Legislative Review April 17–23, 2026
COMMERCIAL AND CORPORATE LAW
– Annual LIFE Programme Info Day
REAL ESTATE AND CONSTRUCTION
– Clarified Requirements for Planning and Construction of Electronic Communications Infrastructure
– Regulation to be Clarified Regarding Municipalities’ Right to Demand Fixed-Term Lease Agreements
ENERGY
– Clarification of EU Cohesion Project Implementation Conditions
– Changes in the Composition of the “CONEXUS” Council
LABOUR LAW
– Dispute Regarding the Legality of Terminating Professional Military Service During Parental Leave
BANKING AND FINANCIAL LAW
ENVIRONMENTAL LAW
– Support for the Purchase of Environmentally Friendly Vehicles
– Council of Europe Convention on the Criminal-Law Protection of the Environment
TAXES
– In a dispute regarding the allocation of Covid-19 support, a causal link between turnover decline and restrictions must be proven
– The Court recognizes that Covid-19 support should be granted based on the company’s actual operations, not its formally declared main activity
IMMIGRATION
DISPUTE RESOLUTION
– Amendments Criminalizing the Distribution of Intimate Material Entered into Force
– Amendments to the Criminal Procedure Law Announced, Protecting Good-Faith Acquirers of Property
– The Criminal Law Regulation on Environmental Crimes will be Expanded and the Law “On the Entry into Force and Application of the Criminal Law” will be Amended
– It will be stipulated that in the event of a person’s death, compensation for each victim recognized in criminal proceedings will be granted in full, not proportionally divided among several victims
– It will be stipulated that the State Forensic Science Bureau has the right to use a biometric data processing system, inserting traces obtained in dactyloscopic examinations, as well as to perform biometric data processing
– It will be stipulated that information about a person obtained during operational activities may be transferred to other institutions
– Automation of the Process for Compulsory Enforcement of Obligations in Warning Procedure
COMMERCIAL AND CORPORATE LAW
Industry News
Annual LIFE Programme Info Day (read more here)
Will take place on May 13, 2026, at 10:00 AM online
Entrepreneurs, municipal representatives, NGO representatives, and other interested parties are invited to the LIFE Programme Info Day, where they will be able to learn about opportunities to attract co-financing from the European Union’s LIFE support programme in Latvia, within the programme’s 2026 call.
LIFE is the European Union’s support programme for nature and environmental protection and climate change, through which more than 60 environmental, nature, and climate projects have been implemented in Latvia. With the support of the LIFE programme, entrepreneurs can develop innovative products, improve production quality and resource efficiency, and replace undesirable chemical compounds with environmentally friendly alternatives in their products.
REAL ESTATE AND CONSTRUCTION
Regulatory Acts
Clarified Requirements for Planning and Construction of Electronic Communications Infrastructure (Project ID 25-TA-1857)
Adopted at Cabinet of Ministers meeting on April 21, 2026
Amendments to Cabinet of Ministers Regulation No. 693 “General Building Requirements Construction Norm LBN 200-21” clarify the planning and construction of electronic communications infrastructure in cities to accelerate the process, reduce costs, and minimize damage to the urban environment. The relocation of communication cables from overhead to underground will be promoted, and it will be stipulated that, in the future, when constructing new streets, reserve underground cable ducts must be provided, which will serve as space for future networks.
The amendments enter into force on August 1, 2026, and the requirements contained therein may not apply to construction projects for which a design contract was concluded by July 31, 2026.
Draft Regulatory Acts
Regulation to be Clarified Regarding Municipalities’ Right to Demand Fixed-Term Lease Agreements (Draft Law No. 1324/Lp14)
Submitted to Saeima on April 23, 2026
Amendments to the Law on Residential Tenancy clarify that a municipality may require the conclusion of a new fixed-term residential lease agreement for all previously concluded municipal residential lease agreements — both those concluded by the municipality in exercising its autonomous function (providing assistance in resolving housing issues) and those concluded outside the performance of the autonomous function. Additionally, a different — longer — term for re-signing agreements is stipulated for agreements where the municipality is the landlord, deviating from the general regulation.
ENERGY
Regulatory Acts
Clarification of EU Cohesion Project Implementation Conditions (Project ID: 26-TA-175)
Adopted at Cabinet of Ministers meeting on April 21, 2026
Amendments to Cabinet of Ministers Regulation No. 18 on the implementation of the EU cohesion program for 2021-2027 for improving energy efficiency in cultural infrastructure and reducing greenhouse gas emissions, provide for: clarifying the terms used in the regulation; removing some buildings from the project; and removing all superfluous references to EU legal acts. Additionally, it is intended to stipulate that project implementers will only have to report on energy consumption indicators once for the full calendar year after the project ends (until now, five years after the final payment).
