Constitutional Court, Nr. 2024-21-0103, 10 December 2025
Statutory land use fee and cadastral valuation
Incompatible with the Constitution
What the problem was
For owners of land on which buildings belonging to others stand, the law set a use fee and a cadastral valuation procedure that could leave the owner with zero or less after paying the tax.
What the court ruled
The Constitutional Court found incompatible with the first and third sentences of Article 105 of the Constitution and void from 1 January 2027: the second sentence of the second paragraph of Section 38 and the seventh paragraph of Section 42 of the law on the entry into force of the Civil Law, points 43.1, 43.2 and 43.3 of the transitional provisions of the State Real Estate Cadastre Law, and points 40 and 42 of Cabinet Regulation No. 103 as regards statutory land use relations. By 1 June 2026 the Saeima must set a procedure for landowners to receive adequate compensation for the infringement from 1 January 2025 in cases where the use fee does not cover the real estate tax, equals it, or leaves the owner disproportionately little after the tax.
What it means
Landowners whose use fee does not cover the tax, equals it, or leaves disproportionately little after the tax are entitled to compensation for the period from 1 January 2025. The Saeima had to set the procedure by 1 June 2026. The challenged provisions cease to apply on 1 January 2027.
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