Latvia Real Estate Investment for Expats: Eligibility, Taxes, and Benefits

Purchasing real estate in Latvia is a popular investment strategy for wealthy expats seeking affordable property ownership opportunities that may lead to Latvian residency. The country is known for low investment requirements, minimal restrictions on foreign property ownership, and low property tax rates.

In this guide, we will explain the rules for buying Latvia real estate as an expat, focusing on:

• Eligibility criteria for purchasing Latvian property
• Options for obtaining Latvian residency through real estate investing
• Latvian property taxes and costs of buying property in Latvia
• Benefits and steps for purchasing Latvian real estate

Who Can Buy Real Estate in Latvia?

Any foreign national can purchase Latvian real estate, but specific restrictions may apply depending on their home country. 

Foreigners from non-EU, EEA, or OECD (Organisation for Economic Co-operation and Development) countries face restrictions on property ownership in Latvia. They are generally allowed to purchase apartments, houses, and commercial properties. However, they aren’t permitted to purchase agricultural or forest land, and purchasing property in border areas or protected zones requires a special permit from local authorities or the Ministry of Defense.

Expats from the EU, EEA, or OECD countries, on the other hand, face few or no restrictions on property purchases in Latvia. They can typically buy most types of land and property without a special permit.

Note that private buyers are prohibited from purchasing state-owned properties in Latvia, regardless of nationality.

Can You Purchase Latvian Real Estate From Abroad?

Foreigners can legally purchase Latvian property from abroad, as long as they hire a Latvian lawyer or legal representative and grant them the power of attorney. This allows the trusted individual to:

• View the property
• Negotiate the contract
• Handle transitions
• Sign documents
• Register ownership with the Land Register

If you decide to purchase Latvian real estate remotely, you must notarize the power of attorney in your home country and obtain an apostille in accordance with the Hague Convention. This step is necessary as it allows your lawyer to appear before the Latvian notary for the execution of the final sale deed, as well as to complete other relevant legal obligations.

Does Buying Property in Latvia Lead to Residency?

Purchasing real estate in Latvia doesn’t automatically grant you Latvian residency. However, if you meet the property criteria and eligibility requirements associated with the Latvian Golden Visa program, you can obtain a renewable five-year residence permit.

The Golden Visa allows non-EU/EEA/Swiss citizens to secure Latvian residency by making a qualifying investment. The visa offers several investment routes, one of which is investing €250,000 in Latvian property.

If the property is located in major cities like Riga or Jurmala, you can purchase one property with a total market value of €250,000. When investing in real estate outside major cities, you can choose between two options: 

1. Purchase one property with a total market value of €250,000
2. Buy two properties with a combined market value of €250,000

In addition to the minimum investment, you must pay a fee of 5% of the property’s purchase value upon applying for the residence permit.

The property can be bought from companies, Latvian and EU citizens, or foreigners with a Latvian residence permit. Once obtained, the real estate must remain in your ownership for five years to maintain the visa’s validity. 

Who Qualifies for Latvian Residency by Property Investment?

In addition to buying a qualifying property, applying for the Latvian Golden Visa requires you to meet other eligibility criteria, including:

• Being over the age of 18
• Submitting evidence of a clean criminal record
• Providing proof of health insurance coverage
• Having no real estate tax debts
• Paying for the property through a non-cash settlement, like a bank transfer

After you obtain the Golden Visa, you can sponsor your family and bring them to Latvia. Qualifying family members include your spouse, children under 18, as well as parents and parents-in-law who depend on you financially.

Which Latvian Cities Offer the Best Property Investment Opportunities?

Latvia’s real estate market has experienced significant growth over the past few years. Real estate in Riga, Latvia’s capital city, generated an average annual rental yield of 8.47% in 2025, which makes it the top European country for property investment.

The price-to-yield ratio in both Riga and other areas of the country continues to attract foreign investors. Here’s how the yield and prices compare in popular locations for real estate investing:

Area	Net Annual Yield	Existing Property Price per m²	New Property Price per m²	Premium Property Price per m²	Best For
Riga	5%–7%	€700–€1,500	€1,800–€4,700	Up to €7,000	Investors seeking high rental yields
Jūrmala	4%–7%	€1,200–€2,500	€2,000–€5,000	Up to €6,000	Those looking to invest in seaside property
Liepāja	3.5%–5%	€600–€1,200	€1,200–€2,500	Up to €3,000	Foreigners interested in emerging markets
Daugavpils	4%–5%	€500–€1,000	€1,000–€2,000	Up to €2,500	Investors aiming for a good price-to-yield ratio

Additionally, if you are looking for an opportunity to purchase an affordable vacation home, you may explore the Latvian rural areas, as property prices range from €300 to €2,000 per square meter. 

What Are the Tax Implications of Buying Real Estate in Latvia?

Latvia imposes taxes on immovable property, calculated on its cadastral value, which is an objective evaluation of real estate set by the public administration to calculate tax and other fiscal obligations.

The Latvian tax system levies a progressive annual tax rate on immovable property, which means the applicable tax rate depends on the cadastral value as follows:

Cadastral Value of Latvian Property	Tax Rate
Up to €56,915	0.2%
€56,915–€106,715	0.4%
Over €106,715	0.6%

Additionally, municipalities can apply tax rates ranging from 0.2% to 3%. However, rates above 1.5% may only apply to property that isn’t maintained in compliance with the procedures outlined in the relevant legislative acts. 

