St. Julians, Malta
Dragonara Business Centre, Office 506, Dragonara Road,
Paceville, St Julian’s, STJ 3141 Malta
+356 (277) 811-04
Vienna, Austria
Doblhoffgasse 9, 1010
+43 (650) 540-49-79
All offices

Real estate investment in Latvia

Foreigners can freely buy, sell and rent out real estate in Latvia. The sale of land to foreigners is limited: to buy a plot with a house, you need permission from the municipality.

Statistics confirm the liquidity of investments: residential real estate prices grow every quarter by an average of 2.3%. Five years ago, an apartment of 100 m² cost an average of €90,000, and today it is sold for €136,000.

1360 € Average price per 1 m²
of housing in Latvia
250 000 € Minimum investment amount
to get permanent residence
2,6—23,6% Buyers’ related expenses,
of the transaction amount

Cost of a 3-bedroom apartment in Latvia

€2.5 million

Apartment in Jurmala, on the first coastline with beach access

€500,000

Apartment in Riga, in a 10-minute drive from the Dome Cathedral

€250,000

Apartment in Riga

What do investors buy?

The most expensive real estate is in the capital, Riga, and a resort, Jurmala.

Apartments

  • penthouses and duplexes
  • attic apartments
  • apartments

Houses

  • townhouses
  • villas
  • estates and castles

Latvia residence permit or citizenship by real estate investment

Latvia has a state residence permit program for investors. A residence permit is obtained by purchasing real estate worth more than €250,000. Investors with Latvia residence permits travel around the Schengen Area without visas.

Five years after obtaining a residence permit, you can apply for permanent residency and apply for citizenship after another five years.

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Taxes and associated costs

Purchase
Ownership
Sale

Property buyers pay stamp duty and a notary fee. When buying a new building, an additional value-added tax is paid.

Associated costs will range from 2.6% to 23.6% of the purchase agreement value. When buying a new apartment worth €250,000, the investor will spend €309,000, including additional costs.

2.6—23.6% Of the contract value are related costs for the purchase of housing in Latvia
Purchase expenses
VAT

Only for new buildings

21%

Of the transaction amount

Stamp duty
2%

Of the transaction amount

Notary fee

It is not necessary to involve a lawyer

0.6%

VAT included

Taxes

Property owners pay an annual tax at a progressive rate of 0.2% to 0.6% of the cadastral value.

Non-residents pay a 20% tax on income from real estate rental in Latvia.

€1,980 Approximate annual costs for maintenance of an apartment

Communal payments

Electricity, gas, water, heating, and garbage collection
€123—255 

per month

Internet, TV and telephone
€10—20 

per month

Property sellers pay a capital gains tax of 20% on the difference between the sale and purchase prices.

The agency fee ranges from 2% to 5%.

20% Capital gains tax on the sale of real estate in Latvia
Expenses on the sale
Capital gains tax

Paid on the difference between the purchase and sale prices

20%
Agency fee
3—5%