Latvia, Real Estate

International Internet Magazine. Baltic States news & analytics Tuesday, 26.05.2020, 13:43

Latvian government plans to approve new regulations on assessment of properties' cadastral value in mid-2020

BC, Riga, 30.04.2019.Print version
New Cabinet of Ministers regulations on assessment of properties' cadastral value will be presented to the general public on Tuesday, April 30, the purpose of which is to improve the cadastral assessment methodology; the Cabinet is planning to endorse the regulations in mid-2020, the Justice Ministry's representative Ksenija Vitola told LETA.

Justice Minister Janis Bordans (New Conservative Party) says that the new methodology will ensure unbiased value assessment for all properties. The new system will take into consideration the year a building was constructed, the type of the building, for what purposes it is used, and where it is located. The methodology will also be improved for assessment of apartment buildings' value.

The new cadastral assessment methodology, however, will only come into force after ruling coalition parties agree on reforming the system of real estate property taxes, stressed Bordans. "The state has to have objective information about cadastral values, but it must not cause a disproportionate increase in taxes on residents' primary homes," explained the minister.

A fair methodology for the assessment of properties' values in line with the market situation is at the basis of real estate taxes, but the Finance Ministry and local governments must take into consideration residents' solvency when setting new tax rates, believes Bordans.

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