Latvia Property Tax Guide 2026

Overview — Property Taxation in Latvia

Property taxes in Latvia are administered by the State Revenue Service (VID) in coordination with local municipalities. The annual real estate tax (Nekustamā īpašuma nodoklis, NIN) is based on the cadastral value of the property as determined by the State Land Service (VZD). Transfer duty is payable on the acquisition and disposal of real estate. Latvia does not impose stamp duty on property transactions.

Annual Real Estate Tax — 0.2% to 3%

The annual real estate tax is calculated based on the cadastral value of the property:

• Residential property: 0.2% to 0.6% of cadastral value (depending on the municipality and property value)
• Agricultural land: 0.2% to 1.5% of cadastral value
• Commercial property: 0.4% to 1.5% of cadastral value
• Other land and buildings: 0.4% to 3.0% of cadastral value

The precise rate is set by each municipality within the statutory range. The tax is payable in quarterly instalments (31 March, 30 June, 30 September, 31 December). The cadastral value is reassessed periodically by the State Land Service.

Exemptions and Reductions

• Primary residence: Reduced rate or full exemption for the taxpayer's primary residence (municipal discretion). Many municipalities apply a reduced rate for owner-occupied residential property.
• Low-income households: Full or partial exemption for low-income individuals and families receiving social assistance
• Agricultural land: Reduced rates for agricultural production land
• Heritage buildings: Reduced rates for listed cultural heritage properties
• New buildings: Some municipalities offer temporary exemptions for newly constructed residential buildings (up to 5 years)

Transfer Duty — 1.5% (Buyer) to 2% (Seller)

Transfer duty is payable on the sale or transfer of real estate:

• Buyer's duty: 1.5% of the higher of the sale price or cadastral value
• Seller's duty: 2% of the higher of the sale price or cadastral value (for individuals; 1.5% for legal entities)
• No stamp duty: Latvia does not impose stamp duty on property transactions. The transfer duty replaces the stamp duty system found in other jurisdictions.
• Exemptions: Transfers between spouses, inheritance, gifts between direct relatives, and transfers as part of corporate reorganisations may be exempt.

Tax on Rental Income

Rental income from property is subject to personal income tax (IIT). Landlords may choose between:

• Standard IIT: Net rental income (gross rent minus allowable expenses) taxed at progressive IIT rates (20–31%). Allowable expenses include maintenance, repairs, management fees, insurance, and mortgage interest.
• Flat-rate alternative: 20% of gross rental income (40% of gross rent deemed as income after a 60% expense deduction), with no further deduction of actual expenses.

Tax on Property Sale Gains

Capital gains from property sales are subject to CGT at 20%:

• Primary residence: Exempt regardless of holding period
• Secondary property — held >5 years: Exempt
• Secondary property — held ≤5 years: 20% CGT on the gain (sale price minus acquisition cost, improvements, and transaction costs)

FAQs

How is the cadastral value determined?

The State Land Service (VZD) determines cadastral values based on property type, location, size, quality, and market data. Values are updated periodically (typically every 3–5 years). Property owners can request a review if they believe the assessed value is incorrect.

Are there additional taxes for non-resident property owners?

Non-residents are subject to the same real estate tax rates as residents. However, non-residents may face a higher transfer duty rate in certain transactions.

Is there an inheritance or gift tax on property?

Inheritance of property by spouses and direct descendants (children, grandchildren) is exempt from tax. Gifts between direct relatives are also exempt. Other inheritances and gifts are subject to IIT at 20% on the value exceeding EUR 10,000.

Disclaimer

This guide provides general information about Latvia property tax for the 2026 tax year. Tax laws and rates may change. Always consult with a qualified Latvian tax advisor (nodokļu konsultants) or VID directly for advice specific to your situation. InvestmentKit does not provide tax advice.