Cadastral valuation

Massive valuation for the needs of the real estate tax is carried out in Latvia since the end of nineties of the last century and in Latvia it is known as „cadastral valuation”. The established values are used not only to calculate taxes, but also for other needs, for example, payment of state tax when you register proprietary rights in the Land Register, implementation of the land reform and determination of the amount of ransom, determination of the lease payment of the land if state and municipality lands are rented etc.

Cadastral valuation in Latvia is performed accordingly to the results of the real estate market information analyse and accordingly to the available real estate property information the valuation uses all three valuation methods determined in the real estate valuation standards  – most frequently the transaction comparison method.

Valuation process consists of two parts – development of the bases of values (base value and zone value) and calculation of values. For the needs of valuation all properties are divided into four groups (dwelling houses; industrial buildings, commercial and public buildings; rural properties) all having different zone values.

Base of values is updated every year (starting from 2015 – once in two years) – till the June, 15 of each year the government adopts regulations about the amendments in the base value and zone value for the next year. Amendments enter into force from the January, 1, of the following year. Compliance of the determined values to the market values is set in the amount of 100% accordingly to situation at the determination of the base value (from 2017 in the amount of 85%).

Cadastral values are calculated automatically for all properties registered in the Cadastre Information System and cadastre objects forming those properties (land parcels, parts of land parcels, buildings, parts of buildings (groups of premises)) applying calculation models approved by the government. Re-calculation of the values enters into force with changes in the base of values or changes in the property data. In the calculation of values only data acquired in the cadastral surveying of the object is used or data based on the information of other institutions.

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