Property Guide Latvia

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Real estate tax rates

Real estate tax (in Latvian: nekustamā īpašuma nodoklis) is a tax imposed on real property and paid by the owners of said property. It is governed by the law On the real estate tax (in Latvian: Par nekustamā īpašuma nodokli).

Real estate tax rates depend on two factors: state defined tax margins and the decision of each municipal (local) government. The law defines that the base real estate tax rate can vary from 0.2% to 3% of the cadastral value of a property, but it can be higher than 1.5% only if the building is in a condition which makes it unfit for use, e.g. it is classified as ruins (in Latvian: grausti). The actual tax rate for each property is defined by the relevant municipal government, but it must be within these limits. If the municipal government does not stipulate the tax rate, the base rate is applied.

Base residential real estate tax rates (2018)
Bracket (cadastral value) Tax rate
Less than 56 915 EUR 0.2%
56 915 EUR to 106 715 EUR 0.4%
More than 106 715 EUR 0.6%
Special status real estate tax rates
Status Tax rate
Land 1.5%
No officially declared residents 1.5%
Non-residential buildings and constructions 1.5%
Auxiliary constructions for residential property same as the base rates (see above)
Buildings that are not maintained according to the respective laws (e.g. ruins) 1.5%
Buildings, the construction deadline of which was overdued 3% (only if stipulated by the respective municipality and starting from the declared deadline until the construction is officially finished)

Rates in different cities

Usually, and as of 2018 in particular, municipal councils use the base rates stipulated by the main real estate tax law. Some cities, for example the capital city of Riga, may round up the numbers when defining the tax brackets - 0.2% for residential properties up to 57 000 EUR of cadastral value, 0.4% for 57 000 EUR to 107 000 EUR of cadastral value, and 0.6% for over 107 000 EUR of cadastral value. Property tax deduction may also be city-specific, and furthermore divided according to available funds. Thus, for example, families with children may have their real estate tax deducted by up to 90% in Riga, but this is done after a respective application is submitted to the city council and is approved by it.