Authored by the expert who managed and guided the team behind the Latvia Property Pack
Everything you need to know before buying real estate is included in our Latvia Property Pack
When you buy residential property in Latvia as a foreigner, you need to budget for extra costs beyond the purchase price, including state registration fees, notary charges, and potentially agent commissions.
Understanding these costs upfront will help you avoid surprises and plan your Latvia property investment more effectively.
We constantly update this blog post to reflect the latest regulations and market conditions in Latvia.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Latvia.
Overall, how much extra should I budget on top of the purchase price in Latvia in 2026?
How much are total buyer closing costs in Latvia in 2026?
As of early 2026, most foreign individual buyers purchasing residential property in Latvia should expect total closing costs to range from about 2.5% to 4.5% of the purchase price, which translates to roughly 2,500 to 4,500 euros on a 100,000 euro property (or about 2,600 to 4,700 USD).
If you keep everything to the bare legal minimum, meaning no buyer agent, no mortgage, and straightforward documentation, you could potentially get away with around 2.0% to 2.8% of the purchase price in Latvia, so roughly 2,000 to 2,800 euros on a 100,000 euro property.
On the other hand, if you hire a buyer agent, finance with a mortgage, need translation services, and want deeper legal checks, your total closing costs in Latvia could climb to 5% to 10% of the purchase price, meaning 5,000 to 10,000 euros or more on a 100,000 euro property.
The main factors that push your closing costs toward the high end in Latvia include hiring a buyer-side real estate agent (adding 2% to 4%), taking out a mortgage (adding pledge registration and bank fees), needing foreign-language document translation, and requiring extensive legal due diligence on complex properties.
What's the usual total % of fees and taxes over the purchase price in Latvia?
For a typical foreign individual buyer in Latvia in 2026, the usual total percentage of fees and taxes over the purchase price clusters around 2.5% to 4.5%, assuming you do not pay a separate buyer-agent commission.
The realistic low-to-high range covering most standard residential property transactions in Latvia stretches from about 2% at the leanest to around 6% or 7% if you add professional services like legal review and translation.
Of that total, government-related charges in Latvia, mainly the 1.5% Land Register state fee for individuals, typically account for roughly half to two-thirds of the cost, while professional service fees like notary remuneration and legal checks make up the remainder.
By the way, you will find much more detailed data in our property pack covering the real estate market in Latvia.
What costs are always mandatory when buying in Latvia in 2026?
As of early 2026, the mandatory costs when buying residential property in Latvia include the Land Register state fee for ownership registration (1.5% for individuals or 2% for companies), notary remuneration for the transaction deed (0.5% with a minimum of 80 euros plus VAT), and any required official extracts or filing fees tied to registration.
While not legally required, highly recommended optional costs for foreign buyers in Latvia include independent legal review of the title and encumbrances, translation or interpreter services if you do not speak Latvian, and a technical property inspection especially for houses or older buildings.
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What taxes do I pay when buying a property in Latvia in 2026?
What is the property transfer tax rate in Latvia in 2026?
As of early 2026, Latvia does not have a traditional property transfer tax, but the main purchase-time charge that feels like a transfer tax is the Land Register state fee for ownership registration, which is 1.5% of the property value for individual buyers or 2% for companies.
There is no extra transfer tax specifically for foreigners buying residential property in Latvia, as the Land Register state fee is based on whether you are an individual or a legal entity, not your nationality.
Buyers in Latvia typically do not pay VAT on resale residential properties since used real estate is commonly VAT-exempt, but new-build properties sold by VAT-registered developers can carry 21% VAT, so you must check whether the advertised price includes VAT or not.
In Latvia, the term you will see most often is "state fee" (valsts nodeva) rather than stamp duty, and you pay the main public fees before or at the time of registration in the Land Register, covering both ownership transfer and, if applicable, mortgage pledge registration.
Are there tax exemptions or reduced rates for first-time buyers in Latvia?
