Legislative Review June 5 – June 11, 2026
COMMERCIAL AND CORPORATE LAW
– Introduction of utility bill recalculation in cases of unjustified residence declaration
– Amendments to the Law on Governance of Capital Shares of a Public Person and Capital Companies
– Board member held liable for losses caused by VAT late payment interest, but not the principal VAT debt
– Constitutional Court refers to the Court of Justice of the European Union regarding the solidarity contribution discount
REAL ESTATE AND CONSTRUCTION
– Amendments to the Construction Law plan to extend the unified building registration process to all construction cases, regardless of land ownership
– Delegation of the Real Estate Transaction Intermediary Register maintenance to LANĪDA
ENERGY
– Adopted amendments to Cabinet Regulation No. 635 “Regulations on the Trade and Use of Electricity”
– Consultation document on the procedure for determining the maximum thermal energy purchase price for the competitive volume of thermal energy purchased by the heating system operator
REGULATED LAW
– Draft law introduces EU product repair regulations in Latvia to promote repairability, durability, and consumer access to repair services
– The norm regulating the distribution of water consumption differences in case of non-verification of meters found inconsistent with the Constitution
IMMIGRATION
– Advocate General’s opinion on the conclusion of an international agreement allowing Italy to establish detention and repatriation centers in Albania to manage migration flows
– Court of Justice of the European Union clarifies conditions for granting derived rights of residence to a parent of a Union citizen
– An EU Member State may investigate fraud related to a marriage of convenience even after the person has acquired the Member State’s citizenship
ENVIRONMENTAL LAW
– Amendments to the law provide for the expansion of the Latvian Natura 2000 list
– Planned total ban on keeping laying hens in cages in Latvia
TAXES
– The Commission calls on Poland to address the breach of the Directive on Administrative Cooperation in the field of taxation regarding reporting rules for foreign digital platform operators
– Tax administrations of the Baltic States and Ukraine sign a mutual memorandum of cooperation
CUSTOMS
– Latvian Customs actively participates in the European Union’s safety and security data analytics project
– Air passenger attempts to bring a large sum of cash and expensive jewelry into Latvia without declaring them
SANCTIONS
DISPUTE RESOLUTION
– Amendments to the Criminal Law seek to increase criminal liability for offenses committed using devices moving in airspace
– The Civil Law will stipulate that an animal is not an object
– Change in case law. Senate: the pledgor has the right to bring a recourse claim against the principal debtor
– Evasion of maintenance for minor children is punished with community service
– The Senate requests the opinion of the Court of Justice of the European Union on restrictions for the position of air traffic controller
COMMERCIAL AND CORPORATE LAW
Regulatory Acts
Introduction of utility bill recalculation in cases of unjustified residence declaration (Project ID: 26-TA-385)
Adopted at the Cabinet meeting on June 9, 2026.
Amendments to Cabinet Regulation No. 524 “Procedures for Determining, Calculating, and Accounting for Each Apartment House Owner’s Share of Payments for Services Necessary for the Maintenance of the Apartment House” provide that an apartment owner – following a municipal decision to annul declared residence information for a person who declared their residence at the address without legal grounds – may request a recalculation of the payable share for waste management services or the specified water consumption. In the case of waste management services, recalculation will be possible for a period not exceeding the last three billing periods. The person calculating the payable share shall perform the relevant payment recalculation.
Draft Regulatory Acts
Amendments to the Law on Governance of Capital Shares of a Public Person and Capital Companies (Draft Law No. 1105/Lp14)
Adopted in the 3rd reading on June 11, 2026.
The amendments introduce improvements to the management system of public person capital shares and capital companies, strengthening the involvement of the public person as a shareholder in the strategic management of the capital company. A procedure is introduced for the regular review of state capital company management policy at the Cabinet level in each political cycle, introducing a classification of state capital companies into groups based on their revenue sources and inclusion in the general government sector, as well as providing an obligation for public persons to develop a letter of expectations before the commencement of the development of a medium-term operational strategy for a public person capital company.
