Property Tax for Foreign Owners in Latvia

Property tax in Latvia, also called real estate tax and, in official English, immovable property tax, is the yearly tax on land, buildings and flats. In Latvian it is nekustamā īpašuma nodoklis (NĪN). It is collected by the municipality (pašvaldība) where the property is, on the basis of its cadastral value (kadastrālā vērtība) from the State Land Service. This page is about property tax for foreign owners: who pays, how the amount is set, and what happens when the notice does not reach an owner abroad. Some older lists and lawyer pages call this service “Property Tax Service”.

Who uses it

Foreign owners of a Latvian home or plot, heirs who have just been registered as owners, and investors with flats let to tenants.

How the tax works in Latvia

• The taxpayer is, in general, the owner recorded in the Land Register; after a purchase or an inheritance the date of the entry matters.
• The base is the cadastral value, and each municipality sets its rate within the limits of the national law, so similar flats can be taxed differently in Riga, Jelgava or Liepāja.
• Municipalities grant reliefs under their own regulations, and many reliefs depend on someone being declared as living in the property.
• A higher rate can apply to land or buildings left in poor condition.
• The municipality issues a payment notice each year, which can be received electronically, and the tax is paid in instalments over the year.

Points to watch

Not receiving the notice does not cancel the tax, and arrears gather late-payment interest and can be recovered from the owner. The cadastral values and the municipal rates have been revised more than once, so last year's figure is not a reliable guide. The yearly property tax is different from the tax on rental income and from the tax on a sale (see capital gains tax).

What a lawyer does

The lawyer checks the cadastral data and the municipality's regulations, explains the notice, applies for a relief or contests a wrong assessment, arranges electronic notices and payments for an owner abroad under a power of attorney, and settles arrears before a sale. Buyers can have the future tax explained as part of a property purchase.

Questions and answers

Does Latvia have a property tax?

Yes. Owners of land, houses and flats pay the immovable property tax to the municipality every year.

Do foreign owners pay more?

Not because they are foreign. The difference usually comes from reliefs tied to a declared residence, which an owner living abroad often does not have.

The notice never arrived. What now?

The amount can be checked with the municipality or through the state e-services, and arrears paid before they grow; a lawyer can arrange this for an owner abroad.

Can the cadastral data be corrected?

Errors in the cadastre, such as the area or the use of a building, can be corrected through the State Land Service, which may change the tax.