bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Wednesday 24.05.2017 | Name days: Marlēna, Ilvija, Ziedone
LatviaLatvia

Notaries: it is possible to reduce real estate transactions by 40%

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUThe total costs of real estate transactions, such as purchase and sale costs, can be reduced by more than 40% in Latvia, according to estimates of Latvian Council of Sworn Notaries. It is possible to reduce costs by introducing lower land book state fees and equalizing notary service costs with those in Lithuania and Estonia.

One major benefit from reduced costs and administrative obstacles would be fewer real estate deals that remain unregistered in the state land book.

«There is a large number of people in Latvia who do not register their property rights after carrying out real estate transactions. This is most often related to the state land book fee. But only immediate registration of rights over property can exclude the possibility of having one’s property stolen or be sold multiple times,» – notes LZNP Chairperson Sandra Stipniece.

Large fees also lead to people not registering their properties in the land book – all to avoid paying state fees and PIT. It is a common practice when sides involved in a deal artificially reduce the actual price of the deal to reduce the required state fees, taxes and other related payments. Information compiled in Baltic States shows that residents in Estonia and Lithuania have no reasons to state false information when carrying out real estate transactions. This is because the land book registration fee in those countries is small. Since the presence of a notary is mandatory during such deals, it allows both sides discuss and accurately assess all potential risks and consequences. This helps avoid situations when taxes and fees are paid only in part. Guaranteed administration of state fees is a valued tool to help combat grey economy.

«LZNP’s proposal for real estate transactions reform also provides for the reduction of the 2% state land book fee by 1% this year, 0.7% next year and 0.5% the year after. Annual revenue received from the state land book fee is estimated at EUR 34 million. The loss of revenue from the reduction of the fee would be compensated by a significant reduction of grey economy – close to EUR 15 million, in addition to PIT collected from notary services, VAT and state fees for notary activities, which is another EUR 7 million,» – says Stipniece, adding that the state budget would not lose anything and residents would only benefit from the reform.

In addition to lower registration fees, it would be beneficial to reduce the number of institutions involved in processing real estate property deals. «It would benefit the business environment as well, because instead of visiting seven institutions it would be necessary to visit two (NĪ and the notary). Fewer administrative obstacles benefit the general competitiveness of the business environment and create a safe bedrock for investments,» – adds the chairperson.

Ref: 102.109.109.5322


Leave a reply

FM: planned tax reform will create conditions to reduce grey economy

After the publication of specific recommendations for EU member states, the European Commission admits that tax guidelines help resolve last year’s recommendations on reduction of the tax burden for residents with low income.

Economic influence on retail trade depends on migration

Looking at the influence of Latvia’s economy on retail trade industry in Q1 of 2016 and 2017 it becomes clear that future development of this industry depends on migration and inflation growth rates, as concluded in retail trade outlook Maxima Retail Trade Compass.

EC says it has irresistible «carrot» to attract countries to eurozone

EU’s European Commission intends to raise the attractiveness of adopting the euro in eyes of the bloc’s members now having their own national currencies, stated economics and finance commissioner Pierre Moscovici

Antane: government’s indecisiveness and rushed decisions impact transit industry

The refusal of Russian Railways to carry cargoes from Russian ports to Latvia could create a state of emergency for Latvia’s transit industry, says Baltic Association – Transport and Logistics.

Support to Rail Baltica further funding voiced by European Parliament Committee

Political support for continued funding of the railway project Rail Baltica has been acknowledged by a member of the European Parliament Committee on Transport and Tourism.

Kucinskis is not prepared to drop the tax reform

Political parties will have to decide on the extent of realization of proposed tax reforms. Finance Ministry will not work on new proposals, said Latvian Prime Minister Maris Kucinskis in an interview to LNT on Monday, 24 May.

Accessibility to new and effective medicine in Latvia is the poorest in Europe

In terms of accessibility and compensation of new and effective medicine, Latvia is on the last place among EU member states, according to Patients W.A.I.T. Indicator published by European Federation of Pharmaceutical Industries and Associations at the end of April.

Survey: How much time are you prepared to spend on your way to work?

Nearly half of interviewed Baltic residents say they are prepared to spend up to 30 minutes on the road in one direction, according to results of a survey performed by CV Market in Latvia, Lithuania and Estonia.

