Legislative Review July 17–July 23, 2026
COMMERCIAL AND CORPORATE LAW
– Competition authorities may seize electronic correspondence during corporate inspections
REAL ESTATE AND CONSTRUCTION
– Amendments to Cabinet Regulation No. 907 “Regulations on the Inspection, Technical Maintenance and Routine Repair of Residential Buildings” will simplify requirements for visual inspections of residential buildings
– The process for registering buildings divided into apartment properties in the Land Register is being strengthened
ENERGY
– Regulations on flexibility mechanisms for the fulfillment of obligations in the field of renewable energy
– Regarding withdrawal from the Energy Charter Treaty
REGULATED LAW
– Amendments to the Law on Spatial Development Planning
BANKING AND FINANCIAL LAW
TAXES
– Informational material published: “Application of excise duty exemption to denatured alcohol and the procedure for receiving denatured alcohol from other countries”
– Updated methodological material: “Taxes on income from renting or leasing apartments”
– Binding ruling published: “Binding ruling on the sale of alcoholic beverages at retail outlets via a digital tool”
CUSTOMS
– Amendments to Cabinet Regulation No. 499 “Regulations on Customs Authorizations” stipulate simpler customs procedures and a lower administrative burden for entrepreneurs
– Binding ruling: “On the importation of flower essences containing ethyl alcohol from third countries”
DISPUTE RESOLUTION
COMMERCIAL LAW AND CORPORATE LAW
Case Law
Competition authorities may seize electronic correspondence during corporate inspections (CJEU Judgment in joined cases C-258/23, C-259/23 and C-260/23)
The judgment was delivered on July 16, 2026.
In an investigation into competition law infringements, Portuguese authorities seized business-related documents obtained from emails exchanged between employees and managers of the companies involved in the investigation. These companies objected, claiming that their right to confidentiality of communications had been violated and that such seizure should be authorized by an investigating judge rather than the prosecution. The Portuguese court hearing these cases requested the Court to rule on whether the authorization issued by the prosecution was sufficient.
Firstly, the Court considers that business-related emails exchanged by a company’s employees and managers using the company’s email system fall within communications protected by the right to respect for private and family life. However, it recognized that Union law in principle allows a competition authority to seize a company’s work emails without prior judicial authorization if they are related to an investigation into a suspected infringement of competition law. At the same time, such powers must be clearly regulated by law, provide sufficient guarantees against arbitrary action, and be subject to effective judicial review after the inspection has been carried out. Work emails protect the right to privacy and the protection of personal data; however, the restriction of these rights may serve the objective of ensuring undistorted competition.
REAL ESTATE AND CONSTRUCTION
Draft Regulatory Acts
Amendments to Cabinet Regulation No. 907 “Regulations on the Inspection, Technical Maintenance and Routine Repair of Residential Buildings” will simplify requirements for visual inspections of residential buildings (Project ID: 26-TA-785)
Previously, the regulations provided for different frequencies of visual inspections for various parts of a residential building—in some cases, inspections had to be performed once a year, in others, twice. With the adopted amendments, the visual inspection of a residential building must be performed once a year. At the same time, the amendments do not change the obligation to perform additional inspections in cases where the technical condition of the building requires it, an accident or natural disaster has occurred, or other circumstances have arisen that may pose a threat to the building or its users.
The process for registering buildings divided into apartment properties in the Land Register is being strengthened (Draft Law No.:1415/Lp14)
Adopted in the 1st reading on July 23, 2026.
The draft law clarifies the procedure for cases where a building (structure) being constructed is divided into independent apartment properties; in such instances, both the structure and the individual apartment properties are to be recorded in the Land Register simultaneously. The basis for making entries in the Land Register will be structured data from 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 (structure) for operation and its registration in the Cadastre Information System. It should be noted that such simultaneous registration of an apartment building and apartment properties in the Land Register will be a matter of free choice for each person, to be indicated in the Construction Information System.
ENERGY
Draft Regulatory Acts
Regulations on flexibility mechanisms for the fulfillment of obligations in the field of renewable energy (Project ID: 24-TA-2365)
Coordination from July 20, 2026, to August 3, 2026.
The draft regulation stipulates the conditions for flexibility mechanisms for the fulfillment of renewable energy targets in cases where these targets are not met or are exceeded. The aforementioned flexibility mechanisms are already established in EU Directive 2018/2001 on the promotion of the use of energy from renewable sources, to assist Member States in meeting their targets and to reward those Member States that have exceeded their targets. No opinions were submitted during the first coordination period.
Regarding withdrawal from the Energy Charter Treaty (Draft Law No. 1464/Lp14)
Submitted to the Saeima on July 20, 2026.
The ECT was signed in 1994 and entered into force in 1998. The ECT includes provisions on investment protection, trade and transit of energy materials and energy products, as well as dispute resolution mechanisms. Latvia ratified the ECT on September 13, 1995, by adopting the law “On the European Energy Charter Treaty.” Latvia’s annual contribution to the ECT in 2025 was EUR 5,092. The ECT is the most frequently used international legal instrument for investors to initiate investment disputes against states.
