Cadastral Value and Real Estate Tax in Latvia in 2025
What Are the New Changes?
From January 1, 2025, two cadastral values will come into effect: the fiscal cadastral value and the universal cadastral value.
Updates to Cadastral Values
Cadastral values will be updated in phases, and during this transition period, both fiscal and universal cadastral values will be in effect:
- Fiscal Cadastral Value: This will be used for calculating real estate taxes, state duties, and payments into state or municipal budgets, excluding fees for legal land use. It will remain at the current level, meaning that real estate tax payments for residents in 2025 will not increase. These taxes will continue to be calculated based on cadastral values corresponding to market data from 2012.
- Universal Cadastral Value: This will be used for other purposes not mentioned above, such as rental payments in cases of forced divided ownership and other calculations (e.g., accounting and financial reporting) where a market-based cadastral value is important.
Updates to Cadastral Values
Cadastral values will be updated in phases, and during this transition period, both fiscal and universal cadastral values will be in effect:
- Fiscal value will be used for tax and fee calculations.
- Universal value will be closer to market values and used for non-tax-related purposes.
Why Are Cadastral Values Being Updated?
Accurate and reliable cadastral values allow both companies and individual property owners to make informed decisions about their real estate without needing individual property evaluations.
Updated cadastral values help state and municipal institutions make data-driven decisions, attract investments, and support area development, as well as long-term planning in various fields.
What Will Change With Updated Cadastral Values?
Future Steps and Timeline
By June 15, 2027, regulations governing cadastral valuation will be refined, and a new cadastral value base will be approved. This new base is planned to be applied for cadastral value calculations starting in January 2029.
Sources:
Accurate and reliable cadastral values allow both companies and individual property owners to make informed decisions about their real estate without needing individual property evaluations.
Updated cadastral values help state and municipal institutions make data-driven decisions, attract investments, and support area development, as well as long-term planning in various fields.
What Will Change With Updated Cadastral Values?
- Real estate-related taxes and fees, calculated based on cadastral values, may significantly impact household finances by increasing costs associated with maintaining, purchasing, or inheriting property.
- It will also influence compensation amounts for land use in cases of forced divided ownership.
- Real estate tax is a significant revenue source for municipalities, directly affecting local budgets.
Future Steps and Timeline
By June 15, 2027, regulations governing cadastral valuation will be refined, and a new cadastral value base will be approved. This new base is planned to be applied for cadastral value calculations starting in January 2029.
Sources:
- (c) State Land Service
- (c) Lvportals.lv
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