From 1 January 2022, the compulsory lease payment for the use of land owned by another person in shared ownership situations is set at one to four per cent of the cadastral value of the land. The new rent is subject to a transitional period of one year if the landowner and the owner of the structure currently have an agreement on the rent or if the rent is set by a court, while from 1 January 2024 the new rules will apply in cases where the land belongs to the state or a municipality.
The new regulation, also known as the compulsory lease reform by its drafter, the Ministry of Justice, is laid down in amendments to the law "On the Time of Entry into Force and Application of the Introductory Part of the Civil Code of the Republic of Latvia of 1937, the Law on Inheritance Rights and the Law of Property", which enter into force on Friday, 29 October.
The amendments to the Law are not extensive - Article 33 on land lease contracts and the tenant's right to build has been updated and five new articles have been added.
