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Ease of Doing Business in

Latvia

Latvia Download Profile (1740.9KB, pdf)
Region Europe & Central Asia
Income Category High income
Population 1,978,440
GNI Per Capita (US$) 14,900
City covered Riga

190

1

DB 2017 Rank

1

100

DB 2017 DTF (% points)

  • local_library
  • group
Topics DB 2017 Rank DB 2016 Rank info_outline Change in Rank DB 2017 DTF (% points) info_outline DB 2016 DTF (% points) info_outline Change in DTF (% points) info_outline
Overall 14 17 up
3
80.61 79.14 down
1.47
Starting a Business 22 20 down
2
94.15 94.15
-
Dealing with Construction Permits 23 20 down
3
78.93 78.94 down
0.01
Getting Electricity 42 57 up
15
82.14 78.99 up
3.15
Registering Property 23 23
-
81.87 81.87
-
Getting Credit 7 19 up
12
85.00 75.00 up
10.00
Protecting Minority Investors 42 40 down
2
63.33 63.33
-
Paying Taxes 15 16 up
1
89.79 88.84 up
0.95
Trading across Borders 25 25
-
95.26 95.26
-
Enforcing Contracts 23 23
-
71.66 71.66
-
Resolving Insolvency 44 43 down
1
63.95 63.39 up
0.56

Positive= Doing Business reform making it easier to do business.Negative= Change making it more difficult to do business.

DB 2017 Rank:

23

DB 2016 Rank:

23

Change in Rank:

0

DB 2017 DTF (% points):

81.87

DB 2016 DTF (% points):

81.87

Change in DTF (% points):

0.00

STANDARD PROPERTY TRANSFER
Property value EUR 614,156
City Riga
Indicator Latvia Europe & Central Asia OECD high income
Procedures (number) info_outline 4 5.3 4.7
Time (days) info_outline 16.5 20.6 22.4
Cost (% of property value) info_outline 2 2.5 4.2
Quality of the land administration index (0-30) info_outline 22 19.8 22.7
  • Measure of efficiency
    No. Procedure Time to Complete Associated Costs
    1

    Verification of title

    Agency: Land Registry

    The buyer should request from the Land Register website an updated extract from the relevant folio of the Land Registry, which allows the buyer to verify the title of the real estate and the legal rights attached to it. Any credit or debit card holder can obtain information on any real estate registered in the Land Register.

    If the buyer needs to verify the title of the real estate and legal rights attached to it, he/she can request a folio printout from Land Registry website. The cost for acquiring a printout online is 4,00 EUR.
    The official website of the Land Registry is www.zemesgramata.lv


    Less than a day (online procedure) 4,00 EUR (if requested online and you don't pay subscription fee)
    2,85 EUR (if requested online and you pay subscription fee)
    4,27 (if requested in person)
    2

    Municipality’s first refusal rights

    Agency: Municipality

    The parties submit the signed real estate sales agreement to the municipality for a decision on its first refusal rights. If the municipality does not need the property for municipal functions set by law, the municipality must issue a statement waiving the right of first refusal within 5 business days from receiving the purchase agreement or a copy. When it is necessary for the municipality to perform its self-government functions on the real estate, it must prepare a statement waiving the right of first refusal within 20 days from receiving the purchase agreement or a copy. The buyer can register title to the real estate with the Land Registry without waiting for expiry of the entire term as set out above. However, if the municipality fails to issue a statement waiving the right of first refusal within 20 working days, the buyer can only register title with the Land Registry after 27 days after the municipality received the purchase agreement.

    5 days no cost
    3

    Notarial certification of signatures of both parties on the application

    Agency: Notary Office

    The parties sign and a notary attests the application for the registration of the buyer’s title with the land registry or Land Book. The registration application should contain the authorization to the person that is entitled to perform the registration Procedures. If the authorization is not incorporated in the registration application, the parties can: 1) issue a notarized power of attorney to this effect, or 2) incorporate the authorization in the sales agreement, in which case the sales agreement must be attested by a notary, or 3) authorize a notary to process the registration of title.

    1 day - certification of the signature of both parties (two persons), EUR 18.78 each;
    - information about the companies - EUR 7,12 each;
    - information from the Citizen's register - EUR 5,41 for each person;
    - information from the Invalid documents' register - EUR 1,42 for each person;
    - information from the Land Book register - EUR 7,12 for each company.

    Additionally the state fee - EUR 0,71 is being added.

    The total sum is being taxed with the VAT of 21% (not included in estimates).
    4

    Registration of the buyer’s title

    Agency: Land Registry (Land Book)

    The parties submit the documents obtained in the previous Procedures to the Land Registry Unit of the Land Book. After reviewing all submitted documents a Land Book judge adopts a decision on registration of change of ownership rights. A true copy of a decision shall be issued, which a judge and a secretary of a Land Register office shall certify with their signatures. Entry shall be made in a Land Register not later than the next working day after a decision has been taken, and they shall be signed by a judge and a secretary of a Land Register office on the same day.
    The following documents must be provided together with registration application:
    • Real estate sales agreement signed by parties
    • Statement of the payment of real estate tax (Obtained in Procedure 1)
    • Municipality’s approval of the transfer (Obtained in Procedure 2)
    • Notarized application for the registration (obtained in Procedure 4)
    • Statement on the shareholders of the buyer (obtained in Procedure 3)
    • Receipt of payment of stamp duty and registration fee.

