Latvia Real Estate

The Real Estate in Latvia is one of the most popular investment routes to secure a golden visa in Latvia. Latvia is one of few countries in Europe permits property buyers receive a residence permit. Real estate owners receive TRP residence permit issued for 5 years and renewable indefinitely. Family members, spouse and children also receive biometric residence permits.

Why Latvia?

Latvia’s stable economic growth, low interest rates, and favorable investment climate have created a conducive environment for the real estate sector to thrive.

Latvia is a member of the European Union and the Eurozone, providing a stable and secure legal environment for investments.
Latvia offers high quality of life and lower cost of living.
Vacation homes along the coastline are very popular.
High demand for housing from students and visiting tourists.
Lowest property prices in Europe giving high appreciation and rental yields.

Minimum Investment

EUR 250,000 property ownership
State fee: 5% of real estate value
Rental Returns: 4% available in Riga and major towns.

Conditions for Residence permit

Applications submitted to apply for a residence permit in the Republic of Latvia as a person that

in Riga or Jurmala, or in Adazi, Babite, Baldone, Carnikava, Garkalne, Ikskile, Kekava, Marupe, Olaine, Ropazi, Salaspils or Stopini municipalities has purchased and that owns one functionally related real estate (with exception of the cases when the immovable property represents a vacant land) with buildings in the and the total value of the real estate is at least EUR 250 000 (OR)
Outside the said administrative territories – no more than two immovable properties (with exception of the cases when the immovable property represents a vacant land) and each of them represents one functionally connected immovable property, total value whereof is at least EUR 250 000

Conditions

You have no real estate tax debts,
The payment of the total real estate value has been made by non-cash settlement,
The real estate has been purchased from a legal entity registered in the Republic of Latvia or a Member State of the European Union, any country of the European Economic Area or the Swiss Confederation and which is a taxpayer in the Republic of Latvia within the meaning of the tax laws of the Republic of Latvia; or the real estate has been purchased from a natural entity who is a citizen of the Republic of Latvia, a non-citizen of the Republic of Latvia, a citizen of the European Union or a foreigner who is staying in the Republic of Latvia on the basis of a valid residence permit,
The total cadastral value of the real estate is at least EUR 80 000 at the moment of purchase. If a foreigner has acquired two immovable properties outside Riga or Jurmala, or in Adazi, Babite, Baldone, Carnikava, Garkalne, Ikskile, Kekava, Marupe, Olaine, Ropazi, Salaspils or Stopini municipalities, cadastral value of each immovable property at the time of acquisition thereof shall be at least EUR 40 000. If the cadastral value is below the amounts referred to in this sub-clause, the total value of the real estate in accordance with the real estate market value determined by a certified real estate appraisal shall not be below EUR 250 000 or, if a foreigner has acquired two immovable properties – market value of each immovable property may not be less than EUR 125 000;
Upon applying for a first temporary residence permit, the person must pay 5% of the real estate purchase value into the state budget;
The real estate must not comprise agricultural land or wooded land.

Property Prices

Riga – EUR 2550 per square meter (average).

The properties in the city center can reach around €3,500 per square meter, while prices are lower in other neighborhoods, such as Bolderaja and Imanta, and higher in prestigious areas like Old Riga and Marupe.

Property Taxes

Foreigners pay property tax, known as Nekustamā īpašuma nodoklis, is a municipal tax based on the cadastral value of the property, and the rates are determined by local municipalities.

Property Tax exceeding €106,715 – 0.6% (Land and non-residential buildings 1.5%)
Stamp Duty: A one-time stamp duty of 1.5% (for individuals) or 2% (for legal entities) of the property value
Rental Income Tax: Non-residents earning rental income from Latvian property are generally subject to a 10% or 20% flat tax on that income
Capital Gains Tax: Gains from the sale of Latvian real estate by a non-resident are subject to a 3% withholding tax, or the non-resident can opt to pay a 20% tax on the actual capital gain by filing a tax return.
No Inheritance/Gift Tax: Latvia does not have specific inheritance or gift taxes for close relatives; however, state and notary fees may still apply.