Property taxation in Latvia

The payment of this tax is regulated by the Law on Real Estate Tax N 145/147 of 06/17/1997 (Par nekustamā īpašuma nodokli, hereinafter referred to as the Law).
The taxpayers are the owners of real estate or persons with the right to use it (Article 2 of the Law).
The objects of taxation are (Article 1 of the Law):

• land plots;
• buildings (structures), including apartment buildings.

A number of objects are not subject to taxation, in particular (Article 11 of the Law):

• engineering buildings owned by individuals and not used in economic activities;
• auxiliary buildings of residential buildings with an area (excluding garages) of no more than 25 m2. The exemption does not apply if such structures are environmentally damaging, dilapidated or a safety hazard;
• buildings and structures used for agricultural production.

Also, local authorities may establish additional grounds for tax exemption.

Procedure for declaring and paying tax
The tax period is a calendar year (clause 2, article 3 of the Law). As a general rule, the tax is payable for the year following the year of acquisition of real estate or the right to use it (Article 7 of the Law). At the same time, for newly registered objects, as well as for objects whose construction period has expired, the tax is paid one month after the relevant event.
As a general rule, the taxpayer does not have to file a declaration, since the tax is calculated by the tax authorities. The tax notice must be sent before February 15 of the current year (Article 6 of the Law). It is possible to receive notifications in electronic form.
If the tax notification is not received before February 15, then the taxpayer must notify the tax authority about this within a month (clause 2, article 6 of the Law).
The tax is paid during the current tax year on a quarterly basis in the amount of 1/4 of the annual tax in the following terms (inclusive):

• March 31;
• May 15;
• August 15;
• November 15.

Also, the tax can be paid in one payment for the year in advance.

Tax calculation

The tax is calculated by the tax authorities based on the cadastral value of real estate as of January 1 of the current year or on the date of registration of real estate. The new value, if changed, will apply from the following year.

The tax rate is from 0.2% to 3% (from 0.1% to 2% - agricultural land). For each territory, the tax rate may vary and change annually, while the rate is set no later than November 1 of the year preceding the tax period. If within this period the municipality has not published the tax rate, then the following rates apply (Article 3 of the Law):

1) 1.5% - the general rate, unless a different rate applies;

2) for residential buildings (including garages and utility rooms) that are not used in economic activities (including for leasing):

• 0.2% if the cadastral value does not exceed €56,915;
• 0.4% if the cadastral value is more than €56,915 up to and including €106,714;
• 0.6% if the cadastral value is over €106,714.

3) 3% - for buildings that harm the environment, dilapidated or threaten safety (the list of such buildings is also published no later than November 1 of the year preceding the tax period), as well as for buildings whose construction period has exceeded the established period.

The taxpayer must notify the municipality within 1 month of the use (termination of use) of real estate in economic activities (including for renting), which is the basis for recalculating the amount of tax (clause 10, article 3 of the Law).

There is also an obligation to notify the local government of the following events (Article 7 of the Law):

• availability/loss of the right to tax exemption;
• acquisition of ownership, obtaining the right to use or lease - within 1 month.

In case of failure to fulfill such an obligation, a fine of 30% of the amount of tax payable for the period of non-notification is provided (clause 5, article 9 of the Law).

There are also special rules for agricultural land.

Local authorities can provide property tax benefits, in particular for low-income, large families (Article 5 of the Law).

The payment of the tax is regulated by the Law on the operation of vehicles N 206 of December 30, 2010 (Transportlīdzekļa ekspluatācijas nodoklis, hereinafter referred to as the Law in this section).
Tax payers are persons owning vehicles (TC) registered in the territory of Latvia, or persons residing in the territory of Latvia and owning vehicles (Article 3 of the Law).
Without paying the tax, registration actions with the vehicle, technical inspection, as well as transactions with it are not performed.
In a number of cases, tax exemption is granted, in particular (Article 6 of the Law):

• electric vehicles;
• persons with disabilities;
• persons with a disabled child (one vehicle).

Benefits are also provided when the tax is paid in a smaller amount, in particular (Article 7 of the Law):

• 50% - for large families;
• 90% - vehicles equipped to run on gas fuel;

The specified exemptions and benefits do not apply when using the vehicle for the commercial transportation of goods and passengers (with the exception of electric vehicles).

Procedure for declaring and paying tax

The tax is paid for each year of ownership of the vehicle (Article 5 of the Law). At the same time, the payment of the tax is timed to the registration of the vehicle, the passage of a technical inspection, as well as to transactions with the vehicle. As a rule, the tax is paid at the next mandatory maintenance, including for previous years of ownership. That is, there is no specific date for paying the tax.

Also, upon receipt of transit numbers, 1/12 of the annual tax amount is subject to payment (clause 6, article 5 of the Law).

Tax calculation

The tax is calculated based on the type and parameters of vehicles, such as engine size, CO₂ emissions and power (Article 4 of the Law). So, for example, for passenger cars with internal combustion engines and with a hybrid installation, rates apply depending on the amount of CO₂ emissions in grams per km:

• €0 - up to 50 g/km;
• €12 - from 51 to 95 g/km;
• €48 - from 96 to 115 g/km;
• €84 - from 116 to 130 g/km;

^...

• €408 - from 276 to 300 g/km;
• €552 - from 301 to 350 g/km;
• €756 - from 351 g/km.

In the absence of data on CO₂ emissions, the tax amount is summed up from the rates established for three parameters: mass in kg, engine displacement in cm³, power in kW (clause 8, article 4 of the Law).

When registering a vehicle during the year, the tax is paid for the number of remaining months, including the month of registration. When deregistration, tax is also paid for the number of months, including the current month (Article 5 of the Law).

At the same time, when the vehicle is deregistered (for example, in connection with the sale, application of benefits or exemptions), part of the tax can be returned at the request of the taxpayer (Article 8 of the Law).

For cars used for commercial purposes (company cars), special tax rates and other features of taxation are established (Chapter 3 of the Law).