Latvian ambassador: the ball is on Russia’s side

NATO can reduce the threat of terrorism, but not liquidate it completely, said Latvian ambassador to NATO Indulis Berzins in an interview to Latvijas Radio before the upcoming NATO summit, which is expected to discuss the recent terrorist attack in Manchester, UK.

ECT: Most of Romania population sees domestic violence as normal

Romania has been criticised in a ruling by the European Court of Human Rights for being insufficiently committed to preventing domestic violence.

Latvia warned that budget deficit under tax reform may exceed allowed threshold

European Commission’s assessment of the effect from Latvia’s fiscal plan and intended tax reform show major risks of diversion from requirements of the Stability and Growth Pack for 2018.

British police names alleged Manchester terrorist

British police has named Salman Abedi as the possible suicide bomber, suspected of having killed 22 people and injured 59 in the city of Manchester this week.

Interest of Indian youth for study opportunities in Latvia increases year after year

Indian Foreign Affairs Minister Mobashar Jawed Akbar emphasized during his meeting with Latvian Foreign Affairs Minister Edgars Rinkevics that India has experienced very rapid economic growth in the past year. He added that the upcoming Latvian-Indian business forum will be an important step towards closer cooperation in economy.

Latvian government reduces administrative burden on amelioration

Latvian government has agreed to support Agriculture Ministry’s prepared amendments to requirements that dictate construction requirements for waterworks and amelioration systems, as well as cadastral rules. Changes were prepared to reduce administrative burden, Agriculture Ministry reports.

Survey: 32% of Latvian residents have no savings

Losing their income, 23% of respondents would not be able to cover everyday expenses, 5% would be able to maintain payments for less than a month and 20% of respondents would be able to cover a whole month’s worth of expenses, shows the survey performed by Nordea on personal finances.

Producer prices in April grew 0.1% in Latvia

Compared to March, the level of producer prices in Latvian industry grew by 0.1 % in April 2017. The prices of products sold on the domestic market increased by 0.5 %, whereas the prices of exported products dropped by 0.2 %.

LSBA: closure of gambling halls is an attempt by officials to promote their image for elections

Latvian Association of Gaming Business asks deputies of Riga City Council to reconsider their actions in relation to the planned decision to prohibit gambling halls in Riga’s historic centre.

More people have moved to Estonia than left it in 2016

13,792 people have emigrated from Estonia in 2016 and 14,822 have immigrated, Estonian statisticians have estimated, concluding that net migration in the Baltic country has been positive for the second consecutive year.

Saeima to discuss the role of the Security Department of the Bank of Latvia

Saeima’s Defence, Internal Affairs and Corruption Prevention Committee will visit the Bank of Latvia on Wednesday, 24 May, to discuss the role of the bank’s Security Department, as BNN was informed by Saeima’s press-service.

Razuks hints healthcare budget’s increase would require new fees

Sides involved in discussions about finding additional finances for healthcare have yet to reach a definite agreement. It is possible there may be a new fee introduced, said Saeima Public Health sub-committee chairman Romualds Razuks told Rīta panorama on Tuesday, 23 May.

Twelve million euros invested in creation of car wash network in Latvia

Wash & Drive opens the largest self-service car wash station in Riga. In cooperation with Citadele Bank, EUR 800,000 was invested in the creation of this seven-box car wash, as confirmed by the bank.

EC: Latvia’s tax system is less progressive than systems in other EU countries

The European Commission recommends Latvia to reduce the tax burden for small wage recipients and move it to other sources that are less impacting on growth and motivate people to pay taxes.

Latvia to lead joint air and land military exercises this year

Annual international military exercises Saber Strike will be taking place in Latvia from 3 – 15 June. Allied troops and armoured vehicles have begun arriving in Latvia for the upcoming exercises, as reported by Defence Ministry.

Tragic blast shakes Manchester, UK

In an explosion, which has occurred in a mass sports and music events venue in the British city of Manchester, 22 people have died and over 59 have suffered injuries.

Experts: Rail Baltica – connection that benefits everyone

The essence of Rail Baltica project is not combating the trends currently present in the world, but rather using them as an advantage, says advisor to the Bank of Latvia Andris Strazds. He adds that more and more economic and social development is centered in large and urban city centres.