Case Law
Board member held liable for losses caused by VAT late payment interest, but not the principal VAT debt (Case No. C771671525)
Judgment delivered on June 10, 2026.
An insolvent company brought a claim against a former board member for the recovery of losses arising from value-added tax (VAT) and late payment interest assessed by the State Revenue Service, as the board member had not registered the company in the VAT payers’ register or submitted a notification of VAT payment. The court recognized that the liability of a board member arises if the following prerequisites are met: 1) losses have been caused to the company; 2) the official’s conduct – action or omission; 3) there is a causal link between the official’s conduct and the losses caused to the company. The only conduct of the defendant described in the claim as the cause of the losses was the failure to register the company in the VAT payers’ register. The appellate court recognized that the principal VAT debt is not considered a loss caused by the board member’s conduct, as the obligation to pay the tax arises from the law regardless of registration status. Conversely, the fact that the SRS applied late payment interest to the company due to untimely paid VAT is a direct consequence of the board member’s omission, which would not have occurred if the board member had ensured the timely performance of mandatory actions for a VAT payer (registration or notification, and tax payment). In this part, the claim was satisfied.
Constitutional Court refers to the Court of Justice of the European Union regarding the solidarity contribution discount (Decision)
Decision adopted on June 10, 2026.
In response to the extraordinary profits gained by credit institutions as a result of the European Central Bank’s inflation containment measures, a solidarity contribution obligation was imposed on them. The purpose of the solidarity contribution is to protect public safety under conditions of increased national security risks, in order to obtain additional financial resources to meet the state’s national security fiscal needs. The contested norm stipulates that credit institutions must achieve certain lending growth indicators compared to the previous year to receive the said discount.
The Constitutional Court has suspended the proceedings and referred preliminary questions to the Court of Justice of the European Union regarding the compliance of the discount provided for in the Solidarity Contribution Law with the European Union state aid regulations.
The case evaluates whether the solidarity contribution discount for credit institutions that achieve certain lending growth indicators may create a selective advantage and thus be considered state aid within the meaning of Article 107(1) TFEU.
REAL ESTATE AND CONSTRUCTION
Draft Regulatory Acts
Amendments to the Construction Law plan to extend the unified building registration process to all construction cases, regardless of land ownership (Draft Law No. 1417/Lp14)
Submitted to the Saeima on June 11, 2026.
At the beginning of this year, amendments to the Construction Law, the Land Register Law, and the Law “On the Entry of Real Estate in the Land Register” came into force, introducing a unified building registration process where an application for a construction intention is simultaneously an application for registration of changes in the State Real Estate Cadastre Information System and, in the case of a new building, for registration in the Land Register.
This draft law provides for the extension of the unified building registration process to all construction cases, regardless of land ownership. Thus, it also applies to construction intentions on land belonging to another person, for example, on the basis of a building right or another legal basis determined by regulatory acts in the field of construction or another area.
Delegation of the Real Estate Transaction Intermediary Register maintenance to LANĪDA (Draft Law No. 1268/Lp14)
Adopted in the 2nd reading on June 11, 2026. Referred for submission of proposals until June 16, 2026.
The tasks of registering real estate transaction intermediaries and maintaining the real estate transaction intermediary register will be delegated to the association Latvian Real Estate Association LANĪDA, reducing the administrative burden for both the Ministry of Economics and for natural and legal persons providing intermediary services. However, supervision over compliance with the requirements of regulatory acts remains within the competence of the Ministry of Economics.
ENERGY
Regulatory Acts
Adopted amendments to Cabinet Regulation No. 635 “Regulations on the Trade and Use of Electricity” (Project ID: 25-TA-3090)
Adopted at the Cabinet meeting on June 9, 2026.
