The Latvian real estate market is showing a steady growth outlook, with the residential sector projected to grow at a 4.27% compound annual growth rate between 2025 and 2029 driven by tourism, economic expansion, students and affordable housing, with steady demand for properties in Riga, Jurmala, and Pieriga. Latvia’s Residential market is expanding, driven by economic growth, government-backed mortgage programs for young families.
Latvia is considered one of the most attractive and affordable property market in the EU, especially in the capital, Riga, which has low property taxes and no capital gains tax for properties held for over five years. The Government has simplified property transactions for both locals and foreigners. Potential for high rentals and property appreciation owing to demand for residential/commercial
Riga is one of the cheapest EU capitals, with prices around $2,700 per square meter in the city center and $1,200 outside. Prices can be as low as $1,500 per square meter even in the city center. The average price per square meter remains historically high – nearly €2,400/m² in Riga, €1,797/m² in Pieriga, and €2,218/m² in Jurmala. The most expensive neighbourhoods in Riga are Old Riga and Marupe
Best Areas
Foreigners and expats buy properties in Latvia’s idyllic countryside to spend their future life away from city’s hustle and bustle. For many foreignersrural properties as a great place to relax and do business
Riga being ideal for high salaries and demand, Jūrmala for seasonal rental yields, and Liepāja and Daugavpils for stable, affordable rentals
- Jūrmala: A resort town with high potential for seasonal short-term rentals, yielding (6-9%).
- Liepāja and Ventspils: Coastal port cities with growing tourism and rental demand.
- Daugavpils: An affordable university city with a stable market for both local and student rentals.
- Liepāja: Offers a good balance of affordability with average home prices of about (€1,300) per (m^2).
- Cēsis and Kuldīga: These smaller cities have lower property prices (€1,200-€1,300) per (m^2)) and a more relaxed pace of life.
- Sigulda : A small town prices ranging from about (€1,400) to €1,500 per (m^2).
- Ogre: A town with a price per square meter of approximately (€1,400).
- Valmiera: A good option for those looking for an affordable price, with average prices at around €1,100 per (m^2).
Golden Visa
Residence Permit tied to property: You can obtain a residence permit in Latvia by investing in real estate, with the minimum investment being (€250,000) (in peripheral cities, you can purchase several properties for this amount).
Immovable Property Tax
Land and non-residential buildings: 1.5% of the cadastral value.
Residential buildings and residential parts of mixed-use buildings: Differentiated rates based on value:
- 0.2% for the value not exceeding EUR 56,915.
- 0.4% for the value between EUR 56,915 and EUR 106,715.
- 0.6% for the value exceeding EUR 106,715.
- Unfinished buildings: A flat rate of 3% of the cadastral value
Exemptions provided by municipalities\
- Families with three or more children.
- Retired and disabled individuals.
- Socially disadvantaged persons or households.
- Politically repressed persons
Stamp Duty: A duty is charged upon the registration of acquisition of legal title to a property. It is 2% of the property value for legal entities and 1.5% for individuals, capped at EUR 50,000.
Inheritance/Gift Tax: Gifts between close relatives are generally not taxed, and inheritance is not subject to a separate tax.
Capital Gains Tax (CGT): Income from the sale of real estate is subject to a 20% personal income tax for residents, while non-residents face a 3% withholding tax on the sale of real estate.
Rental Income – A 10% Flat Rate applies on rental income from property for non-resident foreigners.