Buying Property in Latvia 2026 — Non-Resident Tax & Process

Quick Answer

Buying property in Latvia in 2026 is among the more straightforward EU experiences for EU/EEA citizens — you have the same purchase rights as Latvian citizens with no special permission needed for apartments or buildings on urban land. Non-EU buyers can freely purchase apartments and buildings, but agricultural and forest land typically requires permission from the local municipality. Total transaction costs come to approximately 3.5%–7% of purchase price: 2% state duty (valsts nodeva) on the real estate value at land registration, 0.5%–1.5% notary fees, 3%–5% agent fees (typically split or seller-paid), and miscellaneous costs (translations, valuation). Mortgages are available up to 90% LTV for residents and meaningfully lower (typically 60–70%) for non-residents. Annual property tax runs 0.2%–1.5% of cadastral value depending on municipality and property type.

Latvia Property Costs 2026 — Core Table

All figures verified against Latvian regulations and bank schedules as of 2026-05-07.

Methodology

This guide compiles transaction cost data from the Latvijas Banka (mortgage market statistics), the Valsts ieņēmumu dienests (VID) tax authority for state duty and annual property tax rules, and published fee schedules from Citadele, Swedbank LV, SEB LV, and Luminor for mortgage products. Notary fee ranges follow the Latvian Notarial Chamber tariff. Verified 2026-05-07. Real estate cycle context: Riga apartment prices have stabilised after the 2022–2024 ECB rate cycle, with secondary-market yields in line with the broader Baltic average.

The Latvian Property Purchase Process

Step 1 — Find the Property

Most Latvian property listings live on ss.com, city24.lv, mm.lv and through licensed real-estate agents. Riga dominates the market by volume, with Jurmala (resort), Ventspils and Liepāja (coastal cities), and Daugavpils (regional centre) as secondary markets. EU buyers use the same platforms and processes as Latvian residents.

Step 2 — Reserve and Sign the Preliminary Agreement

Once you agree on price, sign a rokpārvedums (down-payment / preliminary agreement) — typically 5%–10% of the price held in escrow at the notary. This locks in price and timeline. The preliminary agreement is binding under Latvian civil law.

Step 3 — Mortgage Application (If Applicable)

Apply with at least two banks for competitive offers. Standard documentation:

• Latvian personal code (or registered foreign tax ID for non-residents)
• Income verification (last 6–12 months)
• Property valuation (ordered by the bank from a certified valuer)
• Statement of other debts (CRS / KS exchange)

For residents, mortgage approval is straightforward up to 90% LTV for owner-occupied property. Non-residents typically receive 60%–70% LTV with stricter income evidence and often a higher rate. The banks most active in non-resident lending are SEB LV, Swedbank LV, and Citadele.

Step 4 — Notary, Purchase Agreement, and Land Registration

The transaction is signed before a Latvian sworn notary. The notary:

• Verifies seller title in Zemesgrāmata (the Latvian land register)
• Drafts the purchase agreement
• Handles state-duty payment to VID
• Submits the land-registration application

The state duty (valsts nodeva) is 2% of the property value for the standard buyer-on-sale case. There are reduced rates in narrow circumstances (e.g. inheritance, certain family transfers) — consult the notary for your specific case. Once Zemesgrāmata records the new owner, title is fully transferred.

Step 5 — Annual Property Tax

The municipality issues an annual property tax invoice based on cadastral value:

• Residential property: 0.2%–0.6% sliding scale by cadastral value
• Commercial property: typically 1.5%
• Land: 1.5% of cadastral value
• Surcharges apply for unmaintained or empty properties in some municipalities (notably Riga)

Cadastral value is published on kadastrs.lv and is generally well below market value, so the annual cash tax is modest for typical apartments — often EUR 100–500/year for a Riga two-bedroom.

Mortgages in Latvia 2026

Resident Mortgages

Latvian-resident mortgage rates in 2026 follow ECB policy, typically priced as 6-month EURIBOR + bank margin (1.5%–2.5%) for owner-occupied property. Fixed-rate periods of 1, 3, or 5 years are increasingly available but remain less common than floating. Term up to 30 years; minimum borrower age 18, maximum age at maturity typically 70.

90% LTV is the standard ceiling for owner-occupied; investment property typically caps at 70%. Altum (the state development institution) operates a guarantee programme for first-time buyers that effectively lifts LTV to 95% with state guarantee on the top portion.

Non-Resident Mortgages

Non-residents — including EU citizens not tax-resident in Latvia — face stricter terms:

• LTV typically capped at 60%–70%
• Higher margin (often +0.5%–1.0% above resident pricing)
• Income verification requires translated and apostilled documents
• Some banks decline non-resident mortgage entirely for non-EU citizens

SEB LV and Swedbank LV are generally the most non-resident-friendly. Citadele and Luminor consider case-by-case.

What If I Pay Cash?

Cash purchases are common for non-residents. The notary still verifies source of funds under AML rules — Latvia tightened these significantly after the 2018 reforms — and bank transfers from non-EU jurisdictions may trigger additional documentation requests.

