New Real Estate Tax Changes in Riga from January 1, 2026 – Everything Property Owners Need to Know

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Have you heard that the Riga municipality is preparing to introduce significant changes to the real estate tax system? Yes, that’s right – starting January 1, 2026, we will all face new rules that will affect apartment owners, private house owners, and commercial property holders. These changes are not just another bureaucratic step, but a serious tax reform that will change how much money we pay each year for our properties.

Many people are already asking questions: How will this affect my wallet? Will I have to pay more than before? What are the new rates and which properties will they apply to? In this article, we explain all the changes in detail so you can prepare and plan your finances for 2026.

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What exactly is changing in the real estate tax system?

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The Riga City Council has adopted a decision on major changes to the methods and rates used to calculate the real estate tax. These changes are part of a broader strategy aimed at increasing the municipal budget and financing city development projects. According to the official information from the Riga City Council, the new system will be more differentiated and will take into account more factors than before.

The main changes include introducing new rates for different property categories, revised valuation methodologies, and additional criteria for calculating the tax. For example, residential houses and apartments will have one rate, commercial properties a completely different one, and undeveloped land plots another. The system becomes more complex, but also fairer, because it considers the real use of the property and its economic value.

Another important aspect is that the new rates will depend on the property’s location in Riga. The city center, prestigious neighborhoods, and suburban areas will be taxed differently. This means that two similar properties in different parts of the city could have significantly different tax amounts.

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What are the new tax rates for different property types?

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The new tax system provides several rates depending on the type of property and how it is used.

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• Residential buildings and apartments used as a primary residence: the rate will be 0.4% of the cadastral value. This is relatively lower than for other categories and reflects the municipality’s intention not to place an extra burden on ordinary residents’ budgets.
• Commercial properties: the rate will reach 1.5% of the cadastral value. This is a significant difference and reflects the fact that commercial properties usually generate income and are used for profit. A higher rate also applies to apartments and houses that are not declared as a primary residence, but are rented out or used as a second home.
• Undeveloped land plots: the rate will be 3% of the cadastral value, the highest of all categories. This rate is intended as an incentive for owners to develop their land and not keep it unused for a long time. The Riga City Council wants to encourage active land use and urban development, therefore undeveloped land is taxed at the highest rate.

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How is the cadastral value determined and why is it important?

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The cadastral value is the key element used to calculate real estate tax. It is determined by the State Land Service using a special methodology that takes into account the property’s location, area, technical condition, availability of utilities, and many other factors. The cadastral value is usually lower than the market value, but it can change depending on the real estate market situation.

It is important to know your property’s cadastral value, because your tax from 2026 will be calculated based on it. This information can be found on the State Land Service portal, where up-to-date data for every property in Latvia is available. If you believe your cadastral value has been set unreasonably high, you have the right to submit an application requesting a review.

It is also important to note that cadastral values are reviewed regularly, usually once every five years. The next planned review will take place in the coming years and may affect the amount of tax you must pay. That is why it is wise to follow these changes and understand how they could affect your budget.

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What special discounts and tax relief are available for certain groups of residents?

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The new system provides several discounts and relief measures for specific social groups.

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• Pensioners whose income does not exceed EUR 500 per month are eligible for a 90% discount on real estate tax. This means they will pay only 10% of the calculated tax amount, which significantly eases their financial situation.
• Persons with disabilities are eligible for a 50% discount on the tax amount. This relief applies to properties where these persons are declared and actually live. To receive this discount, you must submit documents confirming disability status and the residential address.
• Large families with three or more children under 18 are also eligible for relief. They can receive a 25% discount on the real estate tax for the property where the family is declared. Additionally, if there are four or more children, the discount increases to 40%. These relief measures are part of the Riga City Council’s policy to support families with children and improve the demographic situation.

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What documents are required to apply for tax relief?

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If you want to use any of the available relief options, you will need to prepare and submit several documents to the Riga municipality. The process is not complicated, but it requires accuracy. Here is the full list of documents you will need:

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For pensioners:

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• Copy of passport or ID card
• Copy of pension certificate or a statement from the State Social Insurance Agency (VSAA) confirming pension amount
• Statement of all income from the State Revenue Service
• Extract from the Population Register confirming declared place of residence
• Application form for real estate tax relief

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For persons with disabilities:

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• Copy of passport or ID card
• Disability certificate or a copy of the decision of the Health and Working Ability Expert Commission
• Extract from the Population Register confirming declared place of residence
• Application form for real estate tax relief

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For large families:

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• Copies of parents’ passports or ID cards
• Copies of children’s birth certificates
• Large family certificate (if available)
• Extract from the Population Register for all family members
• Application form for real estate tax relief

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All these documents can be submitted either in person at Riga municipality customer service centers or electronically using the Riga municipality e-services portal. Electronic submission is more convenient and faster, and you will receive confirmation immediately.

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How to calculate how much you will have to pay from 2026?

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Calculating your future tax amount is fairly simple if you know your property’s cadastral value and category.

