Real estate tax in Latvia
Taxable entities
Taxable entities are individuals, legal entities and non-residents that own or have rights to Latvian real estate, including land.
Tax rates
Starting from January 1, 2014 the real estate tax rate is 0,2-3% from the cadastral value (general value set by state authority) of land, buildings or their parts and engineering structures.
Progressive tax
As from January 1, 2014 a progressive tax rate on living space (living house or apartment) applies. If the cadastral value does not exceed 56915 Euro the tax rate is 0,2%; if the cadastral value is from 56915 Euro to 106715, the tax rate is 0,4%; if the cadastral value exceeds 106715 Euro, the tax rate is 0,6% from the cadastral value. Additional tax with rate 1, 5% applies to uncultivated agricultural land, excluding land with space less than 1ha.
Minimal tax payment
The minimal tax payment is 7 Euro even if the tax calculated is lower than 7 Euro as regards to indigent and low-income persons if the tax calculated is lower than 7 Euro per annum, the tax may be accumulated for several taxable years until the sum exceeds 7 Euro.
In addition to that the law provides that in 2008, 2009 and 2010, after updating of the cadastral value of the immovable property, the amount of immovable property tax, if the purpose for use of the immovable property does not change, shall not exceed the amount of tax calculated for the previous taxation year (not taking into account the abatements) by more than 25 per cent for each unit of land and each building separately. This rule is not applicable if the tax calculated is less than EUR 7 as well as it does not apply on uncultivated agricultural land.
Gunda Leite, attorneys at law of the Gencs Valters Law Firm in Riga.
Practising in fields of Taxation in Latvia, Lithuania, Estonia.
T: +371 67 24 00 90
F: +371 67 24 00 91