Buying property in Latvia has become an increasingly attractive option for international investors looking for affordable real estate, strong rental yields, and long-term growth potential. In Riga, the country’s capital and largest property market, average property prices range from approximately €1,600 to €2,700 per square meter, while gross rental yields range between 6.7% and 7.6%. Growth of the Latvia Golden Visa has also contributed to the country having one of the strongest real estate markets.
In this guide, you will learn everything you need to know about buying property in Latvia, from steps and pricing to the best places to buy. We’ve got you covered.
Buying Property in Latvia: Key Insights
Who can buy property in Latvia?
Anyone is able to buy property in Latvia, but there are some different requirements for various nationalities depending on residency. Let’s take a look:
- Citizens of the EU/EAA: Unrestricted rights to buy property in Latvia.
- Non-EU/EAA citizens: There are some restrictions on the types of property for non-EU/EAA citizens. They are not permitted to purchase agricultural or forest land.
Buying Property in Latvia as a Foreigner
Foreign nationals who purchase real estate property in Latvia have the same rights as those with Latvian citizenship. This includes commercial real estate, rentals, and residential properties.
There are some exceptions to buying property in Latvia as a foreigner. Here are some practical examples:
| Buyer Type | Can Buy Residential | Can Buy Commercial | Can Buy Agricultural/Forest Land |
|---|---|---|---|
| EU/EAA Citizens | Yes | Yes | Yes |
| Non-EU/EAA Citizens | Yes | Yes | No |
Does buying property in Latvia lead to residency?
Yes, buying property in Latvia can lead to residency through the Latvia Golden Visa program. To qualify for a renewable five-year temporary residence permit through real estate, you must meet several strict criteria:
- Minimum investment: You must purchase one functional property or two properties outside of the Riga and Jūrmala regions with a minimum market value of €250,000.
- Property type: The transaction cannot include vacant land, agricultural land, or wooded/forest land.
- Government fees: Upon approval of your initial application, you must pay a one-time state duty equal to 5% of the property’s purchase price.
While there is no strict physical presence requirement for maintaining temporary residency, you only need to visit once a year to reregister your permit. But moving from a temporary permit to permanent residency after five years requires you to have lived in Latvia for at least four out of those five years and pass a basic Latvian language proficiency test (Level A2).
Can you rent your Latvia Golden Visa property investment?
Yes, you can rent out your Latvia Golden Visa property. Latvia does not restrict foreign investors from earning rental income from their real estate investment. However, there are a few things to keep in mind:
- Flexible rental options: You can rent the property through long-term leases or short-term rentals such as Airbnb. There is also no requirement to live in the property to keep your residency.
- Rental yields: Areas like central Riga have strong demand from expats, students, and professionals, with gross rental yields usually ranging from 6% to 9% per year.
- Rental income tax: Rental income is taxable in Latvia. One option is a 10% flat tax on gross rental income, with property expenses such as maintenance and management not deductible.
What are the steps for buying property in Latvia as a foreigner?
Before you start your Latvia property purchasing journey, it’s important to understand the various steps to buy a property as a foreigner in Latvia.
Step one: Property search
Foreign nationals can start by looking at different properties online to get an idea of what might work for them. Once you have a good idea of what you’re looking for and the areas you’re interested in, speaking with a real estate agent can be a great help on your property journey. Additionally, there are real estate agents who have worked with foreign nationals previously, so they know the most popular areas and how to advise on the purchasing process.
Step two: Due diligence
It is vital for you to carry out due diligence before buying a property. You need to ensure that the property is not under debt review and that there are no outstanding legal issues.
Hiring a Latvia immigration lawyer may be the best option here to ensure you get the proper advice and have an understanding of what you’re getting into. Remember, the laws in Latvia will likely differ to your home country, so having a third party to provide advice can help prevent issues down the road.
A lawyer can also help with writing up the preliminary agreement if this is required. It is not compulsory, but it does make things easier further down the line, with all parties understanding what is involved in the sale.
Step three: Obtain a notary
You will need a Latvian notary to oversee the legal transfer of the property. Both parties (property owner and new buyer) will need to sign the purchase agreement in front of the notary.
Step four: Register the property at the Latvian Land Registry
Once the purchase agreement has been signed, it needs to be submitted to the Latvian Land Registry. Once there, the transfer of ownership takes place and usually takes about 1-2 weeks.
Best Place to Buy Property in Latvia: The Latvia Real Estate Market
Jūrmala (Beachfront)
Jūrmala is Latvia’s top seaside destination, located about 25 minutes from Riga. Areas such as Majori, Dzintari, and Lielupe are known for luxury villas and high-end apartments, with prices usually ranging from €2,200 to €3,200+ per sqm. The market is more seasonal, making it a good option for wealth preservation or luxury holiday rentals.
Riga
Skanste is one of Riga’s fastest-growing neighborhoods and is attracting major infrastructure projects and modern office developments. Property prices for new builds range from €2,600 to €4,200 per sqm. The area is popular with corporate workers, expats, and tech professionals, offering good growth potential.
Āgenskalns is located across the Daugava River. It s popular with young professionals, students, and creatives. The area is known for its restored wooden houses, local markets, and café culture. New properties usually cost €1,800 to €2,500 per sqm, with annual growth expected between 5% and 9%.