Industry News
Changes in the Composition of the “CONEXUS” Council (AST: News)
On April 23, 2026, the “Conexus” Council was elected for a three-year term, consisting of five council members
3 members were re-elected to the Council, and two new members were elected. The shareholders’ meeting decided to approve the new version of the “Conexus” Articles of Association, providing for a reduction in the number of council members from seven to five, as well as determining the remuneration of council members.
The shareholders’ meeting also approved the “Conexus” 2025 and dependency report, acknowledged the reports of the “Conexus” board, council, and independent auditor, and decided on the use of “Conexus” profit, paying out €0.37 per share in dividends.
LABOUR LAW
Case Law
Dispute Regarding the Legality of Terminating Professional Military Service During Parental Leave (Case No. A420231824)
Judgment rendered on April 17, 2026
On August 26, 2008, an agreement for professional military service (public law contract) was concluded between the applicant and the Ministry of Defence. From October 25, 2023, to June 15, 2024, the Applicant was on parental leave. By decision of the Ministry of Defence on March 22, 2024, the Applicant was dismissed from office and discharged from professional service, terminating the Agreement prematurely, as circumstances preventing active service were identified – the Applicant’s special permit for access to state secrets was annulled (the decision entered into force and became indisputable).
There is a dispute as to whether the institution was allowed to discharge the applicant from service during parental leave. There is also a dispute as to whether, in the circumstances established in the case, the institution was obliged to apply more favorable legal consequences to the applicant (grounds for discharge).
The court recognized that the contract was terminated lawfully because the soldier’s special permit for access to state secrets was annulled. All military positions require a special permit for access to state secrets. If this security requirement is not met, it is a legal basis for premature termination of the contract. It was concluded that the norms of the Military Service Law take precedence over the norms of the Labor Law during parental leave, and the institution had no discretion to continue service relations.
BANKING AND FINANCIAL LAW
Case Law
Implementation of Institutional Reforms and Improvement of Administrators’ Professional Activity and Supervision (Draft Law No. 1260/Lp14)
Adopted in 1st reading on April 23, 2026; Awaiting proposals until May 7, 2026
Amendments to the Insolvency Law aim to clarify and supplement insolvency regulation in accordance with the planned reform of the Insolvency Control Service (ICS), transferring its functions and tasks to the Ministry of Justice and the Court Administration. References to the ICS in the law will be replaced with the Ministry of Justice and the Court Administration, without changing the substance of the regulation.
Additionally, regulations regarding insolvency administrators will be clarified, stipulating that an administrator may be exempted from taking the regular qualification exam if, since their appointment or the previous exam, they have attended qualification improvement events totaling 12 academic hours for each calendar year and at least 100 academic hours during the qualification period. Detailed conditions would be determined by the Cabinet of Ministers. Furthermore, a new type of qualification exam – an extraordinary qualification exam – would be introduced, serving as a mechanism to check whether an administrator is still suitable for performing their duties in cases of repeated disciplinary violations. A decision on imposing a disciplinary penalty in a disciplinary case would be published on the Administrators’ Association website. Henceforth, the Ministry of Justice would also submit applications to the court for the removal of an administrator from all processes in cases where the administrator’s official activity was suspended (until now, the ICS submitted if the administrator was dismissed, removed, or suspended).
ENVIRONMENTAL LAW
Regulatory Acts
Support for the purchase of environmentally friendly vehicles (Project ID: 25-TA-2646)
Adopted at Cabinet of Ministers meeting on April 21, 2026
The regulations for the open competition “Support for the purchase of zero-emission and low-emission vehicles” financed by the Emission Quota Auction Instrument provide support for the purchase of electric vehicles, plug-in hybrid cars, and hydrogen vehicles. The amount of support will vary depending on the type of vehicle and whether the resident has been granted the Latvian Honorary Family Certificate.
The funding for the support program is 40 million Euros, and the program is planned to be implemented until the aforementioned funding runs out, but no longer than December 21, 2029. Additional information and guidelines for preparing project applications will be available on the website of SIA “Environmental Investment Fund”.
Draft Regulatory Acts
Council of Europe Convention on the Criminal-Law Protection of the Environment (Draft Law No. 1318/Lp14)
Submitted to Saeima on April 21, 2026
The Convention was developed on May 14, 2025, with the aim of preventing and combating criminal offenses against the environment, promoting national and international cooperation, and establishing minimum legal standards to serve as guidelines for states in their national legislation. The draft law “On the Council of Europe Convention on the Criminal-Law Protection of the Environment” has been prepared to ratify this convention in Latvia.
The Convention stipulates that states must criminalize environmental crimes, impose effective sanctions, and provide for corporate liability for environmental damage. Public involvement and environmental protection measures (preventive measures) are promoted. The implementation of obligations under the Convention is coordinated by the Ministry of Justice, the Ministry of Climate and Energy, and the Ministry of Smart Administration and Regional Development.
