Why Latvia?

• Dynamic Baltic economy with strong EU integration

• EU & eurozone member offering visa-free travel and stability

• Riga is a vibrant hub of culture, business, and tourism

• Affordable pricing compared to Western Europe, with good rental demand

• Increasing appeal in coastal and university towns like Jūrmala and Liepāja

Can Foreigners Buy Property in Latvia?

Yes — non-Latvian individuals and companies can freely purchase residential and commercial properties.

• EU/EEA buyers face no restrictions

• Non-EU buyers may purchase apartments freely; ownership of agricultural land and large plots may require permission from the Agriculture Ministry or local municipality

Residency & Permit Programs 2025

• No residential permit based exclusively on property ownership

• Standard residence options include work permits, business visas (Startup Visa), study, or EU long-term resident status

• Owning property may help in applications (proof of accommodation), but does not guarantee residency

Legal Process of Buying Property

1. Obtain a Personal Code (Personas kods) and open a Latvian bank account

2. Engage a notary or legal advisor for property checks

3. Sign a reservation agreement with 5–10% deposit

4. Perform due diligence—title, encumbrances, local zoning

5. Finalize sale with a notarized contract

6. Notary registers the transaction with the Land Register

7. Pay taxes, legal, notary, and registration fees

Taxes & Fees

• Transfer Tax: 2% of cadastral property value

• Notary & Legal Fees: ~1%–1.5% of price

• Agent Fees: 2%–3%, negotiable

• Annual Property Tax: 0.1%–3% of cadastral value (dependent on municipality and use)

• Capital Gains Tax: 20% flat on profit (primary residences held >2 years may be exempt)

• Rental Income Tax: 10%–20% flat (depending on gross vs net taxation model)

Mortgage Availability for Foreigners

• Local banks lend to foreigners with robust documentation

• Loan-to-Value (LTV): 70–75% for residents; 60–70% for non-residents

• Interest Rates (2025): ~4%–6%, influenced by EU rate movement

• Stronger terms granted to EU citizens and local occupants

Is Latvia Right for You?

✅ Ideal for:

• Investors seeking affordable EU real estate with promising yields

• Expats and business professionals relocating to Riga or regional centers

• Buy-to-let portfolios in booming university and beachside locales

• Long-term investors attracted to Baltic market growth

❌ Less ideal for:

• Buyers expecting property purchase to grant residency

• Those seeking rapid flipping profits—yields are moderate

• Investors unfamiliar with dual-language legal agreements (Latvian & English)

Top Places to Buy in Latvia (2025)

Riga (Vecrīga, Āgenskalns, Pārdaugava)

• Capital with strong rental demand from students and professionals

• Yields: 4%–6%, depending on district

Jūrmala & Coastal Towns

• Beachfront resorts with short-let potential

• Yields: 6%–9% seasonal

Liepāja & Ventspils

• Regional port towns with growing tourism and rental demand

• Yields: 5%–7%

Daugavpils

• Affordable university city with stable local and student rentals

• Yields: 5%–6%

Rental Yield & ROI Overview

Trends in 2025

• Riga’s rental sector growing with tech and finance inflows

• Coastal property development rising in Jūrmala and Saulkrasti

• Institutional interest emerging in mid-market student housing

• Focus on energy-efficient retrofits is accelerating in both cities and resorts

Common Mistakes to Avoid

• Overlooking agriculture/large plot rules for non-EU buyers

• Skipping critical zoning and title checks

• Neglecting translation and legal advisory costs

• Misestimating seasonal rental volatility in coastal areas

• Assuming real estate leads to residency rights—planning needs separate

Conclusion

Latvia offers a stable, EU-anchored real estate environment with accessible entry and attractive rental opportunities. While non-EU buyers need to check land purchase rules, apartments are widely accessible. With strong yields in Riga and coastal towns—and ongoing market modernization—Latvia is a smart option for long-term investors in 2025.