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
Latvia offers attractive opportunities for foreign property buyers, with EU citizens enjoying nearly unrestricted access to the market while non-EU nationals face some limitations on land purchases.
As of June 2025, the Latvian real estate market remains stable with Riga continuing to attract the majority of foreign investment due to its strong rental yields of 5-7% and steady capital appreciation of 3-5% annually.
If you want to go deeper, you can check our pack of documents related to the real estate market in Latvia, based on reliable facts and data, not opinions or rumors.
Foreigners can legally purchase most property types in Latvia, with EU/EEA/OECD citizens facing minimal restrictions while non-EU buyers cannot acquire agricultural or forest land.
The purchase process can be completed entirely remotely through a power of attorney, with total transaction costs ranging from 3.8% to 8.1% of the property value.
| Aspect | EU/EEA/OECD Citizens | Non-EU Citizens |
|---|---|---|
| Apartments & Houses | ✓ No restrictions | ✓ No restrictions |
| Commercial Property | ✓ No restrictions | ✓ No restrictions |
| Agricultural/Forest Land | ✓ Can purchase | ✗ Cannot purchase |
| Border Zone Property | ✓ Can purchase | ⚠ Special permit required |
| Visa Required for Purchase | ✗ Not required | ✗ Not required |
| Mortgage Access | ✓ Available (15-30% down) | ✓ Available (case-by-case) |
| Capital Gains Tax | 20% on profit | 20% on profit |
Can foreigners legally purchase property in Latvia, and what restrictions apply based on nationality?
Yes, foreigners can legally buy property in Latvia, including apartments, houses, and commercial real estate.
EU, EEA, and OECD citizens enjoy nearly unrestricted property rights in Latvia, similar to local citizens. They can purchase any type of residential or commercial property, as well as most types of land without special permits.
Non-EU/EEA/OECD citizens face more restrictions, particularly regarding land ownership. While they can freely purchase apartments, houses, and commercial properties, they cannot buy agricultural or forest land. Additionally, properties in border zones and certain protected areas require special permits from the Ministry of Defense or local authorities.
State-owned properties remain off-limits to all private buyers, regardless of nationality. As we reach mid-2025, these regulations remain stable, with no significant changes expected in the near future.
It's something we develop in our Latvia property pack.
What are the differences between what locals and foreigners can purchase in Latvia?
The main differences in property rights between locals and foreigners primarily affect non-EU citizens and relate to land ownership.
| Property Type | Latvian Citizens | EU/EEA/OECD Citizens | Non-EU Citizens |
|---|---|---|---|
| Apartments | ✓ Unrestricted | ✓ Unrestricted | ✓ Unrestricted |
| Houses | ✓ Unrestricted | ✓ Unrestricted | ✓ Unrestricted |
| Commercial Property | ✓ Unrestricted | ✓ Unrestricted | ✓ Unrestricted |
| Agricultural Land | ✓ Unrestricted | ✓ Unrestricted | ✗ Prohibited |
| Forest Land | ✓ Unrestricted | ✓ Unrestricted | ✗ Prohibited |
| Border Zone Property | ✓ Unrestricted | ✓ Generally allowed | ⚠ Special permit required |
| Protected Areas | ✓ With permits | ✓ With permits | ⚠ Additional restrictions |
For practical purposes, most foreign buyers focus on apartments and houses in urban areas where these restrictions don't apply. The limitations primarily affect rural land investments and properties near Latvia's external borders.
Do I need a visa or residence permit to buy property in Latvia?
No visa or residence permit is required to purchase property in Latvia as a foreigner.
You can buy property in Latvia as a tourist or visitor without any special immigration status. The property purchase process is separate from immigration requirements, meaning you don't need to be a resident to own real estate.
However, if you're interested in obtaining residency through property investment, Latvia offers a residence permit program (formerly known as the Golden Visa) for property purchases of €250,000 or more. This program requires additional documentation including proof of funds, health insurance, and a clean criminal record certificate.
The residence permit through property investment provides the right to live in Latvia and travel freely within the Schengen Area. As of June 2025, this program remains active but requires meeting specific financial and documentation criteria beyond just the property purchase.
Property ownership alone doesn't grant automatic residency rights - these are two separate legal processes that can be combined if desired.
Is physical presence required in Latvia during the purchase, or can it be done remotely?
The entire property purchase process in Latvia can be completed remotely without visiting the country.
Foreign buyers can grant a power of attorney to a Latvian lawyer or trusted representative who will handle all aspects of the transaction on their behalf. This includes property viewing, contract negotiations, signing documents, and registering the ownership with the Land Register.
The power of attorney must be properly notarized in your home country and, in most cases, apostilled according to the Hague Convention. Your appointed representative can then complete all legal steps, including appearing before the Latvian notary for the final sale deed.
Remote purchases have become increasingly common in Latvia's real estate market, particularly among international investors. Banks and notaries are well-versed in handling transactions where the buyer is not physically present.