Latvia does not offer a broad first-time buyer discount like some countries, but reduced Land Register state fees (0.5% instead of 1.5%) apply in specific cases such as close-family transfers or purchases linked to state housing support programs.
If you buy property through a company in Latvia instead of as an individual, the immediate difference is that the Land Register state fee rises from 1.5% to 2%, and later tax treatment on rental income and capital gains follows corporate taxation rules rather than personal income tax rules.
The biggest tax difference between buying a new-build versus a resale property in Latvia is VAT exposure, since resale homes are typically VAT-exempt while new-build properties from developers can carry 21% VAT on top of the listed price.
To qualify for any reduced Land Register fees in Latvia, you generally need to provide documentation proving your eligibility, such as proof of family relationship for close-family transfers or confirmation of participation in a state housing support program.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Latvia versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
Which professional fees will I pay as a buyer in Latvia in 2026?
How much does a notary or conveyancing lawyer cost in Latvia in 2026?
As of early 2026, notary remuneration in Latvia for a property transaction is set at 0.5% of the transaction amount with a minimum of 80 euros, plus 21% VAT on the notary's fee, so for a 150,000 euro property you would pay around 750 euros plus VAT (approximately 900 euros total, or about 940 USD).
Notary fees in Latvia are charged as a percentage of the property price rather than a flat rate, though the regulation sets a minimum of 80 euros, and if documents or signatures are in a foreign language, the notary remuneration can be increased by up to 50%.
Translation and interpreter services for foreign buyers in Latvia typically cost between 200 and 600 euros for a straightforward transaction, or up to 600 to 1,500 euros if many documents need translation or multiple languages are involved, with the official notary tariff being 10 euros per page for oral translation and 25 euros per page for written translation.
Most foreign buyers do not need a tax advisor just to purchase a home in Latvia, but if you plan to rent out the property, buy through a company, or sell within a short holding period, a one-off tax consultation typically costs 150 to 400 euros (160 to 420 USD), while ongoing setup and filing support can run 500 to 1,500 euros.
We have a whole part dedicated to these topics in our our real estate pack about Latvia.
What's the typical real estate agent fee in Latvia in 2026?
As of early 2026, real estate agent commissions in Latvia are market-driven and typically range from 2% to 5% of the property price, with some agents charging fixed fees at the lower end for less expensive properties.
In most residential transactions in Latvia, the seller pays the listing agent's commission, but foreign buyers often hire a buyer-side agent for representation and should expect to pay a separate fee of around 2% to 4% if they want dedicated support.
The realistic low-to-high range for agent fees in Latvia runs from about 2% for basic services or fixed-fee arrangements to 5% or occasionally higher for exclusive representation, luxury properties, or complex transactions involving foreigners.
How much do legal checks cost (title, liens, permits) in Latvia?
Legal checks including title search, liens verification, and permits review in Latvia typically cost between 200 and 600 euros (210 to 630 USD) for basic Land Register verification, or 600 to 1,500 euros (630 to 1,570 USD) for deeper due diligence covering building permits, tenant issues, and HOA arrears.
Property valuation fees in Latvia, which are usually required if you finance with a bank, typically range from 150 to 350 euros (160 to 370 USD) for a standard apartment, or 300 to 700 euros (315 to 735 USD) for houses or more complex properties with larger plots.
The most critical legal check you should never skip in Latvia is verifying ownership and encumbrances in the Land Register (zemesgramata), because this confirms the seller actually owns the property and reveals any mortgages, liens, or restrictions that could become your problem after purchase.
Buying a property with hidden issues is something we mention in our list of risks and pitfalls people face when buying real estate in Latvia.
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What hidden or surprise costs should I watch for in Latvia right now?
What are the most common unexpected fees buyers discover in Latvia?
The most common unexpected fees foreign buyers discover in Latvia include land-lease or split ownership situations (where you may owe ongoing payments for the underlying land), unpaid building or HOA management fees, costs to regularize unpermitted renovations, and extra approval or waiver fees depending on the property type and your buyer status.
