Buying property in Latvia can serve personal or business purposes. New buildings and old and charming houses are available on the market in Latvia’s most important cities. You can get in touch with our lawyers in Latvia if you are interested in moving and buying property in this country. They can help you buy a house in Latvia.
| Quick Facts | |
|---|---|
| Can expats buy properties in Latvia? | Yes, there are no restrictions regarding foreigners who want to buy properties in Latvia as long as these are not state-owned. |
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Legislation for property purchase in Latvia |
Property Law in Latvia |
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Types of properties you can buy as a foreigner |
– houses, – villas, – hotels, – residential properties, – land plots, – office spaces |
| Property inspection before purchase (YES/NO) | YES |
| Pre-sale agreement required |
A pre-sale contract must be signed and then a deposit can be made to guarantee the sale of the property. |
| Documentation verification made by our law firm in Latvia |
The preliminary contract, the property history, and the title deed are among the documents that can be verified by our Latvian lawyers from a legal point of view. |
| Content of a sale-purchase contract of a property |
– names of former and future owners, – property description, – conditions of acquisition, – price of the property, – payment methods, – signatures, etc. |
| Real estate tax in Latvia |
1,5% from the property value, paid by the new owner |
| VAT for property purchase in Latvia |
21% |
| Can a lawyer in Latvia represent you with a power of attorney? | Yes, our Latvian lawyers can represent foreigners with a power of attorney when buying a house in Latvia. |
| Possibility to buy without visiting Latvia |
Yes, purchasing a house in Latvia is possible without traveling to this country. |
| Residence permit issued for buying property in Latvia |
Yes, a residence permit can be issued for foreigners buying properties worth at least EUR 250,000. |
| Citizenship application permitted |
Yes, foreigners can buy a property in Latvia and then follow the immigration policies for residence and citizenship applications. |
| Buying a property in Latvia through a mortgage |
Available option |
| Legal services offered for buying a property in Latvia | We can handle the paperwork and analyze the documents of the properties you want to buy in Latvia. Legal assistance is provided at the time the sale-purchase contract is signed by the public notary. |
| Can a foreigner buy a property in Latvia on her/his own? | It is recommended to discuss all the legal aspects with our specialist in the real estate field to avoid possible complexities. |
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Can foreigners buy agricultural land in Latvia? |
Only citizens from EU countries can buy agricultural land and properties in Latvia. |
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Institution that issues approvals for foreigners buying a property in Latvia |
Land Registry in Latvia |
| Recommendations for loans in Latvia | It is recommended to work with our Latvian lawyer who knows the legislation and who can guide foreigners throughout the process of obtaining a house loan. |
| What happens with the deposit if the buyer changes his/her mind? |
Normally, the deposit cannot be returned. |
| When is the property transfer made? |
As soon as proof of payment is made. |
| Notary fees |
Around 0.6% paid by the buyer |
| Fees for real estate agents (approx.) |
Between 2% and 5% paid by the seller |
| Other obligations for the new property owner in Latvia |
Must register as a new owner with the Latvian Land Registry and other relevant authorities |
| Buying a property for rental purposes in Latvia | Available option for those interested in this type of investment |
| Latvia's real estate market in numbers |
It is expected to reach a market volume of around USD 205 billion by 2028. |
| Title transfer |
Once the property is paid, the title transfer is concluded. |
| Avoiding possible legal disputes |
With the help of our Latvian lawyers with experience in the real estate field who can verify all the documents |
| Popular cities for buying a property in Latvia |
– Riga, – Ogre, – Jelgava, – Dagda, etc. |
| Average price per square meter for central apartment in Riga, the capital city | Around EUR 2,468.23 |
How to buy a property in Latvia?
The legal aspect of any real estate buying deal is just as crucial as the presence and condition of the property you want to buy. In Latvia, a typical property acquisition transaction will typically include the following stages:
- locating the ideal property; negotiating and closing the sale;
- the new owner’s registration;
- the process of giving over the keys.
These are three basic steps to follow in order to buy a house in Latvia. But you can also find below detailed guidance about buying a property in Latvia. Our lawyers can also provide you with comprehensive assistance in this matter. A few more stages may be added to the above list in more complex circumstances. For example, if the property is held as a security by third parties or purchased with a loan, or if the parties want to enter into an earnest money agreement. The earnest money agreement, also known as a deposit, is typically utilized when the transaction cannot be completed immediately. The buyer pays a portion of the purchase price as a deposit to ensure that the transaction will be completed. You can get further details from our law firm in Latvia in this regard.