While remote purchase is legally possible and straightforward, many buyers still prefer at least one visit to inspect the property personally before committing to the purchase.
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What is the complete step-by-step process for buying property as a foreigner in Latvia?
The property purchase process in Latvia follows a structured legal framework that protects both buyers and sellers.
- Research and Budget Planning: Study the Latvian property market, determine your budget including all associated costs, and identify suitable properties through online portals or real estate agents.
- Engage Professional Services: Hire a licensed real estate agent familiar with foreign transactions and retain an independent lawyer for legal representation and due diligence.
- Property Selection and Initial Inspection: View properties either personally or through your representative, ensuring compliance with Latvian building codes and checking for any visible issues.
- Preliminary Agreement and Deposit: Sign a preliminary purchase agreement outlining terms and conditions, then pay a deposit of typically 5-10% of the purchase price to secure the property.
- Due Diligence Phase: Your lawyer conducts thorough checks including title verification, checking for encumbrances or debts, confirming property boundaries, and reviewing the building's legal status.
- Open Escrow Account: Establish an escrow account with a Latvian bank to ensure secure fund transfers and protect both parties during the transaction.
- Final Contract and Notarization: Sign the final sales contract (Notarial Deed) in the presence of a Latvian notary who verifies all documents and parties' identities.
- Payment and Registration: Transfer the remaining balance through the escrow account, after which the notary registers the transaction with the Latvian Land Register within 14 days.
- Obtain Ownership Certificate: Receive your Property Ownership Certificate from the Land Register, confirming your legal ownership of the property.
Required documents include your passport, proof of funds, power of attorney (if buying remotely), and any additional documents for residence permit applications if applicable.
Do I need to hire a lawyer or notary, and what are their specific roles?
While a lawyer is not legally mandatory, it's highly recommended for foreign buyers to ensure proper due diligence and legal protection throughout the transaction.
A lawyer's role includes conducting comprehensive due diligence on the property, reviewing and negotiating contract terms, verifying the seller's ownership rights, checking for any liens or encumbrances, and representing you if you're not physically present in Latvia. They also ensure compliance with all legal requirements specific to foreign buyers and can assist with residence permit applications if needed.
A notary is legally required for all property transactions in Latvia. The notary acts as a neutral party who verifies the identities of all parties, ensures all documents comply with Latvian law, oversees the signing of the final sale deed, and registers the transaction with the Land Register.
The notary's role is to protect the legal interests of both parties and ensure the transaction's validity. They cannot provide legal advice or represent either party's interests, which is why having your own lawyer is crucial.
It's something we develop in our Latvia property pack.
What taxes, fees, and ongoing costs are involved in buying and owning property in Latvia?
Understanding all costs associated with property ownership in Latvia is crucial for proper budgeting.
| Cost Type | Amount | When Paid |
|---|---|---|
| Property Transfer Tax | 0.2% - 1.5% | At purchase |
| Notary Fee | ~0.6% | At purchase |
| Legal Fee | ~1% | At purchase |
| Real Estate Agent Fee | 2% - 5% (usually paid by seller) | At purchase |
| VAT (new construction) | 21% | At purchase |
| Annual Property Tax | 0.2% - 0.6% (residential) | Annually |
| Capital Gains Tax | 20% on profit | Upon sale |
Total transaction costs typically range from 3.8% to 8.1% of the property value. For new construction, VAT of 21% applies but is usually included in the advertised price. Ongoing annual costs include property tax based on cadastral value, building maintenance fees, utilities, and insurance.
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.
Can foreigners get a mortgage in Latvia, and what are the typical terms?
Yes, foreigners can obtain mortgages from Latvian banks, though terms and approval criteria vary significantly between institutions.
Latvian banks typically offer mortgages to foreigners with loan amounts ranging from €10,000 to €200,000 as a minimum. The required down payment usually falls between 15% and 30% of the property value, with non-residents often required to pay higher deposits.
As of June 2025, mortgage interest rates in Latvia average around 5.6%, up from 2.4% in 2021 due to European Central Bank rate increases. Loan terms can extend up to 15-35 years depending on the borrower's age and profile.
Banks prefer applicants with strong ties to Latvia such as employment, business interests, or existing assets in the country. Each application is evaluated case-by-case, considering factors like income stability, credit history, and the property's value and location.
Foreign buyers should prepare comprehensive documentation including proof of income, bank statements, employment contracts, and tax returns. Having a Latvian bank account and demonstrating regular income flows to Latvia strengthens the application.
Which cities offer the best opportunities for living, rental income, or capital growth?
Latvia's property market offers diverse opportunities across different cities, each with unique advantages for foreign buyers.
Riga, the capital, remains the primary destination for foreign investment with rental yields of 5-7% and annual capital appreciation of 3-5%. The city offers the highest quality of life in Latvia, excellent international connections, and strong rental demand from both locals and expats.
Jūrmala, Latvia's premier resort town, attracts buyers seeking luxury properties and holiday homes. With rental yields of 4-6% and capital appreciation of 2-4%, it's particularly popular among Russian and CIS nationals seeking seaside properties.
