Acquisition of a residence permit based on business investment is most suitable for those who wish to establish or develop their business within the European Union, while taking advantage of the benefits of having legal residency within the EU - with all the convenience that it brings in terms of travel. Statistics show that business investment is a less popular way to obtain a residence permit compared to purchasing real estate, however, there are several peculiarities that make this option the best solution for some investors.
Financial investment in local business During the last year the Office of Citizenship and Migration Affairs in Latvia received 268 residence permit applications based on investments made in local companies. The amount of investment is estimated at around 13.5 million lats. Qualifying Investors who complete a successful application receive a residence permit for an initial period up to 5 years, with further extensions possible.
When it comes to the size of investment required, there are two possible options, but since the changes to the immigration law that took place on September 1st 2014, the second option becomes almost impossible to accomplish.
a. The first option is a contribution to the equity of a Latvian company in the amount of more than EUR 50,000. However, to qualify with this smaller investment, there are additional requirements: you must invest in the equity of a joint stock company or a limited liability company, and this company has to pay taxes in the amount of not less than EUR 40,000 per year. b. The second option is contributing EUR 150,000 to the equity of a Latvian company (joint stock or limited liability company). While this option requires a greater initial investment, the advantage is that there are no requirements as to the amount of taxes that the company pays annually. The company must employ at least 50 employees and have at least 10 million EUR of annual turnover. Choosing correctly between these two options may be strategically important when it comes to making plans for your future business. We can help you to choose the best possible solution that satisfies your needs by making all the necessary calculations for you and providing any needed consultations regarding applicable opportunities. We can also provide full legal support for the whole process - including your residency permit.
The Baltic Sea region is the fastest growing business region in Europe. The trade flow among the states in this region has been steadily increasing year by year. The taxation system of Estonia is considered one of the most liberal taxation systems in the world. In 2000, Estonia implemented a comprehensive tax reform with an aim to create the simplest, most comprehensible and most convenient taxation system possible. The main advantage of Estonia is the low-tax system that can be described as a simple system with no hidden surprises and that was basically established to promote business and increase profits.
The taxation system of Estonia includes state taxes stipulated by the tax legislation and local taxes imposed by local governments or city councils in the respective territories according to laws and regulations.
The state taxes are the following:
excise duty; income taxes; gambling tax; value added tax; land tax; social tax; customs tariffs; heavy goods vehicle tax. Corporate income tax As a result of reforms, the main benefit of entrepreneurs was the exemption from the corporate income tax in the event of reinvesting the profits. Thus, Estonian enterprises must pay the income tax only on their distributed profits, namely, dividends. The corporate income tax (tax on distributed profits) is 21 % of gross dividends.
This taxation system is conceptually different from the classic income tax system, because the tax is levied on distributed profits (also hidden distributed profits) instead of company profits.
Value added tax (VAT) The value added tax payers are enterprises the taxable supply (except for import) of which does not exceed EUR 16,000 during a calendar year. The tax is levied on transactions with goods and services in Estonia and on the import of goods. The tax rate is 20 % of the taxable value.
The taxable period is one calendar month, and the value added tax must be paid into the state budget by the twentieth day of each month. The tax is fully paid into the state budget.
The registration of enterprises is carried out by the Tax and Customs Board also administering the VAT levied on domestic goods and services.
Personal income tax In 2010, the tax rate is 21 % of taxable income, and residents must pay the tax on their income received both inside and outside Estonia. The taxable income includes the income from employment (salary, wage, bonus and other remunerations), business income, interest, royalties, rent, capital gains, maintenance support, pensions, scholarships (except for scholarships paid from the state budget or pursuant to law).
Social tax This tax is imposed to ensure state pensions and health insurance. It is paid by legal persons, natural persons and non-residents with regular income. The tax rate is 33 % of the taxable amount. The tax must be calculated monthly, and a corresponding amount of money must be transferred no later than by the tenth day of each month.
Since 1 January 1999 the social tax payments have been personalised, and they form pension funds which will be considered in each specific case. The tax is accumulated in a special account of health and pension insurance funds within the state budget.
Excise duty In Estonia, the excise duty is levied on tobacco, alcohol, fuel, packaging and vehicles.
The excise duty helps to control the amount of a specific product or provision of a specific service seeking to adjust the consumption of domestically sold goods.
Like value added tax revenues, also excise duty revenues are affected by changes in domestic demand, increase in imports of excise goods, as well as changes in excise duty rates.