In addition to buying a house in Latvia, you can also rely on our lawyers if you want to understand the process of VAT (value-added tax) registration in Latvia. Our knowledgeable lawyers will provide you with thorough guidance in this regard. Furthermore, our seasoned lawyers can also guide you about different ways of acquiring Latvia’s residency permits. The Latvian residency permit gives you the freedom to live in one of the most popular nations in Europe and permits you to stay there for up to five years. Additionally, you are allowed to visit any EU Member State and even some non-EU nations with this unique document. Additionally, it provides you the opportunity to apply for a permanent residence permit in Latvia or the EU and even get temporary residence permits for your spouse and kids.
Here is an infographic with information about buying a house in Latvia:
Where can foreigners buy real estate in Latvia?
Foreigners were most interested in obtaining a residence permit in Latvia through acquiring real estate properties. Approximately 10,000 foreigners are granted residence permits in Latvia each year to purchase a property.
Foreigners interested in immigration to Latvia purchase real estate either for themselves or for family members, and also apply for a residence permit. Apartments in Riga and Jurmala draw the most attention from foreigners. Babe, Mrupe, Garkalne, Carnikava, and Saulkrasti are also popular among foreign visitors. Ozolnieki, Amata, Csis, Iecava, Madona and other cities outside of Riga are preferred regions to buy a home in Latvia.
If you want an additional guide regarding buying property in Latvia, you are welcome to get in touch with our skilled lawyers. You can also rely on our immigration lawyers if you want to immigrate to Latvia. Our immigration lawyers in Latvia will help you with the application and document submission procedure. It is always recommended to acquire legal assistance in such matters to avoid any unnecessary delays.
You are invited to watch a video presentation on how to buy a property in Latvia:
Guide for purchasing a property in Latvia
Foreigners can buy, modify and demolish buildings in Latvia as long as the building and the land are acquired separately. A special provision applies to the purchase of real estate in Latvia, is foreigners may lease the land without any restriction. Still, the land is subject to approval from the local municipality for acquisition purposes.
After choosing the desired property, the buyer and the seller must sign a preliminary purchase agreement. The buyer must afterwards make a deposit, usually 10% of the purchase price. Before signing the final purchase agreement, the notary will perform a preliminary check of the real estate property to determine any encumbrances (mortgages, other lease contracts etc.). Our Latvian lawyers can perform an additional and real estate due diligence to ensure that the property is a good investment.
After all, the documents are provided and all the conditions are met, the final purchase agreement can be drawn up and signed in front of a notary in Latvia. Our lawyers in Latvia will represent you during this process. A handover document can also be signed when the property is handed over to the new owner. This document contains details about the state of the house.
The new owner must register the property in his or her name at the Latvian Land Register. Our lawyers in Latvia can help you throughout the property registration procedure. We can also help you if you want to buy a property in another region, such as Dubai, through our local partners.
Qualification for purchasing a property in Latvia
Investors can purchase a property (apartment, luxury residence) in Riga, Jurmala, or other large cities. Foreigners currently account for 70% of all property transactions in Latvia, with Russians, Chinese, Ukrainians, and Uzbeks accounting for most of the transactions. Investors and their families are eligible for a 5-year residency permit in Latvia, which can be extended. There are some prerequisites for residency. Permanent residency is achievable after five years of continuous residence in Latvia, followed by citizenship after another five years of speaking Latvian and thoroughly assimilating into the culture of this country. If a foreigner’s real estate was registered in the Land Register after September 1, 2014, Immigration Law revisions increased the threshold for obtaining a residence visa and imposed additional criteria and costs.
Besides your plan to buy a house in Latvia, if you want to open a company in Latvia, you can trust the legal services of our attorneys. Our attorneys in Latvia can also help you acquire all the necessary business permits and licenses for regulating a business in this country.
