REAL ESTATE TAX – WHAT SHALL I KNOW ABOUT IT?

RET is a payment to the budget of the local government in whose territory a real estate or a part of it is located, as required by law.

In cases where a real estate has an owner and a legal possessor at the same time and the law does not provide that the primary taxpayer is the user of the real estate, the real estate tax shall be paid by the real estate owner (Section 21 of the Cabinet of Ministers Regulation No. 495 “The Procedure for the Application of the Law “On the Real Estate Tax” of 20.06.2006).

You shall start paying RET from the taxation year following the year in which the rights of ownership or the rights of possession of the real estate were established, except in cases specified in Section 7, Paragraph 1 of the law “On the Real Estate Tax”.

The function of calculating RET, preparing and sending out tax payment notifications and the collection of the tax is performed by the Municipal Revenue Office of Real City, based on the cadastral values of the real estate set by the National Land Service.

You can find the cadastral value of your real estate in the Cadastral Information System of the National Land Service https://www.kadastrs.lv/

1.

The municipality shall inform the taxpayer or his/her authorised representative about the amount of RET for the current taxation year until February 15 of this year, by sending a tax payment notification to the address given by the taxpayer or his/her authorised representative.

If the tax payment notification is not received until February 15, the taxpayer has the obligation to inform the municipality about it in writing.

2.

RET shall be paid quarterly – one quarter of the annual amount shall not be paid later than on April 1, May 15, August 15 and November 15.

If the tax is paid once a year in advance, it shall be paid until the deadline set for the first payment in the taxation year.

If one person owns several real estates within the administrative territory of Riga city, the paid amount of the real estate shall be divided proportionally between all real estates owned by the taxpayer (Clause 42.1. of the Cabinet of Ministers Regulation No. 495 “The Procedure for the Application of the Law “On the Real Estate Tax” of 20.06.2006″).

Revenues from RET are transferred to the budget of Riga municipality.

Republic of Latvia laws:

Cabinet of Ministers regulations:

Binding Regulations of Riga City Council:

RET is not imposed on:

Which real estates are subject RET:

  • Land
  • Buildings (including flats), as well as buildings which are registered in the Cadastral Information System but were not put in place
  • Engineering structures

RET is calculated as follows: the cadastral value of the real estate (as on January 1 of the taxation year) is multiplied by the set tax rate.

The taxation period for the real estate tax is a calendar year.

In Riga, RET rates are from 0.2% to 3% of the real estate’s cadastral value.

Rate Notes
Reduced rate,
or “habitation rate”
0,2% applies to cadastral value which does not exceed 57 000 EUR
0,4% applies to the part of cadastral value from 57 000 EUR to 107 000 EUR
0,6% applies to the part of cadastral value which exceeds 107 000 EUR
Basic rate 1,5%
Increased rate 3%

You can find the cadastral value of your real estate in the Cadastral Information System of the National Land Service https://www.kadastrs.lv/

The basic RET rate of 1.5% applies to:

  • Land
  • buildings that are not used for dwelling and are used for business
  • engineering structures
The rate of 1.5% applies to dwelling houses or their parts (including flats) only in cases where conditions of applying the reduced tax rate is not used http://likumi.lv/ta/id/275681-par-nekustama-ipasuma-nodokli-riga

The basic RET rate of 3% applies to:

  • the land which is not maintained in accordance with the procedure set out in laws and regulations
  • real estate objects at which arbitrary construction works were established
  • a building which is classified as degrading the environment, collapsed or threatening human safety
  • a building, in the construction of which the total duration of building works specified in laws and regulations has been exceeded
Riga City Council’s Binding Regulations Nr.146 “Regulation on the Cleaning of Territories and Maintenance of Buildings in Riga City” of 28.04.2015 http://likumi.lv/ta/id/273736-rigas-pilsetas-teritorijas-kopsanas-un-buvju-uzturesanas-saistosie-noteikumi

Reduced RET rate of 0,2% to 0,6% applies to:

If the conditions of applying a reduced tax rate are not met, the basic real estate tax rate of 1.5% is applied!
  • By MasterCard and VISA system payment cards at the Client service center of the Municipal Revenue Office of Riga City at Terēzes Street 5 (1st floor) in Riga (no commission fee is charged)
  • By transfers through Internet banks, branches of banks or on web portals: www.eriga.lv, www.epakalpojumi.lv or www.latvija.lv
  • At Latvia Post offices. Commission of Latvia Post office is applied to the service
  • From 15.02.2019. at SIA “MAXIMA Latvija” stores cash register with bank payment cards or in cash. Commission of service provider is applied to the service
When paying RET, please indicate the taxpayer’s name, surname, personal identity code and number which is compulsory (you can find the taxpayer’s number in the tax payment notification).

Requisites

Recipient: Riga City Municipality, registration No.: 90011524360

Beneficiary bank Bank code Account number
AS “SEB banka” UNLALV2X LV38UNLA0002000130130
AS “Citadele banka” PARXLV22 LV75PARX0000570030007
AS “Swedbank” HABALV22 LV79HABA0551005802493
AS “Luminor Bank” RIKOLV2X LV82RIKO0002013186390
AS “Luminor Bank” NDEALV2X LV25NDEA0000082556996
VAS “Latvijas Pasts” LPNSLV21 LV36LPNS0001001080905
PERSON OR OBJECT DISCOUNT
Needy or disadvantaged persons 70-90 %
Pensioners 50-90%
Disabled children, disabled persons of group 1 or 2, persons who live together with a disabled person of group 1 or 2, or a disabled child 50-90%
Families with children 50-90%
Persons receiving a survivor’s pension or persons taking care of a child who is entitled to a survivor’s pension 90%
Politically persecuted persons 50%
Land which belongs to the category of  specially protected areas 90%
Land which is used to ensure functioning of municipal educational, sports, cultural and social institutions 90%
Land which the municipality has rented out for allotments 90%
Land which has been made available free of charge to a municipal institution to develop the area for public needs 90%
Building which has been recognized as a culture monument protected by the state 50%
Building which has been recognized as one of historical buildings constituting the city’s cultural and historical heritage and has an authentic heritage frontage 25%
Real estates used by non-profit organizations 90%
Building which is located in the urban planning area of national importance and is restored, renovated or reconstructed, on whose facade decorative lighting was installed 25-90%
Apartment blocks, all facades of which have been insulated, after its commissioning or free-standing group of premises (apartments) located in such a building 90%
Land that has been transferred to the local government budgetary authority for the use of indemnity for the purpose of utilizing its territory for public needs 90%
Real Estate located in the Freeport of Riga territory 90%
An apartment building whose management rights were transferred from the municipality in accordance with the Law “On the Privatization of State and Local Government Apartment Houses” or apartments privatized in accordance with the Law “On the Privatization of Cooperative Apartments” 90%

You can find more information on discounts here https://likumi.lv/doc.php?id=254268