The reduction of state taxes will encourage investment in the rental market

Today, in the third reading, the Saeima adopted amendments to the Law on Land Registers, which supported the proposal of Saeima member Gat Eglīš to make changes in the amount of the state fee for confirming the ownership of an apartment in the land register. The amendments will enter into force on July 1 and provide for the task of the government to reduce the amount of the state fee for a natural person from the currently determined 2% to 1.5% of the property value, and for a legal person for the consolidation of the property of an apartment from 6% to 2% of the property from the moment of entry into force. values. The Alliance of Real Estate Developers (NĪAA) states that these changes will be a significant improvement in the competitiveness of the Latvian real estate market and at the same time a significant benefit to the society by reducing the costs associated with the purchase of property. “Reduced state fees for securing property in the land register are valuable changes for every resident of Latvia. If we assume that the average price of a new apartment is 100,000 euros, up to now a natural person had to pay 2% or 2,000 euros to secure a purchase, but from now on the fee will be only 1, 5% or 1500 euros. This is a real saving of 500 euros for everyone who buys a house, thus encouraging activity in the real estate market. At the same time, the reduction of fees will activate legal entities, including investment and pension funds, in rental houses and apartments. Although the property consolidation fee in Latvia will always be higher than in neighboring countries, this step will definitely make the investment environment more attractive and will promote the arrangement and growth of the rental market,” says Mārtiņš Vanags, chairman of the board of the Alliance of Real Estate Developers.

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