According to existing legislation foreigners can buy land in Latvia except territories in Latvia's border area, dune areas of the Baltic Sea and Riga gulf and other protected territories, land of state reserves, land usable for agriculture and forestry in accordance with the general plan of the region. Buyer have to receive a permission from a local authority in whose territory the land is situated. The lot must be registered in a Land Book where rights on property in Latvia are fixed.
Land is subject to a real estate tax at a rate of 1.5%, charged to its assessed value.
1. Civil Law of the Latvian Republic.
In territory of the Latvian Republic all bargains with the immovable property are cocluded according the Civil Law . The given law defines, that real estate can be got in property, and also be alienated, concluding agreements, inheriting etc. In Civil law are reflected general norms of legal regulation of the property. The civil Law concerns all subjects of the bargains, and also all kinds of immovable property in the Latvian Republic.
2. About privatization of state objects of the property and objects of the property of self-managements.
According to the given law private persons (both physical, and legal), in the Latvian Republic, have the right to get in the property for a payment state objects of real estate, and also objects of the real estate of self-managements.
The citizens of the Latvian Republic, and also persons having privatization and/or the compensatory certificates, serving as a means of payment for object, got in the property, have the rights to get in the property real estate, using as a means of payment both certificates, and money.
The persons, which meet the requirements of the given law, but are not the proprietors of the privatization / compensatory certificates, can get objects of state real estate, and also real estate of self-managements in the property for money, participating in auction.
3. About land reform in cities of the Latvian Republic
According to the given law all persons can address with the request for purchase and realization of the right to use land of urban administrative territories of the Latvian Republic.
The given law stipulates duties of the subjects of legal usage of land during LR land reform. Being guided bt rules of the given law, private persons have the right to address about granting them the right to use land, having concluded the contract of rent, use of land or contract about use of land in another way, by conclusion of the appropriate contract between the responsible private person (both physical, and legal) and responsible self-management of city or state institution.
In item 20 of the given law are listed «subjects of the bargain», «which can receive the property right on the land of cities of the Latvian Republic:
a) Citizens of the Latvian Republic;
b) State and self-management, state enterprises and enterprises of self-managements (authorized companies);
c) registered in the LR Register of the enterprises authorized companies:
- if more than half of authorized capital belongs to the LR citizens, state or self-managements - each subject separately or in common to several subjects,
- if more than half of authorized capital belongs to the physical or legal persons of those states, with which LR had concluded international contracts, authorized by Saeima before 31.12.1996. The above mentioned concerns also physical and legal persons of the states, with which the international contracts were made after 31.12.1996, in a case if the given contracts provide the rights of physical and legal persons registered in LR, to get the rights on land of the appropriate state,
- if more than half of authorized capital belongs to several subjects described in items à) and â) together,
- which have the status of public (open) joint-stock company, in a case if their shares are quoted on a share stock exchange;
d) Religious organizations registered in Latvia till 21.07.1940 years.
Other physical and legal persons, which are not mentioned in the first item of the given clause, can get land in property with restrictions, which are determined in the given section.
In item 21 and 22 are determined restrictions in purchase of land in property and first priority of the right to purchase land by self-managements.
4. About a privatization of land in a countryside.
The given law regulates purchase in property of land in a countryside (villages etc.). It is important to note, that the given law names concrete subjects of the bargain / a circle of persons, which have the right to make the bargains with land:
The right of purchase land in property, according to the Civil Law and other laws working in territory of LR, have:
a) the citizens of the Latvian Republic;
b) the state and self-management, state enterprises and enterprises of self-managements (authorized companies);
c) authorized companies registered in the Register of the enterprises of LR:
- If more than half of authorized capital belongs to the citizens of LR, state or self-managements - each subject separately or in common to several subjects,
- if more than half of authorized capital belongs to physical or legal persons of those states, with which LR had concluded international contracts, authorized by Saeima before 31.12.1996.The above mentioned concerns also physical and legal persons of the states, with which the international contracts were made after 31.12.1996, in a case if the given contracts provide the rights of physical and legal persons registered in LR, to get the rights on land of the appropriate state,
- if the more than a half of authorized capital belongs to several mentioned above in items à). and â). subjects;
- which have the status of public (open) joint-stock company, in a case if their shares are quoted on a share stock exchange;
4) Religious societies registered in Latvia, term of work of which from the moment of their registration in the Latvian Republic, is not less than 3 years.
