For real estate in Latvia, they offer two cadastral values: why?

In this regard, the legal commission of the Sejm, at several meetings, considered proposals and clarifications prepared by the Ministry of Justice for amendments to the Law on the State Real Estate Cadastre, which had already been adopted in the first reading.

As a result, we came to a decision: two cadastral values ​​should be registered.

Two cadastres: for what?

The Transitional Provisions of the draft amendments will provide that from January 1, 2025, the State Land Service (SLS) will calculate and register two valid cadastral values ​​for each cadastral object.


* fiscal cadastral value used to calculate taxes, state duties and other payments to the state or local government budget, except for fees for the legal use of land;

* universal cadastral value used for needs not mentioned in the first subparagraph.

In particular, we may be talking about the purchase of land under multi-apartment residential buildings.

What to expect from the new year

The transitional rules provide for:

In 2024, the Cabinet of Ministers will approve the basis for calculating the universal cadastral value, which will not exceed 80% of the average level of real estate prices as of July 1, 2022, and information on real estate market transactions from January 1, 2012 to July 1, 2022 will be used for the assessment. of the year.

As Deputy Secretary of State of the Ministry of Justice Anda Smiltena explained, 80% is provided because sometimes property is overvalued. Since the cadastral value is the value from which both real estate tax and other payments are calculated, in order to protect individuals from the fact that property is overvalued and people must overpay, a coefficient of 0.8 is applied, thereby ensuring fairness in relation to private face legal consequences.

In turn, the fiscal cadastral values ​​will be calculated by the State Civil Service in accordance with the cadastral value base in force in 2024 and regulations in the field of cadastral valuation, which will be applied on December 31, 2024.

The justification for the proposals states that the current cadastral valuation methodology should be improved through several steps. From 2025 and until clarification of the cadastral valuation methodology is completed, the State Land Construction Service will have to use two cadastral values.

Buying land from the “barons” is a separate matter

As we have already reported, the Law on ending the forced division of property in privatized apartment buildings gives apartment owners the right to buy the land attached to the house at cadastral value. And here the question arises: according to which cadastre.

“The draft amendments to the Law on the State Cadastre stipulate that persons who this year, before December 31, buy the land under the house, do so at the cadastral values ​​of 2019, as specified in the Law on the termination of forcibly divided property in privatized apartment buildings.

But from January 1, 2025, when universal cadastral values ​​come into force, land will have to be purchased at the universal cadastral value or at the current cadastral value,” states the state portal

Until December 31, 2024, the Civil Construction Service must store on its website the cadastral value prices for alienation within the framework of the Law on the termination of forced division of property in privatized apartment buildings.

Intermediate finish

The Legal Commission supported the bill “Amendments to the Law on the State Real Estate Cadastre” for consideration in the second reading at a meeting of the Seimas.

For reference: cadastre law and taxes

The bill “Amendments to the Law on the State Real Estate Cadastre”, supported on September 7, 2023 by the Seimas in the first reading, provides for linking the valuation of property to market transactions in accordance with the new methodology.

Calculations show that the cadastral values ​​of some property owners may at least double and, as a result, the property tax will rise sharply, since it is determined by two criteria – the cadastral value and the tax rate.

As reported, as an example, the cost of using land for a private house in Lielupe is given. Currently it is 4,728 euros per year, and after the increase it will be 17,906 euros per year. Or almost one and a half thousand euros per month.

As for apartment buildings, the cost of land rent for residents of such buildings in Maiori will increase from the current 135 euros to 800 euros; in Lielupe – from 266 euros to 1840 euros; in West Riga from 192 to 400 euros; in the area of ​​Gertrudes Street – from 192 to 400 euros.

However, for some areas of Riga even a reduction is envisaged – for example, in Purvciems, from the current 88 euros per year to 74 euros.

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2024-04-23 01:05:34

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