Besides property tax, you may be subject to: 

• Capital gains tax: A rate of 25.5% applies to the disposal of Latvian real estate
• Income tax: Rental income is taxed at a 25.5% rate on earnings up to €105,300, or a 33% rate on amounts exceeding the threshold

Who Is Subject to Tax on Latvian Real Estate?

Anyone who owns property in Latvia is required to pay taxes on that property, regardless of their tax residency. This is because Latvian non-residents are taxed on assets located in Latvia, while its residents must pay tax on their worldwide income.

However, some expats may be subject to tax on Latvian real estate in their home country. This typically applies to individuals from countries that tax their citizens on global income and gains, such as the United States.

In case you are required to pay property-related taxes in both jurisdictions, you may use a double taxation agreement (DTA) to avoid duplicate tax liabilities, provided your home country has a DTA with Latvia. 

How To Buy Latvian Real Estate: A Step-by-Step Process

Before purchasing real estate in Latvia, explore your property investment options online and work with a real estate agent to find a property that meets your needs and goals. If you’re planning to apply for the Latvian Golden Visa by real estate investment, a real estate agent can recommend a property or properties that qualify for the visa.

After you choose the property, take the following steps to acquire it:

1. Sign a Preliminary Agreement
2. Conduct due diligence
3. Open a Latvian bank account
4. Hire a notary
5. Pay the necessary fees
6. Finalize the purchase 

1. Sign a Preliminary Agreement

The first step to obtaining a Latvian property is signing a preliminary agreement with the seller, which includes the terms of the sale, such as:

• Real estate purchase price
• Terms of the purchase
• Payment deadlines

You are then required to pay a deposit of 5%–10% of the purchasing price to secure the property. In case the seller withdraws from the transaction, the deposit is repaid. However, if the buyer terminates the agreement, there is no repayment.

2. Conduct Due Diligence

Carrying out due diligence ensures the property has no outstanding legal issues. Although not mandatory, it’s recommended that you hire a lawyer in Latvia to conduct due diligence properly, as the process includes:

• Evaluating and negotiating contract terms
• Confirming the seller’s ownership rights
• Checking for debts and encumbrances

A lawyer can also represent you if you are purchasing property from abroad, and make sure you comply with all the legal requirements associated with buying real estate as a foreigner.

3. Open a Latvian Bank Account

Foreigners are typically required to purchase Latvian real estate through a bank transfer rather than using cash. If you plan to apply for the Golden Visa and obtain residence in Latvia, you can set up a regular bank account at a local Latvian bank. 

However, you can also open an escrow account, which allows a neutral third party to hold your funds and manage the translation until specific conditions are met. After that, the account closes. This ensures the funds are protected and transferred to the right seller. 

4. Hire a Notary

As a foreigner buying real estate in Latvia, you must hire a Latvian notary to oversee the property transfer. These professionals act as a neutral third party and are responsible for:

• Verifying the identities of the involved parties
• Conforming all documentation complies with Latvian laws
• Witnessing the signing of the purchase agreement
• Registering the property with the Land Register

Although the notary’s job is to protect the legal interests of both the buyer and the seller, they can’t provide legal advice, which is why you must work with a lawyer.

5. Pay the Necessary Fees

The fees you must pay upon buying Latvian real estate depend on the property’s value and intended purpose. For instance, if you intend to use the property to apply for the Golden Visa, you will face additional charges, as this investment route requires you to pay €12,500 in government fees. 

However, you typically have to cover the following fees:

• Notary fees: Around 0.6% of the purchase price
• Legal fees: About 1% of the purchase price
• Registration fees: Around 2% of the purchase price
• Property transfer tax: 3.75% of the purchase price

6. Finalize the Purchase 

The final step involves signing the purchase agreement in the presence of a notary to ensure its legality. Once the document is signed, you will pay the remaining purchase price via bank transfer.

Afterwards, the notary registers the translation of the purchase agreement with the Land Register to confirm that you are the new owner and the ownership is transferred within two weeks.

Note that buying Latvian property for the purpose of obtaining residency in Latvia includes additional steps that can be challenging to navigate without proper guidance.

When exploring options for relocating to Latvia or another country through real estate investment, working with professional financial advisers ensures you develop a strategy that aligns with your objectives. To get a personalized relocation plan, partner with Nomad Capitalist.

Maximize the Advantages of the Latvian Real Estate Market With Nomad Capitalist

Nomad Capitalist is an advisory firm that has assisted over 1,500 high-net-worth individuals from more than 100 countries in relocating to their desired destination. Based on each client’s financial and lifestyle needs, we provide guidance in:

• Obtaining a second residence or citizenship overseas
• Diversifying investment portfolios
• Protecting international assets
• Managing and reducing global tax obligations 

All of these services are included in our personalized Action Plan, an effective strategy designed to align with your unique relocation goals. Here’s how the Plan works:

1. You complete a quick online questionnaire to determine whether we are a good fit
2. Once approved, we schedule and conduct a one-on-one onboarding call to discuss your needs and objectives
3. We develop a detailed Plan according to your goals and implement it over a 12-month period
4. We handle all the administrative work and provide ongoing support with questions and renewals

With Nomad Capitalist, you can select the right real estate investment opportunity in Latvia or elsewhere, minimize cross-border tax liabilities, and determine the best path to second residency through property investing. Create a specialized strategy today!