Purchase a Property in Latvia
Purchase a Property in LatviaUpdated on Friday 21st August 2015
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Latvia is one of the three Baltic states and, despite going through the economic crisis of 2008-2009, the country’s economy is recovering and improvements can be very well seen in the interest shown for purchasing properties in Latvia. As a member of the World Trade Organization since 1999 and the European Union since 2004 and currently using the Euro as its official currency, Latvia has great potential for foreign investors who want to set up a business in the Baltic region.
Property purchase in Latvia can serve personal purposes or business purposes. New buildings as well as old and charming houses are available on the market in Latvia’s most important cities.
Steps for purchasing a property in Latvia
Foreigners are allowed to buy, modify and demolish buildings in Latvia, as long as the building and the land are acquired separately. A special provision applies to the purchase of lands - foreigners may lease the land without any restriction, but for acquisition purposes the land is subject to approval from the local municipality.
After choosing the desired property, the buyer and the seller must sign a preliminary purchase agreement. The buyer must afterwards make a deposit, usually 10% of the purchase price.
Before signing the final purchase agreement, the notary will perform a preliminary check of the real estate property in order to determine if there are any encumbrances (mortgages, other lease contracts etc.). Our Latvian lawyers can perform an additional and complete real estate due diligence procedure to ensure that the property is a good investment.
After all of the documents are provided and all the conditions are met, the final purchase agreement can be drawn up and signed in front of a notary in Latvia. Our lawyers in Latvia will represent you during this process. A handover document can also be signed on the day the property is handed over to the new owner. This document contains details about the state of the house.
The new owner must register the property in his or her name at the Latvian Land Register. Our lawyers in Latvia can help you throughout the property registration procedure.
Please contact our law firm in Latvia if you are interested in doing business and you want to open a company in Latvia. We can provide various legal services.