Gambling tax The gambling tax is levied on income from games of skill, totalisators, betting and lotteries, as well as gambling tables and machines used for organising games of chance in licensed places. The tax is based on payments out of which the winnings are paid. The taxable period for organising lotteries, games of chance and skill is one calendar month. The taxable period for totalisators is the period during which the betting is organised (it must be within the same financial year).
Tax rates are the following:
EUR 447 per one gambling machine; EUR 1278 per one gambling table. The tax rate on betting is 5 %, on totalisators - 5 %, on games of skill - 18 %, and on lotteries - 18 %.
Ready-made company, also known as Shell Company, previously formed company, seasoned company or aged company describes Limited Liability Company (LLC) or partnership that has had no activity, metaphorically put on the shelf to age or being like an empty shell. Usually ready-made company is VAT registered.
Benefits of shelf company Process of business purchase Changing the company`s name and/or address Recent practice
Benefits of shelf company are: Time saving. The process of incorporation requires time, faster registration costs more money because of higher state fees. It is faster to change owner of existing company. Corporate longevity. Some partners or credit institutions may look at registration date before proceeding cooperation. Possible clients will trust older company, which could be used for advertising. History of your business. Enhances corporation's image with age and increases credibility. Need in bank loan. It may be easier if you can show your history of being incorporated. Baltic Legal offers legal support in ready-made company's purchase and provides best quality services and useful advices in related matters.
Process of business purchase The business purchase takes only few days. Due to reliability and cooperation with our partners we are able to arrange a ready-made company for you in one day! Registration with Commercial Registry takes 4 business days (might be reduced up to 2 days).
Our recent offers appear on the top of this page, but we or our partners might have additional offers. If you are interested in buying a ready-made company, contact us: Go to contact page
Changing the company`s name and/or address The age but not the name of the ready-made company is of primary importance because a name change can be readily accomplished.
Legal address is mandatory in Latvia. The change of legal address or registration of additional office takes up to four business days or it can be changes simultaneously with business purchase.
In Estonia, most of the goods and services are subject to Value Added Tax (VAT). The VAT registration threshold for local entrepreneurs is EUR 16,000 in a calendar year. The time necessary for completing the registration after submitting all documents is 3 working days; foreign entrepreneurs must complete their VAT registration before conducting taxable transactions.
Expanding a market share in Estonia allows to expand further also towards the Scandinavian countries. The taxation system of Estonia is favourable to development of enterprises, because the refinanced and retained profit is not subject to the corporate income tax.
Most of the undertakings in Estonia are private limited companies (osaühing – OÜ). Generally, there are 5 following types of undertakings in Estonia:
private limited companies (osaühing – OÜ); public limited companies (aktsiaselts – AS); general partnerships (täisühing – TÜ); limited partnerships (usaldusühing – UÜ); sole proprietorships (füüsilisest isikust ettevõtja – FIE). Foreign entrepreneurs must register as VAT payers in the following cases:
if a merchant does not conduct regular business in Estonia and pays taxes in another country; and if a merchant conducts business also in Estonia among others, but is not registered as a VAT payer; if a merchant is registered as a VAT payer in another EU Member State and is engaged in distance selling (excluding distance selling of excise goods) to a person in Estonia not registered as a VAT payer and the taxable value of the supply of the distance selling exceeds EUR 35,000 as calculated from the beginning of a calendar year; if a merchant registered as a VAT payer in another EU Member State is engaged in the distance selling of excise goods to a natural person in Estonia for personal use. If a merchant registered as a VAT payer in another EU Member State is engaged in distance selling of goods (excluding distance selling of excise goods) in Estonia, it may register as a VAT payer on a voluntary basis. It must be noted that the tax authority is entitled to remove a tax payer from the register if this tax payer has not submitted a VAT declaration regarding the last six months.
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, confirming that the shares had been transferred.
The most recent changes in commercial law as of July 1, 2013 determine the form of the contract 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 (share register). . The 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, exchange 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 registered in the register of shareholders (list of shareholders), which is usually signed and stamped 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.
Other changes The notary is only involved in fundamental changes in the company such as transfer of shares, increase in share capital, changes in the board of directors and directors of the company. Other changes such as B. the change of company headquarters, do not require notarial approval and are at the discretion of the board of directors, as they do not affect the rights of the shareholders.
Practically the best option is investing in Latvian real estate. When investing in real estate, other regulations apply and foreigners only have to pay property tax. In addition, it is not mandatory to actually live in Latvia, so the property may be rented out and thus the return on the investment is possible.
