Latvia backs five-year transition for land-use fee rules

The Latvian government has backed amendments setting a minimum fee for the use of land owned separately from buildings, with the state-set amount due to end after a five-year transition. LSM reported that the changes are intended to address a Constitutional Court ruling on this arrangement.

The minimum annual fee would be 4% of the cadastral value of the land in use, but no less than 50 euros. Land and building owners could agree on a higher fee. If they cannot agree, the landowner could ask a court to set a higher amount. Building owners would also have to compensate the landowner for property tax on the land in use.

The transition period would run until December 31, 2031. During that time, the law would set the minimum fee. Afterward, owners would have to agree on the amount themselves, with a court deciding in cases of dispute.

The Justice Ministry said the amendments aim to address the infringement of landowners’ rights identified by the Constitutional Court and ensure that the fee serves as compensation.

Justice Minister Edvards Smiltēns said the law should take effect on January 1, 2027, when the previous rules annulled by the Constitutional Court expire. He warned that failing to adopt the law in time could lead to disputes being taken to court and an increased burden on the courts.

Economics Minister Viktors Valainis called for reconsidering a proposal to allow municipalities to compulsorily buy the land. He said apartment building owners had previously been given the option to buy the land beneath their buildings.