Purvciems offers strong and stable rental demand from local professionals. It is one of the more affordable areas, with newer apartments costing around €900 to €1,300 per sqm. The area also has some of Riga’s strongest rental yields, between 7% and 10%.
Avoti is an up-and-coming neighborhood close to Riga’s historic center. Property prices are lower, usually between €1,500 and €2,300 per sqm, but rental demand is growing quickly. The area is popular with young professionals and travelers looking for a more local city experience.
Typical costs when buying property in Latvia
When buying property in Latvia, the purchase price is only part of the overall investment. Buyers should also account for notary fees, registration costs, taxes, and legal expenses. Below is a breakdown of the most common expenses associated with purchasing real estate in Latvia.
| Cost type | Typical range / amount | What it covers |
|---|---|---|
| Notary fee | 0.1% – 0.5% of property price | Certification of the sale-purchase agreement and identity verification |
| Registration fee | Fixed + variable | Registration of ownership with the Latvian Land Register |
| Transfer tax (State fee) | 3.75% | State fee paid upon registering ownership rights |
| Legal fees | 1% – 2% | Due diligence, contract drafting, representation, and compliance checks |
| Annual property tax | 0.2% – 1.5% of cadastral value | Ongoing municipal property tax |
How does the property market in Latvia compare to other EU countries?
While Portugal, Spain, and Greece have larger markets and higher overall property values, Latvia’s growth rate and affordability make it an attractive alternative for investors looking for both rental income and high appreciation. Here is a breakdown of the Latvia property market vs other EU countries:
| Country | 2024 Market Value | CAGR 2024–2029 | 2029 Forecast |
|---|---|---|---|
| Latvia | €151.8B | 3.87% | €234.2B |
| Portugal | €1.33T | 4.97% | €2.09T |
| Spain | €5.69T | 2.77% | €8.22T |
| Greece | €1.28T | 3.53% | €1.82T |
Property Taxes in Latvia
When you buy or own property in Latvia, there are a few key taxes to be aware of:
- Residential property tax: 0.2% for properties up to €56,915, 0.4% for €56,915–€106,715, and 0.6% for anything above €106,715.
- Land and commercial property tax: 1.5% of the property’s value each year.
- Property transfer tax: 3.75% of the higher of the purchase price, cadastral value, or mortgage valuation.
- Capital gains tax: 20% on profits from selling property.
Exemptions: You won’t pay capital gains tax if the property was your main home for at least 12 months, or if you’ve held it for over 5 years and reinvest the proceeds into another Latvian property within a year.
Advantages of Buying a Property in Latvia
Here are the advantages of buying a property in Latvia:
- Affordability: Compared to many other European countries, Latvia offers many more affordable options, while still having fantastic amenities and quality of life.
- Business-friendly tax system: Tax in Latvia is considered relatively low compared to other European countries, with corporate tax remaining low and tax exemptions for reinvesting profits.
- Growing property market: The Latvian real estate market has seen steady growth, and predictions are showing the same, with the demand for commercial and residential properties increasing.
- EU membership: Latvia forms part of the European Union, offering investors stable and secure investment opportunities. Those with a Latvian passport can also travel freely throughout the EU, making it ideal for multinational businesses.
- Digital nomad friendly: Latvia is extremely welcoming to digital nomads and freelancers, inviting remote workers to experience all this beautiful country has to offer on a temporary residency permit. Hungary remains a popular option among digital nomads, with our 2025 Global Digital Nomad report ranking Hungary at 16th, with a total score of 88.04.
- Fantastic rental market: Latvia is seeing a serious boom in the long- and short-term rental market, with potential yields between 6.7% and 7.6%. This makes rental properties idealfor property owners who want to see a return on their investment.
Pitfalls of Buying Property in Latvia
While there are fantastic benefits to buying property in Latvia, it’s important to understand the disadvantages too:
- Non-EU/EAA restrictions: Citizens of the EU have no restrictions on buying property in Latvia. However, Non-EU/EAA citizens may be limited on the types of property they can buy, and fees may be higher depending on the nationality and various requirements.
- Legal considerations: It’s important to understand that the Latvian legal system may be very different from your home country. Obtaining a lawyer in Latvia is the safest way to ensure you understand the legal aspects and what you are liable for when buying a property.
- Limited financial options: Foreign nationals may find it difficult to obtain funding to buy property in Latvia. Non-residents are often required to put forward larger deposits, and requirements may be stricter.
Is Latvia a good place to buy property?
Absolutely, Latvia is a fantastic place to buy property for foreign investors. The rental and sales markets have seen significant increases in recent years, and there are no signs of it slowing down. Plus, with lower property prices, Latvia is far more investor-friendly for lower incomes that may not be able to afford major cities in Europe.
How Can Global Citizen Solutions Help You?
Global Citizen Solutions is an advisory migration consultancy firm with years of experience delivering bespoke residence and citizenship by investment solutions for international families. With offices worldwide and an experienced, hands-on team, we have helped hundreds of clients worldwide acquire citizenship, residence visas, or homes while diversifying their portfolios with robust investments.
We guide you from start to finish, taking you beyond your citizenship or residency by investment application.