Foreigners usually choose to obtain a residence permit by buying a property (apartment) in Latvia. The apartment is often bought as a buy-in, especially for families with children over the age of 18. The Latvian Migration Law provides that spouses and adolescent children (children under 18 years old) are entitled to a residence permit together with the main investor and do not need to make additional investments.
The process of obtaining a residence permit is relatively complicated and requires knowledge of local legal and procedural issues. Baltic Legal lawyers are experienced in this field and offer constructive advice to choose the best type of investment and take care of preparing all the necessary documents before submitting them to the Migration Office of Latvia.
What are conditions to obtain residence permit in Latvia through investments in real estates? In order to apply for temporal residence permit in Latvia the foreigner can buy a real estate, for example, an apartment in the city, summer dwelling house near by the seaside, house in the country side, etc.
The investment must fulfil following conditions:appartments in Latvia
the total amount of transactions must be at least EUR 250,000 and total official cadastral value must be at least EUR 80,000; transaction must be realized only through bank transfer; the foreigner does not have and has never had real estate tax debts; the transaction is concluded after 1st September 2014; real estate acquired from a legal person registered in the Republic of Latvia or a natural person who is a Latvian citizen, Latvian non-citizen, citizen of the European Union; real estate registered on foreigner in the Land Register of Latvia.
Acquisition of a residence permit based on the purchase of real estate (immovable property) is one of the most popular investment-based methods for obtaining a Latvian residence permit. According to statistics provided by the Office of Citizenship and Migration Affairs, during the year 2012 alone 2,435 foreigners requested a residence permit based on purchase of the real estate in Latvia and 3085 foreigners in 2013.
Of the types of investment which qualify for a residence permit, Real estate investment provides possibly the best liquidity and security while also (statistically) being the most effective way to get approval from the Office of Citizenship and Migration Affairs - having the highest approval rate.
In order to receive a residence permit in Latvia for 5 years, with an opportunity to extend this term later, there are several requirements that have to be met according to the law:
The property must be purchased after 01.09.2014 and at the moment of filing the request for a residence permit you must possess the certificate from the Land Register which confirms your title; The total price of the purchase must not be less than EUR 250 000; The purchase contract and the Land Register certificate must be completed in the name of the person requesting the residence permit; The cadastral value (Like a property tax valuation in the US) of the property must be higher than EUR 80 000. Immigration law states that real estate should have been purchased from a legal person or natural person registered in the republic of Latvia, who is citizen of Latvia, a non-citizen of Latvia, a citizen of the European Union or other foreigner, who is staying in the Republic of Latvia with a valid residence permit, if a foreigner has purchased the real estate from a person who is not in above mentioned list - Most probably the application for a residence permit will denied. The purchaser has to pay from his/her personal funds - that is not to say that a loan or financial assistance cannot be obtained from another person or institution, but such funds would need to be in the purchaser's personal account prior to the purchase, such that payment for the property comes directly from with individual from funds available to him/her. All applicable real estate taxes must be settled. Payment must be made in non-cash form. (i.e. bank transfer of funds)
The Schengen visa has made traveling between the 26 member countries of the Schengen area (22 European Union states and 4 non-EU members) much simpler and easier. Traveling on a Schengen visa means that the visa holder can travel to all (or all) member countries on a single visa, avoiding the hassle and expense of obtaining individual visas for each country. This is particularly advantageous for people who want to visit several European countries during the same trip. The Schengen visa is a visitor visa. It is issued to citizens of countries that require a visa before entering Europe.
Purpose The purpose of the visit must be leisure, tourism or business. Once the visa is issued, the visa holder is allowed to enter all member countries and travel freely throughout the Schengen area for the duration indicated on the visa, up to a maximum of 90 days in any 180-day period. It is highly recommended to plan your trip within the stated validity period of your Schengen visa as it can be very difficult to obtain extensions, forcing you to comply with Schengen rules and regulations in order to stay. A Schengen visa allows the holder to travel freely within the Schengen countries for a maximum stay of up to 90 days in any 6 month period, but shorter visas may be granted.
Schengen visa countries All Schengen countries are in Europe. However, it should not be confused with the EU (European Union). The European Union and the Schengen Area originate from two different agreements between European countries. A total of 26 countries, including all European Union countries (except Ireland and the United Kingdom) and four non-EU members (Iceland, Norway, Liechtenstein and Switzerland), have signed the Schengen Agreement.
