Property Tax in Latvia (NĪN): Rates, Cadastral Value, Reform
July 30, 2026
Real estate tax in Latvia (nekustamā īpašuma nodoklis, NĪN) is an annual municipal tax calculated on the cadastral value of land and buildings. The standard rate is 1.5% of cadastral value for land and commercial property. Residential property not used for business is taxed progressively at 0.2% to 0.6%. Municipalities may set their own rates in binding regulations within a 0.2–3% corridor, so the exact bill depends on where the property is located.
Everyone who owns Latvian real estate on 1 January pays NĪN — individuals, companies, and non-residents alike. There is no surcharge for foreign owners: a non-resident with a Riga apartment receives the same tax notice as a local resident.
One crucial piece of background: the cadastral values used for tax are still based on 2012 market data. New cadastral values are planned to apply to tax calculation only from January 2029 — until then, NĪN is charged on the old, frozen base, which is why the tax is often surprisingly low compared to actual market prices.
Quick Summary
Latvia's real estate tax (NĪN) is charged annually on cadastral value: 1.5% for land and commercial buildings, and a progressive 0.2–0.6% for residential property, with municipalities allowed to set rates between 0.2% and 3%. All owners pay, including non-residents. Cadastral values for tax purposes remain frozen at 2012 market levels; a new valuation base must be approved by 15 June 2027 and is planned to apply from January 2029. The tax is paid quarterly — in 2026 by 31 March, 15 May, 17 August, and 16 November. Families with three or more children receive a 50% discount (up to EUR 500), and Riga applies its reduced residential rates only if at least one person is declared at the address on 1 January.
Who Pays NĪN
The taxpayer is whoever owns or legally possesses the property on 1 January of the tax year. If you buy an apartment in March, your obligations generally start the following January. The tax applies to land, buildings, and engineering structures registered in the Cadastre.
Non-residents pay NĪN under exactly the same rules as residents. The practical difference: the municipality sends the payment notice by 15 February, so foreign owners without a Latvian address should register at epakalpojumi.lv to actually receive it. Unpaid NĪN accrues interest and blocks a sale — the Land Register requires proof the tax is settled before registering a transfer. See our guide to non-resident tax obligations.
Standard Rates on Cadastral Value
The base law sets default rates, and municipalities may deviate within a fixed corridor. The default rates are:
| Property type | Standard rate |
|---|---|
| Residential property (not used in business), cadastral value up to EUR 56,915 | 0.2% |
| Residential, portion of value EUR 56,915–106,715 | 0.4% |
| Residential, portion of value above EUR 106,715 | 0.6% |
| Land | 1.5% |
| Commercial and other non-residential buildings | 1.5% |
| Engineering structures | 1.5% |
| Buildings that degrade the environment (ruins), per municipal decision | up to 3% |
Municipalities may set rates from 0.2% to 3% in their binding regulations, but rates above 1.5% are allowed only for property that is not maintained properly (dilapidated buildings, uncultivated agricultural land, and similar categories). Municipal rates are published by 1 November of the preceding year.
Riga: Reduced Rates Depend on Declared Residents
Riga's binding regulations No. 148 keep the progressive residential rates but attach a condition that catches many owners. An apartment or house in Riga qualifies for the reduced rates — 0.2% on cadastral value up to EUR 57,000, 0.4% on the portion between EUR 57,000 and 107,000, and 0.6% above that — only if at least one person was declared at the property at 00:00 on 1 January 2026, and that person is a Latvian, EU, EEA, or Swiss citizen or holds a permanent residence permit.
If nobody is declared at the address, the rate for the entire year is 1.5% of cadastral value — up to seven times more, which hits foreign investors with empty apartments especially hard. Commercial property in Riga is taxed at 1.5%; degraded buildings, uncultivated land, and overdue construction projects face 3%. Riga's rates and relief categories are unchanged from 2025.
Cadastral Values and the Reform
Cadastral values are determined by the State Land Service (Valsts zemes dienests) based on property type, location, area, and building condition. You can check your property's current value free of charge at kadastrs.lv. The problem is well known: values used for taxation reflect the 2012 property market, while actual prices have risen substantially since then.
The reform has moved in stages. An attempt to introduce market-based values around 2022 was postponed after projections showed tax bills multiplying. Since 2025, Latvia maintains two parallel values: the fiscal cadastral value (frozen at the 2012-data level, used for NĪN and state fees) and the universal cadastral value (based on 2022 market data, used for all other purposes). Because the fiscal value stays frozen, NĪN bills did not rise in 2025 or 2026 because of the reform.
