Buying and Registering Property in Latvia: Residents of other countries are welcome to buy property in almost any position but in border areas, the guarding belt of the Gulf of Riga and the Baltic Sea, as well as shelter lines of other bodies of water, farmland, and forests. However, foreigners can take this land on lease for up to 99 years.
How Buying and Registering Property in Latvia works:
1. Find a property
A local real estate company gives properties that match your choices as a buyer. The main things to keep in mind are the city, district, and budget. Once you have found one or more options that interest you, the agency will arrange a viewing. Don’t hesitate to ask your real estate agent any questions you may have about the property, payment procedures, or potential discounts.
If you want to obtain a residence permit, you must spend at least €250,000 on your property. Your real estate agent can help you set up an investment plan and do the necessary legal checks if you are looking to obtain a residence in Latvia.
2. Check the property
Your real estate agent will conduct the necessary investigations regarding the potential load on the property, taxes, and mortgage dues.
3. Open a bank account
As a buyer, you will need to open a bank account which costs around €500. You may also be qualified for a contract in Latvia.
4. Sign the initial sales contract and pay the deposit
Now that you have a bank account, it’s time to sign the initial sale agreement and make a down payment amounting to 10% of the purchase price.
5. Apply to buy land
As a foreign national, you may have to apply to the local authorities for land purchase rights in some cases, which can take up to 2 weeks. Your real estate agent will let you know if necessary.
6. Do the due diligence
To prove that your property is registered, the local land registry should be checked for records. Any property for sale must be registered with the Land Registry Office.
7. Sign the final sales contract
The sales contract will be drawn up by a lawyer, then you and the seller will be asked to sign it in front of a notary. You will be charged a notary fee of €117–272 to execute the contract, which can be concluded at the Latvian Embassy in Latvia or your home country. According to Latvian law, the real estate agent commission cannot exceed 5% of the purchase price. Legal fees are usually paid by the seller and range from 2% to 7% of the purchase price.
8. Register with the Land Registry
It takes a few documents to get your proof of ownership but only 10 days to process and a total of 14 days. To register the property in your name, you will need the following paperwork:
- Notarized application;
- Sales contract;
- Proof of sale consent of the seller’s sole proprietorship or spouse;
- Acquisition approval granted by local authorities for property subject to restrictions under the law: on land privatization in rural areas and land reform in cities in the Republic of Latvia, or a document proving that you are protected from any restrictions on land acquisition Yes, there is a discount;
- Receipt of payment of stamp duty levied for registering your transaction;
- receipt certifying payment of the clerk’s charge;
Power of Attorney: Original or certified copy if you acted by proxy.
Stamp duty is 2% of the highest amount paid; This can be either the price entered in the land register or the purchase price specified in the contract. The clerk’s fee for formalizing property rights is only €15 and the fee for a certificate of ownership from the land registry is €7.
Property prices in Latvia
80% of foreign investors who buy property in Latvia attract half of the property sales with the capital Riga.
Mid-range new-build flats in Latvia can range in price from €980–1,200/sq.m and luxury accommodations can range from €1,700–4,000/sq.m. In January 2015 the prices of Soviet-era flats increased by 3.2% and the prices of Riga houses also changed. The average price of houses in Riga is €640/sq.m.
Downtown property prices can go as high as €2,500-3,500/m, while average prices in Riga’s most expensive neighborhood, Teka, start around €700/m.
Wise investors are looking for blocks in the 199 and 104 series, the latter being a new type of building, with a one-bedroom apartment selling for €33,000–41,000. Riga real estate prices are great for buyers in Khrushchevka and Lithuanian project apartments €18,000-30,000 cost less money.
A one-bedroom flat in the popular Old Riga district costs around €150,000, while an apartment with a similar area in a residential district would cost only €70,000.
The average price for studios around the Riga area is €23,000-30,000. One-bedrooms cost €32,000–40,000, two-bedrooms €36,000–47,000 and three-bedrooms €45,000–52,000.
Accommodation here is more expensive than in other cities, but still much cheaper than in most European countries. Flats start at €20,000, a better villa can cost €500,000 and elite accommodations can reach up to €1.5M.
Mortgage in Latvia
However, getting a loan in Latvia is relatively simple: the process is not time-consuming, and the down payment can be up to 30%.
Benefits of Latvian Residence
- Freely entering and leaving the country;
- Work and study in Latvia;
- Access to Latvian public and health services on fee-based insurance;
- Issuing visa invitations to relatives and others;
- Travel freely in the Schengen area;
- Apply for visas in other countries including Australia, Canada, UK, and the US;
- buying automobiles registered in Latvia for use in all EU countries without paying customs duties;
Have a real driving license in the European Union.
It is important to note that only a Latvian residence permit does not entitle the holder to work in other countries of the Schengen area.
Permanent residence in Latvia
After living in Latvia for five years, residents can either renew their temporary residence permit or apply for permanent residence. A prerequisite for obtaining permanent residency is basic knowledge of Latvian.
Unlike a temporary residence license, permanent residence in Latvia is uncertain. Permanent residence must be renewed every five years, but the process is easier than extending a temporary residence permit.
How to get Latvian citizenship
The acquisition of a Latvian passport is governed by the citizenship law of Latvia.
Latvian citizenship can be obtained by children and spouses of Latvian citizens, as well as by naturalized foreign nationals.
Latvian citizenship by naturalization may be granted to persons who:
- Are at least 15 years old;
- Knows the Latvian language, understands the fundamentals of the Latvian constitution, is familiar with the country’s national history and culture, and knows the text of the Latvian national anthem;
- Have a legal source of income;
Has submitted a statement renouncing his previous nationality and has obtained permission for repatriation of nationality from the previous country. Children under the age of 15 who are permanently residing in Latvia can be naturalized with their parents.
Know detailed information about Economy in Latvia and information about Buying and Registering Property in Latvia at https://www.latvia.eu/
