“Many residents are currently receiving notices that it is time to pay the property tax. Help clarify how the tax is calculated in Riga, on what principle the rates of 0.2% - 0.6% are applied, when 1.5% and more, and who is entitled to discounts? And how is it that identical apartments in neighboring houses are taxed differently?”
The property tax in Riga (hereinafter - NNS) is calculated based on the cadastral value of a specific property as of January 1 of the tax year, using a certain rate. Information about the cadastral value can be found on the State Land Service portal Kadastrs.lv. NNS can be paid either in full or quarterly.
Basic, Reduced, and Increased Rates
The basic NNS rate of 1.5% of the cadastral value applies to:
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land plots
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buildings used for economic activities and not used as housing
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engineering structures
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residential buildings or parts thereof (including apartments), if the conditions for applying the reduced rate are not met.
The reduced rate (from 0.2% to 0.6%) of the cadastral value applies to:
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buildings or groups of premises intended for residence (apartments, individual/multi-apartment houses or parts thereof), if the conditions for applying the reduced rate are met
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buildings/structures whose use is related to residence (garages, private parking lots, garden houses up to 40 m², basements, outbuildings, etc.), if they are not used for commercial economic activities.
The application of the reduced rate is influenced by whether someone is registered at the residence for which the tax is paid, in accordance with the Law on the Declaration of Place of Residence.
To apply the reduced rate, it is necessary:
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for individuals - that at least one person is registered in the apartment/individual house at 00:00 hours on January 1 of the tax year.
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this refers to ideal shares in a house with two or more apartments (not divided into apartment ownership), the calculation is based on 30 m² of living space per one registered resident.
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for legal entities and entrepreneurs, there is an additional condition: the property must be rented out for residence, and the rental right must be registered in the Land Register.
It is not necessary for the owner of the property to be registered there; any person, including minors, can be registered for the application of the reduced rate.
The increased rate of 3% of the cadastral value applies to:
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land plots that are not maintained in accordance with the regulations
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properties where unauthorized construction has been identified
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buildings identified as degrading, destroyed, and/or threatening the safety of people
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buildings for which the construction period established by regulations has been exceeded (long-term construction).
Who is Entitled/Not Entitled to Benefits
Additional types of benefits for NNS are provided for certain groups of the population recognized as socially less protected. These include:
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low-income and needy individuals
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pensioners (recipients of old-age pensions)
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persons with disabilities of group I or II
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a child with a disability or persons registered in the same residence as a child with a disability
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persons living with a person with a disability of group I or II
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persons affected by the Chernobyl nuclear power plant accident or liquidators of its consequences
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politically repressed individuals
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recipients of pensions due to the loss of a breadwinner
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families with children.
Benefits are not provided if:
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at the time of considering the issue of granting benefits for NNS, the person has a debt on NNS (except in cases where the debt does not exceed the amount of the benefit granted)
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if the property or part of it is rented out, leased, or used for economic activities. Under this point, economic activities also include forced rental relationships in divided ownership or a real servitude established by law (regardless of whether rent or other compensation is charged for this)
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the land plot is not maintained in accordance with the regulations. In this case, from the following month after the decision to recognize the plot as unkempt is made, the benefit is canceled
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unauthorized construction is identified in the property - the benefit is canceled from the following calendar month after the corresponding mark is made in the Unified Information System of the Riga City Council
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the building is included in the list of degrading, collapsing, and creating a threat to the safety of others; as well as the land related to it - starting from the following month after the corresponding resolution is adopted
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long-term construction (see above) and the related land plot - starting from the following month after the mark is made in the information system
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buildings and the related land (including functionally related auxiliary buildings) for which a complete cadastral measurement (survey) has not been conducted. The exception is single-family homes.
More detailed information on the procedure for calculating NNS and granting benefits can be obtained by calling the information phone 1201 (free) or +371 67012222 (for calls from abroad).