Henceforth, in cases where an electricity supply interruption has occurred due to technological reasons of the system operator (rather than external circumstances, such as storms or actions of third parties), compensation to users will be applicable if the power supply interruption lasts 12 hours (previously 24 hours). Compensation is provided as a reduction in the system service tariff on the user’s electricity bill. The changes will apply to both households and companies and will come into force on January 1, 2027. The changes also provide for the improvement of the last resort supply regulation. Furthermore, electricity traders will be obliged to provide the system operator with up-to-date user contact information so that customers receive timely information about planned power supply interruptions, repair works, and other significant changes. The amendments also clarify the procedure for paying bills in cases of users subject to sanctions, and strengthen the system operator’s right to terminate the system use agreement with a trader if it fails to fulfill payment obligations.
Draft Regulatory Acts
Consultation document on the procedure for determining the maximum thermal energy purchase price for the competitive volume of thermal energy purchased by the heating system operator (Consultation document)
Submission of opinions June 10, 2026 – June 25, 2026.
According to the draft Procedure, the heating system operator will determine the maximum price at which an independent thermal energy producer may sell thermal energy, which the producer may not exceed. In turn, the heating system operator, when concluding agreements, will continue to observe the criteria of the principle of economic gradualness established in the Energy Law.
Price caps will be set for thermal energy purchased by AS “Rīgas siltums” from independent thermal energy producers. They 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”. It is planned that 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 gradualness established in the Energy Law will continue to be observed, ensuring the most economically advantageous purchase of thermal energy.
REGULATED LAW
Draft Regulatory Acts
Draft law introduces EU product repair regulations in Latvia to promote repairability, durability, and consumer access to repair services (Draft Law No. 1404/Lp14)
Submitted to the Saeima on June 5, 2026.
The draft law “Amendments to the Consumer Rights Protection Law” was developed to ensure the implementation of Directive (EU) 2024/1799 on common rules promoting the repair of goods in Latvia.
In the current version, most of the Directive’s terms have already been transposed through other EU legal acts, but it is additionally necessary to introduce eight new terms. At the same time, the repairability of goods will be promoted by strengthening consumers’ options to repair goods instead of replacing them. New requirements regarding the repair of goods and commercial guarantees regarding durability will also be established. Furthermore, requirements are set for a unified European Repair Information Form and a European online platform for repair, which will allow consumers to receive clear information about repair conditions.
Case Law
The norm regulating the distribution of water consumption differences in case of non-verification of meters found inconsistent with the Constitution (Case No. 2025-35-03)
Judgment delivered on June 9, 2026.
The court declared sub-paragraph 19.1 4 of Cabinet Regulation No. 1013 “Procedures by which an owner of an apartment in a multi-apartment residential building shall pay for services related to the use of the apartment property”, in the version in force from October 1, 2013, to November 21, 2019, as inconsistent with the Constitution. The contested norm stipulated that in cases where a difference arises between the readings of the building’s common water meter and the water consumption determined by meters in apartment properties, including water leaked during accidents and repairs, the water consumption difference shall be paid by the person whose apartment property meter inspection found that the meter had not been verified within three months after the end of the verification period.
The Constitutional Court emphasized that the water consumption difference can arise due to various circumstances, and placing the entire burden of covering the water consumption difference on a person whose water consumption meters installed in the apartment property have not been verified within three months after the deadline, regardless of the reasons for the difference, is disproportionate.
IMMIGRATION
Case Law
Advocate General’s opinion on the conclusion of an international agreement allowing Italy to establish detention and repatriation centers in Albania to manage migration flows (Opinion)
Adopted on June 11, 2026.
2023. The protocol signed between Italy and Albania on November 6, 2023, is a bilateral international agreement that allows Italy to establish detention and repatriation centers in Albania to manage migration flows. Two third-country nationals who were detained in Italy and against whom expulsion decisions had been made were moved to a detention center in Albania in accordance with this protocol and national legislation. Upon arrival there, they applied for international protection.
