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Buy a House in Latvia – Get Legal Help from Our Lawyers

Purchase a Property in Latvia

Updated on Monday 03rd January 2022

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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. 
 
Buying property in Latvia can serve personal purposes or business purposes. New buildings and old and charming houses are available on the market in Latvia's most important cities. You can get in touch with our lawyers in Latvia if you are interested in buying property in this country. They can help you to buy a house in Latvia.
 

How to buy a property in Latvia?

 

The legal aspect of any real estate buying deal is just as crucial as the presence and condition of the property you want to buy. In Latvia, a typical property acquisition transaction will typically include the following stages:
 
  • locating the ideal property; negotiating and closing the sale;
  • the new owner's registration;
  • the process of giving over the keys.
 
These are three basic steps to follow in order to buy a house in Latvia. But you can also find below detailed guidance about buying a property in Latvia. Our lawyers can also provide you with comprehensive assistance in this matter. A few more stages may be added to the above list in more complex circumstances. For example, if the property is held as a security by third parties or purchased with a loan, or if the parties want to enter into an earnest money agreement. The earnest money agreement, also known as a deposit, is typically utilized when the transaction cannot be completed immediately. The buyer pays a portion of the purchase price as a deposit to ensure that the transaction will be completed. You can get further details from our law firm in Latvia in this regard.
 
 
In addition to buying a house in Latvia, you can also rely on our lawyers if you want to understand the process of VAT (value-added tax) registration in Latvia. Our knowledgeable lawyers will provide you with thorough guidance in this regard.
 

Where can foreigners buy real estate in Latvia?

 

Foreigners were most interested in obtaining a residence permit in Latvia through acquiring real estate (apartment) in 2017. Approximately 10,000 foreigners are granted residence permits in Latvia each year to purchase a property.
 
Foreigners who purchase real estate in Latvia, either for themselves or for family members, also apply for a residence permit. Apartments in Riga and Jurmala draw the most attention from foreigners. Babe, Mrupe, Garkalne, Carnikava, and Saulkrasti are also popular among foreign visitors. Ozolnieki, Amata, Csis, Iecava, Madona and other cities outside of Riga are preferred regions to buy a home in Latvia.
 
If you want an additional guide regarding buying property in Latvia, you are welcome to get in touch with our skilled lawyers. You can also rely on our immigration lawyers if you want to immigrate to Latvia. Our lawyers in Latvia will help you with the application and document submission procedure. It is always recommended to acquire legal assistance in such matters to avoid any unnecessary delays.

 

Guide for purchasing a property in Latvia

 

Foreigners can 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 real estate in Latvia, is foreigners may lease the land without any restriction. Still, the land is subject to approval from the local municipality for acquisition purposes.
 
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 to determine any encumbrances (mortgages, other lease contracts etc.). Our Latvian lawyers can perform an additional and real estate due diligence to ensure that the property is a good investment. 
 
After all, 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 when 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.

 

Qualification for purchasing a property in Latvia

 

Investors can purchase a property (apartment, luxury residence) in Riga, Jurmala, or other large cities. Foreigners currently account for 70% of all property transactions in Latvia, with Russians, Chinese, Ukrainians, and Uzbeks accounting for most of the transactions. Investors and their families are eligible for a 5-year residency permit in Latvia, which can be extended. There are some prerequisites for residency. Permanent residency is achievable after five years of continuous residence in Latvia, followed by citizenship after another five years of speaking Latvian and thoroughly assimilating into the culture of this country. If a foreigner's real estate was registered in the Land Register after September 1, 2014, Immigration Law revisions increased the threshold for obtaining a residence visa and imposed additional criteria and costs.
 
Besides your plan to buy a house in Latvia, if you want to open a company in Latvia, you can trust the legal services of our attorneys. Our attorneys in Latvia can also help you acquire all the necessary business permits and licenses for regulating a business in this country. 

 

Advantages of investing in Latvia

 

Latvia is the Baltic country with the fastest growth rate of the economy. The demand for real estate has skyrocketed, with property prices in the EU experiencing the most significant year-on-year gain of almost 11%. Latvia offers international investors a golden visa (permanent residency) if they purchase real estate worth min. EUR 250,000. A 5% additional state charge of EUR12,500 is paid to the government. After investing in Latvia's real estate, you can get the following advantages:

 

  • one of Europe's cheapest golden visas;
  • one of Europe's most profitable real estate investment;
  • residency in an EU Schengen country;
  • low cost of living;
  • Schengen visa-free travel;
  • there is no obligation to live permanently in Latvia for family and children to qualify for Latvian residency (visit once a year).

 

If you want to know the other benefits you can get once you buy a house in Latvia, you can interact with our lawyers. They will help you understand all the aspects related to it. Furthermore, if you want to apply for a residence permit in Latvia, you can get in touch with our lawyers. They will provide you with legal assistance in acquiring a residence permit in this country. 
 

Real estate transactions for getting a residence permit in Latvia

 

If you are interested in acquiring a residence permit by buying property in Latvia, you can interact with our lawyers. They will describe the value of transactions in real estate necessary to make for getting a residence permit in this country. Please find below some figures on the real estate transactions in Latvia:

 

  • Latvia's real estate transactions must have a minimum value of €250,000;
  • the property's entire value at the time of purchase should be at least €80,000;
  • a 5% payment to the state budget on the real estate transaction value applies.

 

Please do not hesitate to contact our law firm in Latvia if you want to buy a house in Latvia. Furthermore, you can also get in touch with our lawyers if you need guidance regarding obtaining citizenship by investment in Latvia. They will provide you with all the necessary details and requirements.