No more real estate tax breaks in Latvia for people subject to sanctions

Sanctioned persons who own real estate in Latvia will no longer receive real estate tax benefits from July 1 of this year, including in free ports and special economic zones, after a Saeima vote on the matter March 21. 

Amendments to the real estate tax law, which were adopted by the Saeima on Thursday in the final reading determine that the rates for the real estate of sanctioned persons in Latvia will no longer be determined by local governments, but a tax rate of 10 percent of the cadastral value of the real estate will be applied to this property. 

In addition, at least 80 percent of these tax revenues will be directed by local governments to support local Ukrainian civilians who have had to leave their homeland due to Russia's military aggression.    

Real estate tax exemptions will no longer be applied to sanctioned persons, and they will no longer receive tax discounts. 

Taking into account that local governments have already sent out notifications about the calculated real estate tax for this year, they will need to recalculate the amount of the tax and send out another detailed tax payment notification by July 15. 

If the sanctioned person has delayed the payment of the real estate tax, local governments have the right to initiate tax debt collection within three months. 

It is planned that as a result of the changes, the total real estate tax revenue for local governments could increase by around 1.9 million euros. 

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