Legislative Review June 29 – July 3, 2026
COMMERCIAL AND CORPORATE LAW
– New requirements for media service providers
– Obligation to submit and register UBO nationality and level of control enters into force
REAL ESTATE AND CONSTRUCTION
– Amendments adopted to Cabinet Regulation No. 156 “Procedures for Market Surveillance of Construction Products”
– Changes adopted regarding the procedure for renewing municipal rental agreements
– Amendments to the Construction Law will accelerate construction processes and simplify regulation
– Legal basis for the termination and extension of fixed-term lease agreements
ENERGY
– PUC approves the procedure for determining maximum thermal energy purchase prices in Riga
– PUC announces public consultation on changes to the methodology for calculating electricity transmission system service tariffs
REGULATED INDUSTRIES
– PUC improves quality supervision of electronic communications services
– PUC announces public consultation on amendments to regulations regarding information necessary for electronic communications market analysis
ENVIRONMENTAL LAW
– Strengthening the capacity to respond promptly to environmental risks by establishing a Risk Management Department
– Seminar “Nature-based solutions in the protection of water bodies: theory and practice”
TAXES
– Reduced Value Added Tax rate of 12% for food supplies
– Application of an alternative 15% Corporate Income Tax rate to dividends
– Declaration of income from tips
– Joint cross-border tax audits and joint supervision
– The “My SRS” app will feature new functionality for reporting eligible expenses
CUSTOMS
– Amendments to the application of autonomous Union tariff quotas for agricultural and industrial products
– Regarding tariff quotas for steel products
– Application of a 0% customs duty rate for the import of specific goods
DISPUTE RESOLUTION
COMMERCIAL AND CORPORATE LAW
Regulatory Acts
New requirements for media service providers (Published version)
Entered into force on June 27, 2026.
Amendments to the Law “On the Press and Other Mass Media” establish additional obligations for media service providers, including the submission of information to the Register of Enterprises (RE). A new term, “media service provider,” has been introduced in the law – a natural or legal person whose professional activity is to provide a media service, who has editorial responsibility for the choice of the content of the media service and who determines the manner in which it is organized. The law stipulates that henceforth the founding of a mass medium or the creation of an electronic mass medium program or service must be mandatory applied for registration in the register of mass media. Information regarding the type of mass medium, frequency, initialu, volume , and i.
Obligation to submit and register UBO nationality and level of control enters into force (Published version)
Entered into force on July 1, 2026.
On December 3, 2025, amendments were adopted to the Law on the Prevention of Money Laundering and Terrorism and Proliferation Financing, which entered into force on April 1, 2026. Meanwhile, the provisions providing for the concealment of ultimate beneficial owner (UBO) data in case of threat and the obligation to submit and register UBO nationality and level of control enter into force on July 1, 2026.
Firstly, if the public availability of information about a person as an ultimate beneficial owner (UBO) may pose a threat to this person or their family members being subjected to a criminal offense, the UBO has the right to submit an application to the Register of Enterprises (RE) requesting that information about them as a UBO be designated as restricted access information. Secondly, until now, identifying information, one nationality, the country of permanent residence, as well as the type of control were registered with the RE regarding UBOs. However, the amendments provide for the obligation to register all nationalities of the UBO, if the UBO has several, as well as to register the level of control exercised by the UBO in addition to the type of control. The transitional provisions of the law provide for a different procedure for updating information on UBO nationality and level of control, depending on whether the person is identifiable by a personal code in the registers or not.
REAL ESTATE AND CONSTRUCTION
Regulatory Acts
Amendments adopted to Cabinet Regulation No. 156 “Procedures for Market Surveillance of Construction Products” (Project ID: 26-TA-340)
Adopted at the Cabinet meeting on June 30, 2026.
The current Cabinet regulations are based on European Union (EU) Regulation 305/2011 laying down harmonized conditions for the marketing of construction products; however, in 2024, the EU adopted a new Regulation 2024/3110, which establishes harmonized rules for the marketing of construction products and repeals the old regulation. The amendments to the Cabinet regulations include references to the new regulation, as well as precisely define when construction products are regulated under the new regulation and when under the old one. The amendments strengthen the rights and obligations of market surveillance authorities in both regulatory regimes, including regarding the request for information and documentation, conformity assessment, sampling and expertise, as well as the submission of documents in the official state language..
