Authored by the expert who managed and guided the team behind the Latvia Property Pack
Yes, the analysis of Riga's property market is included in our pack
Buying a property in Riga to rent it out is absolutely possible for foreigners in 2026, though the rules differ depending on whether you're buying an apartment or a house with land.
This guide covers everything you actually need to know about rental yields, monthly rents, neighborhood performance, and short-term rental regulations in Riga right now.
We constantly update this blog post to reflect the latest market data and regulatory changes in Latvia's capital.
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 Riga.
Insights
- Riga's gross rental yields of 8% to 9% in 2026 are roughly double what you'd find in most Western European capitals, largely because apartment prices hover around €865 per square meter in standard districts.
- Russian and Belarusian citizens have been banned from purchasing real estate in Latvia since June 2025, making nationality a hard legal barrier that other EU countries don't impose.
- The EU's new short-term rental regulation takes full effect on May 20, 2026, meaning Riga landlords will soon need official registration numbers that platforms must verify before listing properties.
- Riga's short-term rentals average only 60% occupancy, so the roughly 40% of empty nights means your actual income will be significantly lower than what simple nightly rate calculations suggest.
- Furnished apartments in Riga rent about 10% to 15% faster than unfurnished ones because the city has strong demand from students, young professionals, and expats who prefer move-in-ready units.
- The highest-yield neighborhoods in Riga like Purvciems and Pļavnieki can deliver 9% to 10% gross returns because entry prices are 30% to 40% lower than central districts while rents stay competitive.
- Riga charges a municipal tourism levy on short-term rental income that many foreign investors overlook when calculating their net returns from Airbnb-style properties.
- Winter heating costs in Riga's older Soviet-era buildings can consume 15% to 20% of your rental income, making energy-efficient renovations one of the highest-return upgrades you can make.
Can I legally rent out a property in Riga as a foreigner right now?
Can a foreigner own-and-rent a residential property in Riga in 2026?
As of early 2026, foreigners can legally own residential property in Riga and rent it out, with the main distinction being that apartments and buildings face fewer restrictions than properties that include land.
Most foreign investors in Riga simply purchase apartments in their own name, though setting up a Latvian company is also an option if you prefer that ownership structure for tax or liability reasons.
The single biggest restriction to watch is that Latvia's land ownership rules can create complications if you're buying a house with a land plot, since certain agricultural and border zone lands have nationality-based limitations that don't apply to standard apartment purchases.
One critical exception applies: since June 2025, Russian and Belarusian citizens are completely banned from buying any real estate in Latvia, which the Latvian Parliament enacted as a direct response to geopolitical tensions.
If you're not a local, you might want to read our guide to foreign property ownership in Riga.
Do I need residency to rent out in Riga right now?
No, you do not need to be a Latvian resident to own a rental property and collect income from it in Riga, which makes the city attractive for remote foreign investors.
However, you will need a Latvian tax identification number to properly declare your rental income, and the State Revenue Service (VID) allows you to register through their Electronic Declaration System without being physically present in Latvia.
A local Latvian bank account is not strictly required since tenants and platforms can transfer to EU or EEA accounts, but having a local IBAN makes rent collection smoother and is often preferred by property managers.
Managing a Riga rental entirely from abroad is completely feasible if you hire a local property manager, use digital signing for contracts, and stay on top of your annual tax filings with VID.
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What rental strategy makes the most money in Riga in 2026?
Is long-term renting more profitable than short-term in Riga in 2026?
As of early 2026, long-term renting in Riga delivers more stable and predictable returns, while short-term renting can generate higher gross revenue but comes with significantly more operational complexity and regulatory uncertainty.
A well-managed short-term rental in central Riga might gross €15,000 to €18,000 per year (around $16,000 to $19,500 USD), compared to €10,000 to €12,000 per year (around $10,800 to $13,000 USD) for a comparable long-term rental, but the net difference shrinks dramatically once you factor in cleaning, turnover, platform fees, and Riga's tourism levy.
Short-term renting tends to outperform financially in Riga's Old Town (Vecrīga) and Centrs neighborhoods where tourist foot traffic is highest, while residential districts like Teika or Āgenskalns favor long-term strategies due to their family and professional tenant base.
What's the average gross rental yield in Riga in 2026?
As of early 2026, the average gross rental yield for residential properties in Riga sits around 8% to 9%, which is notably higher than most European capitals.