DANGER! Schengen visa holders are not allowed to live or work permanently in Europe. Schengen visa holders only have the right to travel to member countries for business or pleasure as a temporary visitor. For information on the possibility of living in Europe, see our Residence Permits page.
The concept of outsourcing some of the day-to-day activities of the company has proven to be an effective way to improve performance in many countries. Many companies have found it beneficial to eliminate all departments not directly related to their primary line of business: sales, manufacturing, or services.
We provide accounting services for small and medium sized businesses (accounting services only in Latvia, Lithuania or Estonia) and offer an efficient and friendly service that offers cost-effective solutions for your accounting and payroll needs in all Baltic States. We implement a full financial analysis of accounting and timely notification of the manager about any risks that threaten successful business development. We take care of preparing accounting reports, all necessary accounting documents related to Latvia and submitting them to the State Revenue Service, Central Statistical Office and other institutions of the Republic of Latvia.
Our accounting services in Latvia include: Financial accounting and reporting Accounting for special purposes (payroll, accounting in the customer system, helping foreign customers to fill out VAT returns, etc.) Preparation of annual accounts Creation of regulatory documents (e.g. internal accounting regulations) Communication with the tax authorities Complete management of the company's accounts Accounting advice in day-to-day business Beyond creating the books and reports, we continue to work with the client. At this stage, our services include, among other things, monitoring the accounting activities performed by the client and assisting in solving accounting issues.
Our services also include:
Ad hoc support for internal finance staff, financial controllers and management on accounting and tax issues Assistance with statutory or internal audits Conducting periodic reviews of accounting records and procedures Implementation of a model for posting transactions in the group's single currency Implementation of a reporting model for group reporting purposes Development of a methodology for creating and controlling the company budget
Hong Kong is one of the best places to establish companies in Asia. Companies in Hong Kong pay no taxes on income obtained from outside Hong Kong. Business infrastructure in Hong Kong is highly developed, offering easy access to mainland China, strong banking and subtle incorporation procedures and corporate laws.
Company in Hong Kong Company formation in Hong Kong takes around 1-2 business days At least one Director and one shareholder are required Minimum share capital required is 940 EUR Director of the company doesn't need to be a resident of Hong Kong Local Registered Office and a Company Secretary are required.
Company management Return filing, Employer's Return filing and Profits Tax Return filing are required annually. Annual cost of maintaining a company in Hong Kong is 215 EUR.
Hong Kong corporate tax Zero corporate tax on income from outside of Hong Kong Corporate tax on profits within Hong Kong is only 17.5% Income tax for individuals on income derived in or from Hong Kong is 16%
Civil Code of the Republic of Lithuania lay dawn the legal norms of foundation, legal status, management bodies and their competence, liquidation and reorganization of different type companies in Lithuania. According to the Civil Code, all companies operating in Lithuania have a status of a legal person. A legal person shall be defined as a company, institution or organization, which may acquire and exercise rights and obligations at its own name. Prior to establishing an enterprise it is essential to assess and choose the type of an undertaking which is the most appropriate for you in legal and economic terms, because this choice will affect not only the amount of necessary equity capital, but also the legal status of the enterprise and other business-related issues.
The most common form of a business presence in Lithuania is a limited liability company (UAB). There are four main kinds of company registration Lithuania for foreign investors, and they are as follows:
public company (AB) is similar to limited liability company (LLC) or joint stock company (JSC) private company (UAB) general partnership (TUB) or limited partnership (KUB) branch or representative Office All business entities must register with the unified Register of Legal Persons (The Registrar), administered by the State Enterprise Centre of Registers.
Baltic Legal will assist you in preparation of incorporation documents and represent your interests in the Register Centre. More on Baltic Legal will help you set up business in Lithuania and do everything related to company formation.
Public limited liability company (AB) Public limited liability company is the most common business vehicle for medium or large companies in Lithuania.
Authorised capital When establishing a public limited liability company, the minimum registered capital is EUR 40,000. The minimum registered capital must be formed in bank account; at least 25% have to be paid up. The capital is divided into shares, which may be traded or offered for sale publicly. Founder One or more persons can be the founder/s (shareholder/s) of a public limited liability company, and they can be both natural persons and legal entities. The founder may be a resident or non-resident of the Republic of Lithuania. Status A public limited liability company is considered a legal entity. Liability The company and its shareholders have limited liability, they are liable for its obligations to the extent of its entire property. A founder or shareholder is not liable for the public limited liability company's obligation, as well as the public limited liability company is not liable for the founder's or shareholder's obligations. Management body The decision-making body of a limited liability company is the board with minimum of three board or supervisory council directors. The management bodies of the company are determined by the general shareholders meeting. Private limited liability company (UAB) The most common way to invest in the Republic of Lithuania for smaller foreign investors is to establish a private company.
