On Tuesday, July 21, the Ministry of Justice held an inter-institutional meeting on amendments to the Law “On Real Estate Tax” prepared by the Ministry of Justice, which envisages the introduction of a non-taxable minimum for primary housing in the amount of EUR 100,000. Despite the uncoordinated issues, the Ministry of Justice will forward these bills to the Cabinet of Ministers in August.
At the meeting, the Ministry of Justice once again presented the developed changes, which envisage that the real estate tax is abolished for primary housing with a cadastral value of up to EUR 100,000, and a non-taxable minimum of EUR 100,000 is applied to primary housing and the difference is further reduced. , 2 (the tax would be calculated from 1/5 of the balance). Accordingly, the land would be taxed at 1/5 of the cadastral value.
In general, the conciliation meeting reached a common understanding on the need to review real estate tax policy, as well as to introduce a non-taxable minimum. At the same time, there was disagreement on how to apply the non-taxable minimum. However, it was agreed at the meeting that the Ministry of Justice would clarify certain norms of the draft law and refer the issue to the Cabinet of Ministers.
Minister of Justice Jānis Bordāns: “It is quite clear that not all conceptual issues will be agreed at the level of officials, therefore this package of bills needs to be forwarded for decision at the government level. We must ensure that the real estate tax is applied fairly. The new cadastral values will not be applied until the REN system is rebuilt! “
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