Changes adopted regarding the procedure for renewing municipal rental agreements (Published version)
Enters into force on July 1, 2026.
Amendments to the Law on Residential Tenancy extend the deadline by which indefinite-term rental agreements must be converted to fixed-term agreements until December 31, 2028. Previously, the law required the conversion of rental agreements to be completed by the end of 2026. The amendments were adopted to resolve ambiguities that arose in practice and to ensure a uniform approach to the renewal of municipal rental agreements, especially considering the large volume of agreements in certain municipalities. It is also stipulated that if the agreements are not renewed or a claim is not filed in court by December 31, 2028, their term of validity will be until December 31, 2036.
Amendments to the Construction Law will accelerate construction processes and simplify regulation (Published version)
Enters into force on August 1, 2026.
Amendments to the Construction Law provide for the possibility to implement construction works in stages, stipulating that certain construction works, such as the construction of foundations or the creation of engineering networks, can be started without waiting for the development of a full technical project, if the respective stage has been approved by the building board. The law also provides for the abolition of the classification of construction contractors, which is no longer used in public procurement. Additionally, the law provides solutions for accelerating the development of military infrastructure, allowing for deviations from construction standards at military sites while maintaining safety requirements. Furthermore, the law stipulates that the local municipality will be able to individually assess the need for the construction initiator to perform a cumulative effect assessment of the environmental impact of the construction proposal in order to analyze the interaction between wind power plants and their construction proposals in depth.
Case Law
Legal basis for the termination and extension of a fixed-term lease agreement (Case No. SKC-0532-26)
Judgment delivered on June 30, 2026.
A lease agreement was concluded between the lessee and Person A until January 1, 2022, which provided that unless one of the parties expressed a desire to terminate the contractual relationship one month before the expiration of the agreement’s term, the agreement would be considered automatically extended under the same terms for another calendar year. Later, Person A gifted this property to Person B. On January 1, 2023, the lease agreement with the Lessee was terminated. The Lessee filed a claim in court against Person A and B, requesting that the concluded gift agreement be declared invalid and that the land lease agreement concluded between the lessee and Person A be declared valid.
The parties disagree on the content of the agreement clause providing for the automatic extension of the agreement. The Lessee believes that the one-month term for termination and the automatic extension of the agreement for one calendar year apply every time a year passes – specifically, if neither party terminates the agreement one month before the expiration of the term, it is extended for another year. Conversely, the defendants disagree with this view and believe that the mentioned clause clearly stipulates that the automatic extension of the agreement is possible only once for one additional calendar year, after which the agreement expires.
The Senate set aside the judgment of the appellate court and referred the case for a new hearing, as it found that the court had not correctly interpreted the terms of the agreement and had not ascertained the true will of the parties. Furthermore, the court had not evaluated all the evidence as a whole, as it had not properly assessed the correspondence between the parties, which showed that both parties anticipated the end of the agreement’s term. These circumstances indicated that the Lessee herself initially acknowledged the expiration of the agreement’s term. The Senate reminded that according to the Civil Law, a fixed-term lease agreement expires automatically upon the expiration of the term and does not require a notice of termination. Therefore, the court had to justify why the fixed-term agreement in this case was effectively converted into an indefinite-term agreement, but no such justification was provided in the judgment.
ENERGY
Regulatory Acts
PUC approves the procedure for determining maximum thermal energy purchase prices in Riga (Procedure)
The Procedure was developed in implementation of the delegation set out in the Energy Law for the PUC to determine the maximum thermal energy price, which from October 1, 2026, will have to be applied by the heat supply system operator whose volume of thermal energy delivered to users exceeds 2 million megawatt-hours per year (AS “Rīgas siltums”). The approved procedure provides for price caps on thermal energy that AS “Rīgas siltums” purchases from independent thermal energy producers. These will apply to the competitive market share on the right bank of Riga, where heat is produced by several companies and sold to AS “Rīgas siltums”. According to the approved procedure, AS “Rīgas siltums” will calculate and publish the maximum thermal energy purchase price every month, which independent thermal energy producers will not be able to exceed when selling thermal energy in the competitive market segment. At the same time, the principle of economic gradualism established in the Energy Law will continue to be observed, ensuring that the cheapest thermal energy offered on the market is purchased primarily.
Draft Regulatory Acts
PUC announces public consultation on changes to the methodology for calculating electricity transmission system service tariffs (Consultation document)
Opinions and proposals can be submitted until July 13, 2026.