Authorised capital When establishing a private limited liability company, the minimum registered capital is EUR 2,500. The minimum registered capital must be formed in bank account; at least 25% have to be paid up. The capital is divided into shares, which may not be traded or offered for sale publicly. Founder One or more persons can be the founder/s (shareholder/s) of a private limited liability company. The founder may be a resident or non-resident of the Republic of Lithuania. Status A private limited liability company is considered a legal entity. Liability The company and its shareholders have limited liability. The shareholders' undertaking is limited to the amount of the capital invested only. Management body A private limited liability company is determined by the general shareholders meeting, there is no requirement for board or supervisory council. The maximum number of shareholders in a private limited liability company must not exceed 250. Audit Annual audits are required if turnover exceeds EUR1.4m.
On September 27, newspapers reported that the Latvian government had committed to making a decision on quotas for acquiring residence permits through real estate. This discussion about a possible change of the immigration law in Latvia started after the national party with members of the Visu Latvijai! (All for Latvia) and Tēvzemei un brīvībai/LNNK (For the Fatherland and Freedom/LLNK). These parties had expressed strong protest against the perceived immigrant situation in Latvia. The National Party picked the perfect time to raise the issue, right before the next vote on approving the budget, so the other parties and the Latvian people had to get involved in the discussion and make sure there couldn't be a solution to the problem avoided.
No government shutdown for the Latvians Although the government did not support what the national party wanted, its opposition had to take second place to higher-level budget changes. The issue of residence permits through investment in real estate was a trivial issue in the context of the government agenda and there seemed to be no compromise, however, almost everyone in the Latvian government had similar ideas regarding the possibility of introducing additional requirements for residence permits in the form of required ones Investments to support Latvian families included in the Immigration Law.
As mentioned earlier, the national party wanted to change the law to stop immigration to Latvia of people obtaining residence permits through real estate before 2014 and instead focus on supporting Latvian families and looking after new mothers. The leading Vienotība (Unity) party disagreed with the national party's plan to halt the residency program, but instead proposed doubling the investment amount required for the real estate program, introducing a quota system and introducing a special donation fund scheme in addition. For the sake of completeness, Reformu Partija (Party of Reforms), another party involved in the discussions, has proposed to end the real estate residency permit scheme altogether, but to do so in the longer term so that businesses and real estate companies can prepare for the changes and would therefore respect the not feel the sudden loss of customers and investments. They suggested 2015, but that was flexible.
Not just about politics On September 30, Latvian pop philosopher Māris Zanders said: "Residence permits are not only a problem for politicians". By this he meant that all these discussions were pointless and that such a real estate residency program in the Latvian immigration law brought with it the real possibility of creating a new real estate bubble, which in the history of Latvia has proved dangerous - for the country, for Locals and even for the immigrants. It is difficult to predict events, but even the thought of a possible bubble brings back very difficult memories for most Latvians.
Zanders went on to note that during the post-2008 Great Depression, far more people left Latvia than came - removing any concerns about overpopulation or overcrowding. Furthermore, most of these immigrants actually create jobs - they don't take jobs away from Latvians and instead contribute to the local economy. A more serious question is whether Latvia will be a producing and exporting nation on a global scale, or just a consumer.
According to the latest Economic Freedom of the World: 2011 Annual Report, published by the Fraser Institute in Canada, Latvia ranks 60th.
The Fraser Institute collected data from 2009 and compared to the previous year, Latvia fell five places in the Economic Freedom of the World survey.
In a year, Estonia has dropped three spots in the poll to rank 15, but Lithuania has climbed 9 spots to rank 24.
Result of Latvia Latvia received a score of 6.92 out of 10 points.
Hong Kong remains in first place with a score of 9.01.
It is followed by Singapore (8.68 points), New Zealand (8.2), Switzerland (8.03), Australia (7.98), Canada (7.81), Chile (7.77), the United Kingdom ( 7.71), Mauritius (7.67) and the US (7.6).
