Dangerous Precedent - A Disabled Person is Deprived of Their Home in Latvia Due to a €250 Property Tax Debt 0 14

"In the Ludza region, a first-group disabled person had their property confiscated and sold at auction for €8,000. The reason? A property tax debt of €250. An amount that is insignificant compared to the value of the real estate.

The municipality was aware of the person's health condition and social status but did not clearly explain the risks; did not help utilize all opportunities to preserve the property; chose the most brutal path – eviction.

Formally – everything is legal. In essence – immoral, cynical, and dangerous for society.

This case demonstrates a dramatic truth: a relatively small tax debt is enough for a person to lose their home, while the system "profits" from their misfortune," the lawyer writes.

He notes that the current system is essentially unfair. It obliges people to pay a kind of "mortgage" for their own property. Meanwhile, they have already spent money on their real estate and paid tax when purchasing it.

Eihmanis reminds how the property tax came into being. It was introduced in the late 1990s, but at that time it did not affect most apartments and houses and primarily concerned: land, commercial properties, industrial buildings.

The average resident of their apartment often did not even know about the existence of such a tax. It was a technical instrument, not a weapon against homeowners.

But then came the crisis of 2008-2009. And Latvia found itself on the brink of bankruptcy. The then-leader Valdis Dombrovskis made a decision and turned to international creditors – the European Union and the International Monetary Fund.

Their logic was simple:

• increase budget revenues,

• reduce the deficit,

• save the banking system.

What does Latvia do?

• for the first time, it massively introduces a property tax on residential real estate;

• starts with low rates to avoid public protests;

• later – gradually raises rates and ties the cadastre to the "market."

Rhetoric:

"This is a crisis measure."

"This is temporary."

"We have no other choice."

However, the law did not state that:

• the tax is temporary,

• it will be canceled after the crisis,

• it will end with the IMF program.

Political language – "temporarily." Legal reality – forever.

Trojan Horse Called "NĪN"

Formally – it is a budgetary tool, but in reality – a mechanism for property confiscation.

There is no ceiling – rates can be increased, the cadastre can be "adjusted."

The tax increases automatically, while salaries or pensions do not. Meanwhile, if you cannot pay the tax and interest on the debt, the property is put up for auction, and then it falls into the hands of speculators.

And the case in Ludza shows that this is already happening.

The EU's fiscal logic: how to collect taxes without developing anything The EU has been repeating for years:

• labor taxes should be reduced,

• the burden should be shifted to consumption and property.

Why is property an ideal target?

• it cannot be taken abroad,

• it cannot be hidden,

• it always remains in its place.

Result: no need to develop the economy – just raise the cadastre.

Comparison with Neighbors

Estonia – tax mainly on land, not on housing.

Lithuania – tax mainly on expensive real estate.

Latvia – tax on practically everything, including the only housing.

What Will Happen If We Remain Silent?

The case in Ludza is not an exception. It is an experimental stage of the system. Tomorrow, when the tax increases 2-3 times, there will be many such cases.

A new norm will emerge: "If you can't pay – you don't need a home."

What Should Society Demand?

Full protection of the only housing – without expropriation for debts on private property. Clear ceilings – NĪN should not exceed a person's solvency. Fair cadastre policy, not a silent approach to the market.