The EU withdrew from the ECT on June 28, 2025. 2026. On January 30, 2026, Latvia received a formal notice from the Commission in infringement procedure case No. INFR(2025)2232, stating that Latvia, by remaining among the contracting parties to the Energy Charter Treaty, has failed to fulfill the obligations imposed on it by the Treaties of the European Union. In view of the notice, the Ministry of Climate and Energy initiated inter-institutional talks proposing to start the procedure for Latvia’s withdrawal from the ECT.
The adopted draft law stipulates that Latvia withdraws from the Energy Charter Treaty and, upon withdrawal from the treaty, the following shall lose force: 1) the law “On the European Energy Charter Treaty” and 2) the law “On the Energy Charter Protocol on Energy Efficiency and Related Environmental Aspects.”
REGULATED RIGHTS
Draft Regulatory Acts
Amendments to the Law on Spatial Development Planning (Project ID: 26-TA-1743)
Under coordination from July 17, 2026, to July 22, 2026
Currently, Sections 26 and 27 of the Law on Spatial Development Planning provide that the minister responsible for spatial development planning, on their own initiative or after evaluating a person’s application, may suspend local government binding regulations by which a spatial plan or local plan has been approved, if violations of the development procedure or non-compliance with the requirements of regulatory acts are established after they have entered into force. The amendments intend to stipulate that the issue of suspending the operation of a spatial plan or local plan in cases where violations of the development procedure or non-compliance with the requirements of regulatory acts are established shall be reviewed and the decision taken by the Cabinet of Ministers, rather than by a single minister. Accordingly, the ministry responsible for spatial development planning will submit to the Cabinet of Ministers the issue of suspending the operation of a spatial plan or local plan in full or in part, and the Cabinet of Ministers will review this issue and take a decision. At the same time, the mechanism ensuring the right of persons to submit an application regarding a spatial plan or local plan (within one month after the entry into force of the binding regulations by which the local government spatial plan or local plan was approved) is maintained.
To implement the proposals, it will be necessary to make corresponding amendments to Cabinet Regulation No. 628 of October 14, 2014, “Regulations on Local Government Spatial Development Planning Documents,” clarifying the process for the development and evaluation of spatial plans and local plans.
BANKING AND FINANCIAL LAW
Draft Regulatory Acts
Plans are underway to increase the threshold for the obligation to prepare a prospectus for issuers of public offerings (Draft Law No.: 1438/Lp14)
23.07.2026. referred to the Saeima committee
In its session on July 23, 2026, the Saeima decided to refer the draft law “Amendments to the Financial Instrument Market Law” to the responsible committee. The procedure established in the current law provides for an exemption from preparing a prospectus for such public offerings made for transferable securities for which the total consideration over 12 months is between EUR 1,000,000 and EUR 8,000,000. The existing wording creates ambiguity regarding public offerings made for transferable securities for which the total consideration is planned up to EUR 1,000,000. The aforementioned amendments to the law would not only resolve this unfortunate wording of the section but also increase the threshold up to which a prospectus does not need to be prepared; specifically, the threshold is increased to EUR 12,000,000, and an information document must be prepared and published instead of a prospectus in accordance with the regulations of the Bank of Latvia.
Simultaneously with the draft law, a delegation will be established for the Bank of Latvia to develop regulations specifying which documents are to be submitted to approve a prospectus, as well as the procedure for submitting documents to the Bank of Latvia, specifically describing the procedure for documents to be submitted by platform business operators who already submit their documents through the Bank of Latvia’s data reporting system.
TAXES
Industry News
Informational material published: “Application of excise duty exemption to denatured alcohol and the procedure for receiving denatured alcohol from other countries” (Material)
The material explains that denatured alcohol is exempt from excise duty. The use of denatured alcohol in Latvia is permitted for a user of denatured alcohol who has received a permit from the State Revenue Service (VID) for the purchase of denatured alcohol (user permit) and who uses denatured alcohol in the production of non-food products (fills or incorporates denatured alcohol into non-food products or adds it to non-food products). To receive a user permit, the necessary documents regarding the use of alcohol and its quantity must be submitted in the VID Electronic Declaration System. The user must comply with the established requirements for storage, movement, accounting, and declaration.
Updated methodological material: “Taxes on income from renting or leasing apartments” (Methodological material)
The methodological material has been supplemented with an explanation that for an apartment property lessor who has a notified economic activity, all payments received from the tenant (e.g., utility payments and security deposits) are included in the income. It has also been supplemented with instructions on how to proceed if it is necessary to make changes to registration data or to close the notified economic activity.
Binding ruling published: “Binding ruling on the sale of alcoholic beverages at retail outlets via a digital tool” (Binding ruling)
The binding ruling addressed the question of whether ordering and paying for alcoholic beverages using a mobile app after scanning a QR code on restaurant premises, where the customer is present on-site and the drinks are issued for consumption in the restaurant, is considered retail sale of alcoholic beverages under a distance contract. The VID evaluated that in such a situation, the mobile app is used only as a technical means for placing an order and making non-cash settlements within the framework of on-site service. Since the customer and the merchant are in the same place and the alcoholic beverages are received and consumed on the restaurant premises, the transaction is essentially an on-site transaction, not distance trading. Consequently, the requirements of the Law on the Circulation of Alcoholic Beverages regarding distance trading are not applicable to this model, nor is it necessary to separately register the mobile app or website in the retail license for alcoholic beverages.
