ILN: BUYING AND SELLING REAL ESTATE - AN INTERNATIONAL GUIDE

[BUYING AND SELLING REAL ESTATE IN LATVIA]

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6) associations and foundations registered in Latvia, the activity whereof is at least 3 years, and the purpose of activity whereof is related to the environmental protection, production of agricultural cultivated plants or products, or hunting management or maintenance, if the land is acquired to ensure the mentioned purpose of activity. Other private individuals and companies that do not correspond to the abovementioned conditions may acquire the land in Latvia with the permission from the local government; however, it is also prohibited for such private individuals and companies to acquire the following types of land: - land in the border zone; - land in nature reserves and other protected nature areas in zones of nature reserves; - land in the protection zone of coastal dunes of the Baltic Sea and the Gulf of Riga; - land in the protection zones of public bodies of water and water courses; - agricultural and forest land; - land in the mineral deposits of national significance. If, due to the changes, the status of the legal subject does not correspond to the aforementioned conditions, in order to keep the land in the cities or rural areas, the permission from the local government should be received within a period of one month, and if the permission is not granted the land should be alienated within a period of two years.

If a private individual or a company, which has acquired land in the cities or rural areas with the permission of the local government, does not use the land for the prescribed purpose the land should also be alienated within a period of two years. E. Agricultural land The additional limitations are set on the acquisition of agricultural land in rural areas of Latvia. Legal entities are entitled to acquire 5 ha of agricultural land in aggregate without additional limitations, but private individuals are entitled to acquire 10 ha of agricultural land in aggregate without additional limitations. In order to acquire more agricultural land, private individuals and legal entities should confirm that the acquired land will be used for agricultural activities, and the respective private individuals and legal entities shall comply with the specific criteria prescribed by law, including clear information on the true beneficiaries and statement that total amount of tax debts of which in Latvia or in the state where these persons are registered does not exceed EUR 150. In addition, the citizens of the European Union Member States, the Member States of the European Economic Area or citizens of Member States of the Swiss Confederation and the Organization for Economic Co-operation and Development, if they wish to acquire the agricultural land as private individuals, or if they are sole shareholders or shareholders jointly representing more than a half of the share capital of the company intending to acquire the agricultural land, or persons entitled to represent the respective company, shall receive a registration certificate of the Union citizen and the document certifying knowledge of the official language (Latvian) at least at B level grade 2 ( namely, the person is able to

ILN Real Estate Group – Buying and Selling Real Estate Series

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