April. 2025

Changes to the Civil Procedure Law

Changes to the Civil Procedure Law entered into force on 1 April 2025 for the purpose of providing interim protection against violence. If an application for the replacement or annulment of interim measures is received less than three months after the previous hearing of such an application, the court may hear the application in a written procedure and the decision is not subject to appeal. The changes also provide for a reduction in  the time limit for attending a course to reduce violent behaviour. With the changes, the court will now also be obliged to take into account, when apportioning costs in divorce cases, as well as in custody and access cases, the circumstances which contributed to the breakdown of the marriage and the circumstances which hinder divorce, and the non-payment of maintenance. There are changes in the calculation of the stamp duty, which is now done in a simplified fixed way, without the need to calculate the fees as a percentage. In addition, a cap on the stamp duty has been introduced. The amendments also provide for simplified procedures for enforcement of obligations, stricter procedures for maintenance and other changes.

Extension of the ban on imports of agricultural and feed products from Russia and Belarus

On April 3rd, 2025,  Saeima adopted amendments to the Law on Agriculture and Rural Development, extending by one year the ban on imports of agricultural and animal feed products from Russia and Belarus for consumption in Latvia. The ban applies both to products that would be directly imported from Russia and Belarus and to products that would be imported from third countries if they originate from Russia or Belarus.

Personal income tax relief for disposals of crypto-assets

On 10 April 2025, Saeima adopted amendments to the law On Personal Income Tax in the final reading. The amendments provide that income tax shall not apply to income derived by a foreign taxpayer (non-resident) from the disposal of crypto-assets in public circulation. Prior to the amendments, the legal framework provided for withholding tax of three per cent, with the possibility of reclaiming the tax paid by way of summary procedure. The tax relief will apply to traders who have been authorised by the relevant Regulation to provide cryptoasset services in the European Union. The tax relief will apply from 1 January 2025 until 31 December 2027.

New rules for selling a share in common property

On April 1, 2025 the second and third paragraph of Civil Law’s Article 1074.1 entered into force, providing for the sale of a share in common property by private auction. If a joint owner abuses his rights or fails to perform his duties as a respectable and careful owner and causes substantial damage, a majority of the joint owners may require the alienation of his share. The law provides that the share to be alienated is to be sold by private auction, i.e.,   auction between the joint owners. In a situation where none of the other joint owners expresses a wish to acquire the share to be alienated or the court has reasonable doubt as to the appropriateness of such means of alienation, the court shall order that the share be sold by public auction, which shall also be organized if the joint owner's share cannot be sold by private auction.

Continuation of support for start-ups to attract skilled professionals

Based on the Law on Aid for the Activities of Start-up Companies, a new application phase is now open for the highly skilled workers wage program. Priority is given to Latvian start-ups developing or planning to develop various innovation-related products and meeting the eligibility criteria. The aim of the program is to promote the competitiveness and growth of Latvian start-ups by offering co-financing for the hiring of highly qualified professionals and tax incentives. Start-ups can benefit from two programs: co-financing of 45% of the cost of highly skilled workers salaries and tax incentives or reduced labor taxes.

Latvia withdraws from the Ottawa Convention

On 16 April 2025, Saeima adopted in final reading the Law on Withdrawal from the Convention on the Prohibition of the use, stockpiling, production and transfer of anti-personnel mines and on their destruction, which provides for withdrawal from the so-called Ottawa Convention. Latvia is the first Baltic State to have taken such a decision to withdraw from the Convention. The aim of the law is to improve national security and, if necessary, to use different weapons systems and solutions to ensure national defense. The withdrawal from the Ottawa Convention will enter into force six months after the United Nations has received the documents.

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