Other physical and legal persons who have not been mentioned in the first part of 1 given clause, have the right to purchase land in property with restrictions named in the given section.
Besides, it is necessary to consider, that according the given law the order of transfer of the property right on land is determined by the appropriate chiefs of self-managements, which are stated in an item 30 and say:
The chairman of self-management within 20 days agrees to purchase of land in property. The consent is made out as the statement, which is subscribed by the chairman of council of local self-management. In the statement are specified the purposes of use of land, got in the property also. The contract of purchase is considered valid for record in the Land book, only then, when the mentioned statement is enclosed. One copy of the statement the local self-management within 3 days after signing sends in a State Land service of the appropriate branch. Refusal to coordinate receptions of the property right on land can be appealed against by the parties of the contract in court.
Being guided by norms of the given law, both residents of LR, and non-residents of LR have the right for immovable property in village areas.
5. Law on protection zones.
The norms of the given law provide the order of use of land in protection zones of the Latvian Republic in the locations of coastal zone (zone of cemetaries, territory of a presence of natural riches etc.)
The norms of the given law provide also duties of the owners on use and management of land areas located in protection zone.
6. Wood law.
In the given law the definition of use of woods and land in a wood is given. The law stipulates the order of use, preservation and service of wood and land of a wood zone, as well as the rights and duties of the private and state owners of woods and land of woods.
The mentioned rules of law concern as to the owners and users of private land, and state.
7. About transfer of the property to the lawful owners.
The purpose of the given law is the settlement of restoration in the property rights of the persons or their successors, which owned property in territory of the Latvian Republic before 1940, and, which were deprived of the given right as a result of illegal actions as a result of occupation.
8. About denationalized householderships of the Latvian Republic.
The purpose of the given law is the restoration of the legal status of the owners on immovable property, which they were illegally deprived after 1940 as a result of institutions' nationalization by the Soviet authority.
According to the given law, persons or their successors, whose property was nationalized, in the order stipulated by the law can address to self-management with the request about denationalization and restoration of their rights on immovable property. Also the given law provides the rights of the employers on use of apartments in denationalized real estate, the maximal size of rent payment and restriction on time, during which the owner of the real estate should not interrupt the contract of hiring with the employer, having the right to live and to manage apartment in denationalized house.
9. About record of immovable property in the Land book.
The given law describes the order of entering of property, property rights for property, as well as burdening with law of estate in Public register of immovable property of the Latvian Republic - Land book, which is carried out by branches of the Land book of LR.
In the Land book, as a unique source of the Public register, the rights on property and property of Latvia are fixed. The property right on immovable property is considered completely confirmed only from the moment of entering record about it in the Land book. According the given law, as a result of fulfilment of any bargain with immovable property the property right to immovable property completely passes to the parties of the bargain, as well as to the third persons, only after registration of the bargain in the Land book.
10. Law on self-managements (78 clauses).
In the bargains with real estate the right of prime purchase of those objects of real estate which are in territory of the appropriate self-management, is given to self-managements.
Particularly about the given right - right of prime purchase is spoken in clause 78:
78 clause. The local self-management has right of prime purchase, if the immovable property is alienated in administrative territory of the given self-management and this real estate is necessary for performance of the functions, assigned to self-management by the law.
Right of prime purchase is not distributed on:
à) Real estate got by the State;
b) Real estate got for diplomatic and consular needs by other states;
c) Privatized by the State and self-management objects;
d) Industrial objects with all equipment;
e) The immovable property, which passes from one person to another gratuitously or by exchange;
f) The immovable property, from which the ideal share is alienated and which remains the joint property of the seller and buyer;
g) The immovable property, which is sold in voluntary or compulsory auction;
h) The immovable property, when the right of prime purchase or repayment have third persons, which is founded by the law, contract or will;
i) The room property, and also apartments, which are got in the property up to privatization of an apartment house.
Self-management, which have got the immovable property as a result of the right of prime purchase, within five years can sell it only on open auction.
The order of realization of the right of prime purchase is defined by Cabinet of the Ministers.
The rules of Cabinet of the Ministers ¹ 110 define, that if the alienation of the immovable property occurs differently, than is determined in mentioned clause, it is necessary to the participants of the bargain to give the contract of purchase of the property in self-management and self-management, not later than 20 days, makes a decision on realization of the right of prime purchase or refusal of use of this right. If the self-management refuses to use the right of prime purchase, alienator have the right to alienate this property only according the contracts of purchase, which was concluded and given in self-management.
