buying land/property in Latvia for residential and business purposes.

[Joe Latvia]

Hello

I was just wondering if anybody had any experience/advice/information on buying Land/property in Latvia for residential and potential business development?

I recently went on holiday to Latvia with my Latvian girlfriend and came across 30 hectares of land including 2 lakes and 2 main properties. I met the owner and came to a verbal agreement of around 70,000 lats. As well as live on the land I want to develop the lakes into a premium carp fishery for over sea's carp fisherman, plus eventually develop the complex as a whole into a holiday resort.

Now I have already spoken to a bank whilst in Latvia so I am already aware that I myself cannot purchase the land out right especially as it is agricultural land. Also the mortgages they had to offer where ridiculously unrealistic (40% with 10 years to pay it back in) to contemplate. I have also been ringing a couple of oversea's mortgage brokers to try and secure a mortgage my neck of the woods UK with out much luck.

So as I asked before does anybody have any experience or advice/info they could give me in relation to resolving my predicament, it would be much appreciated if you do!! Also is there any loop holes to get around me not being a national and thus being unable to purchase the land outright i.e. the setting up of a company in latvia and purchasing it through that etc? Or would setting up or being a director of my girlfriends dormant company help me in securing a mortgage as a business investment etc?

 

[serotoninsid]

I recently went on holiday to Latvia with my Latvian girlfriend and came across 30 hectares of land including 2 lakes and 2 main properties. I met the owner and came to a verbal agreement of around 70,000 lats.

Where is this located? We don't need to know exactly - but in general terms - what part of what region of LV?

Now I have already spoken to a bank whilst in Latvia so I am already aware that I myself cannot purchase the land out right especially as it is agricultural land.

For real? LV is in the EU - surely there is no restriction?

Also the mortgages they had to offer were ridiculously unrealistic (40% with 10 years to pay it back in) to contemplate.

40%? - They will lend you 40% of the capital sum is it? If so, at what interest rate?


How long were you in Latvia? Your talking about a serious proposition. I would guess that you would need greater insight than what one holiday would provide in order to make an informed decision on something like this.

 

[Joe Latvia]

The Land is in Dobele near Jelgava.

I am restricted by the fact that it is agricultural land if it where just normal there wouldn't be such restrictions as far as I know. So the land would have to be purchased by my GF, I can however purchase the properties upon the land myself.

I am not sure of the interest rate as I stated above it is just way to unrealistic to contemplate. I will however approach other banks in LV to see if any of them can offer something a little more workable!

I was in Latvia for 2 weeks. I know what you are saying but everything I need to develop my business is already there, even the buildings are situated perfectly! It is basically needing a little cosmetic work to get it up and running. I also have no qualms about living on the land in the meantime should it take longer than expected to pull the customers, as it is a beautiful piece of land and I will have 11 acres of lake all to myself to fish! I work offshore you see and can live anywhere as I get 3 weeks of at a time plus travel expense paid for so it would be no hardship for me.