Latvian financial intelligence probes potential “golden visa” fraud: over 20 companies under suspicion

The Latvian Financial Intelligence Service (FIS) has published the findings of a review that identified signs of possible wrongdoing by more than 20 companies. The cases are linked to alleged fake investments under the “golden visa” mechanism—specifically, the issuance of a residence permit through contributions to the share capital of Latvian entities. The investigation was prompted by materials from the Latvian public broadcaster LSM in its De Facto programme.

According to the information cited by the investigation, roughly 200 foreign applicants transferred money to the share-capital accounts of these companies. The total amount of transfers is estimated at more than €10 million. It is also noted that more than 50 participants have already received temporary residence permits (TRPs), while the number of family members who either received authorisations or have submitted applications still under review stands at over 100.

What scheme the FIS considers questionable

Under the residence-by-investment programme (RBI), a temporary residence permit is granted to foreign nationals when they contribute €50,000 or €100,000 to the share capital of a Latvian company. At the same time, the company must pay at least €40,000 in taxes to the state budget each year.

Based on the programme’s previously published figures, companies managed to raise almost €6 million, and permits were issued to 341 people—investors as well as their close relatives.

In its materials, the FIS stresses that in some cases, the funds contributed were allegedly not accompanied by genuine business activity. Possible scenarios mentioned include returning money to organisers through loans, “simulating transactions”, or purchasing vehicles or real estate. The investigation also refers to transfers it considers to be economically unjustified.

In addition, in several episodes described by the investigation, investors may have been informed in advance that dividends would not be paid and that the return of invested capital would in practice be impossible later on.

FIS Director Toms Platačis, commenting on De Facto, said that in some cases the required €50,000 contribution was not made in a single payment, but split into so-called “round-trip tranches”. As an example, he cited a situation where the “ten thousand” amount was sent “five times around”.

Which companies are specifically in the spotlight

The publication clarifies that, at the time the article was produced, no proven facts of unlawful conduct had been established regarding the listed organisations. At the same time, the De Facto materials provide specific cases that, according to the authors and investigators, require further analysis.

One company with its headquarters in Portugal, created about 18 months ago, attracted nine investors who applied for TRPs last year. The shareholder register lists 30 holders from India, Afghanistan, Pakistan, Turkey, Chile, Malawi, Syria, Vanuatu and other countries. The articles of association state that each holder owns a class of shares that does not carry voting rights.

According to OCMA data cited in the investigation, the programme saw one of the highest refusal rates for this case. A representative of the organisation told De Facto in an interview that the company has operated in Portugal for nine years and manages a portfolio of about €200 million, but declined to respond to further written requests.

The materials also mention an entrepreneur who controls several companies, with the claim that each of them attracted the maximum permissible number of investors.

Two other entities, based on 2024 figures, reportedly showed zero revenue and losses. In comments to De Facto, the owner said one company was launched recently, while for the second, income might have been recorded later. He added that a €10 million student dormitory project was discontinued after the investors left, and Riga is considering a smaller facility.

In addition, the publication refers to five more companies linked to a single businesswoman. Three of them, as alleged in the investigation, have outstanding tax liabilities. Investors recruited through these entities received TRPs during 2022–2024, but applications submitted last year were either rejected or awaiting decisions.

A lawyer representing the companies said in an interview with De Facto that, as long as the legal requirements are met, “nothing more can be demanded from the company”.

A “mixed” picture of participation in the programme

Data from Lursoft cited in the investigation points to uneven participation: 7 out of 78 companies that attracted foreign investors over the past five years later paused their operations.

About 20 organisations, according to the materials, have tax arrears. Roughly half of these companies report having fewer than five employees, while about half fit within the tax threshold of €40,000 per year.

Latvia’s golden visa programme has been in place since 2010. In its early phase, it brought in more than €1 billion in investment, mostly from Russian citizens. After the conditions were tightened, the total declined: today, the route through share capital accounts for only 0.3% of the overall volume of non-resident investment into Latvia’s economy.

At the same time, OCMA data indicates a resurgence: last year there were 109 applications, more than five times the figure for 2021. Expert estimates suggest that about one in three applications receives approval.

Regulatory pressure is increasing

The State Treasury considers the programme “impractical” and proposes assessing money-laundering risks for at least five years. Last week, the Saeima completed a procedure related to government securities: over a decade, only 88 investors came through that channel. For the current mechanism via share capital, a similar restriction has not yet been introduced.

Since 2012, the State Security Service has blacklisted more than 30 residence-permit holders and emphasises that checks cannot guarantee the absence of security threats posed by an applicant. Deputy Head Eriks Cinkus, speaking at a parliamentary investigative commission, noted the difficulties involved in collecting information about candidates from China, Central Asia and Africa.

He also pointed to a trend: some people who received TRPs as Russian citizens then try to extend their status using Israeli passports.

Ilze Briede, head of OCMA’s Migration Department, admitted to the commission that it is difficult to remove a company that has activities that are more formal than real, yet regularly pays the required taxes. In her view, meeting only the criterion of regular tax payments is not enough.

Amid the debate, a number of MPs are considering initiatives that could lead to the closure of the share-capital route. The chair of the parliamentary investigative commission, Jānis Dombrova, called the mechanism a “blatant attempt to bypass the system”. Ainars Latkovskis, head of the relevant committee on national security, added that it is difficult to align positions between ministries under the current Saeima composition.

Maris Vainovskis, Deputy Chair of the Latvian Council of Foreign Investors, framed the commission’s key question this way: “Our goal is to issue residence permits? Or our goal is to create investment?”

IMI sent requests to the companies mentioned in the De Facto material but received no response. If any party replies, the publication will be updated.

If you’re considering Latvia’s Golden Visa and want to understand in advance what investment steps and paperwork look credible during reviews, it’s crucial to follow a transparent financial trail and a properly structured deal. At Digital Nomad we help you navigate the RBI requirements, build risk checklists, and support you in organizing the process to reduce the chance of additional questions. Learn more: https://digital-nomad.gr/en/goldenvisa

Our Telegram channel about various types of Greek residence permits, digital nomad programs, and the Greek Golden Visa: @digitalnomadgr