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A number of European countries having difficulties in achieving balanced budgets are using every available means to find new incomes. They are therefore searching for new "good" taxpayers. They aim primarly at wealthy foreigners who live in politically unstable countries. And the latest trend is to offer to non-European residence permits in return for a certain amount of cash. These payments requested by the States must often be invested in real estate or in the local industry. And this is particularly attractive to many wealthy individuals looking for a second residence in a country which will secure their investments. And icing on the cake, they will be able to circulate freely and live in the so-called "Schengen Space" -26 European countries-. The financial contribution for a residence permit is ranging from € 72,000 in Latvia to € 250,000 in Greece, € 500,000 in Portugal, € 1.200,000 in the UK and € 1.250,000 in the Netherlands. Given this situation it is not surprising to learn that the Latvian authorities issue generously these permits and mainly in favour of the citizens from the former USSR. The amounts collected in exchange by Latvia exceed $ 600 million. Compared with the country's GDP which is about $ 28 billion, this is far from negligible. To some extent, the Schengen area is "on sale", each state being free to fix the price to be paid.

Mo Tailland / 17th April 2014

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