The realistic range in Riga spans from about 7% gross on premium central properties to 10% or higher in well-connected housing estates where purchase prices are lower.
Two-bedroom apartments typically achieve the highest gross yields in Riga at around 8.7%, slightly outperforming one-bedroom units at 8.3% because the rent premium for the extra room outpaces the price increase.
By the way, we have much more granular data about rental yields in our property pack about Riga.
What's the realistic net rental yield after costs in Riga in 2026?
As of early 2026, the average net rental yield after all costs for long-term rentals in Riga lands around 6% to 7%, while short-term rentals see a wider range of 5% to 8% depending on occupancy and operational efficiency.
Most Riga landlords realistically experience net yields between 5.5% and 7.5%, with the variation depending heavily on building age, heating efficiency, and how well they manage vacancy.
The three biggest cost categories that eat into your gross yield in Riga specifically are winter heating bills (which can spike dramatically in older Soviet-era buildings), the municipal tourism levy if you're doing short-term rentals, and property management fees that run higher for furnished or tourist-oriented units.
You might want to check our latest analysis about gross and net rental yields in Riga.
What monthly rent can I get in Riga in 2026?
As of early 2026, typical monthly rents in Riga for good-condition units run around €650 to €750 (about $700 to $810 USD) for a studio, approximately €840 ($910 USD) for a one-bedroom, and roughly €1,300 ($1,400 USD) for a two-bedroom apartment.
A decent entry-level studio in Riga rents for €550 to €700 per month (around $595 to $755 USD), with prices at the lower end in outer districts like Purvciems or Jugla and higher in central locations.
A typical one-bedroom apartment in Riga commands €750 to €950 per month (roughly $810 to $1,025 USD), depending on renovation quality and proximity to the city center.
A standard two-bedroom apartment in Riga fetches €1,100 to €1,500 per month (approximately $1,190 to $1,620 USD), with premium renovated units in Centrs or Klusais centrs pushing above that range.
If you want to know more about this topic, you can read our guide about rents and rental incomes in Riga.
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.
What are the real numbers I should budget for renting out in Riga in 2026?
What's the total "all-in" monthly cost to hold a rental in Riga in 2026?
As of early 2026, the total monthly holding cost for a typical Riga rental property runs between €150 and €350 (roughly $160 to $380 USD), or about 25% to 35% of your rental income for long-term lets.
The realistic range spans from €100 per month ($108 USD) for a well-insulated apartment in a newer building to €450 or more ($485 USD) for older properties with inefficient heating systems or higher HOA fees.
The single largest cost contributor in Riga specifically is winter heating, which can account for 40% to 50% of your total holding costs between November and March, especially in unrenovated Soviet-era panel buildings.
You want to go into more details? Check our list of property taxes and fees you have to pay when buying a property in Riga.
What's the typical vacancy rate in Riga in 2026?
As of early 2026, the typical vacancy rate for long-term rentals in Riga hovers around 5% to 8%, meaning most landlords should budget for roughly one month of vacancy per year.
Riga landlords should realistically plan for three to five weeks of vacancy annually because tenant turnover happens, even in desirable neighborhoods, and finding quality replacements takes time.
The main factor driving vacancy differences across Riga neighborhoods is public transit access, with areas well-served by trams and buses like Teika or Āgenskalns filling faster than car-dependent outer districts.
Tenant turnover in Riga peaks during late spring and early summer (May through July) when lease cycles align with the academic year and when families prefer to move before the new school term begins.
We have a whole part covering the best rental strategies in our pack about buying a property in Riga.
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Where do rentals perform best in Riga in 2026?
Which neighborhoods have the highest long-term demand in Riga in 2026?
As of early 2026, the three Riga neighborhoods with the highest overall long-term rental demand are Centrs for its walkability and job access, Teika for its livability and amenities, and Āgenskalns for its improving infrastructure and charm.
Families in Riga tend to concentrate their rental searches in Mežaparks for its green spaces and quiet streets, Teika for its school access, and Ķīpsala for its safe, residential feel close to the center.
Students in Riga gravitate toward Centrs for convenience, Āgenskalns for its good transit connections, and affordable pockets near Maskavas forštate where rents are lower but micro-location matters a lot.
