Latvian Parliament bans real estate purchases by Russian and Belarusian citizens
In a landmark move, the Latvian Parliament has passed the final reading of the “Law on the Restriction of Transactions Threatening National Security,” effectively prohibiting Russian and Belarusian citizens and entities with their involvement from acquiring real estate within the country. According to Delfi, the initiative received overwhelming support, with 69 deputies voting in favor and only 8 against it.
The newly adopted law extends beyond simple property purchases, encompassing a variety of transactions such as lease-to-own agreements, gifts, inheritances, exchanges, auction participation, and other forms of property acquisition. Restrictions apply to legal entities registered in Russia or Belarus, as well as companies where citizens from these countries hold a 25% stake or more, or serve as beneficiaries. This legislation affects all transactions made after it comes into force, with provisions allowing for annulment if authorities detect non-compliance related to citizenship or control by undesirable parties. It places the onus on sellers and notaries to ensure adherence.
Initiated by deputies from the "New Unity" party, the law aims to curtail the influence of potentially hostile states through economic channels, including the real estate market. It forms part of a broader strategy to defend against “hybrid threats.”
Amendments in the second reading introduced stricter criteria, such as barring transactions for former non-citizens of Latvia who obtained residency through language exams post-February 24, 2022. However, some of these restrictions were softened in the third reading. Exceptions allow Russian and Belarusian citizens with permanent residency in Latvia or the EU to acquire a single property under specific conditions. Additionally, Russian citizens are permitted to inherit property from relatives.
Similar measures have been implemented in Finland this year, while Lithuania has had a comparable law in effect since 2023.