Latvian banks provide customers full financial service at a very high standard of quality. Remote account management (internet banking) technologies in Latvia are also well-developed. Account opening and maintenance services are not expensive. Baltikums Bank AS is a bank established in Latvia.
Baltikums Bank AS
Baltikums Bank AS has been successfully operating on Latvia’s banking market since 2001. It is an independent private bank and a family business. Baltikums Bank has roots in Latvia and is a truly European, international financial institution. Shareholders of the bank are residents of Latvia. The Baltikums Bank AS has a Head Office in Riga (Latvia) and a branch in Limassol (Cyprus).
The bank’s performance in the first ten months of 2012:
• the bank’s capital and reserves add up to EUR 40.3 mio.;
• net profits reached EUR 8.7 mio.;
• the bank’s assets, including assets under management, constitute EUR 583 mio.;
• amount of deposits: EUR 407.9 mio.;
• capital adequacy as of 31 October 2012: 15.5%;
• liquidity indicator: 73%;
• ROA end of September: 2.69%;
• ROE: 28.9%.
Baltikums Bank AS offers customers an entire range of banking services:
• full service of regional and international businesses;
• broad spectrum of solutions for private wealth management;
• full support for customers on international financial markets;
• qualitative, individual approach to decision-making;
• contemporary banking technologies;
• highly qualified team of specialists to ensure correctness, security and confidentiality;
• service in Latvian, Russian as well as English.
We provide full-service individualised banking to individuals and corporate entities – from settlement operations and multi-currency accounts, to payment cards allowing a high credit limit, exchange at beneficial rates, various types of financing, and deposits at agreeable rates.
Residence Permit in Latvia
On 1 July 2010, amendments to the Immigration Law of the Republic of Latvia came into force, allowing:
• the right to submit a temporary residence permit application for up to 5 years,
• annual re-registration for a temporary residence permit that has been issued for more than 1 year,
• the right to submit an application for subsequent registration of a permanent residence permit.
Baltikums Bank provides customers full advisory and organisational support with obtaining a residence permit in Latvia. We assist our customers in becoming EU residents. A residence permit in Latvia automatically entitles one to unimpeded travel throughout the Schengen zone. A temporary residence permit in Latvia is granted not only to the investor, but also to their family members – spouses, underage children, and dependents. At the end of the term, the investor and their family may apply for an extension.
After receiving a residence permit, the investor and their family members are allowed to reside in Latvia for the entire term of its validity. The law also allows for a person who has received a residence permit in Latvia not to reside in Latvia on a permanent basis.
Ways of Receiving a Residence Permit in Latvia
1. Placing a 5-year subordinated loan with a bank in the amount of LVL 200 000 or an equivalent in EUR or USD at the current Bank of Latvia rate (i.e. ~EUR 300 000, ~ USD 400 000). The bank offers a 5% annual interest rate for such a subordinated loan;
2. Purchasing real estate in Latvia:
• in Riga, the Riga district, and major cities – for LVL 100 000 (~EUR 140 000, ~ USD 200 000),
• in other regions of Latvia – for LVL 50 000 LVL (~EUR 72 000, ~ USD 100 000),
3. Setting up a business in Latvia:
• investment in the capital of a company – LVL 25 000 (~ EUR 36 000, ~ USD 50 000), provided that the business owner pays no less than LVL 20 000 per year in taxes (~ EUR 28 000, ~ USD 50 000),
• investment of LVL 100 000 (~ EUR 140 000, ~ USD 200 000) – no tax requirement.
Amendments to the Law on Corporate Income Tax
On 1 January 2013, amendments to the law on Corporate Income Tax will take effect, envisaging a beneficial tax environment for international holdings. The purpose of these innovations in the tax legislation of Latvia is attraction of foreign business to the country (primarily to establish holding centres). The holding-favourable tax environment envisages zero taxation of dividends and income from the sale of capital, as well as no taxes at the source when investment income, dividends, interest or royalties are paid outside the state. An advantage with Latvia is a large number of treaties to avoid double taxation – including China since 1 January 1998. The tax reform reduces the tax burden for operational activities as well. International trade and service companies will also be able to pay royalties, dividends and interest on received financing without deductions.
As a holding centre, Latvia will possess a series of advantages: simplicity of company registration and administration, low cost of service, and access to a stable and reliable banking system. Latvian Banks, including Baltikums Bank AS, maintain strict confidentiality of data on their customers.
Baltikums Bank AS provides advisory services for establishing holding and trust entities and offers high-quality banking service of such entities. We will analyse your personal financial needs and consider the tax environment to select the form of holding, trust or fund that is most suitable for you.
Companies
The bank provides comprehensive service for registration and management of international companies. These services ensure an understanding of the customer’s various lines of business. We service companies in a number of different jurisdictions which select capital or business based on access to tax and regulatory advantages and other benefits. We will select the right jurisdiction and company type for you, open a bank account, file for VAT payer status if necessary, as well as appoint trustees and coordinate the process further with all stakeholders. We will assist you with establishing an adequate entity in European countries or proven offshore jurisdictions.
Partnership
Our bank offers companies as well as individuals cooperation in attracting customers and opening current accounts, by concluding a mutually beneficial cooperation agreement. The business of our partners involves legal, financial and tax advisory services, as well as industrial and regional associations. With their mediation, a customer can open a current account, payment card account, and/or financial instrument account with our bank. Our partners have considerable authority in working with customers.
We extend considerable authority to partners who attract customers to our bank:
• complete identification of customers,
• advising customers on the bank’s products and services,
• filing a package of documents for the customer to open accounts both with the bank’s head office in Riga and with our branch on Cyprus,
• cooperation with the bank on issues of interest to our customers.
The bank pays the partner remuneration for each customer they attract in accordance with an agreement.
