In short
- The biggest extra cost is the state fee: 1.5% of the price, or of the cadastral value if that is higher.
- Add the Land Register office fee, a notary or lawyer, and with a mortgage also the mortgage registration and bank fees.
- For a €100,000 flat bought with a loan, budget about €1,700 plus the bank's own charges.
- After the purchase come insurance, building management and, from the next year, real estate tax (NĪN).
What the costs of buying a flat are made of
On top of the price, the buyer usually pays to have the ownership entered in the Land Register (Zemesgrāmata) and to have the deal put on paper. If you buy with a mortgage, bank costs and the mortgage registration come on top.
The table lists the main items. State fees and notary fees are set by Cabinet of Ministers regulations, so they are the same for everyone. Bank and insurer prices differ, so check the price list of the one you use.
| Cost | How much | When |
|---|---|---|
| State fee for ownership | 1.5% of the value, max €50,000 | Before the Land Register entry |
| Land Register office fee | €15 per person, 90% when filed online | Before the Land Register entry |
| Notary | From €23 for certifying a signature to 0.5% for a notarial deed, plus VAT | On the day of the deal |
| State fee for the mortgage | 0.1% of the loan amount | If you buy with a loan |
| Bank fee and valuation | Per the bank's price list | Before the loan agreement |
| Insurance | Per the insurer's price | Every year |
Example: a €100,000 flat with a mortgage
Say you buy a flat for €100,000, its cadastral value is below the price, and you take an €80,000 loan. A lawyer drafts the purchase agreement, and a notary certifies the signatures on the Land Register application.
- State fee for ownership: 1.5% × €100,000 = €1,500.
- Land Register office fee for the ownership entry: €15.
- State fee for the mortgage: 0.1% × €80,000 = €80, plus an office fee of €15.
- Notary: 2 signatures × €23, plus 21% VAT = about €56.
That comes to about €1,666, before the bank fee, the valuation and insurance. If you choose a notarial deed instead, the notary's fee is 0.5%, so €500 plus VAT. More on that in the article on notary costs.
If you buy with a mortgage
The bank registers a mortgage in the Land Register, and that carries a state fee of 0.1% of the loan amount. The bank will usually also ask for an independent valuation and for the property to be insured for the whole loan term.
The bank's arrangement fee and the valuer's price vary between banks. Compare them together with the interest rate, because a small fee can hide a higher bank margin. More on insurance in home insurance.
Costs after the purchase
Once you are in the Land Register, the regular costs begin. The building management fee and the repair fund are paid from the first month. A new owner usually starts paying real estate tax (NĪN) from the following year.
In Rīga, NĪN is much lower if at least one person has their residence declared in the flat on 1 January. If you will live there yourself, declare your address in good time.
How to cut the costs of buying
- Buying from a close relative, the state fee is 0.5% instead of 1.5%.
- With ALTUM or other state housing support, the fee is 0.5% up to a value of €100,000.
- With a valid Goda ģimene (Honorary Family) card, the fee is 0.5%.
- Filing the Land Register application online, the office fee is 90% of the usual amount.
- For a simple deal, certified signatures are enough; a notarial deed costs more.
- Compare bank fees and insurance prices, as they are not fixed.
Common questions
What percentage should I add on top of the flat price?
Without a loan, usually a little over 1.5%. With a mortgage and a notarial deed it can reach around 2–2.5% of the price, depending on the bank's charges.
Who pays the state fee, the buyer or the seller?
Usually the buyer, because the fee is for registering their ownership. The parties can agree otherwise in the contract.
Is the state fee based on the price or the cadastral value?
On whichever is higher. If the contract price is below the cadastral value, the fee is calculated from the cadastral value.
When do I pay the state fee?
Before the documents go to the Land Register. The payment must show the buyer's personal code and the property's cadastral number.
Sources
This article is for information only and is not legal, financial or tax advice. It may contain mistakes or be out of date, so check it against official sources or with a specialist before you decide. m²cena accepts no liability for any loss or damage arising from the use of the information in this article.