Legislative Review August 3 – August 6, 2026
COMMERCIAL AND CORPORATE LAW
REAL ESTATE AND CONSTRUCTION
– Amendments to Cabinet Regulation No. 240 “General Regulations for the Planning, Use, and Building of Territory” will permit the construction of shelters if it cannot be implemented due to requirements set in the local government territory plan
– Amendments to the Law “On the Entry of Real Estate in the Land Register” adopted in the 2nd reading
– Cabinet of Ministers has submitted Amendments to Cabinet Regulation No. 384 “Building Standard LBN 405-21 for Technical Inspection of Buildings” for coordination
ENERGY
– Procedures for the establishment and maintenance of the greenhouse gas inventory system, projection system, and the system for reporting on adaptation to climate change
– Consultation document on amendments to the regulations for the submission of information in the energy sector released for comments
– By the end of 2026, new RES power plants with a total capacity of 1,650 MW will be connected to the AST transmission grid
– “Sadales tīkls” to increase grid capacity in Latvian regions by attracting 40 million euros in EU funding
– A special electricity distribution tariff plan for electrified customers will be available from 2027
LABOR LAW
– International sanctions do not revoke employee rights
REGULATED LAW
– Exclusion of a bidder from a procurement procedure due to a late tax return
ENVIRONMENTAL LAW
– Senate: the owner is responsible for the extraction of mineral resources on their property
– Senate: the right to apply to the court with an actio popularis regarding noise emissions
TAXES
CUSTOMS
DISPUTE RESOLUTION
– Amendments to the Criminal Procedure Law on the transfer of proceedings in criminal cases submitted for public consultation
– Amendments to the Criminal Law provide for liability for the sexual exploitation of an animal
– Amendments to the Criminal Procedure Law provide for the improvement of the framework for asset recovery and confiscation
– The Ombudsman’s Office involves itself on its own initiative in the development of the first European human rights standard for artificial intelligence
COMMERCIAL LAW AND CORPORATE LAW
Case Law
Senate: exclusion of a company from the commercial register without liquidation and judicial review of decisions adopted in this process (Case No. SKA-160-2026)
Judgment delivered on June 18, 2026
On July 24, 2020, the Register of Enterprises warned the Company that it had failed to fulfill the obligation stipulated in the Law on the Prevention of Money Laundering and Terrorism and Proliferation Financing to submit information regarding the company’s beneficial owners. The Company was given one month to rectify the deficiency, stating that otherwise its activities would be terminated. As the requested information was not submitted, the Register of Enterprises adopted a decision on October 15, 2020, to terminate the Company’s activities, and on February 24, 2021, a decision to exclude the Company from the commercial register, as no liquidator was appointed and no insolvency proceedings were initiated. Following the exclusion from the commercial register, the company submitted information on beneficial owners to the Register of Enterprises and requested the repeal of both adopted decisions; however, the Chief State Notary refused to amend them. The Administrative Regional Court partially satisfied the application, repealing the decision of the Register of Enterprises and ordering the reinstatement of the company in the commercial register, justifying it with atypical circumstances of the case and a disproportionate infringement of property rights.
The Senate significantly clarified its existing case law regarding the exclusion of companies from the commercial register without liquidation. The Senate indicated that the process of excluding a company consists of two independent administrative acts – the decision to terminate the company’s activities and the decision to exclude the company from the commercial register. After the execution of the second decision, the legal consequences it creates can no longer be reversed, as the legislator has not provided for the reinstatement of excluded companies in the commercial register. Therefore, after the execution of the second decision, the court may only verify the lawfulness of both decisions, rather than repeal them or order the reinstatement of the company in the commercial register.
The Senate did not agree with the conclusion of the Regional Court that atypical circumstances existed in the specific case which would justify a departure from the consequences provided for by law. The Senate emphasized that the obligation to submit information on beneficial owners serves significant public interests – the fight against money laundering – and the legislator has determined the consequences for non-fulfillment of this obligation deliberately and uniformly for all capital companies.
