 properties, respectively. Statistics collected by the Office for Citizenship and Migration Affairs (OCMA) show that foreigners have invested LVL 95.8 million in real estate in Latvia.
A much smaller amount, LVL 24.4 million, was invested this year in the subordinated capital of banks, which also allow foreigners to apply for a residence permit in Latvia. The OCMA statistics also show that the possibility of obtaining a residence permit has not significantly stimulated the interest of foreigners to invest in the fixed capital of companies, since in the year in question LVL 2.7 million was invested in the fixed capital of only 53 became companies, on the basis of which 114 people applied for a residence permit.
It has already been announced that on July 1, 2010, the amendments to the Immigration Act came into force, which, among other things, provide for the possibility for foreigners to obtain a temporary residence permit if they have bought real estate in Latvia for a certain amount and invested in subordinated capital by banks or in the investment capital of companies.
Within a year and a half since the amendments to the Immigration Law came into effect, 2,257 investors and their family members who invested LVL 142.5 million in the Latvian economy have applied for residence permits in Latvia.
A company in Lithuania must submit reports to the Tax Inspectorate, the Social Insurance Fund, the Department of Statistics, the Center of Registers, the Customs Department and the Migration Services. It can be difficult for a foreigner to keep records and bookkeeping - he needs to know the Lithuanian language, Lithuanian legislation and understand the requirements for accounting and bookkeeping. Failure to comply with the requirements for the annual report or non-payment of taxes will lead to problems with the authorities. Every Lithuanian company should have an accountant who will help prepare the necessary reports and submit them to the state authorities, as well as advise on what taxes need to be paid.
Accounting reforms in Lithuania Lithuania has been one of the leaders in the transition to the International Public Sector Accounting Standards (IPSAS) with consolidated financial statements at the state and municipal levels. The transition to this system was a difficult task and required preparation.
The reforms included not only changing the principles of accounting, but were also aimed at improving the efficiency of the accounting function itself. Politicians at the central and municipal levels began working on reforms five years earlier. The preparatory phase included pilot programs of several public sector organizations, as well as the development of rules, detailed accounting guidelines and transition guidelines. Conducted extensive training for public sector accountants and improved standardized IT solutions. Implementing a centralized IT solution for national financial reporting for more than 4,000 government entities was another matter.
Public reception These changes are not a painless process of transformation. They demanded a change in the qualifications of all public sector accountants and initially met with a high level of resistance. Strong political support and strong leadership from the Ministry of Finance have played a critical role in ensuring their successful implementation. There was still a one year delay from the original launch date. This was due to a lack of training on the part of the public sector organizations.
Current status and results The system is well established and two IPSAS-based financial reporting cycles have already been prepared. To protect the reforms, the Ministry of Finance is currently in the process of amending standards and other regulations. This is the deployment of a call center support set up to handle IPSAS inquiries and on-site training to improve the quality of financial data.
Future prospects The implementation of reforms has become one of the steps in the transformation of the state financial system. To maximize the potential benefits of this system, a country needs to have a coherent vision for public finance reform as a whole. Lithuania, by implementing IPSAS, improved the skills of public sector accountants and IT systems used for public accounting. The process is ongoing and the country is still facing many challenges; The successful implementation of IPSAS has given a decisive impetus to achieving excellence in public finance.
Cyprus is an island country located in the Eastern Mediterranean. It is best known for its sunny beaches and stunning mountain ranges. Most Cyprus income is made from tourism, export of goods and sale of real estate. The main languages in Cyprus are Greek and Turkish. English is spoken by most residents.
Company formation Company formation usually takes around 5 days The minimum share capital of 1000 EUR, and usually authorised capital of 5000 EUR In order to maintain a tax residency in Cyprus, a local director of the company is required and board meetings must be held within Cyprus. Secretary is required to have or acquire a residence in Cyprus to maintain tax residency in Cyprus Information on tax system Cyprus corporate tax is 10%, one of the lowest corporate taxes in the European Union. The following activities are not taxable in Cyprus: Profits from the sale of listed securities. Receiving dividends for a Cyprus company. Interest not from ordinary activities or not directly related to the key activity of the company. Cyprus has a double tax treaty with more than 40 countries. For more information on Cyprus tax system or any related issues please contact us.
Company management There is no annual fee payable to the government to maintain a company. Only filing annual returns is required according to the following rules:
a company registered before 1 July must file the accounts with the tax authority before 31 December of the following year for the preceding year. a company registered after 1 July must file the accounts with the tax authority before 31 December two years after, for the preceding years.
For non-EU citizens passport You need a valid passport.
Visas There are 42 countries whose nationals do not require a visa to visit the EU for three months or less. These include Australia, Canada, Croatia, Japan, New Zealand and the United States. The list of countries whose nationals require a visa to travel to the UK or Ireland differs slightly from other EU countries. We can assist in applying for a visa. Contact us if you need our help.
If your visa comes from a country that fully applies the Schengen rules, you can automatically travel to the other Schengen countries as well. If you also have a valid residence permit from one of these Schengen countries, this is equivalent to a visa. You may need a national visa to visit non-Schengen countries.
