According to European Commission projections, Latvia’s population is expected to decrease by 33.9% between 2025 and 2100 [1]. Latvia’s demographic challenges and growing labour shortages require policies that support the attraction and retention of talent, investment and skilled labour. Against this backdrop, FICIL recognises that strengthening security is a legitimate objective, but stresses that migration measures should be targeted, proportionate and evidence-based, ensuring that security objectives do not unnecessarily undermine Latvia’s competitiveness.
Stricter immigration regulation without a coherent migration policy
On 20 August, following reconsideration requested by the President of Latvia, the Saeima adopted the new Immigration Law, which will enter into force on 15 September 2026. The new Immigration Law introduces tighter immigration control, including stricter entry/residence procedures, broader grounds for refusal or revocation, and stronger pre-entry controls [2]. The Law aims to strengthen state security, ensure more effective migration control. However, what will be the impact on Latvia’s labour market?
Foreign investors are increasingly concerned about a lack of a coherent migration and labour market policy, tailored to economic objectives and developed, based on a targeted, data-based risk assessment. The proposed restrictions do not always take into account individual circumstances, such as employment status, tax contributions, educational background, or compliance with legal requirements. Instead, certain restrictions apply broadly to groups of individuals using the same lawful forms of economic activity.
In view of FICIL, migration regulation should be based on clearly identified risks, reliable data, and targeted solutions, and should avoid restrictions affecting entire groups of people or market participants [3]. Effective security measures require precise control mechanisms that address specific risks, while avoiding unnecessary limitations on legitimate economic activity.
Morevoer, FICIL would also have welcomed earlier and more structured involvement of employers and investors in developing both the amendments to the existing Immigration Law and the new Law.
These concerns are reinforced by the State Audit Office’s latest performance audit of Latvia’s work permit system [4]. The audit concludes that Latvia lacks a clear policy for attracting foreign labour based on labour-market needs, data and risk, while the process remains lengthy, difficult to predict and administratively disproportionate: obtaining a work visa takes around three months, and obtaining a work-based residence permit from abroad takes an average of six months. At the same time, the audit identifies significant gaps in monitoring whether work permits are used for their intended purpose. It also questions the new Law’s reduction of the maximum duration of employment-based residence permits from five years to one year, noting that annual reapplication preserves the administrative burden without a clear basis for concluding that it will reduce migration risks more effectively.
Supporting competitiveness and labour mobility
Latvia’s ability to attract and retain international talent is critical for economic growth. Unpredictable or restrictive migration rules can make Latvia less attractive to foreign specialists and investors, while increasing recruitment costs and uncertainty for companies operating in Latvia.
FICIL therefore recommends:
- maintaining multi-year residence permits for long-term employment and specialists transferred within corporate groups;
- ensuring predictable pathways for international students to transition into employment in Latvia;
- reinstating a regulated framework for self-employment;
- establishing a clear regulatory framework for the new investment fund programme.
The State Audit Office’s findings confirm that administrative complexity does not automatically result in effective control. Latvia needs faster and more predictable procedures for compliant employers and international talent, combined with targeted, data-driven checks where concrete risks arise. A well-designed immigration system would strengthen both – national security and competitiveness at the same time.
Sources:
[1] European Commission. (2026). Population projections in the EU. Available: https://ec.europa.eu/eurostat/statistics-explained/index.php?title=Population_projections_in_the_EU
[2] Saeima. (2026). Saeima reviews the Immigration Law for the second time. Available: https://m.saeima.lv/en/news/saeima-news/36099-saeima-reviews-the-immigration-law-for-the-second-time?
[3] FICIL. Position on the Ammendment of the Immigration Law. Available: https://www.ficil.lv/wp-content/uploads/2026/04/14_21042026_FICIL_viedoklis_par_priekslikumiem_likumprojektam_Grozijumi_Imigracijas_likuma.pdf
[4] Latvijas Republikas Valsts kontrole. (09.09.2026.). Vai darba atļauju izsniegšanas sistēma Latvijā darbojas efektīvi? Pieejams: https://www.lrvk.gov.lv/lv/revizijas/revizijas/noslegtas-revizijas/vai-darba-atlauju-izsniegsanas-sistema-latvija-darbojas-efektivi