The Advocate General considers that EU law does not allow Member States to conclude international agreements in the field of asylum if these agreements concern an area harmonized by EU law and are likely to affect common EU rules or change their scope. The Advocate General also considers that EU law in the field of asylum is territorially applicable in the centers established in Albania and Member States must comply with the minimum standards set therein.
Court of Justice of the European Union clarifies conditions for granting derived rights of residence to a parent of a Union citizen (Case No. C-147/24)
Judgment delivered on June 4, 2026.
The Court of Justice of the European Union ruled that a parent of a minor Union citizen may have the right to receive derived rights of residence in the Member State of which the child is a citizen, even if this parent already has rights of residence in another Member State. The Court emphasized that if a refusal to grant rights of residence would create a risk of separating the child from one of the parents or force them to move to another country against their interests, the parent in question may be granted derived rights of residence in the Member State of which the child is a citizen.
An EU Member State may investigate fraud related to a marriage of convenience even after the person has acquired the Member State’s citizenship (Case No. C-560/24)
Judgment delivered on June 4, 2026.
A third-country national settled in Ireland as a student. Shortly before the expiration of his residence permit, he married a European Union citizen who had exercised her right to freedom of movement. Following this marriage, he obtained a residence permit as a family member of a Union citizen and subsequently acquired Irish citizenship in 2015, which has since been the basis for his right of residence. However, the Irish authorities considered that this marriage was a sham, and this was later proven. The Irish authorities considered that the rights arising from Directive 2004/38/EC on the right of citizens of the Union and their family members to move and reside freely within the territory of the Member States must be considered revoked from the very beginning. The person, in turn, considered that upon becoming an Irish citizen, he was no longer subject to this directive.
The Court of Justice of the European Union ruled that the provisions of the directive on the prevention of fraud and abuse of rights also apply to past situations. Any contrary interpretation would jeopardize the objective of combating marriages of convenience and fraudulent practices, which are often discovered late.
ENVIRONMENTAL LAW
Draft Regulatory Acts
Amendments to the law provide for the expansion of the Latvian Natura 2000 list (Draft Law No. 1011/Lp14)
Adopted in the 2nd reading on June 11, 2026. Referred for submission of proposals until July 13, 2026.
Amendments to the Law “On Specially Protected Nature Territories” provide for supplementing the Annex to the Law “Latvian Natura 2000 – List of Protected Nature Territories of European Significance” with new Natura 2000 territories and nature reserves.
Planned total ban on keeping laying hens in cages in Latvia (Draft Law 1323/Lp14)
Adopted in the 1st reading on June 11, 2026.
Amendments to the Animal Protection Law will stipulate that keeping laying hens in cages, including combined systems, is prohibited. Welfare requirements for hens and the procedure for registering keeping establishments will be determined by the Cabinet.
TAXES
Case Law
The Commission calls on Poland to address the breach of the Directive on Administrative Cooperation in the field of taxation regarding reporting rules for foreign digital platform operators (here)
The European Commission decided to initiate an infringement procedure by sending a formal notice (INFR(2026)2070) to Poland regarding the incorrect implementation of Council Directive (EU) 2021/514 of March 22, 2021, amending Directive 2011/16/EU on administrative cooperation in the field of taxation (DAC7). The Directive provides for mandatory automatic exchange of information provided by platform operators. Under DAC7, a non-EU jurisdiction may sign an effective qualifying competent authority agreement (EQCAA) with EU Member States, confirming equivalence between the reporting standards of that jurisdiction and the EU (DAC7).