In total, the Economic Freedom of the World study covers 141 countries. The bottom countries in the survey are Zimbabwe - 4.08, Myanmar - 4.16 and Venezuela - 4.28 (out of 10 points).
The Fraser Institute has been conducting research into the degree of economic freedom since 1996. The Global Index of Economic Freedom consists of sub-indices that describe the degree of freedom in five domains – size of government (spending, taxes and corporations), legal form and security of property rights, access to sound money, freedom of international trade and regulation of credit, work and Company.
Getting a job and working in Netherlands is one of the reasons why one might want to acquire a residence permit in Europe (an example of this would be a residence permit in Latvia). Working in Netherlands also allows you to enjoy all the benefits of residing in the EU, such as freedom of moving in the Schengen area, the chance to be employed and do business in the member-states with fewer requirement, as well as travel to European destinations without the need for a visa (with some exceptions).
Vacancies As of now, there are approximately 290 900 vacancies available in Netherlands. That is 3.4% of all the job positions, both occupied and vacant, in the country.
Wages and expenses In Netherlands the minimum wage is EUR 1635.6, while the average salary is EUR 2855.
A single person in Netherlands spends an average of EUR 864 per month, not including rent.
Cryptocurrency is a relatively new term, having emerged in 2008. In general, it is a digital currency. The main principles of almost all cryptocurrencies are:
Decentralization of emission/control bodies; Application of various cryptographic methods; Collective systematization. Cryptocurrencies usually do not have common issuing and control bodies. No national bank or other government structure has direct control over the issuance and value of cryptocurrencies. This explains why its value and general status are determined solely by a theoretical consensus of all its holders.
Modern blockchain technology Blockchain is a system that records all transactions related to cryptocurrency. The system contains modules, each called a “block”. Each block represents a decoded record of a specific cryptocurrency-related transaction. It also contains an encoded reference to the previous block, which continuously contains a record regarding the previous transaction. As a result, all information related to transactions and manipulations performed with specific units of a single cryptocurrency can be traced back to the original entry. By performing such a backtrack, its validity can be checked. You have to keep in mind that the blocks and entries cannot be changed after registration, making it impossible to influence / modify the entire chain, making it a safe and elegant solution for digital transactions.
Cryptocurrency trading Despite the fact that there are several different cryptocurrencies, each serving different purposes and using slightly different methods, there is one common set of rules when trading cryptocurrencies worth following:
learn as much as possible about the blockchain and its main principles; Study on the most popular cryptocurrencies and their advantages; carefully weigh your options and possible risks; Stay up to date with news related to finance and cryptocurrencies; create an exchange account specifically for crypto trading; start with smaller amounts to study the market; always research and constantly improve your knowledge; Finally, try to trade with larger numbers, implement complex solutions. Cryptocurrency Mining Process Crypto mining is a general way of referring to a transaction validation process. It is usually performed by using computing power to perform certain calculations within a common mining system. For contributing computing power, miners are usually rewarded with certain units of the cryptocurrency being mined. Such mining affects and increases the total number of cryptocurrencies in sales, affecting their public value.
Cryptocurrency payment solutions With cryptocurrencies emerging rapidly just a decade ago, national governments have had almost no chance to respond appropriately and enact laws and regulations regarding cryptocurrency usage, resulting in most public services not being paid for in crypto could. However, as the value of many cryptocurrencies rose, many governments showed increasing interest in BitCoin and few other cryptocurrencies. Numerous companies and financial institutions have started to actively develop and implement crypto-based payment platforms and other solutions, some of which have been required by the official governments.
Historically, modern immigration began in the 18th century, accelerated by the slave trade and industrialization. At this time, three main types of immigration began to emerge: labor migration, refugee migration and urbanization. Since the USA gained independence in 1776 while imperialism was still dominant in Europe, many people immigrated to the USA in the early 19th century, which was considered the land of unlimited opportunity.
The beginning of the 20th century, with the fall of the great colonial empires and the First World War, also left its mark when people from Europe immigrated, driven by fear of war and violence. The aftermath of World War I was the fall of colonialism and the formation of the League of Nations. At this point, an influx of immigrants from the former colonies began, resulting in large numbers of immigrants from the newly independent countries of Africa, the former colonies of France, Great Britain, Spain and the Netherlands.
The League of Nations failed to prevent World War II. The birth of Nazism in Central Europe in the 1930s played a crucial role in immigration, as many Jews began migrating from Europe before the outbreak of World War II. After the Second World War, the United Nations Organization was founded, which has been a peacekeeper around the world ever since. The roots of the European Union also go back to the late 1940s when the Treaty of Paris was signed.