Liepāja, known as the "city where the wind is born," offers more affordable entry points with rental yields of 4-6%. This coastal city is experiencing growing tourism and development, making it attractive for investors seeking emerging markets.
Daugavpils, Latvia's second-largest city, provides the most affordable properties but with lower liquidity and appreciation rates of 1-3%. It's primarily suitable for investors seeking high rental yields relative to purchase prices.
Rural areas offer the lowest prices but also the slowest growth, with appreciation rates of 1-3% annually. These properties appeal to buyers seeking vacation homes or agricultural investments.
What are the current property prices in major Latvian cities?
Property prices in Latvia vary significantly between cities and property types, with Riga commanding the highest prices.
| Location | Existing Apartments (€/m²) | New Apartments (€/m²) | Premium Properties (€/m²) |
|---|---|---|---|
| Riga | 700 - 1,500 | 1,800 - 4,700 | Up to 7,000 |
| Jūrmala | 1,200 - 2,500 | 2,000 - 5,000 | Up to 6,000 |
| Liepāja | 600 - 1,200 | 1,200 - 2,500 | Up to 3,000 |
| Daugavpils | 500 - 1,000 | 1,000 - 2,000 | Up to 2,500 |
| Rural Areas | 300 - 800 | 800 - 1,500 | Up to 2,000 |
Riga's Old Town and city center command premium prices, particularly for renovated historical buildings. Jūrmala's beachfront properties represent some of Latvia's most expensive real estate. As of mid-2025, prices remain stable with modest growth expected in prime locations.
Where do most foreigners choose to settle in Latvia and why?
Foreign buyers in Latvia show clear preferences for specific locations based on lifestyle, investment potential, and community factors.
Riga attracts approximately 70% of foreign property buyers due to its status as the economic and cultural heart of Latvia. The capital offers international schools, diverse employment opportunities, modern infrastructure, and a vibrant expat community. The city's historic center, embassies district, and modern developments in Mežaparks are particularly popular.
Jūrmala draws wealthy individuals, particularly from Russia and CIS countries, seeking luxury seaside properties. The resort town offers prestigious addresses, proximity to Riga (20 minutes by train), and a relaxed coastal lifestyle. Properties here often serve as vacation homes or investment rentals.
Saliena, a planned community near Riga Airport, has emerged as a favorite among international families. It offers modern housing, international amenities, and convenient access to both Riga and the airport, making it ideal for professionals who travel frequently.
Smaller cities like Liepāja and Daugavpils see limited foreign interest, primarily from investors seeking higher yields or individuals with specific business or personal connections to these areas.
It's something we develop in our Latvia property pack.
What are the most common mistakes foreigners make when buying property in Latvia?
Avoiding common pitfalls can save foreign buyers significant time, money, and legal complications in Latvia's property market.
- Skipping professional due diligence: Many buyers rely solely on the seller's information without conducting independent legal checks. Always verify property titles, encumbrances, and the seller's right to sell through your own lawyer.
- Attempting to buy restricted land: Non-EU citizens often don't realize they cannot purchase agricultural or forest land. Focus on apartments, houses, and commercial properties to avoid legal complications.
- Unclear property boundaries: Rural and older properties may have disputed or unregistered boundaries. Always use a certified surveyor and ensure all boundaries are legally registered.
- Underestimating total costs: Buyers frequently budget only for the purchase price, forgetting transaction costs of 3.8-8.1%, ongoing maintenance, and potential renovation expenses.
- Using the seller's representatives: Relying on the seller's agent or lawyer creates conflicts of interest. Always hire independent professionals to represent your interests.
- Assuming property purchase grants residency: Buying property doesn't automatically grant residence rights. The €250,000 investment threshold for residence permits requires additional documentation and approval.
- Not using escrow accounts: Direct payments to sellers carry risks. Always use a secure escrow account through a Latvian bank to protect your funds during the transaction.
Foreign buyers who take time to understand Latvia's legal framework and work with qualified professionals typically experience smooth, successful transactions.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Latvia's real estate market offers compelling opportunities for foreign investors in 2025, with clear legal frameworks and professional support systems in place.
Whether you're seeking a Baltic investment property, a seaside retreat in Jūrmala, or a new home in Riga's vibrant capital, understanding the legal requirements and market dynamics ensures a successful purchase that aligns with your goals.
Sources
- Lawyers Latvia - Property Purchase Guide
- Global Citizen Solutions - Buying Property in Latvia
- CEE Legal Matters - Real Estate Latvia 2021
- Immigrant Invest - Latvia Residence Permit
- Global Property Guide - Latvia Taxes and Costs
- Statista - Latvia Mortgage Interest Rates
- Numbeo - Quality of Life in Riga
- Investropa - Latvia Real Estate Trends
- Global Property Guide - Latvia Home Price Trends
- Arab MLS - Foreigners Buying Property in Latvia Guide