TAXES
Case Law
In a dispute regarding the allocation of Covid-19 support, a causal link between turnover decline and restrictions must be proven (Case No. A420191022)
Judgment rendered on April 16, 2026
The Administrative Regional Court rejected the application for the issuance of a favorable administrative act, which would have granted the applicant support for ensuring working capital flow for October and November 2021. The Court found that, although the applicant proved a turnover decline of at least 20%, it failed to prove a direct or indirect causal link between this decline and Covid-19 restrictions, especially regarding the reduction in its turnover in the Horeca sector.
The Court recognizes that Covid-19 support should be granted based on the company’s actual operations, not its formally declared main activity (Case No. A420162322)
Judgment rendered on April 17, 2026
The Administrative Regional Court examined a dispute regarding the allocation of state aid to a company affected by the Covid-19 crisis for October and November 2021. The Service refused aid because the applicant’s main activity in the tax register was listed as “Marine Fishing,” which falls under an unsupported sector. The applicant, in turn, stated that it had not actually engaged in fishing but in catering and fish processing services.
The Court found that the applicant had no income or actual activity in the fishing industry, but it was genuinely operating in the supported catering industry. Analyzing the legal framework and its purpose, the court emphasized that the actual economic activity is decisive, not just the formally declared NACE code. The court also indicated that the purpose of the support is to compensate for the impact of Covid-19 restrictions in specific sectors, not to automatically deny support due to formal register entries. Therefore, it was concluded that the Service’s refusal was unfounded and unlawful. The court recognized the applicant’s right to receive support and imposed an obligation to grant it.
IMMIGRATION
Industry News
Conditions for granting and applying for residence permits clarified (Draft Law No. 1180/Lp14)
Adopted in 3rd reading on April 23, 2026.
Amendments to the Immigration Law will clarify the rights to grant residence permits to Belarusian citizens, and will exclude the possibility of obtaining a temporary residence permit for investment in interest-free government securities. Additionally, procedures for accepting and submitting documents have been simplified, and a procedure for rectifying document deficiencies has been established (14-day period).
DISPUTE RESOLUTION
Regulatory Acts
Amendments criminalizing the distribution of intimate material entered into force (Amendments to the Criminal Law)
Entered into force on April 16, 2026
Amendments to the Criminal Law introduced criminal liability for publishing images, videos, or other materials of an intimate or sexual nature without the consent of the person depicted; for exploiting a person subjected to human trafficking; for defrauding people by impersonating an official, representative of an institution or company.
Additionally, the limitation periods for criminal liability for criminal offenses against the morality and sexual inviolability of a minor, and for criminal offenses punishable by life imprisonment, have been extended. Harsher penalties have been established for concealing property and violating information system security rules. It has been stipulated that, when conditionally releasing a person from criminal liability, the person may be involved not only in probation programs but also in other social behavior correction or social rehabilitation measures of the penal institution. Furthermore, the possibility of reducing the imposed sentence has been introduced not only if the convicted person has helped to uncover a crime committed by another person, but also if the convicted person has provided assistance in searching for another convicted person.
Amendments to the Criminal Procedure Law announced, protecting good-faith acquirers of property (Promulgated Version)
Adopted by Saeima in 2nd reading on April 16, 2026; Entered into force on April 21, 2026
To strengthen the court’s powers to protect the property interests of a good-faith acquirer in situations where a choice must be made between returning real estate to the victim or the good-faith acquirer, the first part of Article 360 of the Criminal Procedure Law has been amended, replacing the imperative legal regulation with a dispositive one. Until now, the law stipulated that if criminally acquired property was found with a third party, it should be returned to the owner or lawful possessor according to ownership. However, there are atypical situations where the annulment of the good-faith acquirer’s rights and the return of real estate to the victim do not ensure a fair settlement of criminal legal relations. Henceforth, in exceptional cases, if criminally acquired property is real estate and its return to the victim does not allow for a fair settlement of criminal legal relations with respect to a third party who is a good-faith acquirer of the property, the court may, with specific justification, leave it in the ownership of the third party if their ownership rights are registered in a public register. The court’s foreseen rights are to be exercised only in exceptional cases, if the property is real estate, and with specific justification as to why the return of criminally acquired property to the victim in the specific case does not allow for a fair settlement of criminal legal relations with respect to the third party, as well as specifying the atypical factual circumstances in the case.
Draft Regulatory Acts
The Criminal Law regulation on environmental crimes will be expanded (Draft Law No. 1325/Lp14) and the law “On the Entry into Force and Application of the Criminal Law” will be amended (Draft Law No. 1326/Lp14)
Submitted to Saeima on April 23, 2026
Amendments to the Criminal Law are intended to implement EU Directive 2024/1203, which provides rules for criminal-law protection of the environment, while also stipulating the need to harmonize definitions of criminal offenses, penalty amounts, and criminal offense regulations across all European Union member states. The draft law aims to expand the criminal offenses against the environment regulated by the law, liability, and to establish harsher penalties.