11. About a privatization of apartment houses of the state and self-managements
The given law defines the order of realization of a privatization in state houses and houses of self-managements (purchase of the real estate in the property for a payment, where as a payment means the privatization certificates are applied).
Each proprietor of privatization certificates who is registered or concluded the contract with appropriate house-management, has the right to privatize the given apartment, getting thus given apartment in the property. The norms of the given law concern persons, who have the right to privatize inhabited premises - proprietors of the privatization certificates.
12. About renting inhabited premises.
The law regulates legal attitude of the employer and the renter of inhabited premises, defines rights and duties of the parties of the rent contract. Exception is only stipulated by the law « About denationalization of the real estate in the Latvian Republic » the moratorium (7 years from the moment of denationalization and right of the employers of denationalized buildings, which meet the requirements of the Law «About denationalization of huseholderships in the Latvian Republic».
In Latvia conclude and admit as lawful contracts of renting of apartments and inhabited premises only adequate to the given law.
Rules of the Cabinet of Ministers to the present law and appropriate decisions of self managements define the size of the maximal payment for usage of inhabited premises in denationalized houses and houses of self-managements, for example in Riga the size of payment makes LVL 0,4865 for square meter.
The legal attitudes of the employer and the renter are regulated also by Civil law of the LR, but, as the norms of the Law «About renting inhabited premises» are special,, hence, they are applied first of all and only then the norms of the Civil law of the LR or norm of other legal certificates are applied.
13. About the room property.
The given law regulates the room property, as a separate kind of property which can be got in property by any person (is not dependent on that whether he is the resident of the LR or not).
The property rights to an apartment, up to a complete privatization of a house, are coroborated ( fixed) in room cadastre of the Cadastral register of a State Land service of the Latvian Republic. The records in the given cadastral register are equated to records made in the Land book, thus, rights of the persons who have been written down in the cadastral register as of the proprietor of an apartment, can not be challenged, differently as on the basis of submission of the claim in court.
In cases, if together with an apartment ideal shares of immovable property are alienated also, the property rights of the purchaser - proprietor are fixed in the Land book. For fastening the property rights of the non-resident of the LR, the consent of the chief of local self-management (chairman of Dome) is necessary which is made out as statement and is given together with the documents confirming the property rights.
14. The law on the Land book.
In the given law the order in which records about the property rights to the real estate in the land books of the Latvian Republic are made is determined. The given law will help you to understand in what order and what judge accepts the decisions and make records about the property rights, burdenings, marks about restrictions of use of the real estate.
Besides in the given law there are norms, by which the sizes of the state and writing duties, order of their payment at submission of the documents in branches of the Land book for fastening the property right on property by are determined.
15. About usage of land and arrangement
The law defines the order of use and arrangement of land up to the moment of buying of the property on it. In the basis the Law adjusts the attitudes on usage and arrangement of land, which are established on the basis of rent contracts between the private persons (physical and legal) and state or self-management.
The norms of this law concern both land in cities, and agricultural land.
The purpose of the given law is definition of general duties of land users concerning environment, character of land's use and purposes of use, and also right of the users on use and improvement of land and on purchase it in the property.
16. The tax to the real estate
According to norms of the given law the proprietors, users, legal owners or the tenants of the real estate on territory of the Latvian Republic estimate and pay the tax to the immovable property.
In the second part of first clause of the given law the objects of the real estate which are not taxed with the given tax are defined.
The payers of the tax are both physical, and legal persons, in the property, management or usage of which is an immovable property.
The period of taxation of the given tax is a calendar year, thus, tax is necessary to pay annually, and the payment is made according to accounts of Financial department of a State service of the incomes (usually payment is broken quarterly).
The give tax will be not not paid by the persons in the property, legal government or usage of which is a real estate listed in the second part of first clause of the law, and also residents of the states, with which Latvia has made and ratificated international contracts and conventions on avoidance of the double taxation, if given contracts or conventions are included the tax to the immovable property. These persons can pay the given tax or similar one on the native land, giving in a State service of the incomes of Latvia statement of the appropriate sample on payment of the tax.
It is necessary to note also, that the given law has replaced the law «About the tax with land» and the given tax to the real estate concerns both land and buildings, which are on this land.
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Property in Bulgaria - Legal Aspects - Civil Law of Latvia
