Buying Property in Latvia: The Ultimate Guide 2024

Buying property in Latvia is becoming one of the top ways to obtain Latvian residency. To get started you need to understand how buying property in Latvia works for foreigners and the various aspects to consider before hearing the golden word, SOLD!

In this guide you will learn about:

• Who can buy property in Latvia
• Buying property in Latvia as a foreigner
• Steps for buying property in Latvia as a foreigner
• Best places to buy property in Latvia
• Latvia property market compared to other EU countries
• Latvia property tax
• Advantages of buying a property in Latvia
• Pitfalls of buying property in Latvia

Who can buy property in Latvia? 

Anyone is able to buy property in Latvia, but there are some different requirements for various nationalities depending on residency. Let’s take a look:

• Citizens of the EU/EAA: Unrestricted rights for buying property in Latvia.
• Non-EU/EAA citizens: There are some restrictions on the types of property for non-EU/EAA citizens. They are not permitted to purchase agricultural or forest land.

Buying Property in Latvia as a Foreigner

Foreign nationals who purchase real estate property in Latvia have the same rights as Latvian citizens. This includes commercial real estate, rentals, and residential properties.

The Latvia Golden Visa program offers one of the best options for buying property in Latvia as a foreign national. If you purchase a property worth a minimum of €250,000, you can qualify for the Latvia residence permit. To remain qualified, the property must be held for a minimum of five years.

What are the steps for buying property in Latvia as a foreigner? 

Before you start your Latvia property purchasing journey, it’s important to understand the various steps to buy a property as a foreigner in Latvia.

Step One: Property search

Foreign nationals can start by looking at different properties online to get an idea of what might work for them. Once you have a good idea on what you’re looking for and the areas you’re interested in, speaking with a real estate agent can be a great help on your property journey. Additionally, there are real estate agents who have worked with foreign nationals previously, so they know the most popular areas and how to advise on the purchasing process.

Step two: Due diligence

It is vital for you to carry out due diligence before buying a property. You need to ensure that the property is not under debt review and that there are no outstanding legal issues.

Hiring a lawyer in Latvia may be the best option here to ensure you get the proper advice and have an understanding of what you’re getting into. Remember, the laws in Latvia will likely differ to your home country, so having a third party to provide advice can help prevent issues down the road.

A lawyer can also help with writing up the preliminary agreement if this is required. It is not compulsory, but does make things easier further down the line, with all parties understanding what is involved in the sale.

Step three: Obtain a notary

You will need a Latvian notary to oversee the legal transfer of the property. Both parties (property owner and new buyer) will need to sign the purchase agreement in front of the notary.

Step four: Register the property at the Latvian Land Registry

Once the purchase agreement has been signed it needs to be submitted to the Latvian Land Registry. Once there, the transfer of ownership takes place and usually takes about 1-2 weeks.

Best Place to Buy Property in Latvia: The Latvia Real Estate Market 

Riga 

Riga is the capital of Latvia with a bustling property market, economic activity, cultural sites, and fantastic restaurants. Riga is one of the top places to buy property in Latvia if you’re looking for a good rental income.  

Property purchase prices for Riga

Jurmala 

Jurmala is a popular seaside resort town that is well known for its sensational spas and beautiful beaches, making it ideal for those looking to rent their real estate properties for short term holiday stays.  

Purchase prices for Jurmala

Liepāja 

On the western coast of Latvia, Liepāja is a port town known for its historical architecture and fascinating culture. It is an attractive rental property area with everything needed for tranquil coastal living.  

Purchase prices for Liepāja 

Daugavpils 

Situated on the southeast of Latvia, Daugavpils is the country’s second largest city. It is ideal for those looking for affordable properties in a tranquil area.  

Purchase prices for Daugavpils

How does the property market in Latvia compare to other EU countries? 

Latvia

Latvia has a growing real estate market, with more foreign investors looking to make the country their home or see a return on investment for rental properties.  

The Latvia real estate market is set to grow at an annual rate of 3.87% (CAGR 2024-2029). The residential market is leading the way with a market value of $151.80 billion in 2024, with predictions showing a growth to $234.20 billion in 2029.  

 Portugal 

The real estate market in Portugal has experienced impressive growth, and the outlook remains just as promising. The residential property sector is expected to expand by 4.97% annually from 2024 to 2029, with its value rising from $1.33 trillion in 2024 to $2.09 trillion by 2029. 

Spain  

Spain’s real estate market is thriving, with the residential sector leading the way, valued at $5.69 trillion in 2024. Looking ahead, the market is set for steady growth, with an annual increase of 2.77% from 2024 to 2029, reaching an impressive $8.22 trillion by 2029. 