Since then, the principle of freedom of movement has developed rapidly. The newly created Schengen area in Europe allowed the citizens of its member states to move freely without border controls. The United Nations and many countries have ratified treaties on the free movement and granting of asylum to refugees. However, over the past three decades, governments have become very concerned with the problems of terrorism, human trafficking and drug trafficking. As a result, many countries have had to reduce the simplicity of their immigration policies to improve their internal security.
Documents for submission These are the necessary documents to submit to acquire residence permit:
Filled application form Passport size picture Document issued by competent authority from the home country indicating that the foreigner has no criminal record Prove of sufficient financial means Document indicating place of residence in the Republic of Latvia Prove that payment for the real estate was in non-cash form (bank transfer) Document that indicates that person has paid real estate tax if the real estate in owned for more than a year Document that indicates that State fees for residence permit request are paid Additionally upon arrival Valid health insurance Reference from Latvian medical institution proving that the foreigner does not suffer from tuberculosis in active phase Documents and application can be submitted
At Immigration office in Republic of Latvia At Latvian embassy or consular missions outside the Schengen area Residence permit for the family Along with the main investor his/her family members can apply for a temporary residence permit. Qualified family members are the spouse and children under18 years of age.
Financial means to support living expenses Minimum required financial means for investor – 960 Eur per month Minimum required financial means for spouse - 320 Eur per month Minimum required financial means for child - 192 Eur per month In order to prove possession of sufficient financial means the foreign national should provide a bank statement that indicates amount for one year 12 x 960 = 11520 Eur.
Additionally expected expenses related with buying the real estate State fee for registration the new owner in the Land Register – 2% from the value of the property State fee that must be paid to the government when you recive the permit – 5% of the proparty value Stamp duties, notary fees & other; approximately 80 – 130 EUR Duration of the process The time for obtaining a residence permit in Latvia includes the period necessary to review the submitted documents which is 5 to 30 days depending on the amount of fee paid.
If an additional verification by the foreign national is necessary, the term can be extended for up to 90 days.
A foreigner has to visit Latvia to obtain a residence permit no later than three months after being granted the permit.
State fee 143 Eur – decision by Immigration office is issued in 30 days; State fee 285 Eur – decision by Immigration office is issued in 10 days State fee 427 Eur – decision by Immigration office is issued in 5 days
Legislation in Estonia discriminates against United States (US) companies by prohibiting them from directly acquiring shares in public limited companies registered in Estonia.
Namely, all shares of joint-stock companies registered in Estonia are registered in the Estonian Central Register of Securities (EVK) and the condition for receiving shares is keeping a securities account with an account manager, i.e. H. a local commercial bank. The prerequisite for opening a securities account is also the opening of an associated bank account. Apart from negotiations related to the transaction, etc., the first step an investor must take to purchase shares is to open a securities account and bank account with a local commercial bank. The latter also applies to the acquisition of a share in a limited liability company registered with the EVK.
However, opening a securities account and bank account can prove unexpectedly complicated, if not impossible. Namely, local banks have adopted a practice whereby companies registered in the US will not open securities accounts at all, except in certain extreme exceptional cases. There are a number of reasons for this, for example banks have been given particularly strict requirements for providing financial services to people outside the EU. The requirements mentioned result primarily from the Money Laundering and Terrorist Financing Act, the relevant regulations of the Minister of Finance, as well as from the guidelines of the financial supervisory authority and EU guidelines. Accordingly, restrictions also result from US legislation which prohibits the provision of a number of services to US persons by companies incorporated outside the US that do not have a license to operate from US financial regulators. Providing services without an activity license may involve some risks. Ultimately, of course, it boils down to the question of the banks' own risk policies. As a private entity, a bank is free to choose its customers and the reasons for refusing to open an account can vary. In view of the demands on the banks, it is understandable that the banks are rather cautious in this regard.
The situation described above has resulted in banks generally not opening securities accounts for US incorporated companies. In this context, we do not mean professional investment companies, but investors who want to do business in Estonia. Moreover, an investor who intends to acquire stocks in Estonia is hardly willing to open a securities account and a bank account in Estonia in his/her name, resulting in the investor spending a lot of time and money on completing the paperwork and providing the bank wastes documents and to bear follow-up costs in connection with account management.