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For example, assume you own an apartment in central Riga with a cadastral value of EUR 80,000, and it is your primary residence. The calculation will be: 80,000 × 0.4% = EUR 320 per year, or about EUR 27 per month.

If you own a commercial property with a cadastral value of EUR 150,000, the calculation is different: 150,000 × 1.5% = EUR 2,250 per year, or about EUR 188 per month. As you can see, the difference between residential and commercial property is significant.

For an undeveloped land plot with a cadastral value of EUR 50,000, the tax will be even higher: 50,000 × 3% = EUR 1,500 per year, or EUR 125 per month. If you own such a land plot, it may be worth considering developing it or selling it to avoid a high tax burden.

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What are the payment deadlines and how to avoid late payment penalties?

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Real estate tax is paid four times a year – once each quarter. The deadlines are usually by the end of each quarter: March 31, June 30, September 30, and December 31. Each payment equals one quarter of the annual tax amount. For example, if your annual tax is EUR 400, you will pay EUR 100 each quarter.

The Riga municipality sends tax payment notices by mail or electronically to all owners every year. These notices include the exact amount, deadlines, and payment details. It is important not to miss these deadlines, because delays result in fines and late payment interest.

Late payment interest is 0.05% of the unpaid amount for each overdue day, which can quickly add up. For example, if you delay a EUR 100 payment by 30 days, the interest will be approximately EUR 1.50. It may seem small, but if the delay is longer or the amount larger, the additional costs can be significant.

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How can you make the payment and are electronic solutions available?

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Real estate tax can be paid in several ways, making the process convenient and accessible.

A traditional way is paying at a bank or post office using the received payment notice. This option suits those who prefer in-person interaction and a physical payment process.

Modern technology offers a more convenient solution: online banking. Almost all Latvian banks allow you to pay taxes directly from your account using a special payment section. You simply enter the property cadastral number or the payment details from the notice, and the payment is completed within minutes.

Another convenient option is using Latvian Post e-services or the State Treasury portal, where various government and municipal payments can be made. These solutions are secure, fast, and allow you to keep your payment history in one place. In addition, many municipalities offer an automatic payment option, where money is deducted from your account automatically each quarter.

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What happens if you cannot pay the tax on time?

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If you experience financial difficulties and cannot pay the real estate tax by the deadline, it is important to act proactively. The first step is to contact the Riga municipality’s Property Department immediately and explain your situation. The municipality may offer a payment plan that allows you to pay the tax in installments over a set period.

Payment plans are usually granted for six to twelve months, and you must submit an application with justification. Documents confirming financial hardship, such as proof of job loss, medical bills, or other evidence, will help speed up the decision. It is important to understand that the municipality wants to help honest taxpayers, not punish them.

If the tax remains unpaid for a long time and no agreement is reached, the municipality has the right to start a collection process. This may include debt recovery through bailiffs, seizure of the property, or even sale at auction. That is why it is critical not to let the situation worsen and to seek solutions in time.

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What are the main differences between the old and the new tax system?

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Compared to the previous system, the new one has several major differences. In the old system, tax rates were more uniform and less differentiated by property type and use. In the new system, the rates are much more distinct – from 0.4% for residential properties to 3% for undeveloped land.

Another key difference is the relief system. Previously, relief was more limited and applied to fewer groups. In the new system, broader relief is provided for pensioners, persons with disabilities, and large families, making the system more socially fair.

Administrative processes have also become simpler and more modern. Most documents can now be submitted electronically, payments can be made online, and all information about your property and taxes is available in digital form. This saves time and makes the process more transparent and convenient for owners.

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How to prepare for the new changes already now?

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To avoid surprises in January 2026, it is wise to start preparing now. The first step is to find out your property’s current cadastral value and calculate the approximate tax you will have to pay under the new rates. This information is available on the State Land Service portal, and the calculation is simple using the formulas above.

If you meet the criteria for any relief – pensioner, person with a disability, or large family – start collecting the required documents now. This will allow you to submit the application on time and avoid paying the full tax while waiting for relief approval.

Another important step is to review your budget and plan for additional expenses related to real estate tax. If your tax increases, you may need to adjust other expenses or find additional income sources. The sooner you do this, the easier it will be to adapt to the new conditions.

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Is it possible to dispute the cadastral value?

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Yes, you have the legal right to dispute your property’s cadastral value if you believe it has been set unreasonably high. The process begins by submitting an application to the State Land Service explaining why you believe the value is incorrect. Strong arguments may include the property’s technical condition, comparison with similar properties nearby, or inconsistency with market prices.

It is recommended to attach evidence such as photographs, an independent valuation opinion, comparative market analysis, or other documents supporting your position. The more objective evidence you provide, the greater the chance that the cadastral value will be reviewed.

The State Land Service typically reviews such applications within three months and decides whether to change the cadastral value or keep it unchanged. If you are not satisfied with the decision, you have the right to appeal it in court. It is important to remember that while the dispute process is ongoing, you must still pay the tax based on the current cadastral value.