The Senate recognized that the applicant had every opportunity to prevent the occurrence of adverse consequences in a timely manner – by submitting information on beneficial owners or requesting the appointment of a liquidator. Therefore, the transfer of property to the state was the result of the applicant’s own inaction, rather than a case of disproportionate state interference. The Senate emphasized that the status of a company member is not automatically equated to the status of a beneficial owner. In order to conclude that the company was not obliged to separately submit information on beneficial owners, the court had to verify whether the Register of Enterprises already possessed all the information required by law. Such an assessment had not been sufficiently performed in the judgment of the Regional Court.
REAL ESTATE AND CONSTRUCTION
Draft Regulatory Acts
Amendments to Cabinet Regulation No. 240 “General Regulations for the Planning, Use, and Building of Territory” will permit the construction of shelters if it cannot be implemented due to requirements set in the local government territory plann (Project ID: 26-TA-1797)
The Cabinet of Ministers submitted for public consultation from August 4, 2026, to August 18, 2026.
The draft regulation provides for permitting the construction of shelters in all territories regardless of the building parameters set in local government territory plans and building regulations, provided that other regulatory acts, for example, in the field of environmental protection, do not stipulate a direct prohibition. Additionally, it is provided that the building area of the shelter is not calculated within the territory’s building parameters. Such a solution will also allow shelters to be built in places where the permitted building intensity is currently fully utilized.
Amendments to the Law “On the Entry of Real Estate in the Land Register” adopted in the 2nd reading (Draft Law No. 1415/Lp14)
Adopted in the 2nd reading on July 23, 2026.
2026. In January of the year, the Construction Law, the Land Register Law, and the Law “On the Entry of Real Estate in the Land Register” were amended to ensure the provision (implementation) of a unified building registration service, which provides that a person initiating construction submits one application in the Construction Information System (BIS), and this application is simultaneously an application for the further registration of the building in the National Real Estate Cadastre Information System and an application for its entry in the Land Register.
The initial regulation provided that the unified building process applied only to construction initiators building on land owned by them; however, amendments to the Construction Law have now been prepared which provide for the abandonment of this condition, thereby covering all other cases – construction on the basis of building rights, construction on someone else’s land if permitted by regulatory acts, as well as the construction of apartment buildings that are divided into apartment properties.
The draft law provides that in cases where an apartment building is being built and divided into independent apartment properties, both the residential building and the individual apartment properties are to be entered in the Land Register simultaneously. The basis for making entries in the Land Register is the structured data of the Cadastre Information System and the Construction Information System, provided that a notification has been received from the State Land Service regarding the acceptance of the building for operation and its registration in the Cadastre Information System. It should be noted that such simultaneous entry of the apartment building and apartment properties in the Land Register will be a free choice of each person, which will be indicated in the Construction Information System.
Cabinet of Ministers has submitted Amendments to Cabinet Regulation No. 384 “Building Standard LBN 405-21 for Technical Inspection of Buildings” for coordination (Project ID: 26-TA-1173)
Coordination took place until August 7, 2026.
Currently, the building standard provides for mandatory periodic technical inspection for specific groups of structures, including public buildings, multi-storey apartment buildings, and certain engineering structures, such as bridges, overpasses, tunnels, and retaining walls. The amendments have been developed to stipulate mandatory periodic technical inspection (not less than once every 10 years) for wind power plants, towers, and masts whose height exceeds 60 meters. Such regulation is necessary to detect the deterioration of the technical condition of the structure in a timely manner and to prevent potential threats to human life, health, the environment, and property.
ENERGY
Draft Regulatory Acts
Procedures for the establishment and maintenance of the greenhouse gas inventory system, projection system, and the system for reporting on adaptation to climate change (Project ID: 26-TA-29)
The Cabinet of Ministers submitted for public consultation from August 3, 2026, to August 17, 2026.
