Frequently Asked Questions

For buyers or tenants, the services of real estate agents are free of charge. 

The commission fee for selling a property ranges from 3 - 5%. In the case of renting, the commission is equal to one month's rent. If the property is more expensive, the commission for renting or selling may be even lower. Each case is assessed individually and, of course, there may always be exceptions on one side or the other by mutual agreement.

In the case of a buyer, the agents will find the properties of interest according to the parameters set by the client. If the property is not listed, agents from other companies will be contacted and will certainly find the property of interest. The agents will help to complete the transaction by providing legal assistance, arranging banking, valuers and other necessary services.

In the case of a seller, they will inspect the property, take photographs, negotiate with the client the price of the property to be sold or leased, advertise the property publicly or target specific potential buyers, provide legal support, assist with credit institutions, valuers and measurers, organise notary visits, and provide information and advice throughout the process.

No, Riga Brokers does not charge for real estate agent consultations.

A cooperation agreement will be signed for the agent's services. The client is only obliged to settle for the agent's services after a successful transaction, when the client has received payment in full from the buyer or tenant engaged by the agent. If the client has found the buyer or tenant himself, no agent's commission is payable. 

All clients are obliged to provide information about themselves in accordance with the Money Laundering and Prevention of Terrorism and Proliferation Financing Act.

Purchasing a property requires notary fees, which on average amount to EUR 50-80, a landbook registry fee of EUR 15 and a state fee of 1.5% of the transaction amount. There are conditions when the land registry fees may be higher or lower. Here is a link to a detailed calculation of land registry fees.

Usually all costs are covered by the buyer, however the seller may also cover them if the parties agree.

The Law on Personal Income Tax stipulates that a tax rate of 20% applies to the income from the sale of real estate. 

The tax is not charged on the full amount received, but on the difference between the sale price and the acquisition value of the property - the amount of money for which the property was once purchased or the value stated in the inheritance certificate or the gift deed. Similarly, investments and credit interest may be deducted from the sale value of the property.

For non-residents, there are special rules depending on the type of buyer.

The law provides for a number of situations in which no income tax is payable on the sale of real estate: if it has been owned for more than five years and has been the declared residence for at least 12 months; if it has been the only real estate in the last five years; if another similar property is bought instead of the only property sold.