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What are the main mistakes to avoid regarding real estate tax?

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One of the most common mistakes is ignoring payment deadlines and thinking “everything will be fine.” In reality, delays create additional costs in the form of interest and fines, which can significantly increase your total expenses. Always mark deadlines in your calendar and set reminders.

Another common mistake is not using available tax relief. Many people simply do not know they are entitled to discounts, or they think applying is too complicated. In fact, the process is simple and the savings can be substantial – pensioners can save up to 90% of the tax amount.

The third mistake is not regularly checking your property information in the cadastre. Sometimes data entry errors or outdated information can affect your tax calculation. It is worth checking at least once a year that all information about your property is correct and up to date.

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How will these changes affect the Riga real estate market?

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The new tax rules may significantly affect the real estate market in Riga. A higher tax on undeveloped land could encourage owners to develop or sell their land, potentially increasing supply in the market. This could mean more stable or even lower prices for land plots in certain parts of Riga.

In the commercial property segment, the higher tax may increase operating costs, which could be passed on to tenants through higher rents. This is especially relevant for small businesses and startups, for whom rent is already a major budget expense. At the same time, it may encourage more efficient use of space and reduce the amount of vacant premises.

In the residential market, changes may be less dramatic because the rates remain relatively moderate. However, owners who use apartments or houses as investments and rent them out, facing higher tax, may increase rent prices. This could make housing in Riga slightly more expensive in the long term, especially in prestigious areas.

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How to get up-to-date information about tax changes?

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To stay informed about developments in real estate tax, there are several reliable sources. The first and most important is the official Riga municipality website, where up-to-date information about taxes and payments is published regularly. You can also find contact details for specialists who can answer specific questions.

The State Revenue Service website also contains useful information about real estate tax and other taxes. It provides calculators, instructions, and frequently asked questions to help you better understand the system and your obligations.

In addition, it is worth subscribing to Riga municipality newsletters and following the municipality’s official social media accounts. They publish updates about changes, deadlines, and important announcements. Some banks and real estate portals also provide analysis and advice regarding tax issues.

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Conclusions about the new real estate tax changes in Riga

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The new real estate tax changes in Riga, effective from January 1, 2026, are a major reform that will affect all property owners in Riga. The system becomes more differentiated and complex, but also fairer, because it considers property type, use, and location. Rates range from 0.4% for residential property to 3% for undeveloped land, which is a significant difference.

It is important to understand that these changes are not only an additional burden, but also an opportunity. Pensioners, persons with disabilities, and large families have access to substantial relief that can reduce the tax burden by up to 90%. The key is to stay informed, collect the required documents, and apply for relief on time.

By preparing now – calculating your expected tax amount, checking cadastral value, and planning your budget – you can avoid unpleasant surprises and financial difficulties. Remember that all necessary information can be obtained from official sources, and specialists are ready to help.

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Frequently asked questions about real estate tax in Riga

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When exactly will the new real estate tax rates come into force in Riga?
The new rates will come into force on January 1, 2026, and the first payment under the new rates must be made by March 31, 2026 for the first quarter. The Riga municipality will send new payment notices with exact amounts to all owners by the end of February 2026.

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Will tax relief be applied automatically if I am a pensioner?
No, relief is not applied automatically. You must submit an application together with the required documents to the Riga municipality. You can apply in person at customer service centers or electronically via the e-services portal. It is recommended to do this at least three months before the first payment deadline.

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What happens if my property is co-owned with other persons?
If a property is co-owned, each owner pays tax in proportion to their share. For example, if you own 50% and the total tax is EUR 400 per year, you will pay EUR 200. Each co-owner receives their own payment notice and is responsible for their part.

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Is it possible to pay the full annual tax at once in one payment?
Yes, you have the right to pay the full annual tax amount at once in the first quarter, and it may be more convenient because you do not need to think about payments during the year. However, there are no discounts or benefits for paying upfront, so it may be financially easier to pay quarterly.

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How can I check whether my tax payment has been received?
After making the payment, you can check its status in your online banking, where you will see payment confirmation. Additionally, the Riga municipality e-services portal provides information about all payments made and any outstanding debts. If you have doubts, you can call the municipality customer service center to уточнить details.

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How Lex&Finance specialists can help you with real estate tax issues

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The Lex&Finance team is ready to provide professional support in all areas related to real estate tax issues in Riga. Our experienced specialists will help you understand the changes, calculate the exact tax amount, and legally optimize your tax burden.

We offer comprehensive solutions, including consultations on relief eligibility, help with preparing and submitting documents, support in cadastral value review cases, and development of tax planning strategies. If you own commercial property or an investment portfolio, our experts can create an individual tax optimization plan to reduce costs and increase profitability.

The Lex&Finance team can also represent your interests in communication with the Riga municipality and other institutions, including disputes regarding cadastral values or tax calculations. Our goal is to make your life easier and help you avoid unnecessary financial burdens. Contact us today to receive a professional consultation and peace of mind regarding your real estate tax matters.