    (The payment for registration and the stamp duty can be paid at POS stations in the Land Registry. Receipt of payment should be submitted before the registration of the title)

    10 days EUR 14,23 (processing fee for the registration of title),
    EUR 7,11 (processing fee for the receipt of the registration certificate),
    2% of the highest of either the purchase price of the real estate value with a maximum of EUR 42 686,15 (stamp duty for the registration of title).

  • Measure of quality
    Answer Score
    Quality of the land administration index (0-30) 22.0
    Reliability of infrastructure index (0-8) 7.0
    What is the institution in charge of immovable property registration? Land Registry office of Riga city Vidzeme district court
    In what format are the majority of title or deed records kept in the largest business city—in a paper format or in a computerized format (scanned or fully digital)? Computer/Scanned 1.0
    Is there an electronic database for checking for encumbrances (liens, mortgages, restrictions and the like)? Yes 1.0
    In what format are the majority of maps of land plots kept in the largest business city—in a paper format or in a computerized format (scanned or fully digital)? Computer/Fully digital 2.0
    Is there an electronic database for recording boundaries, checking plans and providing cadastral information (geographic information system)? Yes 1.0
    Is the information recorded by the immovable property registration agency and the cadastral or mapping agency kept in a single database, in different but linked databases or in separate databases? Different databases but linked 1.0
    Do the immovable property registration agency and cadastral or mapping agency use the same identification number for properties? Yes 1.0
    Transparency of information index (0–6) 4.5
    Who is able to obtain information on land ownership at the agency in charge of immovable property registration in the largest business city? Anyone who pays the official fee 1.0
    Is the list of documents that are required to complete any type of property transaction made publicly available–and if so, how? Yes, online 0.5
    Link for online access: https://www.zemesgramata.lv/?cid=118
    Is the applicable fee schedule for any property transaction at the agency in charge of immovable property registration in the largest business city made publicly available–and if so, how? Yes, online 0.5
    Link for online access: https://www.zemesgramata.lv/?cid=36
    Does the agency in charge of immovable property registration commit to delivering a legally binding document that proves property ownership within a specific time frame–and if so, how does it communicate the service standard? Yes, online 0.5
    Link for online access: https://www.zemesgramata.lv/?cid=180
    Is there a specific and separate mechanism for filing complaints about a problem that occurred at the agency in charge of immovable property registration? No 0.0
    Are there publicly available official statistics tracking the number of transactions at the immovable property registration agency? Yes 0.5
    Number of property transfers in the largest business city in 2015: In 2015 a total of 228'969 transactions have been registered with the Land Registry, including 46'889 property transfers on the basis of a purchase agreement
    Who is able to consult maps of land plots in the largest business city? Anyone who pays the official fee 0.5
    Is the applicable fee schedule for accessing maps of land plots made publicly available—and if so, how? Yes, online 0.5
    Link for online access: http://likumi.lv/ta/id/278870-valsts-zemes-dienesta-maksas-pakalpojumu-cenr...
    Does the cadastral or mapping agency commit to delivering an updated map within a specific time frame—and if so, how does it communicate the service standard? Yes, online 0.5
    Link for online access: http://www.vzd.gov.lv/lv/pakalpojumi/zemes-ipasniekiem/registracija/zemes-i...
    Is there a specific and separate mechanism for filing complaints about a problem that occurred at the cadastral or mapping agency? No 0.0
    Geographic coverage index (0–8) 4.0
    Are all privately held land plots in the economy formally registered at the immovable property registry? No 0.0
    Are all privately held land plots in the largest business city formally registered at the immovable property registry? No 0.0
    Are all privately held land plots in the economy mapped? Yes 2.0
    Are all privately held land plots in the largest business city mapped? Yes 2.0
    Land dispute resolution index (0–8) 6.5
    Does the law require that all property sale transactions be registered at the immovable property registry to make them opposable to third parties? Yes 1.5
    Is the system of immovable property registration subject to a state or private guarantee? Yes 0.5
    Is there a specific compensation mechanism to cover for losses incurred by parties who engaged in good faith in a property transaction based on erroneous information certified by the immovable property registry? No 0.0
    Does the legal system require a control of legality of the documents necessary for a property transaction (e.g., checking the compliance of contracts with requirements of the law)? Yes 0.5
    If yes, who is responsible for checking the legality of the documents? .
    Does the legal system require verification of the identity of the parties to a property transaction? Yes 0.5
    If yes, who is responsible for verifying the identity of the parties? Notary.
    Is there a national database to verify the accuracy of identity documents? Yes 1.0
    For a standard land dispute between two local businesses over tenure rights of a property worth 50 times gross national income (GNI) per capita and located in the largest business city, what court would be in charge of the case in the first instance? Riga Regional Court
    How long does it take on average to obtain a decision from the first-instance court for such a case (without appeal)? Between 1 and 2 years 2.0
    Are there any statistics on the number of land disputes in the first instance? Yes 0.5
    Number of land disputes in the largest business city in 2015: In 2015 a total of 120 land dispute claims were submitted to the Courts of the Republic of Latvia, which constitutes 0.29% of all claims submitted to the courts of first instance in 2015 (40'638)
    Equal access to property rights index (-2–0) 0.0
    Do unmarried men and unmarried women have equal ownership rights to property? Yes 0.0
    Do married men and married women have equal ownership rights to property? Yes 0.0