The draft regulation has been developed with the aim of improving the monitoring and reporting system for greenhouse gas (hereinafter – GHG) emissions and carbon dioxide (hereinafter – CO2) removals within the framework of the Paris Agreement, which contains data and information. The draft regulation determines a specific procedure for reporting on approximate GHG inventories, annual GHG inventories, reporting on policies, measures, and GHG projections, national adaptation measures, the use of revenue from emission allowance auctions, and the financial and technological support provided to developing countries.
A consultation document on amendments to the regulations for the submission of information in the energy sector has been submitted for comments (Consultation Document)
Comments are expected until August 28, 2026.
On December 21, 2017, the Regulator adopted decision No. 1/36 “Regulations for the Submission of Information in the Energy Sector”, determining the procedure by which an energy supply merchant submits information to the Regulator, as well as the content, scope, and submission deadlines of the information to be submitted.
The Draft Amendments provide for the deletion from the regulations of reports (annexes) in which the information contained is no longer necessary for regular supervision or is available from other information sources, as well as for the clarification of the content and submission procedure of the reports (annexes) to be submitted. It is planned that the Draft Amendments will enter into force on October 1, 2026.
The aim of the Draft Amendments is to update the information to be regularly submitted to the Regulator, to prevent its duplication with data available in other supervisory processes or information systems, to clarify the content and periodicity of submission of certain reports, as well as to reduce the administrative burden for energy supply merchants and the Regulator.
Industry News
By the end of 2026, new RES power plants with a total capacity of 1,650 MW will be connected to the AST transmission grid (AST News)
In 2026, seven new power plants and two battery energy storage systems (BESS) have been connected to the transmission grid of AS “Augstsprieguma tīkls” (AST), with a total connection capacity reaching 737 megawatts (MW). By the end of the year, it is planned to establish connections for another eight power plants with a total capacity of 913 MW, as the rapid development of solar, wind, and energy storage capacities continues in Latvia.
“Sadales tīkls” to increase grid capacity in Latvian regions by attracting 40 million euros in EU funding (read more here)
AS “Sadales tīkls” and SIA “Vides investīciju fonds” have concluded an agreement on the implementation of the project “Increasing the capacity of the electricity grid of AS “Sadales tīkls””. With 40 million euros in support from the European Union (EU) Modernisation Fund, the company will build two new substations in Saulkrasti and Saldu, as well as modernize existing infrastructure in Salacgrīva, creating the opportunity to connect new electricity producers and consumers to the grid.
A special electricity distribution tariff plan for electrified customers will be available from 2027 (read more here)
The Public Utilities Commission (PUC) has evaluated the changes to the tariff structure proposed by AS “Sadales tīkls” and the creation of the new tariff plan “Jaudīgais” and has found that they comply with the requirements of the methodology for calculating electricity distribution system service tariffs. The “Jaudīgais” plan provides for a relatively higher fixed or capacity maintenance fee component than the “Pamata” plan, and a smaller variable component. Thus, this tariff will be advantageous for customers – both companies and households – with a relatively high consumption compared to the existing connection capacity.
LABOR LAW
Industry News
International sanctions do not revoke employee rights (read more here)
The State Labour Inspectorate reminds – the application of international sanctions in itself does not revoke the employer’s obligations towards employees. As long as the employment legal relationship has not been terminated in the procedure set out in the Labour Law, the employer is obliged to comply with the requirements set out in regulatory acts. If international sanctions have been applied to the employer and the company’s financial resources are blocked, this does not mean that employees automatically lose the right to remuneration. Regulatory acts provide for the possibility for the employer to apply to the Financial Intelligence Unit to receive permission to use frozen funds for the payment of employee salaries. Likewise, if the employer can no longer provide work due to objective reasons, they must adopt a decision on the continuation or termination of the employment legal relationship, complying with the requirements of the Labour Law. In a situation where the employee is ready to perform work but the employer cannot provide it, downtime may occur. In the event of downtime, the employer must pay for it in accordance with the requirements of the Labour Law.
