New proposals of the Latvian Justice Ministry

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The Justice Ministry proposes that real estate tax be not applied if a residence is the resident’s only home and costs less than EUR 100,000, as Juta Strike, head of Saeima group of the New Conservative Party, told reporters after the Coalition Cooperation Council’s meeting today.

According to Strike, the Justice Ministry proposes that, when cadastral values are revised, a minimum non-taxable value of real estate should be introduced. The ministry is currently considering not applying real estate tax on residential properties that cost less than EUR 100,000, if the residence in question is the primary property of the person in which it resides.

No agreement has been reached on the proposal yet, Strike said.

Raivis Dzintars, chairman of National Alliance’s Saeima group, said that his party supported introduction of a non-taxable minimum, but no agreement has yet been reached on possible tax changes as they will only be discussed after the 2020 state budget is approved. “Then we will talk not only about property tax, but also about micro-enterprise taxes and the tax system as a whole,” said Dzintars.

Atis Zakatistovs, head of KPV LV Saeima group, said that KPV LV believed this to be a very important matter. However, the overall fiscal impact of the proposal has to be assessed, and only after that the ruling coalition could reach agreement on the proposal.

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