Yes, you could potentially inherit unpaid property taxes or building debts when purchasing in Latvia, which is why you should always request written confirmation that municipal taxes and building management fees are fully settled before closing.
Scams involving fake listings or fake fees do occur in Latvia, especially targeting foreigners, with common patterns including pressure to pay "reservation fees" to unofficial accounts, fake urgent deposit requests, and documents that do not match the Land Register reality, so you should always verify seller authority and pay only through controlled channels like notary escrow.
Fees that are usually not disclosed upfront in Latvia tend to be those tied to your personal situation rather than the property itself, including translation and interpreter costs, deeper legal due diligence, mortgage administration and pledge registration fees, and any residence-permit related payments if you are pursuing that path separately.
In our property pack covering the property buying process in Latvia, we go into details so you can avoid these pitfalls.
Are there extra fees if the property has a tenant in Latvia?
If the property you are buying in Latvia has a tenant, you should budget an extra 300 to 1,500 euros (315 to 1,570 USD) or more for legal review of the existing lease, verification of deposit handling, and potential negotiation or notice costs if you need vacant possession.
When you purchase a tenanted property in Latvia, you generally inherit the existing lease agreement and must honor its terms, including the tenant's right to remain until the lease expires and any deposit obligations the previous landlord held.
Terminating an existing lease immediately after purchase in Latvia is usually not possible unless the lease agreement contains specific early termination clauses or the tenant agrees to leave, often in exchange for a negotiated cash-for-keys payment.
A sitting tenant in Latvia typically affects the property's market value and your negotiating position in a mixed way: investors may pay close to market price for a reliably tenanted property with good rental income, while buyers wanting vacant possession often negotiate a discount of 5% to 10% to account for the hassle and uncertainty of tenant removal.
If you want to optimize your rental strategy, you can read our complete guide on how to buy and rent out in Latvia.
We have made this infographic to give you a quick and clear snapshot of the property market in Latvia. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Which fees are negotiable, and who really pays what in Latvia?
Which closing costs are negotiable in Latvia right now?
The closing costs that are typically negotiable in Latvia include whether the seller covers certain document preparation costs, who pays which portion of the real estate agent commission, and the structure and refundability of reservation or deposit payments.
The closing costs fixed by law or regulation in Latvia and therefore not negotiable include the Land Register state fee (1.5% for individuals, 2% for companies) and the notary tariff framework (0.5% with a minimum of 80 euros plus VAT), both of which are set by official regulations.
On negotiable fees in Latvia, buyers can sometimes achieve a 10% to 30% reduction on agent commissions depending on market conditions, while document-related costs are more commonly shifted between parties rather than reduced outright.
Can I ask the seller to cover some closing costs in Latvia?
In Latvia, asking the seller to cover some closing costs is possible but not common practice, and your success depends largely on how motivated the seller is, how long the property has been on the market, and whether the property has any issues like unpermitted renovations.
Sellers in Latvia are most commonly willing to cover costs related to resolving property defects, such as documentation issues or minor repairs, rather than statutory fees like the Land Register registration fee or notary costs.
Sellers in Latvia are more likely to accept covering closing costs or offering price reductions in a buyer's market, when the property has sat unsold for a long time, when financing is involved and buyers have less flexibility, or when the property needs work or has legal complications.
Is price bargaining common in Latvia in 2026?
As of early 2026, price bargaining is a normal part of the residential property buying process in Latvia, with the extent of negotiation depending on property location, condition, legal cleanliness, and how motivated the seller is.
Buyers in Latvia typically negotiate between 3% and 7% below the asking price for fairly priced properties, or 8% to 15% below asking for properties that are overpriced, have been listed for a long time, need renovation, or have document issues, which translates to savings of roughly 3,000 to 15,000 euros on a 100,000 euro property.
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What monthly, quarterly or annual costs will I pay as an owner in Latvia?
What's the realistic monthly owner budget in Latvia right now?