Amendments to the law “On the Entry into Force and Application of the Criminal Law” will clarify in which cases a criminal offense against the environment has caused significant damage, and will also determine when liability will arise for the illegal placing on the market of certain raw materials and products derived from them.
It will be stipulated that in the event of a person’s death, compensation for each victim recognized in criminal proceedings will be granted in full, not proportionally divided among several victims (Draft Law No. 1156/Lp14)
Adopted in 3rd reading on April 16, 2025.
Amendments to the law “On State Compensation for Victims” have been developed to ensure the implementation of the Constitutional Court’s judgment of June 27, 2025, in case No. 2024-07-01, which recognized that the mechanism for granting state compensation applied in the event of a person’s death – proportional division of the total amount among all victims recognized in criminal proceedings – does not comply with the third sentence of Article 92 of the Constitution of the Republic of Latvia, as it does not ensure fair and proportionate compensation for each victim. It is planned to stipulate that in such cases, compensation will be granted to each victim in full, not proportionally divided among several victims.
It will be stipulated that the State Forensic Science Bureau has the right to use a biometric data processing system, inserting traces obtained in dactyloscopic examinations, as well as to perform biometric data processing (Draft Law No. 1203/Lp14)
Adopted in 3rd reading on April 16, 2026
To enable the State Forensic Science Bureau to perform its functions more quickly and efficiently, and to reduce bureaucratic document circulation, amendments to the Biometric Data Processing System Law stipulate that the State Forensic Science Bureau has the right to use a biometric data processing system, inserting traces obtained in dactyloscopic examinations, as well as to perform biometric data processing. Additionally, a technical amendment regarding the clarification of the name of the Tax and Customs Police in the law.
It will be stipulated that information about a person obtained during operational activities may be transferred to other institutions (Draft Law No. 1252/Lp14)
Adopted in 2nd reading on April 16, 2026.
Amendments to the Operational Activities Law stipulate that information about a person obtained during operational activities may be transferred to other institutions for initially unforeseen purposes, to the extent that such information is necessary to ensure the protection of other significant state or public interests, and its content and scope do not cause disproportionate interference with a person’s fundamental rights.
Automation of the process for compulsory enforcement of obligations in warning procedure (Draft Law No. 1198/Lp14)
Adopted by Saeima in 2nd reading on April 16, 2026; Submitted for proposals until April 30, 2026.
The draft law “Amendments to the Civil Procedure Law” has been developed with the aim of ensuring the automation of the process for compulsory enforcement of obligations in warning procedure (SPIBK). Such regulation is necessary to address the situation with the increasing number of applications submitted to courts and the resulting court overload. It is planned to ensure full automation of the SPIBK process, which can start operating as early as 2026. Accordingly, amendments to the CPL are also necessary, for example, by stipulating that 1) the SPIBK application will not require an address; 2) the creditor must confirm that no decision on termination of proceedings in SPIBK due to the debtor’s objections has been previously made between the same parties, for the same subject matter, and on the same grounds; 3) payment of the state fee for the application will henceforth be made through an online system; 4) the judge will not have to provide a reasoned decision for refusing to accept the application; 5) etc.
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VIKTORIJA Cherkas
PARTNER, ATTORNEY AT LAW
Viktorija is a Latvian legal expert recognized by international directories in project management and mergers and acquisitions (M&A), including energy projects (development of wind and solar park projects).
Viktorija also provides legal advice for day-to-day business operations – from company formation, management, shareholder relations, restructuring, and other business-related matters. At the same time, Viktorija is an expert in real estate development, acquisition, and leasing, and provides assistance to individuals and companies regarding relocation or property acquisition in Spain.
ALISA LEŠKOVIČA
PARTNER, ATTORNEY AT LAW
Alisa is an experienced advocate and a partner at RockBridge Legal. Since 2008, Alisa has advised clients and provided legal assistance in complex tax and customs matters.
Alisa also specializes in anti-money laundering (AML), sanctions, and compliance matters. Alisa has significant experience in corporate crime and investigation cases related to tax, customs, and sanctions issues.
Viktorija Jarkina-Toča
PARTNER, ATTORNEY AT LAW
Dr. iur. Viktorija Jarkina is a partner at RockBridge Legal, ranked by international legal directories Chambers Europe, Chambers Global, Best Lawyers, and Legal 500 among the leading criminal defense attorneys in Latvia.
Viktorija specializes in shareholder disputes, civil and commercial litigation, as well as criminal law, providing representation and defense in white-collar crime cases, including money laundering and environmental offenses. Additionally, Viktorija has extensive experience working with franchises, providing full legal assistance related to franchising.