Greece  

Greece remains a top choice for real estate investment, and it’s easy to see why. The residential property market in Greece is expected to reach $1.28 trillion in 2024, with a projected annual growth rate of 3.53% from 2024 to 2029. By 2029, the market is anticipated to grow to $1.82 trillion.  

Buying Property in Latvia Tax

Before you set off to purchase real estate in Latvia, its important to understand the property taxes involved. Property taxes in Latvia are as follows: 

• Transfer tax: The Latvia transfer tax stands at 3.75% of the higher value between the purchase price, the cadastral value, or the mortgage valuation of the property. 
• VAT: Newly built residential properties have a standard VAT rate of 21%.  
• Residential property tax: Between 0.2%-0.6% depending on the property value.  

Advantages of Buying a Property in Latvia 

Here are the advantages of buying a property in Latvia: 

• Affordability: Compared to many other European countries, Latvia offers many more affordable options, while still having fantastic amenities and quality of life.  
• Business-friendly tax system: Tax in Latvia is considered relatively low compared to other European countries, with corporate tax remaining low and tax exemptions for reinvesting profits.  
• Growing property market: The Latvia real estate market has seen steady growth and predictions are showing the same, with the demand for commercial and residential properties increasing.  
• EU membership: Latvia forms part of the European Union, offering investors stable and secure investment opportunities. Those with a Latvian passport can also travel freely throughout the EU, making it ideal for multinational businesses.  
• Digital nomad friendly: Latvia is extremely welcoming to digital nomads and freelancers, inviting remote workers to experience all this beautiful country has to offer on a temporary residency permit.    
• Fantastic rental market: Latvia is seeing a serious boom in the long- and short-term rental market, making it ideal for property owners that want to see a return on their investment. 

Pitfalls of Buying Property in Latvia  

While there are fantastic benefits to buying property in Latvia, it’s important to understand the disadvantages too: 

• Non-EU/EAA restrictions: Citizens of the EU have no restrictions on buying property in Latvia. However, Non-EU/EAA citizens may be limited on the types of property they can buy, and fees may be higher depending on the nationality and various requirements.  
• Legal considerations: It’s important to understand that the Latvian legal system may be very different from your home country. Obtaining a lawyer in Latvia is the safest way to ensure you understand the legal aspects and what you are liable for when buying a property.  
• Limited financial options: Foreign nationals may find it difficult to obtain funding to buy property in Latvia. Non-residents are often required to put forward larger deposits, and requirements may be stricter. 

Is Latvia a good place to buy property? 

Absolutely, Latvia is a fantastic place to buy property for foreign investors. The rental and sales market have seen significant increases in recent years and there are no signs of it slowing down. Plus, with lower property prices, Latvia is far more investor friendly for lower incomes that may not be able to afford major cities in Europe.  

How Can Global Citizen Solutions Help You?

Global Citizen Solutions is a boutique migration consultancy firm with years of experience delivering bespoke residence and citizenship by investment solutions for international families. With offices worldwide and an experienced, hands-on team, we have helped hundreds of clients worldwide acquire citizenship, residence visas, or homes while diversifying their portfolios with robust investments. 

We guide you from start to finish, taking you beyond your citizenship or residency by investment application. 

  

  

Frequently Asked Questions About Buying Property in Latvia

Can US citizens buy property in Latvia?

Yes, US citizens are welcome to buy property in Latvia. There are no significant restrictions, only that foreign nationals cannot purchase agricultural land or forest land.  

How to buy a property in Latvia?

The easiest way to buy a property in Latvia is to work with a local real estate agent who understands the market and your needs. It is also advisable to hire a lawyer once you select a property to ensure everything is in place before registering with the Land Register.  

What is the average house price in Latvia?

The average price for a house in Latvia is about €1,581 per square meter. House prices in Latvia vary dramatically based on location and property type.  

Is Latvia a good investment?

Yes, Latvia is quickly becoming one of the top investment options, with the Latvia Golden Visa offering a popular residency by investment program.  

Can I get residency in Latvia if I buy a house?

Yes, the Latvia Golden Visa program invites foreign nationals to invest in Latvian property in exchange for long term residency in the country. This may also lead to Latvian citizenship if you meet the requirements.  

How much is property tax in Latvia?

Transfer tax in Latvia stands at 3.75% of the sale price for a real estate transaction, residential property tax is between 0.2%-0.6%, and newly built residential property has a VAT rate of 21%. 

Can foreigners buy property in Riga?

Absolutely, foreigners are welcome to purchase property in Riga. As Latvia’s capital, Riga boasts a thriving property market, making it a popular choice for both investors and residents.