What are expected expenses when buying a real estate in Latvia?
Costumer question about real estate expenses
What are legal expenses when buying real estate of Latvia? Precisely what are the taxes when a house is bought? And where should I turn find appropriate real estate?
Our professional answer
Purchase of real estate is always connected with additional expenses.
Apart of purchase price, the real estate should be registered in Landbook of Republic of Latvia. Therefore, it is necessary to sign a Corroboration Request at notary for specified notary fee. Also, state fee and administrative fee at Landbook should be paid.
If the person wants to be sure about the state of real estate, he shall apply at professional lawyers to carry out due diligence and report about possible legal consequences hereof, for example, tax debt, established mortgages, encumbrances, filed proceedings, etc. In this regard lawyer shall collect a charge for such legal services.
The basic rate for residental building is 0,2 -0,6% from cadastral value. The cadastral value is available at State Land Service webpage if you enter precise address or cadastral number. Also, information about real estate taxes is disclosed at the relevat municipality.
The mandatory costs for real estate purchase are: notary fee, state fee and administration fee at Latvian Landbook.
The additional expenses occur if the person wants to certify the legal state of real estate, for example, tax debt, established mortgages, encumbrances, filed proceedings, etc. For due diligence of real estate the person shall contact lawyer and pay legal fee for the service.
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