REGULATED RIGHTS
Draft Regulatory Acts
Exclusion of a bidder from a procurement procedure due to a late tax return (Case No. SKA-61/2026)
Judgment delivered on June 17, 2026.
In May 2023, the Jelgava State City Municipality announced a procurement for the regular maintenance and preparation for the heating season of individual heat substations of municipal educational institutions. The Company submitted a bid; however, the Procurement Commission excluded it from participation in the procurement because, according to data from the State Revenue Service and the Electronic Procurement System (EIS), on the last day of the bid submission deadline and on the day of bid opening, the company had unfulfilled tax obligations – a tax return had not been submitted.
The Senate found that in order to recognize that a bidder has unfulfilled tax obligations due to an unsubmitted tax return, it is not sufficient merely to establish the fact of non-submission of the return. It is also necessary for information about this fact to be publicly available in accordance with the requirements of the law. Thus, both criteria provided for in the law are cumulative.
Summarizing the interpretation of legal norms, the Senate formulated criteria for when a bidder is to be excluded from a procurement procedure due to an unsubmitted tax return. It is necessary to establish that: 1) on the last day of the bid submission deadline or on the day when the decision on the possible granting of the right to conclude a procurement contract was adopted, the person has an unsubmitted tax return; 2) due to the fact that the delay in the submission deadline for the relevant tax return exceeds 15 days, information that the specific person did not have one of the tax returns submitted on the relevant date, which should have been submitted, is published in the public database of the State Revenue Service and is therefore available in the EIS e-certificates subsystem. The fact that the published information regarding an unsubmitted tax return does not include details on exactly which return has not been submitted and its submission deadline is not an obstacle to recognizing that the person had unfulfilled tax obligations on the relevant dates.
ENVIRONMENTAL LAW
Case Law
Senate: the owner is responsible for the extraction of mineral resources on their property (Case No. SKA-693-2026)
Decision adopted on July 15, 2026.
In a situation where the State Environmental Service has established illegal (uncoordinated) extraction of mineral resources on a specific property, and there is no information regarding the involvement of any other person, the landowner specifically is to be considered the responsible person. However, if the landowner submits credible and verifiable evidence that the extraction was carried out by another person without the owner’s knowledge (for example, by illegally entering the property or violating obligations undertaken in an agreement), the authority and the court must evaluate this evidence. When evaluating such evidence, a set of consistent indirect evidence may also be of decisive importance, which in its mutual context allows for the recognition with a sufficiently high degree of probability that the specific person is responsible for the use of the subsoil.
Senate: the right to apply to the court with an actio popularis regarding noise emissions (Case No. SKA-729/2026)
Decision adopted on July 23, 2026.
The Senate received an ancillary complaint from the applicants regarding the decision of a judge of the Administrative District Court, by which their application regarding the permit issued by the Executive Director of the Riga State City Municipality for organizing a public event – a circuit racing championship – at the Biķernieki complex sports base was refused. In the applicants’ view, the event could create excessive noise and negatively affect the right to live in a favorable environment. The District Court judge refused to accept the application based on Section 191, Paragraph one, Clause 8 of the Administrative Procedure Law (the application has been submitted by a person who does not have the right to submit an application). The District Court judge had recognized that the applicants wish to protect the interests of other residents to live in a favorable environment, rather than their own. It is also not established that the applicants themselves would be subject to any significant impact created by the event.
The Senate recognized that the aim of environmental law is to protect the right of everyone to live in a favorable environment, rather than just nature (flora and fauna), and therefore every member of society is granted the right to apply to the court for the purpose of environmental protection, even if their own subjective rights are not affected. Noise emission is a factor affecting the environment, and regulations limiting noise emissions are set to ensure an environment favorable for human life. This is also a matter of environmental law, due to which persons have the right to apply to the court with the aim of protecting general public interests to live in a favorable environment.