A realistic monthly owner budget in Latvia for a typical apartment in Riga (around 50 to 70 square meters) is approximately 250 to 450 euros per month (260 to 470 USD), while a family house typically costs 350 to 700 euros per month (365 to 735 USD) to maintain, excluding mortgage payments.
The main recurring expense categories that make up this monthly budget in Latvia include building management or HOA fees, a contribution to the repair fund, heating costs (which spike significantly in winter), electricity, water, waste collection, and property insurance.
The realistic low-to-high range for monthly owner costs in Latvia runs from about 150 to 300 euros (160 to 315 USD) for a small, energy-efficient apartment in a mild month, up to 500 to 800 euros (525 to 840 USD) for a larger house or older building during the heating season.
The monthly cost that varies the most in Latvia is heating, which can double or triple during the cold winter months (November through March) compared to summer, especially in older buildings without modern insulation.
You can see how this budget affect your gross and rental yields in Latvia here.
What is the annual property tax amount in Latvia in 2026?
As of early 2026, annual property tax in Latvia for residential property is calculated based on the cadastral value and typically falls within a rate band of 0.2% to 0.6% of cadastral value, which often works out to roughly 100 to 600 euros per year (105 to 630 USD) for a typical residential property.
The realistic low-to-high range for annual property taxes in Latvia depends heavily on the property's cadastral value and location, with smaller apartments sometimes paying under 100 euros annually while larger properties or those in prime Riga locations can pay 500 euros or more.
Property tax in Latvia is calculated based on the cadastral value of the property (not market value), which is determined by the State Land Service and is often significantly lower than the actual market price, and municipalities then apply rates within the legally permitted band.
Certain exemptions or reductions to annual property tax exist in Latvia, including reduced rates for primary residences in some municipalities and possible relief for certain categories of owners such as pensioners or disabled individuals, though eligibility varies by local government policy.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Latvia. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
If I rent it out, what extra taxes and fees apply in Latvia in 2026?
What tax rate applies to rental income in Latvia in 2026?
As of early 2026, individual landlords in Latvia can use a simplified tax regime that applies a 10% personal income tax rate on rental income, which is the most commonly used approach for private residential landlords.
Under the standard progressive income tax system in Latvia, landlords can deduct certain expenses from rental income including property management costs, repairs, and depreciation, but using the simplified 10% regime typically limits or eliminates the ability to claim these deductions.
After deductions under the standard regime, the realistic effective tax rate for typical landlords in Latvia ranges from around 10% (using the simplified route) to 20% or 25.5% (using the progressive system with deductions), depending on their total income level and chosen tax approach.
Foreign property owners who are non-residents of Latvia are generally subject to a 20% withholding tax on rental income earned from Latvian property, unless a double taxation treaty between Latvia and their home country provides for a reduced rate or different treatment.
Do I pay tax on short-term rentals in Latvia in 2026?
As of early 2026, income from short-term rentals (such as Airbnb) in Latvia is taxable and must be reported, with the same 10% simplified regime or progressive income tax options available as for long-term rentals, plus potential VAT obligations if your activity level and status exceed certain thresholds.
Short-term rental income in Latvia is generally taxed similarly to long-term rental income, but short-term hosts may face additional considerations including potential VAT registration requirements if annual turnover exceeds thresholds, and possible local city charges or levies in tourist areas like Riga or Jurmala.
If you want to optimize your rental strategy, you can read our complete guide on how to buy and rent out in Latvia.
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If I sell later, what taxes and fees will I pay in Latvia in 2026?
What's the total cost of selling as a % of price in Latvia in 2026?
As of early 2026, the total cost of selling residential property in Latvia typically ranges from about 3% to 6% of the sale price, with the main variable being whether you use a real estate agent and how much legal or documentation work is required.
The realistic low-to-high range for total selling costs in Latvia stretches from around 2% to 3% if you sell privately with minimal professional help, up to 6% to 8% if you use a full-service agent, need extensive legal work, or face complications like resolving title issues.