The draft amendments provide for improving the approach to forecasting personnel costs, establishing principles for the attribution of communication and public information costs, introducing uniform principles for evaluating outsourcing costs, as well as clarifying the procedure for using the regulatory account. It is planned that the amendments will enter into force on August 1, 2026.
REGULATED INDUSTRIES
Regulatory Acts
PUC improves quality supervision of electronic communications services (Methodology)
Adopted on June 29, 2026.
A new Methodology for Measuring the Quality of Electronic Communications Services has been approved, which expands the quality supervision of electronic communications services and ensures a modern approach to evaluating the quality of voice communications and mobile internet. Henceforth, service quality measurements will be performed not only at fixed locations but also while in motion, thereby obtaining a more complete picture of service quality in various territories of Latvia. The new methodology provides for a uniform procedure for performing voice communication and mobile internet quality measurements, evaluating the results, and publishing them.
Draft Regulatory Acts
PUC announces public consultation on amendments to regulations regarding information necessary for electronic communications market analysis (Consultation document)
Opinions and proposals can be submitted until July 31, 2026.
One of the functions of the PUC is market supervision and analysis. To perform these functions qualitatively and objectively, the PUC requires data from merchants, among other things. The submission of this data is determined by the “Regulations regarding information necessary for electronic communications market analysis and the deadlines for its submission.” The consultation document was developed regarding amendments to these regulations, which provide for improving the information necessary for electronic communications market analysis. The existing deadlines for submitting information and the principles by which merchants required to provide information are determined are maintained. It is planned that the amendments will enter into force by October 1, 2026, and for the first time, merchants will submit information according to the new requirements by November 1, 2026.
ENVIRONMENTAL LAW
Industry News
Strengthening the capacity to respond promptly to environmental risks by establishing a Risk Management Department (read here)
To ensure faster, more coordinated, and more effective response to environmental threats, the State Environmental Service (SES) is improving its work organization by establishing a Risk Management Department. The new department will combine the previously separate operational management and coordination in the areas of pollution and fisheries control, where two separate management centers previously operated. At the same time, the assessment of industrial accident risks and related supervision, which were previously organizationally separate, will be concentrated within it.
Seminar “Nature-based solutions in the protection of water bodies: theory and practice“ (read here)
Will take place on July 23-24. Registration until July 19, 2026
On July 23, experts will discuss online the connection between climate change and water quality and rising water levels, the role of nature-based solutions in the protection of coasts and water bodies, coastal erosion processes, and opportunities to mitigate their impact. The seminar will also cover practical examples demonstrating how nature-based solutions help strengthen climate resilience and improve the quality of the water environment.
On July 24, in Kurzeme, participants will have the opportunity to personally explore several implemented solutions and projects in the vicinity of Liepāja, including the territory of Lake Liepāja, the Ālande River walking trail in Grobiņa, and other places where natural processes are used as part of sustainable territorial development.
TAXES
Industry News
Reduced Value Added Tax rate of 12% for food product supplies (Methodological material)
01.07.2026. Amendments to the VAT Law entered into force, stipulating that a reduced tax rate of 12% applies to fresh fruits, berries, and vegetables (including washed, peeled, shelled, cut, and packaged, provided they are not thermally or otherwise processed), as well as to specific bread, milk, poultry meat, and egg products. The material published by the SRS explains which products the reduced VAT rate is applicable to and what the exceptions are.
Application of an alternative 15% Corporate Income Tax rate to dividends (Methodological material)
From January 1, 2026, an alternative procedure for applying corporate income tax to dividends has been introduced for companies whose members are only natural persons. By choosing this regime, a 15% corporate income tax and a 6% personal income tax are applied to dividends. The material published by the SRS explains the application of the new system, including specific examples.
Declaration of income from tips (Informational material)
The material explains the taxation and declaration of tips depending on the method of receipt (through the employer, directly from the client, or through an intermediary), as well as provides information on applicable taxes and the accounting of tips in bookkeeping.
Joint cross-border tax audits and joint supervision (Informational material)
The material explains the rights and procedure for the State Revenue Service to participate in joint cross-border tax audits and joint supervision, which are coordinated audits and supervision measures by the tax administrations of several countries.
