03-03-2025
Latvia is an attractive country for investors due to its strategic location, stable economy and relatively affordable real estate prices. We talk about the key aspects of purchasing real estate in this country: taxes, expenses, return on investment (ROI), property maintenance and the possibility of obtaining a residence permit.
Taxes on buying and owning real estate
Annual property tax
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For land and parts of land: 1.5% of the cadastral value.
For an apartment, private house, utility room and parking lot (garage) in an apartment building:
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0.2% of the cadastral value, if it does not exceed 56,914 euros.
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0.4% of the cadastral value, if it is within 56,915 euros - 106,715 euros.
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0.6% of the cadastral value, if it exceeds 106,715 euros.
On average, the amount for a standard apartment (2-4 rooms), including parts of an apartment building and parts of land, is 100-500 euros per year.
For commercial properties, buildings, apartments/houses with the status of "guest house":
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1.5% of the cadastral value of the property.
Tax on income from renting/selling real estate
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When renting out real estate by an individual, the income tax will be 10% of the monthly rental cost
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When reselling real estate - 25% of the profit
ROI
The return on investment in real estate in Latvia depends on the location and type of property. On average:
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Short-term rent – 7% per annum, especially in popular tourist areas such as Riga and Jurmala.
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Long-term rent – 4-6% per annum
Property maintenance
After purchasing, you should consider the maintenance costs:
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Utilities - 1-2 euros per m2 per month depending on the status of the property, the availability of services such as a sauna, concierge, etc. and the season
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Property insurance - optional
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Payment of utilities: water, electricity, heating - according to meters
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Property tax
Residence permit through purchase of real estate
The investor must purchase one residential or commercial property in a large city in Latvia or two properties in a small city or town for at least 250 thousand euros.
*Currently, the Latvian residence permit program is closed to citizens of Russia and Belarus
Advantages of obtaining a residence permit when buying real estate in Latvia
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Relatively low entry threshold: minimum investment in real estate is 250 thousand euros
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No obligation to live in the country
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Issued to all family members
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Issued for 5 years with the possibility of renewal every five years. After 5 years, the investor can apply for permanent residence, and after another 5 years - for Latvian citizenship
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For non-EU residents: the ability to issue invitations to close relatives for a visa to Latvia
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Freedom of movement in the Schengen area
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Simplified visa processing to England, Ireland, Canada and the USA
Mercury Group has been operating in the Latvian real estate market for over 25 years.
Only we have access to all residential and commercial luxury real estate in the Latvian market, including a closed database of properties for rent and sale.
We will personally accompany you at all stages of the transaction, help you choose the ideal home for you, conduct a purchase and sale transaction or draw up a lease agreement.
For all issues related to the purchase of real estate in Latvia, we also provide our investors with a full range of concierge services.
