Latvian Constitutional Court Rules on Land-Use Fee Constitutionality

On December 10, 2025, Latvia's Constitutional Court declared that the regulation setting the statutory land-use fee at 4% of the cadastral value is unconstitutional. The case involved 21 landowners challenging provisions that limited their compensation for land used by others' buildings. The court found that the existing regulation failed to balance landowners' rights to fair compensation with the protection of building owners' rights. This ruling mandates legislative amendments to ensure equitable compensation for landowners, potentially impacting numerous property agreements across Latvia.