Advantages of investing in Latvia
Latvia is the Baltic country with the fastest growth rate of the economy. The demand for real estate has skyrocketed, with property prices in the EU experiencing the most significant year-on-year gain of almost 11%. Latvia offers international investors a golden visa (permanent residency) if they purchase real estate worth min. EUR 250,000. A 5% additional state charge of EUR12,500 is paid to the government. After investing in Latvia’s real estate, you can get the following advantages:
- one of Europe’s cheapest golden visas;
- one of Europe’s most profitable real estate investment;
- residency in an EU Schengen country;
- low cost of living;
- Schengen visa-free travel;
- there is no obligation to live permanently in Latvia for family and children to qualify for Latvian residency (visit once a year).
If you want to know the other benefits you can get once you buy a house in Latvia, you can interact with our lawyers. They will help you understand all the aspects related to it. Furthermore, if you are interested in immigration to Latvia, you can get in touch with our lawyers. They will provide you with legal assistance in acquiring a residence permit in this country.
They will provide you with legal assistance in acquiring a residence permit in this country. The right to live, work, study, and do business in Latvia is granted by a document known as a Latvian resident permit. In Latvia, there are two different types of residency permits available: permanent resident permits and temporary resident permits. After immigration to Latvia, if you need help with your residency application, you can consult with our lawyer.
Real estate transactions for getting a residence permit in Latvia
If you are interested in acquiring a residence permit by buying property in Latvia, you can interact with our lawyers. They will describe the value of transactions in real estate necessary to make for getting a residence permit in this country. Please find below some figures on the real estate transactions in Latvia:
- Latvia’s real estate transactions must have a minimum value of €250,000;
- the property’s entire value at the time of purchase should be at least €80,000;
- a 5% payment to the state budget on the real estate transaction value applies.
Risks to avoid when buying a house in Latvia
Normally, the process of buying and selling a house in Latvia can be carried out under optimal conditions. However, it is good to keep in mind certain risks that may occur:
- It is very important to work with a real estate agent and a Latvian lawyer when choosing a property for purchase. Certain properties do not have all the elements as described and may even have legal issues. Real estate due diligence is recommended in the first phase.
- Property taxes are set by local authorities in Latvia. These can change every year and it is something you should consider when buying a house in Latvia.
- Foreigners can access a mortgage loan to buy a house in Latvia. However, there are strict rules regarding foreign citizens who want to purchase a house in this way. Some banks offer accessible conditions and clauses, while others are more restrictive and could refuse applicants. That’s why it’s important to check before buying a house and make sure you meet all the conditions so you don’t have unpleasant surprises.
Price negotiation for a house in Latvia
Those who want to buy a house in Latvia can negotiate the price, to a certain extent. This is where the specialist you collaborate with, either a real estate agent or a lawyer in Latvia, helps a lot. The negotiation process can also depend on certain aspects such as formality, punctuality, trust, and even knowledge. These things are extremely appreciated by Latvians, and foreign citizens should take them into account to benefit from a negotiation process with tailored results.
With the help of a real estate lawyer in Latvia, you can get a clear idea about the property prices in the chosen city, as well as how they can be negotiated. It is more than recommended to discuss openly and collaborate with one of our specialists when you want to negotiate the final price of a property in Latvia.
Why should you collaborate with a Latvian lawyer to buy a house?
Regardless of whether you are a Latvian citizen or come from a foreign country, it is very important to have expert support from a lawyer in Latvia at hand when you buy a house. Legal assistance and advice are essential in the process of buying and selling a property because there are many aspects to consider.
The documents are the first to be checked by our Latvian lawyer, including the Title Deed and everything related to the history of the respective property. Also, a specialist such as a real estate lawyer in Latvia knows the local legislation and has experience in the field. Thus, by checking all the documents, he can realize if there are legal problems that can be solved or if everything is in order from this point of view. Here’s how our Latvian lawyer can help you when you buy a house:
- He/she can represent you at the Land Registry to undertake the necessary checks. With the help of this institution, you can ask for information about the ownership status of the property you want to buy.
- The purchase contract can be checked by our lawyers before signing and concluding the sale-purchase process of a property in Latvia.
- The lawyer is also the one who can help you to pay the taxes related to buying a house in Latvia.
- On the other hand, both the seller and the buyer can be represented by an attorney in Latvia.
Besides support for purchasing a property, foreigners can get support for obtaining citizenship by investment in Latvia. Our local experts can provide them with all the necessary details and requirements. Please do not hesitate to contact our law firm in Latvia if you want to buy a house in Latvia.