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Parliament freezes official property values for two years

The Latvian parliament on May 18 adopted the legislative amendments proposed by the Justice Ministry in the third and final reading, freezing cadastral values of real estate properties for a further two years.

Lawmakers supported a proposal to reduce cadastral values by 30% when calculating future values for land properties with residential buildings and culture monuments for 2018 and 2019.

Saeima legal committee head Gaidis Berzins (National Alliance) and Justice Ministry’s representatives explained that reduction of cadastral values would refer to multi-apartment houses or houses in the center of Riga, Mezaparks, some areas in Pardaugava suburb.

There had been also other proposals in relation to the regulations on property tax, but lawmakers have not been able to reach an agreement on them so far.

The problem at the moment is that cadastral values are used for calculating property tax. "Property tax on land, especially in Greater Riga Region, has become unbearable. Freezing the cadastral values for two years will not solve the problem, just postpone it, but it will give us time to come up with a solution," said the Justice Ministry earlier.

Cadastral values are officially set property values that are updated automatically each year, taking into account such variables as the location of the property and its use. 

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