Latvia, Legislation, Real Estate, Taxation

The premier, who is currently on vacation, said on Twitter that property tax rates had to be lowered so residents' tax burden would not increase when the cadastral values change.

Property tax rates will be revised before the new cadastral values come into force, Karins added.

As reported, Justice Minister Janis Bordans (New Conservative Party) will do everything in his power to prevent the entry into force of the new cadastral values developed by the Justice Ministry and the State Land Service - until property tax rates are revised, including by abolishing property tax on primary homes and reducing tax rates for small and medium-sized businesses, including farms.

According to Bordans, the Justice Ministry has prepared amendments to the National Real Estate Cadaster Law and the Law on Immovable Property Tax, which provide for abolition of the tax for primary homes worth up to EUR 100,000. This would mean, for instance, property tax on a primary home with a cadastral value of EUR 80,000 would be zero euros, but for a home with a cadastral value of EUR 120,000, property tax would be calculated from EUR 20,000.