June 9 Riga City Council has approved a bill to change the rules for calculating the real estate tax and benefits. Since 2016 will increase tax payments on real estate (NĪN) for owners of land in Riga, and for families with children they will be reduced. Also, will increase tax payments for housing, which has no declared residents, of neglected land and illegally constructed objects.
The land tax
During the economic crisis in Riga operated a reduced tax rate on real estate on the administrative territory of Riga - 1%. Starting next year, it will be applied the rate fixed by the law "About the tax on real estate" - 1.5%.
Benefits
For families with one child in paying NĪN will operate a discount of 50%, and for families with two or more children - of 70%.
The discount will be given under the following conditions: firstly, at least one parent must be a landlord. Second, the owner of the apartment or his spouse and child or children need to be declared in this apartment. Discount relies children under 24 years if they are studying full-time university or school.
Are kept benefits (discount from 50 to 90%) for families with three or more children, single pensioners, the disabled, the poor, the needy and other vulnerable categories of citizens.
Property tax in apartment buildings
For individuals over indivisible part ownership in apartment houses will be calculated the rate of 0.2-0.6% of the cadastral value, basing on the fact that every declared person owns 30 sq.m. Benefits for families with children will be the same as in the case of land: 50% discount for families with one child, and 70% - with two or more.
In the application of the property tax will be taken into account, whether any tenants are declared in this property. To housing without declared persons apply higher tax rate of 1.5%. The same higher rate will apply if the area exceeds 30 sqm for each declared.
In Riga, there are over 38 000 flats with no declared residents - they are either empty or rented to tenants without registration.
Tax on neglected properties
Since 2016 an increased rate of 3% will be applied for the neglected and unkempt land. Also, the increased tax rate will be applied in cases when the unauthorized construction is built on the land, and in the apartments - uncoordinated redevelopment, and when the duration of the agreed construction work is exceeded.
According to the estimates of revenue management Riga municipality, the total increase in the budget of Riga as a result of these corrections may reach € 23.7 mln.
According to the mayor of Riga Nil Ushakov, "a tax increase is an attempt to balance the budget of the government in the next year. An increase would affect mainly wealthy part of society and for low-income people and families with children nothing will change”.
According to the materials of Delfi.lv and Baltic-course.com
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