Border officials in EU countries may ask for other supporting documents, such as a letter of invitation, proof of financing and accommodation, return or round-trip tickets. Contact us for the exact requirements.
Shareholders' interests are protected in Latvia through the introduction of mandatory notarial form of documents on the transfer of company shares.
Amendments to the Commercial Code of Latvia adopted on 07/01/2013 introduce a significant reform of share transferability in Latvia. The changes relate to the changes in the legal structure of the company in Latvia, as well as the changes in the board (change of director of the company, appointment/dismissal of board members) and changes in the articles of incorporation (statutes).
Transfer of shares The shares were freely transferable until June 30, 2013 and it was not mandatory to conclude and sign a contract for the purchase of shares. It was sufficient for the previous shareholder to sign the new shareholders' register, thereby confirming that the shares had been transferred.
The latest amendments to the Commercial Code as of July 1, 2013 determine the form of the agreement to be concluded between the previous shareholder and the new shareholder, as well as the procedure for drawing up the list of shareholders of the company (shareholder register). . Commercial law in Latvia requires that the agreement between the previous and the new shareholder must be in writing (share purchase agreement, share transfer agreement, share donation agreement, swap or other type of agreement). At this stage the notary is not involved.
If the shares are transferred on the basis of a gift, exchange or other type of contract than a purchase, the approval of the general meeting is required, unless the articles of association provide otherwise. Therefore, all transactions involving shares other than purchases are subject to shareholder approval. Such a regulation is intended to protect the current shareholders if one of the shareholders intends to evade the statutory subscription right.
If the shares are transferred as part of the Share Purchase Agreement (SPA), more detailed regulations apply. To protect the current shareholders, the seller will inform all other shareholders and the company's board of directors about the proposed share transaction. In this case, the other shareholders can exercise their subscription rights. Therefore, the seller or the buyer will submit the Share Purchase Agreement with the essential terms and the Shareholder will decide within one month whether to proceed or allow the sale of the Shares to the proposed buyer. The declaration and the purchase agreement are to be sent to the address given by the shareholder in accordance with the details in the share register.
According to the Latvian Commercial Code, shareholders are entered in the register of shareholders (list of shareholders), which is usually signed and sealed in two copies, one for the board of directors and the other for filing with the commercial register. According to recent changes, the shareholders' register is required to be signed by the chairman of the board (director), the seller and the buyer. All signatures must be certified in front of the notary.
Increase in share capital The increase in share capital can affect the legal form of the company. According to the Latvian Commercial Code, the decision to increase the share capital is taken at the general meeting. According to the new regulation, such a resolution should be signed by the shareholders in the presence of the notary.
Second, the increase in share capital relates to the changes in the Articles of Incorporation (the Articles of Incorporation). The decision to increase the share capital is made by the shareholders at the shareholders' meeting (shareholders' resolution), but the articles of association must be signed by the company's board of directors (all board members). According to the July 1st changes, signatures on articles of incorporation should be notarized. Thus, shareholder protection was maintained at the highest level.
As a rule, the owner of a property cannot be determined from the property alone. Disputes involving tangible property are less frequent and the value of tangible property is rarely significantly high. The situation is different with real estate. A person's rights to immovable property are part of the constitutionally protected rights to property, including the right to housing. The mechanism for ensuring a person's rights to immovable property is an integral part of enforcing Latvia's democratic principles. In Latvia, this mechanism is implemented through land registers.
The updated Land Register Act 1937 came into force in April 1993. It recognizes the mechanism of confirming immovable property or registering ownership rights in the land registry. The system of acknowledgment or token transfer requires that the legal basis for obtaining ownership rights be in writing. Accordingly, the beneficiary is entitled to require the person selling the property to take all actions necessary for the entry of the transfer of the property in the land register.
Only someone who is entered as the owner in the land register can be recognized as the owner. Until the entry in the land register, the purchaser of the property has no rights against third parties: he may not use any of the benefits associated with the property and must enter all actions related to this property by the registered person as the owner in the land register as effective.
The registration procedure can be divided into the following phases:
Preparation. In this phase, one or both parties to a legal transaction become aware and express the desire to conclude the relevant real estate transaction and inquire about the possibilities of implementation. signing a contract. The parties agree on and sign a contract, as well as other necessary measures to ensure that the terms of the contract are in line with existing laws and regulations, i.e. so that the property can be registered in the land register. pre-registration phase. At this stage, all the necessary documents to register the transaction in the land register are prepared or received. Registration (or Waiver) of Ownership. This phase begins with the submission of an application for registration to the land registry and ends with the decision of the judge. last stage. The aim of the transaction will be fully achieved and the institutions named in the relevant laws and regulations will be informed. If new property has been created or the content of the property changed as a result of the contract, the following additional steps are required:
Indication of immovable property. At this stage, new objects of immovable property are created – plot units, structures, buildings, plot groups or changes are made to existing objects. formation of immovable property. At the proposal of the owner, a new plot of land is created from the existing or newly created immovable property or the content of plots of land is rearranged.
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