Secured the purchase of a 25-hectare ostrich ranch for a family from Germany, overcoming the challenge of the Latvian language proficiency requirements.
In 2023, a German family, unfamiliar with Latvia, sought our company's assistance in overseeing the acquisition of a countryside ranch spanning 25 hectares of agricultural land in the northeastern part of Vidzeme region.
Main Challenges
- A client new to Latvia, without a prior visit, lacking essential understanding of the complex legal and practical nuances involved in rural property transactions
- Latvian land law imposes a language proficiency requirement of at least B2 (intermediate) level for foreign investors acquiring agricultural land
Objectives
- Perform due diligence on the property, covering financial and legal aspects
- Negotiate favourable and secure deal terms with the selling party
- Represent the client at notary office, State Revenue Service, Office of Citizenship and Migration Affairs, Land Registry, and local government offices, including municipality administration and building department
- Tailor post-service to meet specific client requirements
What We Did
During the property due diligence, we identified all legal nuances and created a clear roadmap with detailed steps for a successful property purchase.
Despite the complexity of the entire process, spanning several months and involving 5 different state authorities, we delivered an end-to-end service solution with legal precision—covering every aspect from acquisition to property management
Results
- Successfully negotiated a 10% reduction in the asking price within a tight timeline despite heightened buyer competition
- Established trustworthy relations led to the granting of power of attorney to our salesperson, ensuring client convenience while abroad
- Ensured the client received all necessary documentation, including a residence permit card, property certificate, taxpayer number registration, and local government authorization for farmland acquisition
- Secured client peace of mind post-purchase: contracted utility and security services, arranged property insurance through a partnered broker firm.
What About Language Proficiency requirements?
In a significant ruling on June 11, 2020 (case C‑206/19), the European Union's Court of Justice found that Latvian land law's requirements, such as national language proficiency, unfairly discriminated against other EU citizens in acquiring agricultural land.
We have covered this case in greater detail here.
As a real estate agency, we closely monitor significant legal cases like this, fully aware of their potential impact and the need for local governments to adhere to EU Court rulings, given the supremacy of EU law over national law.
P.S. Unexpectedly, our salesperson's law degree: more than just a diploma on the wall now :)
A draft law to remove language proficiency requirements for EU buyers is under consideration in the Latvian parliament. Stay tuned to our Land category articles for the latest and most significant information on land acquisition in Latvia
Client review
"My family and I are from Germany and were interested in buying a property in Latvia. Fortunately, Daniel was recommended to us by an acquaintance. Daniel gave us excellent advice throughout the entire process (advice on choosing a suitable property, clarification of important information, price negotiations and legal handling of the purchase) and always took a lot of time to deal with our concerns and problems. We found him to be an extremely committed, trustworthy and competent person and can only recommend working with him. He faced up to all the difficulties that arose along the way and was able to solve them thanks to his extensive experience in the field and his patience.
Without him, my family would never have been able to realise their dream, we are very grateful to him!You couldn't imagine or wish for a better real estate agency! Many, many thanks to the agency Neighbours"