New Conservative Party suggests freezing cadastral values until 2026

The ruling five-party goverment coalition has so far failed to agree on the precise details of a revision of the real estate tax system. Now one of the coalition parties, the New Conservative Party (JKP) has submitted a draft law to the Saeima, which provides for both the freezing of cadastral values and the task for the government to revise the real estate tax system, 

JKP proposes to continue to apply the current cadastral values at least until the beginning of 2026, the party explained in a statement to the media.

New cadastral values, which are closer to market values, are currently expected to take effect from next year. Since the sum of the housing and land tax is a certain percentage of the cadastral value, for many there will be a significant increase in real estate payments.

In order to ensure the reduction of the significance of cadastral values in the calculation of the real estate tax and to achieve a review of the real estate tax system, the draft law submitted by the JKP foresees the task for the government to submit to the Saeima by July 31 2021 the draft laws necessary for the exemption of housing from the estate tax, as well as commercial areas and agricultural land.

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Economy
Economy