How to Purchase Real Estate in Latvia as a Foreigner

Purchasing real estate in Latvia can be an attractive option for foreigners, but it requires knowledge of local laws and procedures. Here’s a step-by-step guide on how foreigners can buy real estate in Latvia:

1. Research and Property Selection

• Study the Market: Before purchasing, it’s important to research the real estate market, understand prices, and the types of properties available. Riga, Jūrmala, and coastal regions are popular locations among foreigners.
• Choose a Property: Contact real estate agents or use property portals to find a suitable property.

2. Legal Aspects of Real Estate

• Check Property Rights: In Latvia, all properties must be registered in the Land Register. It’s crucial to ensure that the property is not encumbered with mortgages or other restrictions.
• Prepare Legal Documents: Complete the purchase agreement, which will outline all the details of the transaction. A notary or lawyer may be required to ensure everything is legal.

3. Financing and Taxes

• Consider Financing Options: Check whether you can obtain a mortgage in Latvia or if you need to use your own funds. Mortgages are available to foreigners, but additional guarantees or deposits may be required.
• Tax Overview: Property tax must be paid on real estate in Latvia. The amount of tax depends on the property’s value and type (residential, commercial, etc.).

4. Completing the Transaction

• Signing the Purchase Agreement: Sign the purchase agreement and make the initial payment (usually 10% of the property price as a deposit).
• Payment: The remaining payment is usually made once all documents are finalized, and the property is registered in the buyer’s name.

5. Land Register Registration

• Register the Property in the Land Register: After completing the transaction, the property must be registered in your name in the Latvian Land Register. This process typically takes a few weeks.
• Receive Property Certificate: Once the property is registered, you will receive an official property certificate.

6. Residency Issues

• Visas and Residence Permits: By purchasing real estate in Latvia, foreigners may be eligible for a residence permit, especially if the property value exceeds a certain threshold. A residence permit may allow you to move freely within the Schengen area.

7. Management and Maintenance

• Property Management: If you do not plan to live in the property permanently, consider hiring a property manager to take care of the property and assist with rental management if you plan to lease it.

8. Additional Costs

• Notary and Legal Fees: Anticipate additional costs associated with legal services and document processing.
• Insurance: Consider purchasing property insurance to protect your investment.

By following these steps and consulting with professionals, foreigners can successfully purchase real estate in Latvia and take advantage of all the benefits this market offers.