If a non-EU jurisdiction signs an EQCAA with all relevant EU Member States, a platform operator from that jurisdiction may be fully exempt from registration and reporting obligations in the EU – such a case is a “qualified non-EU jurisdiction”. Poland, however, exempts platform operators whose activities are covered by an EQCAA signed only with Poland from registration and reporting obligations. Thus, Poland has incorrectly transposed DAC7, hindering the proper integration of the EU system into the global system consisting of the OECD Model Rules for Reporting by Platform Operators with respect to Sellers in the Sharing and Gig Economy (MRDP), as provided for in the directive. Therefore, the Commission sent a formal notice to Poland, which now has two months to respond and address the deficiencies identified by the Commission. If the response is not satisfactory, the Commission may decide to issue a reasoned opinion.
Industry News
Tax administrations of the Baltic States and Ukraine sign a mutual memorandum of cooperation (SRS: News)
Published: June 5, 2026.
The annual meeting of the Directors General of the Tax and Customs Administrations of the Baltic States took place from June 4 to 5, during which a memorandum of cooperation was signed between the State Tax Service of Ukraine, the State Tax Inspectorate of Lithuania, and the State Revenue Service of Latvia, strengthening cooperation in the fields of knowledge exchange, professional development, and institutional capacity building.
CUSTOMS
Industry News
Latvian Customs actively participates in the European Union’s safety and security data analytics project (SRS: News)
In order to improve customs risk management and increase control efficiency, the SRS National Customs Board, with the support of European Commission (EC) experts, has initiated the creation of a new initiative, inviting the customs services of other European Union (EU) Member States to participate. The aim of the initiative is to use the functionality of the Safety and Security Analytics (SSA) system developed by the EC and the possibilities of artificial intelligence to identify cigarette production equipment, its components, and raw materials necessary for production.
Air passenger attempts to bring a large sum of cash and expensive jewelry into Latvia without declaring them (SRS: News)
Officials of the National Customs Board of the State Revenue Service, while performing customs control at Riga Airport, discovered a significant amount of cash and luxury jewelry with a passenger. The amount of undeclared cash exceeded 60,600 euros. Since the passenger had not declared either the jewelry or the money and the situation indicated a possible criminal offense, the case was handed over to the Tax and Customs Police, where criminal proceedings were initiated regarding the said fact. With this information, the SRS reminded that when crossing the external border of the European Union, persons are obliged to declare goods in accordance with the requirements of regulatory acts, and must also declare cash if it is 10,000 euros or more.
SANCTIONS
Draft Regulatory Acts
Amendments to the Law on International and National Sanctions of the Republic of Latvia transfer the supervisory competence of the CRPC to the Bank of Latvia (Draft Law No. 1390/Lp14)
Referred to the committee on June 11, 2026.
It is planned to exclude from the law the competence of the Consumer Rights Protection Centre (CRPC) to supervise the implementation of restrictions set in international and national sanctions in the activities of persons engaged in consumer lending and to whom the CRPC has issued a special permit (license) for the provision of lending services. This supervision will be carried out by the Bank of Latvia from January 1, 2027. The draft law provides for a transitional provision stipulating that cases initiated and not completed under the Sanctions Law until December 31, 2026, shall be completed by the CRPC, applying those legal norms that were in force on the day the relevant case was initiated.
DISPUTE RESOLUTION
Draft Regulatory Acts
Amendments to the Criminal Law seek to increase criminal liability for offenses committed using devices moving in airspace (Draft Law No. 1374/Lp14)
Adopted in the 1st reading on June 11, 2026. Referred for submission of proposals until June 15, 2026.
The draft law plans to introduce a new aggravating circumstance – a criminal offense committed using a device moving in airspace. At the same time, the proposed changes supplement several articles of the Criminal Law with a new qualifying feature – committed using a device moving in airspace. This increases criminal liability in cases where the relevant criminal offenses are committed with devices moving in airspace.
The Civil Law will stipulate that an animal is not an object (Draft Law No. 1366/Lp14)
Proposals can be submitted until June 16, 2026.
Amendments to the Civil Law plan to stipulate that animals are not objects. Provisions of property law are applicable to them insofar as they are compatible with the nature of animals or with the laws intended for their protection.