The next step: the Cabinet of Ministers must approve a new cadastral valuation base by 15 June 2027, to be applied to tax calculation from January 2029. The Ministry of Justice has stated that rate reductions should accompany the new base so bills do not jump mechanically, but the post-2029 NĪN rates are not yet law. Treat 2029 as the realistic horizon for change — we track developments in our 2026 tax changes overview.
Payment Schedule, E-Services, Exemptions
NĪN is paid quarterly, in four equal instalments. In 2026 the deadlines are 31 March, 15 May, 17 August, and 16 November; you may also pay the full year with the first instalment. Payments are managed at epakalpojumi.lv (all municipalities) or the Riga Finance Department portal, both of which deliver tax notices by e-mail. Late payment accrues interest of 0.05% per day. All key dates are in our tax calendar 2026.
The main national relief: families with three or more children (under 18, or up to 24 if in education) receive a 50% reduction on the home and its associated land, capped at EUR 500 per year, provided a parent and at least three of the children are declared at the property. Municipalities add their own discounts of 25–90% for categories such as low-income households and politically repressed persons. Small auxiliary buildings (generally up to 25 m²) are not taxed.
Selling or Renting Out: The Other Taxes
NĪN is only the holding cost — transactions trigger personal income tax (IIN). When you sell, the capital gain (sale price minus documented acquisition and improvement costs) is taxed at 25.5% in 2026. The gain is tax-free if you owned the property for more than 60 months and it was your declared residence for at least 12 consecutive months within that period, or if you reinvest the proceeds in a functionally similar home within 12 months. Gains are reported via EDS — see our guide to the personal income declaration. If a non-resident sells to a Latvian company, the buyer withholds 3% of the price; EU and treaty-country residents can instead declare the actual gain at 25.5%.
Rental income offers a choice. Under the simplified regime, you notify VID of the lease without registering economic activity and pay a flat 10% of gross rent — no expense deductions except the NĪN paid on the property. Under the general regime, you register economic activity, deduct actual expenses, and pay progressive IIN at 25.5% (33% above EUR 105,300). The 10% option usually wins for apartments with low running costs; the general regime pays off when expenses and depreciation are high.
FAQ
Do non-residents pay higher property tax in Latvia?
No. NĪN rates are identical for residents and non-residents — the tax follows the property, not the owner's residency. The practical differences lie elsewhere: non-residents should register at epakalpojumi.lv to receive tax notices, may face Riga's 1.5% rate if nobody is declared in the apartment, and have IIN obligations when renting out or selling. Double tax treaties generally leave real estate taxation with Latvia as the country where the property is located.
Will the cadastral reform increase my tax bill?
Not before 2029. The fiscal cadastral value used for NĪN remains frozen at 2012 market levels, so bills in 2026 do not rise because of the reform. A new valuation base must be approved by 15 June 2027 and applied from January 2029, and the government has signalled that NĪN rates will be adjusted downward so payments do not jump mechanically. The post-2029 rates are not yet law, so owners of high-value property should watch the legislation.
What happens if nobody is declared in my Riga apartment on 1 January?
The apartment loses the reduced residential rates for the entire year. Instead of 0.2–0.6% of cadastral value, Riga applies the full 1.5% rate — on a EUR 60,000 apartment that is roughly EUR 900 instead of about EUR 126. The check happens once, at 00:00 on 1 January. If you own an empty investment apartment, arranging a genuine declared resident (a tenant, for example) before year-end materially changes the bill.
How is rental income from Latvian property taxed in 2026?
You choose between two regimes. The simplified option: notify VID of the lease agreement and pay 10% of gross rental income, deducting nothing except the property's NĪN — no VSAOI applies. The general option: register economic activity and pay progressive IIN (25.5%, or 33% above EUR 105,300 per year) on profit after actual expenses such as repairs and depreciation. Both are reported in the annual declaration by 1 June. Non-residents have the same choice but must register with VID first.
Keep Your Property Taxes Under Control
CORVUS ACCOUNTING & TAX advises Latvian and foreign property owners on NĪN, rental income regimes, and capital gains on sales — from choosing the 10% regime to filing the declarations. The initial consultation is free.
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