The requirements for the bank result primarily from the specificity of the financial service and are not aimed at justifying restrictions on share ownership, which, however, is an inevitable result. Therefore, an artificial situation has been created in which investors from the US are forced to either invest in Estonia through a subsidiary located in another European country, or to first acquire a limited liability company in Estonia whose only business is to issue shares keep. Since the registration of shares in a limited liability company in Estonia with the EVK is voluntary, there is no need to open a securities account. In this case, transactions are processed before a notary, whose activity is also subject to the provisions of the Money Laundering and Terrorist Financing Act, but in their case does not exclude the conclusion of such transactions. Accordingly, this constitutes somewhat unreasonable discrimination between the acquisition of stocks in public versus stocks in limited liability companies, which is hardly the aim of current legislation.
Finally, it should be noted that this problem is certainly not limited to investments from the US. Other investments from outside the EU may face similar problems, but investments from the US are the most common among them, leading to these problems recurring.
It is now common practice to set up trusts in tax havens. However, not many clients are aware of the benefits UK based trusts can bring. The idea of a UK trust is particularly attractive when beneficiaries and settlors are based in Europe or other onshore countries and the transfer of property is not to be associated with tax havens. In addition, English law (by which the trusts are formed) gives the confidence and security of the UK legal system. A UK incorporated trust provides reliability and reputation to its owners.
The primary trustee of a trust established under England and Wales law must be a person or legal entity resident in the UK. In most cases the trustee will be a professional and licensed UK fiduciary service provider. Contact Confidus now to build your trust.
UK trusts are generally set up to achieve a specific purpose (some examples are given below). For simple cases where assets are to be distributed to beneficiaries after the trustor's death, a UK trust is not the best solution as such a simple task is better handled in other well-known trust jurisdictions (see Panama Private Foundation for Asset Protection ). A UK trust can be used for the following purposes:
Accumulation of a diverse portfolio of foreign assets into one system for more organized, consistent and professional management. This solution also minimizes your inheritance tax burden and avoids unnecessary inheritance taxes and claims. As a tax-exempt holding structure. A trust serves as a good holding vehicle especially for customers with several companies in different countries and offers a tax-free and confidential holding structure. Reduce the burden of exchange control regulations and minimize the burden of inheritance taxes and other types of wealth taxation in your place of residence, as well as removing the link or attachment between property and the place of residence of the heirs. Ensure the confidentiality of ownership of the assets. Throughout the UK, there is no need to make a trust's legal documents publicly available. This ensures anonymity and confidentiality for the settlor and the beneficiaries. Avoiding forced inheritance that your country may apply to your wealth. Ensuring the settler's future plans in the event of death or incapacity for work.
Tax exemptions for UK Trusts A trust in the UK can be fully exempt from income tax, if the following conditions are met:
One of the trustees is not a UK resident. All property/estate, shares and any other assets are located outside the UK. The beneficiaries are non-UK residents. The settlors are non-UK residents. According to English/Welsh Law, the first trustee must be a UK-resident individual or company. In most cases, the trustee is a professional and licensed UK trust services provider. In order to benefit from tax exemptions, there must be an additional trustee, domiciled outside the UK. This may be an offshore trust services provider or the client’s legal representative or law firm.
Settlor The settlor establishes a trust and appoints the trustees. In doing so, he or she transfers full ownership of the assets to the trustees. Trustee(s) The trustees are responsible for administrating the assets in favour of the beneficiaries. They may receive an initial recommendation from the settlor on how to manage the trust (instructions can be indicated in the letter of wishes) and must ensure that the rights of the beneficiaries are protected. They have full control over the trust, but are not entitled to any income that it accumulates. Trust deed A formal trust deed sets out the arrangement between the settlor and the trustees and the terms of administration. Beneficiaries The beneficiaries are the individuals who benefit from the trust, and may be defined as the settlor’s children or future children. It is common practice to have discretionary beneficiaries, who are not informed in advance of their future and potential interest in the trust.
RIB is a new and dynamic bank that has secured a stable niche in the domestic market. They are a Latvian bank that offers its Customers individual service characterized by three values – speed, flexibility and competence.
The largest shareholder of RIB is the Public Company Joint-stock bank “Pivdennyi” which owns 81.847% of the shares. It is the largest and the most stable private bank in the south of Ukraine and serves 351,000 Customers at 150 branches and bureaus in all economically active regions of Ukraine.
In 2001 year Regionala investiciju bank was founded in Latvia
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