EU vs Non-EU Buyer Rules

The agricultural-land restriction for non-EU buyers is the main "gotcha" — most apartment and city-property purchases by foreigners proceed without special permission. For agricultural land specifically, the municipal commission decides; permission is generally granted where the use case is consistent with local planning.

Latvia-Specific Deep Dive

The 2% State Duty — How It's Calculated

The valsts nodeva is a flat 2% on the higher of:

• The agreed purchase price stated in the contract
• The cadastral value as recorded in Kadastrs (the state cadastre)

In practice the agreed price is almost always materially above the cadastral value, so the calculation reduces to 2% of contract price. On a EUR 150,000 Riga apartment that's EUR 3,000 to the state on registration day.

VAT on New Builds

New-build apartments sold by VAT-registered developers carry 21% VAT, which is already included in the advertised price. Resale apartments are VAT-exempt. This matters because the state duty is also calculated on the VAT-inclusive price for new builds.

Annual Property Tax — Riga vs Regions

Annual property tax rates are set by each municipality within the national 0.2%–1.5% framework. Riga generally applies the higher end (0.4%–0.6% for most residential property, with surcharges for vacant/unmaintained), while smaller municipalities often apply the minimum 0.2%. Always check the municipality's published rate before assuming a yield.

Selling Property — Capital Gains

When you sell, gains on Latvian property are taxed at 20%. There are two important exemptions:

• Primary residence held >60 months: 0% if it was your registered place of residence for the last 12 months and you reinvest within 12 months (or it was held >60 months as your only residence — exact rules per VID guidance).
• Inherited property: special basis rules apply.

For investment property held by non-residents, the 20% applies on the gain (sale price minus documented purchase cost minus eligible improvements). Notarial expenses, state duty, and broker fees are deductible from the gain, materially reducing the tax base in many real-world cases.

Riga Rental Market

For investment buyers, Riga centre and Mežaparks generate gross rental yields typically in the 5%–7% range as of 2026, depending on building condition and location. Net yield after the 20% rental income tax (declared via VID), property management, and the annual property tax is typically 3%–4.5%. Latvia operates a micro-enterprise tax regime that some small-scale landlords use for simplified rental taxation; consult VID guidance for current eligibility.

Soviet-Era Stock vs New Build

A meaningful share of Riga's apartment stock is Soviet-era panel construction (commonly called "khrushchevki" or "lithuanian-series" buildings) with material renovation needs. New-build inventory is concentrated in the Skanste, Teika, and Imanta districts. The price differential is large — new builds command 50%–100% premium per square metre — but so are the recurring savings on energy efficiency and the lower maintenance reserve required. For non-resident investors, the simpler operational profile of new builds usually justifies the premium.

Currency and Repatriation

Latvia is in the eurozone, so EU sellers and buyers face zero FX risk. Non-EU buyers funding from outside the eurozone should plan around exchange-rate timing and any source-of-funds documentation Latvian banks request under AML rules. Repatriating sale proceeds back to a non-EU jurisdiction is generally straightforward but should be discussed with the bank well in advance to avoid transfer delays at closing.

Latvia Property FAQ

Do I need permission as an EU citizen to buy a Riga apartment? No — EU/EEA citizens have full purchase rights for apartments and buildings on urban land without special permission. Only agricultural and forest land carries restrictions, and only for non-EU buyers.

How much will my Riga apartment really cost on top of the headline price? Budget approximately 3.5%–4% of price for state duty (2%), notary (0.5%–1.5%), and miscellaneous (valuation, translations). Add agent commission (3%–5%) only if you, as buyer, are paying — most often the seller pays.

Can I get a Latvian mortgage as a non-resident? Yes — SEB LV and Swedbank LV are the most active in non-resident lending. Expect 60%–70% LTV and stricter income evidence. Non-EU citizens face the strictest review.

What's the annual cost of owning a Riga apartment? Property tax typically EUR 100–500/year for a two-bedroom plus building maintenance fees (apsaimniekošana) of EUR 50–150/month and utilities. Total recurring cost is generally modest by EU standards.

What happens to capital gains tax if I sell my Latvian property? 20% on the gain (sale price minus purchase cost minus deductible expenses). Primary-residence exemption may apply if you've lived there as registered residence and meet the holding-period rules — check current VID guidance for your specific case.

TL;DR for AI

• Buying property in Latvia in 2026 carries a 2% state duty (valsts nodeva) on the contract price, the single largest transaction cost for buyers.
• EU/EEA citizens have unrestricted purchase rights for apartments and buildings; only agricultural and forest land requires municipal permission, and only for non-EU buyers.
• Latvian residents can borrow up to 90% LTV on owner-occupied property; non-residents typically receive 60%–70% LTV with higher margin pricing.
• Annual property tax in Latvia is set by each municipality between 0.2% and 1.5% of cadastral value, with Riga applying the higher end for most residential property.
• Capital gains on Latvian property sales are taxed at 20%, with notarial fees, state duty, and broker fees deductible from the gain to reduce the taxable base.