TAXES
Industry News
SRS has published methodological material “On the accounting of online (online) transactions in a single-entry system” (Methodological Material)
The methodological material explains how to account for online transactions in a single-entry accounting system using various payment platforms, such as PayPal, Stripe, EveryPay, and Klix. The material explains the procedure for revenue recognition depending on the type of payment system used, provides practical examples for registering transactions, and explains the accounting of commission fees withheld by the platforms.
CUSTOMS
Regulatory Acts
On the suspension of rebalancing measures from August 7, 2026 (Regulation)
Entered into force on August 1, 2026; applicable from August 7, 2026.
Commission Implementing Regulation (EU) 2026/1893 suspending the commercial rebalancing measures established by Implementing Regulation (EU) 2025/1564 for specific products originating in the United States of America and specific products exported from the Union to the United States of America.
DISPUTE RESOLUTION
Draft Regulatory Acts
Amendments to the Criminal Procedure Law on the transfer of proceedings in criminal cases submitted for public consultation (26-TA-1836)
Submitted for public consultation from July 27, 2026, to August 10, 2026.
The draft law has been developed to ensure the compliance of the regulatory framework with Regulation (EU) 2024/3011 of the European Parliament and of the Council of November 27, 2024, on the transfer of proceedings in criminal cases.
The aim of Regulation No. 2024/3011 is to improve the efficiency of criminal proceedings in cross-border cases, ensuring that the investigation or prosecution is carried out by the most appropriate European Union Member State, as well as reducing the risk of parallel criminal proceedings and violation of the ne bis in idem principle.
Chapter 67 of the Criminal Procedure Law currently regulates the takeover in Latvia of criminal proceedings initiated in a foreign state, while Chapter 68 of the CPL regulates the transfer to a foreign state of criminal proceedings initiated in Latvia. This framework does not include all the institutional and procedural requirements necessary for the application of Regulation No. 2024/3011.
Amendments to the Criminal Law provide for determining liability for the sexual exploitation of an animal (Draft Law No.1480/Lp14)
Submitted to the Saeima on August 3, 2026.
The draft law provides for supplementing the Criminal Law with a new Section 230.2, providing therein for liability for the sexual exploitation of an animal – actions of a sexual nature in physical contact with an animal. In the second paragraph of the section, it is proposed to create a qualified composition of the criminal offense, providing for stricter liability in cases where the said actions have been committed by a group of persons. It is proposed to create the composition of the criminal offense of Section 230.2 of the CL as formal, not linking its application to the occurrence of harmful consequences.
Amendments to the Criminal Procedure Law provide for the improvement of the framework for asset recovery and confiscation (26-TA-234)
Adopted at the Cabinet meeting on August 4, 2026.
The draft law amends the Criminal Procedure Law to implement Directive (EU) 2024/1260 of the European Parliament and of the Council of April 24, 2024, on asset recovery and confiscation, which sets minimum standards for the tracing, freezing, confiscation, and management of property in criminal proceedings. The Directive entered into force on May 22, 2024, and Member States must implement its requirements by November 23, 2026. The current Latvian framework is based on Directive 2014/42/EU, which sets similar principles; however, the new directive imposes stricter requirements for property management, including the mandatory establishment or designation of asset management offices (AMOs) for the effective management of frozen and confiscated property until its disposal. Latvia currently has a decentralized property storage system, which does not correspond to the management institution required by the directive. The draft law provides for the improvement of this system, ensuring more effective property management and compliance with EU requirements, thereby strengthening asset recovery mechanisms and promoting the confiscation of proceeds from crime.
Industry News
Ombudsman’s Office involves itself on its own initiative in the development of the first European human rights standard for artificial intelligence (read more here)
On July 30, the public consultation on the European draft standard prEN 18228 “Artificial Intelligence. AI Risk Management” concluded. This is the first European standard of its kind that determines how developers of artificial intelligence systems should identify and manage risks not only for technical safety but also for fundamental human rights.
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PARTNER, ATTORNEY AT LAW
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