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Generic Tax Name Tax on real estate - Tax on property
Tax name in the national language Nekustamā īpašuma nodoklis
Tax name in English Real estate tax
Member State LV-Latvia
Tax in force since 1998/01/01
If abolished, date on which the tax ceases to apply
Business version date 2015/01/01
Version date 2015/02/17
This file was last updated on

Type of tax
Direct taxes Personal income tax
Corporate income tax
Other

Indirect taxes VAT
Excise duty (EU harmonised)
Alcoholic beverages
Energy products and electricity
Manufactured tobacco
Other

Social security contribution Employers
Employees
Other
 
Legal base

Law "On immovable property tax".

 
Who sets
The tax rate is set by




The tax base is set by




The reliefs are set by




Comments

From 2008 till 2011 payable tax volume had a 25% increase limitation to the preceding year.  From 2012 till 2014 local authorities have the right to apply a restriction on increase in the tax amount for land or to keep the tax amount for land at the level of the preceding year.

 
Beneficiary





Comments

 
Geographical Scope

Territory of Latvia.

 
Taxpayers

1. Real estate tax shall be paid by Latvian or foreign natural persons and legal persons and groups of such persons, formed on the basis of a contract or other agreement, or their representatives, who have ownership or legal possession of real estate

2. As the owner of real estate shall be considered a person whose ownership rights to the real estate have been confirmed in the Land Register or whose real estate (buildings and engineering structure), until the renewal of legal force of the Land Register Law, has been registered in a local government or in the State Land Service.

3. As the legal possessor of real estate shall be considered:

· a person into whose ownership, in the course of land reform, land has been transferred (granted) for payment or whose ownership rights to the land have been restored and the land has been determined (surveyed) on site, in accordance with the decision of an authority determined by law;

· a person whose property rights to buildings or engineering structures have been restored in accordance with the procedures prescribed by law and who has assumed them;

· a person who has come into possession of real estate on the basis of inheritance rights or on another basis.

4. Real estate tax for real estate,which belongs to several persons or is in joint possession, on the basis of joint property rights, shall be paid by each joint owner (joint possessor) proportionate to his or her share of the joint property (joint possession).

5. Real estate tax for the state property is paid by the owner of the real estate, except for the particular cases as it is stated by the law when real estate tax is paid by the possessor or user.

6. Real estate tax for the properties of local governments (municipalities) is paid by the possessor of the property, except for the particular cases as it is stated by the law when real estate tax is paid by the actual user.

 
Tax object and basis of assessment

Real estate - land and buildings. int.al. registered in the Immovable Property State Cadastre Register, but not launched and engineering structures.

 

 

Basis of assessment:

Cadastral value of real estate, which is determined by the State Land Service.

 
Deductions, Allowances, Credits, Exemptions

Allowances:

1. The amount of real estate tax for politically repressed persons regarding land and buildings included in individual residential house constructions which have been in the ownership or possession of such persons for not less than five years, shall be reduced by 50 per cent, if the real estate is not utilized for economic activity. If the real estate is partly utilized for economic activity, then the tax reduction shall not be applied to this part.

2. Local governments may issue binding regulations which provide for allowances for separate categories of real estate tax payers. Such binding regulations shall come into force in accordance with the procedures prescribed by the Law On Local Governments.

3. Local governments may determine allowances for separate categories of real estate tax payers in the amount of 90 per cent, 70 per cent, 50 per cent or 25 per cent of the tax amount for the real estate. If the real estate is used for economic activity, then the tax reduction can't be more than amount provided in Business support control law.

4. Tax payers have been endowed status of indigent or low-income person or family by local government, receive allowance on residential property for the period tax payer correspond to status of indigent or low-income person:

  • indigent persons in the amount of 90 per cent from the calculated tax amount
  • low-income persons up to 90 per cent from the calculated tax amount

5. The amount of real estate tax shall be reduced by 50 per cent, but not more than  EUR 427 for residential houses irrespective of whether they are or are not sub-divided into apartment properties, residential house sections, groups of premises in non-residential buildings whose functional utilisation is residential and the land under the jurisdiction of this residental house, if the person (alone or with a spouse) or her spouse on the 1st of January of the taxation year have three or more children in age under 18 (also children in custody or foster family) and if the person or the spouse has a place of residence in this object together with at least three of the mentioned children.

 
Rate(s) Structure

The taxation period of real estate tax is the calendar year.

As of 2013 the rights to set the tax rate are delegated to the municipalities, who can determine the tax rate within the scope of the tax rate corridor (0.2-3%) provided by law:
1) general rule – within 0.2-1.5% limits
2) in case a real estate is not maintained according to the procedure provided by law – within 1.5 - 3.0% limits.
If the municipality has not published its binding regulations with the determined tax rates until the 1st of November in the pre-taxation period, than the tax rates shall be set
1.5% of the cadastral value of the land, buildings or its parts and engineering structures.
Rates on residential property: 

  • 0.2% of the cadastral value below EUR 56,915;
  • 0.4% of the cadastral value from EUR 56,915 to 106,715;
  • 0.6% of the cadastral value above EUR 106,715;

Adittional rate 1.5% for uncultivated agricultural lands (over 1 hectare or no restrictions applied);

Minimum tax payment of 7 EUR for each taxable property (land, buildings).

The real estate tax shall be imposed upon an environment-degrading, collapsed building or building hazardous to personal safety in the amount of 3%, if it has been determined by a local government in the binding regulations, from the largest cadastral value mentioned below:
1) the cadastral value of the land under the jurisdiction of the building;
2) the cadastral value of the building.
Residential houses or apartments owned by the companies are taxed at the rate of 1.5%. If the house or the apartment is rented for living purposes and the rental rights are entered in the Land Register, the house or the apartment is taxed at the rate 0.2% - 0.6% (of the cadastral value).

 
Tax due date

Tax shall be paid once in each quarter - not later than 31 March, 15 May, 15 August and 15 November - in the amount of one quarter of the yearly tax sum. The tax may also be paid once a year by advance payment.

 
Tax collector

Local authority.

 
Special features

 
Economic function







Comments
 
Environmental taxes



Comments
 
Tax revenue
ESA95 code d29a

Year
Annual tax revenue (millions)
Currency
Tax revenue as % of GDP
Tax revenue as % of total tax revenue
2012 147.61 EUR 0.67
2011 138.52 EUR 0.69
2010 126.55 EUR 0.71
2009 103.55 EUR 0.55
2008 100.61 EUR 0.41
2007 106.05 EUR 0.47
2006 95.35 EUR 0.55
2005 88.46 EUR 0.65
2004 85.37 EUR 0.73
2003 80.98 EUR 0.77
2002 80.32 EUR 0.79
2001 82.28 EUR 0.88
2000 79.06 EUR 0.92
1999 61.73 EUR 0.88
1998 72.30 EUR 1.13
1997 59.13 EUR 1.03
1996 44.46 EUR 0.95
1995 37.33 EUR 0.90

Comments