Expats and international professionals in Riga prefer the Klusais centrs (Quiet Centre) for its elegant streets, Vecrīga for short-term corporate stays, and Ķīpsala for its premium apartments with an international vibe.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Riga.
Which neighborhoods have the best yield in Riga in 2026?
As of early 2026, the three Riga neighborhoods delivering the best rental yields are Purvciems, Pļavnieki, and Ķengarags, all of which are well-connected housing estates with lower entry prices.
These top-yielding Riga neighborhoods typically deliver gross yields between 9% and 11%, compared to the 7% to 8% you'd see in premium central areas like Klusais centrs.
The main characteristic allowing these neighborhoods to outperform on yield is that purchase prices sit 30% to 40% below central Riga levels while rental demand from working professionals keeps rents competitive, creating a favorable price-to-rent ratio.
We cover a lot of neighborhoods and provide a lot of updated data in our pack about real estate in Riga.
Where do tenants pay the highest rents in Riga in 2026?
As of early 2026, tenants in Riga pay the highest rents in Klusais centrs (the Quiet Centre), Vecrīga (Old Town), and Mežaparks, where premium renovated apartments command significant premiums.
A standard apartment in these premium Riga neighborhoods typically rents for €1,200 to €2,000 per month (approximately $1,300 to $2,160 USD), with luxury units pushing well above that range.
These neighborhoods command the highest rents because they combine historic architecture or green surroundings with modern renovations, secure buildings, and the kind of walkable lifestyle that higher-income tenants actively seek out.
The typical tenant profile in these highest-rent Riga neighborhoods includes embassy staff, executives at international companies, wealthy local professionals, and long-stay tourists who value location and quality over price.
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.
What do tenants actually want in Riga in 2026?
What features increase rent the most in Riga in 2026?
As of early 2026, the three property features that increase monthly rent the most in Riga are efficient heating systems that keep winter bills low, fully renovated modern bathrooms and kitchens, and working elevators in buildings above four floors.
An energy-efficient heating setup (like individual gas heating or a well-insulated building) can add a 10% to 15% rent premium in Riga because tenants know their utility bills will be dramatically lower during the long winter months.
One commonly overrated feature in Riga is high-end designer finishes, since most tenants care far more about functional quality and low utility costs than Instagram-worthy aesthetics that drive up your renovation budget.
One affordable upgrade with strong ROI in Riga is installing modern double-glazed windows, which typically costs €2,000 to €4,000 for a standard apartment but can boost rent by 5% to 8% while also attracting tenants faster.
Do furnished rentals rent faster in Riga in 2026?
As of early 2026, furnished apartments in Riga typically rent one to three weeks faster than unfurnished ones because the city has strong demand from students, young professionals, and expats who want move-in-ready units.
Furnished rentals in Riga command a rent premium of about 10% to 20% over unfurnished equivalents, though the premium shrinks for larger family apartments where tenants often prefer to bring their own furniture.
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How regulated is long-term renting in Riga right now?
Can I freely set rent prices in Riga right now?
Landlords in Riga have full freedom to set initial rent prices at whatever level the market will bear, since Latvia does not impose rent control or caps on new tenancies.
Rent increases during an existing tenancy in Riga are governed by what your lease agreement specifies, meaning you cannot raise rent mid-contract unless the contract explicitly includes a mechanism for increases (like annual indexation).
What's the standard lease length in Riga right now?
The standard lease length for residential rentals in Riga is 12 months, though Latvia's contract freedom means you can negotiate shorter or longer fixed terms depending on your situation and the tenant's preferences.
Landlords in Riga typically request a security deposit of one to two months' rent (roughly €700 to €2,600 or $755 to $2,800 USD depending on the property), which is the market norm though not a strict legal cap.
Security deposits in Riga must be returned at the end of the tenancy minus any documented damages or unpaid rent, with disputes typically resolved through the terms specified in the lease agreement or civil court if necessary.
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.
How does short-term renting really work in Riga in 2026?
Is Airbnb legal in Riga right now?
Short-term rentals like Airbnb are legal in Riga, but you should treat them as a regulated activity rather than an unmonitored side hustle, especially with new EU rules taking effect in 2026.
Currently, Riga does not require a specific STR license, but you must register your economic activity with the State Revenue Service (VID), pay applicable taxes, and comply with the municipal tourism levy that applies to tourist accommodation.
