There is currently a lot of public concern that property taxes will increase from 2025 due to changes in cadastral values. In order to clarify this issue, we would like to share the information available on the website of the StateLand Service and also on lvportāls.lv
The Law on State Cadastre of Real Estate changes the procedure for determining new cadastral values. In order to avoid a sharp increase in real estate tax payments after a long period of “freezing” of cadastral values, two cadastral values are to be introduced during the transitional period.
From 2025, two cadastral values will apply – fiscal and universal. This is foreseen in the transitional rules:
- the fiscal cadastral value used to calculate taxes, stamp duties and other payments to the state or localbudget, except for the calculation of legal land use charges;
- universal cadastral value.
Cadastral value, defined as fiscal value, will remain at its current level.
Cadastral values have been “frozen” for several years and calculated on the basis of the property market situation in2012. These values are no longer in line with reality, but in order to avoid an excessive increase in property tax payments, a temporarily ring-fenced – fiscal – value is foreseen.
The State Land Service (SLS) will calculate and update fiscal cadastral values in accordance with the cadastralvalue base in force in 2024 and the regulations governing cadastral valuation the laws and regulations applicable on 31 December 2024.
The universal cadastral value will give a truer picture of the value of the property.
It will be used for setting the legal land use charge, accounting and financial reporting. The universal cadastral valuewill be based on 2022 market data.
The Law stipulates that the Cabinet of Ministers shall approve the cadastral value base for the calculation of the universal cadastral value in 2024, not exceeding 80% of the average level of real estate prices on 1 July 2022, using information on real estate market transactions from 1 January 2012 to 1 July 2022.
The Transitional Provisions also provide that two cadastral values – fiscal and universal – will be calculated and registered in the VZD Cadastre Information System for each cadastral object from 1 January 2025 until the new cadastral value base is applied, observing the deadlines set by law for their application.
Information source: lvportals.lv