The tax on immovable property is based on the cadastral value on 1 January of the taxation year or at the moment of registration.1
Tax on rural land exceeding 3 hectares located outside cities and deemed as land for agriculture, forestry or protected natural territories in which business activities are prohibited will be calculated from a special value determined specifically for calculating the tax until 2025.
Local governments notify taxpayers of tax payable by sending a notice by 15 February. Tax payment notices for unfarmed agricultural land are sent out by 15 February.2
Property tax may be paid quarterly, no later than by 31 March, 15 May, 15 August, and 15 November or paid in advance once a year.3
1 Section 3(3) of the law On Immovable Property Tax
2 Section 1(6) of the law On Personal Income Tax
3 Section 3(6) of the law On Personal Income Tax
Law on Immovable Property Tax (tax rates)
|
Rate |
Tax base |
Taxation period |
|
As of 1 January 2010 |
Tangible objects which are located in the territory of the Republic of Latvia and which cannot be transferred from one place to another without being externally damaged – land, buildings, including the buildings registered in the Cadastre Register but not transferred into use, and engineering structures (hereinafter – immovable property), with the exception of immovable property referred to in Section 2, Art 1 of the Law |
One calendar year |
|
1,5% of cadastral value of immovable property |
1) on land 2) on buildings or their parts with the exception of immovable property tax objects referred to in Paragraph 2, Section 1, Art 3 and Section 1.2 ,Art 3 3) on engineering structures |
|
|
1) 0,2 per cent of cadastral value not exceeding 4) 0,2 to 3 per cent of cadastral value of the immovable property |
On residential houses irrespective of their parcelling into apartment properties, Parts of residential houses, groups of premises in non-residential buildings whose functional utilisation is residential, as well as groups of premises whose functional utilisation is associated with living (for garages, car parking spaces, cellars, storage and utility rooms) if they are not being used for the performance of economic activities: the auxiliary buildings of residential houses and garage owner co-operative societies, and garage owner associations and the garages of natural persons (excluding garages for heavy machinery and farm machinery), if they are not being used for the performance of economic activities. The rate or rates of immovable property tax are set by local governments in their binding rules published before 1 November of the pre-taxation year.. The immovable property tax rate exceeding 1,5 per cent of the cadastral value of the immovable property, is applied by the local government only if the immovable property is not maintained in compliance with the procedure set by legislative acts and if in this case the local government has made public the rate of the immovable property tax in their binding regulations by a definite term |
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Additional rate 1,5% of cadastral value |
On uncultivated agricultural land with the exception of the areal not exceeding one hectare or if restrictions of agricultural activities have been set out by legislation |
Law "On Immovable Property Tax" (04.06.1997.)