The Land Register fee cap will improve the competitiveness of the Latvian real estate industry
Today, the government approved amendments to the regulations on the state fee for the registration of property rights in the Land Register. As of 1 January, the amount of the Land Register fee, which is set at 2% of the value of real estate for legal entities and 1.5% for natural persons, shall not exceed 50,000 euros. These amendments are especially important for real estate investors and developers, as they will make the Latvian real estate investment environment more competitive at the Baltic level and may encourage the more active influx of investment into the country.
“Until now, compared to other Baltic states, it was most unfavourable for investors to purchase real estate in Latvia, because in Lithuania and Estonia the state fees for the purchase of real estate have a cap of 7,000 and 15,000 euros, respectively. Hence, for example, when purchasing a property for 10 million euros, the amount of state fees reaches 15,000 euros in Estonia, 7,000 euros in Lithuania, and 200,000 euros in Latvia. On behalf of the industry, I would like to thank the submitters of amendments to the law – Uldis Budriķis, Juris Pūce and Reinis Znotiņš, as the adopted amendments are an important step in promoting the development and competitiveness of the industry,” says Mārtiņš Vanags, Chairman of the Board of the Real Estate Developers Alliance.
The adopted amendments in the sector are expected to promote equal competition in the real estate investment market in the Baltic states and to eliminate the disproportionate burden of the state fee on real estate alienation transactions. Until now, there have often been situations in the market where investors choose to buy companies with real estate owned by them, without the state gaining potential tax and other revenues, as would happen in the case of purchasing real estate. According to the industry, reduced administrative costs may motivate more real estate transactions, as well as attract more investors to Latvia, as the country's competitiveness will improve at the Baltic level.
About NĪAA
The Alliance of Real Estate Developers (NĪAA) brings together the most significant players in the industry in order to achieve the sustainable development of the real estate industry, and represent it in a collective manner at the state and local government level, as well as emphasise the role of real estate developers and investors within the economy of Latvia.
For further information:
Mārtiņš Vanags – Alliance of Real Estate Developers (NĪAA)
“Until now, compared to other Baltic states, it was most unfavourable for investors to purchase real estate in Latvia, because in Lithuania and Estonia the state fees for the purchase of real estate have a cap of 7,000 and 15,000 euros, respectively. Hence, for example, when purchasing a property for 10 million euros, the amount of state fees reaches 15,000 euros in Estonia, 7,000 euros in Lithuania, and 200,000 euros in Latvia. On behalf of the industry, I would like to thank the submitters of amendments to the law – Uldis Budriķis, Juris Pūce and Reinis Znotiņš, as the adopted amendments are an important step in promoting the development and competitiveness of the industry,” says Mārtiņš Vanags, Chairman of the Board of the Real Estate Developers Alliance.
The adopted amendments in the sector are expected to promote equal competition in the real estate investment market in the Baltic states and to eliminate the disproportionate burden of the state fee on real estate alienation transactions. Until now, there have often been situations in the market where investors choose to buy companies with real estate owned by them, without the state gaining potential tax and other revenues, as would happen in the case of purchasing real estate. According to the industry, reduced administrative costs may motivate more real estate transactions, as well as attract more investors to Latvia, as the country's competitiveness will improve at the Baltic level.
About NĪAA
The Alliance of Real Estate Developers (NĪAA) brings together the most significant players in the industry in order to achieve the sustainable development of the real estate industry, and represent it in a collective manner at the state and local government level, as well as emphasise the role of real estate developers and investors within the economy of Latvia.
For further information:
Mārtiņš Vanags – Alliance of Real Estate Developers (NĪAA)