The “My SRS” app will feature new functionality for reporting eligible expenses (SRS: News)
The State Revenue Service informs that on Monday, June 29, an updated version of the mobile app “My SRS” was published, introducing new functionality in the “Eligible Expenses” section.
CUSTOMS
Regulatory Acts
Amendments to the application of autonomous Union tariff quotas for agricultural and industrial products (Regulation (EU) 2026/1465)
Entered into force on July 1, 2026.
The European Union has adopted Regulation 2026/1465, which provides for the opening of new tariff quotas, the review of conditions and volumes of existing quotas, as well as the closure of quotas, taking into account market developments and EU economic interests. Tariff quotas mainly apply to chemical and technological products used as raw materials in industrial production. They allow certain products to be imported in a specific volume with a reduced or 0% customs duty rate.
Regarding tariff quotas for steel products (Regulation (EU) 2026/1457)
Entered into force on July 1, 2026.
Regulation 2026/1457 “Steel Regulation” opens tariff quotas in the amount of 18,345,922 t for 26 product categories and sets an out-of-quota duty with a 50% ad valorem rate. These tariff quotas are allocated according to the tariff quota order numbers indicated in Annex I of Implementing Regulation (EU) 2026/1457, which are divided by product categories and countries. The regulation applies from July 1, 2026, to December 31, 2026.
Application of a 0% customs duty rate for the import of specific goods (Regulation (EU) 2026/1461)
Entered into force on June 30, 2026.
The European Union has adopted Regulation 2026/1461, which stipulates that a customs duty rate of 0% shall apply to the import of goods listed in its annex, classified under the European Union Combined Nomenclature codes 0306 11 90 – frozen rock lobsters and other sea crawfish, 0306 12 10 and 0306 12 90 – frozen lobsters, 0306 32 10 – live lobsters, and 1605 30 90 – lobsters, prepared or preserved.
DISPUTE RESOLUTION
Case Law
In a case regarding the defamation of a house manager, the Senate orders a reassessment of the proportionality of the disputed statements (Case SKC-136/2026)
Judgment delivered on June 25, 2026.
The Plaintiff is a residential house manager who filed a claim in court against one of the apartment owners, who has long been dissatisfied with how the Plaintiff manages the residential house and therefore makes publicly offensive statements about the Plaintiff, for example, calling her a thief. The Regional Court dismissed the claim, stating that the Defendant’s allegations are not related to a reference to any specific criminal offense but are to be recognized as an emotionally and subjectively expressed opinion.
The Senate reminded that liability can also arise for expressing an unfounded and offensive opinion if this opinion is crude and offensive and lacks a factual basis. In this regard, the Senate points out that a purposeful, deliberately organized set of actions, publicly accusing another person of committing criminal offenses, cannot be equated to an opinion expressed in a sudden burst of emotion. For such an opinion to be recognized as proportionate, the court would have had to establish that the plaintiff’s actions as a manager could contain indications of possible criminal conduct, but no such justification is found in the court’s judgment.
The application of a criminal penalty and a compulsory measure of a medical nature are not mutually exclusive (Case No. SKK-67/2026)
Judgment delivered on July 1, 2026.
The accused person deliberately failed to comply with a decision on protection against violence; therefore, the Riga City Court, finding the accused guilty, sentenced her to eight months of imprisonment. Since an expert’s opinion established that at the time of committing these offenses, the accused was in a state of diminished responsibility, the court also imposed a compulsory measure of a medical nature on the accused, namely, outpatient treatment in a medical institution.
Having examined the defense counsel’s appeal, the Riga Regional Court set aside the judgment in the part regarding the application of a compulsory measure of a medical nature. The court found that by applying a compulsory measure of a medical nature simultaneously with a criminal penalty, the prohibition of double punishment is violated, as the accused is sentenced to imprisonment and will thereafter be subjected to compulsory outpatient treatment for an indefinite period.
The Senate found that the simultaneous application of a criminal penalty and a compulsory measure of a medical nature is effectively comparable to the determination of a primary and supplementary penalty, which in itself is not considered double punishment. The Senate’s decision also provided an explanation that outpatient treatment in a medical institution, by its severity, does not correspond to the characteristics typical of a criminal penalty and its purpose is not to punish the person or deprive them of liberty; therefore, the conclusion of the appellate court regarding the equating of such a compulsory measure to a criminal penalty in its broadest sense is unfounded.
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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).
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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.