From January 1, 2016, Riga City Council changed the property tax rate in Riga.
In this article we will tell you about the new rules.
This information is relevant only for Riga. Property tax in Jurmala and other cities will not be increased.
If by the end of December 2015 no Latvian citizen was registered at your property address, the tax rate will be 1.5% of the cadastral value of the property. Recall that previously the tax rate consisted of two parts. For land: 1.5% of cadastral value, for housing: 0.2%, 0.4% or 0.6%.
Unfortunately, for residence permit holders who are registered at their property, the tax rate will also be 1.5%.
Thus, if you have a residence permit and are registered at your property address - the tax rate will be 1.5%. But if you rent out an apartment and the tenant (a Latvian citizen) is registered there, the tax rate will be lower.
You will probably have a question - how do you find out the amount of tax? You will see the tax amount in the tax receipt, which will be sent to your property address or to your email at the end of January - beginning of February.
Please note - if your apartment is rented out, you need to pay tax on rental income.
However, you can reduce the amount of "rental tax" by the amount of "property tax".
For example: rental income 1000 euros per year, and "property tax" - 400 euros per year. From 1000 euros we subtract 400 euros, leaving 600 euros. This is the amount that will be subject to tax.
Therefore, the higher the property tax, the lower the tax on rental income!
If you have any difficulties receiving a "property tax" receipt or have difficulties preparing an annual declaration of rental income, contact our company, we will help resolve these issues!
Have questions? We are waiting for your letter or call!
Phone number: +371 29774775
Email: info@kominvest.com
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