Financial Services, Latvia, Legislation, Real Estate, Taxation

International Internet Magazine. Baltic States news & analytics Monday, 22.12.2014, 09:43

Latvia’s president: transferring tax burden to real estate is a mistake

BC, Riga, 01.09.2013.Print version
Transferring the tax burden to real estate is a mistake, a way to drive more people away from Latvia, President Andris Berzins says in an interview with Neatkariga Rita Avize, cites LETA.

Berzins believes that real estate binds people and land. If a person is burdened by too many taxes, he will seek another place to live in and gain income.

 

The president points out that the projected revenue from this tax is overrated. Of course, it is the easiest way from the state's perspective – to raise taxes which residents cannot avoid. However, this approach is wrong and only leads to more people leaving Latvia.

 

It is necessary to come up with a tax policy that will keep people interested in staying in Latvia, emphasizes Berzins.

 

Commenting VL-TB/LNNK's proposal for putting an end to granting residence permits in exchange for real estate purchases, the president explains – if these investments are not invested in Latvia, they will be made in other countries.






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