The specific cost categories that typically make up the total selling expense in Latvia include real estate agent commission (if used), legal fees for contract preparation and document verification, any costs to resolve outstanding building or tax obligations, and in some cases early mortgage repayment fees.
The single largest contributor to selling expenses in Latvia is usually the real estate agent commission, which commonly ranges from 2% to 5% of the sale price and often accounts for more than half of total selling costs.
What capital gains tax applies when selling in Latvia in 2026?
As of early 2026, capital gains tax on selling property in Latvia is generally 20% of the profit (sale price minus acquisition cost and qualifying expenses), though certain transactions initiated before end of 2024 may still qualify for the 20% rate through 2027 under transitional rules.
Exemptions to capital gains tax in Latvia exist for sellers who have owned the property for at least 60 months (5 years) and have been registered as residing there as their primary residence for at least 12 months before the sale, in which case the gain can be fully exempt.
Foreigners selling property in Latvia do not face a specific "foreigner surcharge" on capital gains, but non-residents may be subject to withholding tax mechanics at the time of sale, meaning the buyer or notary may need to withhold tax unless the seller can demonstrate eligibility for the standard capital gains calculation.
Capital gains in Latvia are calculated as the sale price minus the documented purchase price and qualifying costs such as notary fees, registration costs, and documented improvements, with the resulting profit then taxed at the applicable rate.
We made this infographic to show you how property prices in Latvia compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Latvia, we always rely on the strongest methodology we can ... and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why It's Authoritative | How We Used It |
|---|---|---|
| Likumi.lv (Land Register Fee Regulation) | Official publication platform for Latvian legislation and cabinet regulations. | We used it to pin down the exact Land Register state fee rates. We also used it to confirm the fee base and special cases like caps and reduced rates. |
| Likumi.lv (Notary Remuneration Regulation) | Official regulation setting what sworn notaries are allowed to charge. | We used it to quantify notary remuneration percentages and minimums. We also used it to estimate translation costs when provided by the notary. |
| Latvia Ministry of Justice | Central government ministry explaining official fee rules and reforms. | We used it to cross-check the 1.5% individual and 2% company fee structure. We used it as a sanity check against the underlying regulation. |
| Latvia State Revenue Service (VID) | Latvia's official tax authority with reference rate tables. | We used it to confirm capital gains tax rates and PIT structure for 2025 to 2027. We used it to avoid relying on secondary summaries when stating rates. |
| VID (Immovable Property Tax) | Tax authority explaining how property taxes work in practice. | We used it to confirm the tax base (cadastral value) for annual property tax. We used it to frame how annual owner taxes are determined. |
| PwC Tax Summaries | Major global tax firm with regularly maintained reference data. | We used it to triangulate when sale of used real estate is VAT-exempt. We used it as a cross-check against local legal sources. |
| KPMG Latvia Tax Card | Major audit firm publishing concise, data-driven tax references. | We used it to triangulate non-resident selling rules and withholding mechanics. We used it as a second opinion alongside VID and PwC sources. |
| Grant Thornton Latvia | Large audit firm publishing clear annual rate summaries. | We used it to triangulate rental income taxation options including the simplified 10% approach. We used it to sanity-check practical landlord scenarios. |
| Colliers Baltics | Global real estate consultancy with standardized research methodology. | We used it to ground negotiation and market practice claims in current conditions. We used it to avoid making claims that don't fit the latest market cycle. |
| Ober-Haus | Long-established Baltic real estate firm publishing recurring market reports. | We used it to triangulate market norms including fees and liquidity in Riga versus other areas. We used it as a second market lens alongside Colliers. |
| Latvia Sotheby's International Realty | Major brokerage describing real transaction steps and required documents. | We used it to map which steps trigger fees including waivers and approvals. We used it to build the mandatory versus recommended checklist for foreign buyers. |
| Eurostat (Housing in Europe) | Official EU statistics office with comparable cross-country methods. | We used it to keep ongoing owner cost framing consistent with EU definitions. We used it to avoid anecdotal monthly cost estimates. |
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