Case Law
Change in case law. Senate: the pledgor has the right to bring a recourse claim against the principal debtor (Case No. SKC-32/2026)
Judgment delivered on May 27, 2026.
The plaintiff, while married to the defendant, had provided a pledge of real estate belonging to her to ensure the fulfillment of obligations provided for in a loan agreement concluded by the Defendant. After the dissolution of the parties’ marriage, the Defendant stopped fulfilling the obligations arising from the loan, therefore the lender withdrew from the loan agreement, and the pledged real estate of the plaintiff was sold to cover the Defendant’s debt obligations. The plaintiff, considering that the defendant had deliberately failed to fulfill the obligations even though it was possible for him to do so, brought a claim in court to ensure that the defendant compensates her for the losses caused.
The Senate recognized that a pledgor, whose property ensures the fulfillment of another person’s obligation, acquires by law the right to bring a recourse claim against the principal debtor in the event that the pledged property is sold to satisfy the creditor’s claim. The creditor’s claim against the principal debtor passes to such a pledgor to the extent that the creditor’s claim has been satisfied by selling the pledged property. This transfer of the claim does not affect the principal debtor’s right to bring claims or objections against the pledgor arising from their mutual legal relationship, including regarding the waiver of the right of recourse or other agreements between them. Thus, the Senate departs from the finding expressed in the judgment of June 5, 2017, in case No. SKC-76/2017, that the Civil Law does not provide the pledgor with the right to bring a recourse claim against the principal debtor.
A civil legal relationship usually exists between the debtor and the person who ensures his debt with their property (the pledgor). If the creditor uses the pledge and the pledgor consequently loses their property or incurs related expenses, the pledgor may demand compensation for these losses from the debtor. These rights exist independently of the creditor’s claim, which in certain cases passes to the pledgor according to the law.
Evasion of maintenance for minor children is punished with community service (Decision No. SKK-279/2026)
Decision adopted on June 9, 2026.
The accused, being informed of a court judgment that had come into force by which maintenance was recovered from him for the support of two minor children, did not pay maintenance in the amount determined by the court. The Riga District Court, examining the case, had recognized as proven that the accused for a long time did not receive a salary in the company where he held the position of a board member, but did not seek another job or other sources of income. The court judgment emphasized that it is an mandatory duty of parents to do everything necessary to earn income and provide funds for the support of children regardless of any external circumstances, but the accused had not pointed to objective reasons that would have prevented him from doing so. Based on the above, the court found the accused guilty and punished him with 260 hours of community service. A decision of the Riga Regional Court to leave the convicting judgment of the Riga District Court unchanged has come into force.
The Senate requests the opinion of the Court of Justice of the European Union on restrictions for the position of air traffic controller (Case No. SKC-448/2026)
Decision adopted on June 5, 2026.
The plaintiff is a citizen of the Republic of Lithuania who has repeatedly applied for vacant air traffic controller positions but received a refusal. Since the Plaintiff considers that the refusals are based on differential treatment due to her citizenship, and furthermore, a long-standing conflict has developed between the parties, she has brought a claim in court to ensure that the Defendant is ordered to end the discrimination against her involving elements of mobbing.
The Senate found that the issues examined in the case are closely related to the rights of workers to move freely within the European Union and the prohibition of discrimination on the grounds of European Union citizenship. The case also needs to clarify whether the position of air traffic controller within the meaning of European Union law should be recognized as a civil service position – namely, whether it involves direct or indirect participation in the exercise of state power and duties aimed at protecting the general interests of the state or other public law entities, as in such a case the rules on the freedom of movement of workers might not apply. Since the certification of air traffic controller positions is regulated at the European Union level, the situation that has arisen may also need to be assessed from the point of view of the prohibition of discrimination. Therefore, the Senate referred three preliminary questions to the Court of Justice of the European Union regarding the interpretation and application of the relevant European Union legal norms.
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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.