Financial Services, Latvia, Real Estate, Taxation

International Internet Magazine. Baltic States news & analytics Saturday, 24.05.2025, 06:22

IMF advises Latvia to increase assessed real estate valuations

Nina Kolyako, BC, Riga, 04.03.2010.Print version
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The International Monetary Fund (IMF) is advising Latvia to also increase its assessed property valuations, according to the newspaper Biznes&Baltija. The IMF's technical mission has established that the assessed value of property in Latvia's major cities is lower than the market value. Bearing in mind the planned increase in real estate tax, the IMF is also pressing for an adjustment of assessed valuations for real estate.

The IMF mission visited Latvia from February 17 to March 1, carrying out a careful analysis of the Land Register. After comparing properties' assessed value with their market value, it was established that the average assessed property value in Riga was LVL 17,100, while the average market value in 2009 was LVL 20,100. In Daugavpils, these figures were LVL 4,600 and LVL 5,800, and in Liepaja – LVL 8,900 and LVL 9,700, informs LETA.

 

In other large cities, the situation was diametrically opposite, for example, property in Valmiera was selling last year for an average of LVL 7,700, while the assessed value was LVL 10,800; in Jekabpils the figures were LVL 8,800 and LVL 12,100 respectively.

 

The IMF called for a readjustment of assessed property values, as otherwise the system is unfair, and leads to poorer people paying too much.

 

The IMF also criticized the procedures which citizens must carry out in order to bring about a reassessment of a property's value, while suggesting to local governments that they provide reductions for certain groups in society.





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