CUSTOMS
Regulatory Acts
Amendments to Cabinet Regulation No. 499 “Regulations on Customs Authorizations” stipulate simpler customs procedures and a lower administrative burden for entrepreneurs (Project ID: 25-TA-916)
Adopted at the Cabinet meeting on July 21, 2026.
The amendments supplement the Regulations on Customs Authorizations with a new regulatory framework necessary for the implementation of the European Union’s Carbon Border Adjustment Mechanism. The changes provide for the procedure by which the VID grants, amends, and revokes the status of authorized Carbon Border Adjustment Mechanism (CBAM) declarant for companies importing certain carbon-intensive goods from countries outside the EU, such as cement, iron and steel, aluminum, and fertilizers. Furthermore, the regulations are supplemented with provisions regarding the Register of Customs Representatives, specifying the procedure for registering and removing a person from it, as well as the information to be published in the register. Simultaneously, provisions that are no longer relevant following the digitalization of EU transit procedures have been deleted from the regulation, including requirements for authorizations to use Union transit procedures in paper form for goods transported by sea or air. Additionally, the regulation prohibiting the use of authorized consignor and authorized consignee status for certain types of goods has been repealed, thereby promoting wider use of these simplifications and reducing the administrative burden for entrepreneurs and the VID.
Industry News
Binding ruling: “On the importation of flower essences containing ethyl alcohol from third countries” (Binding ruling)
In the binding ruling, the VID provides an explanation regarding the classification, application of excise duty, and circulation requirements for flower essences, mouth sprays, and room fragrance sprays imported from Australia. It stipulates that flower essences for internal use and mouth sprays are classified as alcoholic beverages; therefore, when imported into Latvia, excise duty is generally applied and a license for activities with excise goods may be required. Conversely, room fragrance spray classified under CN and TARIC code 3307 49 00 90 is not subject to excise duty. The ruling also explains that if products for internal use are registered as food supplements in the PVD register and meet the specified requirements, an exemption from excise duty may be applied. Additionally, requirements regarding customs codes, licensing, and the application of excise duty are explained.
DISPUTE RESOLUTION
Case Law
Case initiated in the Constitutional Court regarding the distribution of state social insurance contributions for pension insurance (Case No. 2026-11-03)
Initiated on July 20, 2026.
A case has been initiated in the Constitutional Court “On the compliance of Sub-paragraph 18.2 of Cabinet Regulation No. 786 of December 17, 2020, ‘Regulations on the Distribution of the State Social Insurance Contribution Rate by Types of State Social Insurance’ with Articles 64 and 109 of the Constitution of the Republic of Latvia and the second paragraph of Section 18 of the Law ‘On State Social Insurance’.”
The applicant states that the contested provision provides for the crediting of only a part of the contributions directed to pension insurance into the state pension capital and the funded pension scheme. Consequently, in his view, it restricts his right to form pension capital savings from the state social insurance contributions made and violates his right to social security enshrined in Article 109 of the Constitution. Furthermore, the applicant believes that the contested provision was not issued within the scope of the authorization set by law; therefore, it also fails to comply with Article 64 of the Constitution and the second paragraph of Section 18 of the Law “On State Social Insurance.”
The Senate explains the provisions of the Criminal Law regarding the elements of misappropriation (Case No. SKK-38/2026)
The decision was taken on July 17, 2026.
A person who had the right to decide on and dispose of the company’s property and money was accused and, by the judgment of the appellate instance, found guilty of misappropriation. The Senate concluded that the appellate court had incorrectly applied the provision of the Criminal Law on misappropriation because the description of the criminal offense recognized as proven did not correspond to the elements of misappropriation. To qualify a person’s actions as misappropriation, the court must establish not only that the property was entrusted to the person or was under their supervision, but also that the person acquired or squandered this property unlawfully. The intent of the accused to misappropriate the property must also be established, as not every action with property that is inconsistent with regulatory acts or is uneconomical indicates an intent to misappropriate it.
The appellate court had recognized that the Person, being a board member, did not use the materials purchased by the company for roof replacement but, by approving the write-off of materials and services, misappropriated materials worth 2,821.23 euros. The Senate recognized that writing off materials may be a way to mask misappropriation, but such an action in itself does not constitute the objective side of misappropriation. Therefore, the writing off of materials in accounting documents may be one of the circumstances to be evaluated in conjunction with other evidence; however, it is not in itself equivalent to the unlawful acquisition or squandering of another’s property. To qualify the actions of the accused as misappropriation, it is necessary to establish not only that the victim actually lost the respective property as a result of the writing off of materials, but also that the accused acquired or squandered this property unlawfully. Such circumstances significant for the qualification of the criminal offense are not specified in the description of the criminal offense provided by the court.
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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 attorney and a partner at RockBridge Legal. Since 2008, 2008, Alisa has been advising clients and providing legal assistance in the most 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.