Latvia does not currently impose annual night limits on short-term rentals, but the EU's new STR regulation (effective May 20, 2026) will require registration numbers and platform data-sharing, so expect tighter oversight soon.
The most common consequence for non-compliant short-term rental operators in Riga is tax penalties from VID for undeclared income, plus potential removal from platforms once the EU data-sharing requirements kick in and make unregistered listings easy to identify.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Riga.
What's the average short-term occupancy in Riga in 2026?
As of early 2026, the average annual occupancy rate for short-term rentals in Riga sits around 60%, meaning your property will likely sit empty about 40% of available nights.
The realistic occupancy range for most Riga short-term rentals spans from 45% for poorly located or reviewed properties up to 75% or higher for well-optimized listings in prime central areas.
Riga's short-term rentals see the highest occupancy during the summer months (June through August) when tourism peaks, plus notable bumps during the Christmas market season in December and major events like the Riga City Festival.
The lowest occupancy months in Riga typically fall between January and March when winter tourism drops, daylight is limited, and both leisure and business travel slow significantly.
Finally, please note that you can find much more granular data about this topic in our property pack about Riga.
What's the average nightly rate in Riga in 2026?
As of early 2026, the average nightly rate for short-term rentals in Riga is approximately €73 (around $79 USD), though this varies significantly by location, property quality, and season.
The realistic nightly rate range in Riga spans from about €40 to €50 ($43 to $54 USD) for basic apartments in outer districts up to €120 to €180 ($130 to $195 USD) for premium central units or unique properties.
Peak season rates in Riga (summer and Christmas market period) typically run 30% to 50% higher than off-season rates (January through March), meaning a property averaging €73 per night annually might fetch €95 to €110 in July but only €50 to €60 in February.
Is short-term rental supply saturated in Riga in 2026?
As of early 2026, Riga's short-term rental market is competitive but not fully saturated, with roughly 3,750 active listings absorbing demand at a healthy 60% average occupancy rate.
The number of active STR listings in Riga has been relatively stable, with modest growth as the market matures and new EU regulations create uncertainty that discourages speculative entrants.
The most oversaturated Riga neighborhoods for short-term rentals are Vecrīga (Old Town) and the immediate Centrs area, where listing density is highest and competition for the same tourist traffic is intense.
Neighborhoods in Riga that still have room for new STR supply include Āgenskalns, Ķīpsala, and parts of Teika, where tourist appeal exists but listing density remains lower than central districts.
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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 Riga, 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 |
|---|---|---|
| Latvian Parliament (Saeima) | Official government announcement of enacted legislation. | We used it to confirm the nationality-based ownership ban for Russian and Belarusian citizens. We treated it as the primary source over any media summaries. |
| European Land Registry Association (ELRA) | Official European network summarizing land registry enforcement rules. | We used it to separate apartment ownership from land-related restrictions. We relied on it to keep foreign ownership guidance accurate. |
| Latvia State Revenue Service (VID) | Official tax authority guidance for individuals. | We used it to answer tax registration questions for rental income. We relied on it for the practical compliance route foreign landlords need. |
| Global Property Guide | Established international dataset with transparent yield calculations. | We used it as our baseline for gross yields and typical asking rents. We applied their net yield formula as a starting point for cost estimates. |
| ARCO Real Estate | Long-established Latvian firm publishing recurring Riga market snapshots. | We used it for Riga-specific price-per-square-meter benchmarks. We relied on their neighborhood breakdowns to ground our district analysis. |
| AirDNA | Widely used STR industry data platform with consistent metrics. | We used it for Riga occupancy rates and average daily rates. We relied on their listing counts to assess market saturation. |
| EUR-Lex (EU Law Database) | Official EU legislation portal. | We used it to explain the May 2026 STR registration deadline. We relied on it to warn investors about upcoming compliance changes. |
| Riga Municipality (Tourism Levy Page) | Official city information portal for municipal fees. | We used it to explain the Riga-specific tourism levy on short-term rentals. We factored it into STR cost calculations. |
| Central Statistical Bureau of Latvia | Official national statistics agency. | We used it to verify price trend direction through 2025. We treated it as a macro check against private market reports. |
| Latvia Ministry of Economics | Government ministry describing national policy direction. | We used it to confirm Latvia's STR implementation plans. We relied on it to justify a conservative compliance approach for 2026. |
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.
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