Latvia, Legislation, Real Estate, Strike, Taxation

The campaign aims to draw attention of decision makers and the society on the new cadastral values developed by the State Land Service and the devastating impact of the new cadastral values and property tax on real estate development in Latvia. The campaign was launched on August 7.

NIAA pointed out that the cadastral value methodology and cadastral values for 2022 is an example of uncoordinated policy because the property tax rates are not being discussed at the same pace. If the cadastral value changes come into force, competitiveness of the Latvian property market will be ruined, affecting every resident of Latvia.

As a result of the new cadastral values, property tax for NIAA members might increase several times - even up to three or five times.

"Vilnius and Tallinn are already far ahead Riga in their development, we should rather think how to develop, compete, attract investments and create new workplaces instead of collecting higher taxes," said  SG Capital Partners board chairman Harijs Svarcs.

NIAA explained that the current situation has already done harm to planning investments and has reduced interest in investing in Riga in the coming periods, signalling on unpredictable policies in Latvia.