Legislative Review May 15–21, 2026
COMMERCIAL LAW AND CORPORATE LAW
– Decision to terminate association’s activities revoked after election of new board
REAL ESTATE AND CONSTRUCTION
– Amendments to the Apartment Ownership Law
ENERGY
– Planned strengthening of wind power plant supervision regulations
– AST to conduct stability test of synchronous compensator and battery operation in Latgale
REGULATED LAW
BANKING AND FINANCIAL LAW
– Amendments to the Financial Instrument Market Law will simplify the procedure for electing audit committees
– Amendments to the Deposit Guarantee Law aim to reduce the burden on new credit institutions and introduce more flexible regulation for the deposit guarantee fund
IMMIGRATION
– Scammers send fake emails on behalf of the Office of Citizenship and Migration Affairs
– The e-signing solution for some issued eID cards will be reviewed
ENVIRONMENTAL LAW
– SPRK approves new methodology for calculating natural gas transmission system service tariffs
– Digital Waste Transport System (DIWASS) is open for user and operator registration
INTELLECTUAL PROPERTY (IP) & INFORMATION TECHNOLOGY (IT) & DATA PROTECTION
TAXES
– New toolkit published to support consistent implementation of global minimum tax
– VAT in the Digital Age: 2026 work program available
– SRS has updated methodological material “Personal income tax on the disposal of investment fund certificates”
– SRS has updated methodological material “Income from the sale of crypto assets”
CUSTOMS
DISPUTE RESOLUTION
– Amendments to the Law “On State Compensation to Victims”
– The Criminal Law’s regulation on environmental crimes will be expanded and the Law “On the Entry into Force and Application of the Criminal Law” will be amended
– The Civil Law aims to stipulate that an animal is not a thing
– The Senate refers to the Court of Justice of the European Union (CJEU) requesting clarification of the understanding of unfair commercial practices
– The Senate recognized that the legitimate heir’s will to inherit the reserved portion can be declared in ways other than just an application to a notary
– Parliament must await the opinion of the European Central Bank before adopting regulations on mortgage loan support
– Five persons convicted of money laundering exceeding one million euros
COMMERCIAL LAW AND CORPORATE LAW
Case Law
Decision to terminate association’s activities revoked after election of new board (Decision No. 1-5n/67)
Decision adopted on May 6, 2026.
The Register of Enterprises (UR) found that the Board of the Association had no representation rights for more than two years, therefore, in April 2025, a warning was sent urging the election of a new board. As the necessary documents were not submitted within the specified six-month period, a decision was made in November 2025 to terminate the Association’s activities. Later, representatives of the Association submitted a request to revoke this decision, stating that members wished to preserve the Association to continue the co-owned building renovation project. At the same time, documents for the election of a new board were submitted, and the UR registered changes in the composition of officials and recognized the new board. Based on the principle of good governance and the Administrative Procedure Law, a decision was made to revoke the previous decision on the termination of the Association’s activities.
REAL ESTATE AND CONSTRUCTION
Regulatory Acts
Amendments to the Apartment Ownership Law (Promulgated version)
Promulgated on May 15, 2026.
The amendments strengthen the rights of apartment owners to participate in house management, introduce the institute of separate use rights for jointly owned parts (parking spaces, storage rooms, roof and facade parts, etc.), and provide for the possibility for an apartment owner to request in court that a community decision be deemed adopted if the community cannot agree. The law also provides for new regulations on the use of common infrastructure, which will allow owners of residential buildings located on different land plots to establish common infrastructure use rights. The law clarifies that in a repeated general meeting or a repeated survey of apartment owners, only issues for which a simple majority is required for the initial decision-making may be considered.
ENERGY
Regulatory Acts
Planned strengthening of wind power plant supervision regulations (Project ID: 26-TA-977)
Adopted at the Cabinet of Ministers meeting on May 19, 2026.
Amendments to the Electricity Market Law provide for delegating the Ministry of Climate and Energy (KEM) to develop draft regulations for the supervision of wind power plants and requirements for the dismantling of power plants and storage facilities. The amendments will still be considered by the Saeima.
KEM has already initiated consultations on the content of the draft regulations in advance, even before the formal delegation was included in the law, to gain a common understanding of the operational requirements for wind power plants. The draft regulations will specify concrete requirements for wind power plants (above 1MW), for example, regarding noise limits, flickering limits for a certain number of hours per year, installation of equipment for bird identification and turbine shutdown, civil liability insurance, installation of lightning rods, etc.
Industry News
AST to conduct stability test of synchronous compensator and battery operation in Latgale (KEM Updates)
The test will take place on May 30, 2026.
In accordance with European Union requirements, the Latvian transmission system operator AS “Augstsprieguma tīkls” (AST) will conduct a stability test of the Līksna synchronous compensator connected to the transmission network, the Rēzekne electricity storage battery system (BESS), and a new 50MW solar power plant.
The equipment test will not affect household users, so no action is required. For business users, if their electrical equipment is not sensitive to voltage dips, the test will go unnoticed. However, a voltage dip may affect users’ voltage-sensitive equipment.
REGULATED LAW
Draft Regulatory Acts
Public benefit organizations will be allowed to receive not only financial resources or property, but also services as donations (Draft Law No. 1347/Lp14)
Adopted in 2nd reading on May 21, 2026.
Amendments to the Public Benefit Organizations Law will stipulate that public benefit organizations will henceforth be able to receive not only financial resources or property, but also services as donations. At the same time, the amendments will expand organizations’ opportunities to accumulate financial resources and invest them in the regulated securities market.
To enable businesses that donate services to apply corporate income tax relief, the draft law provides for a mandatory written donation agreement, which must specify the value of the donated service in monetary terms.
BANKING AND FINANCIAL LAW
Regulatory Acts
Amendments to the Financial Instrument Market Law will simplify the procedure for electing audit committees (Project ID: 25-TA-2661)
Adopted at the Cabinet of Ministers meeting on May 19, 2026.
The amendments foresee a significant change in the procedure for electing audit committees of public interest entities, allowing the general meeting of shareholders or members to delegate this function to the company’s council. This would reduce administrative burden and costs, as council meetings are easier to organize than shareholder meetings. At the same time, shareholder control is maintained, as they decide whether to grant such a delegation. The amendments also clarify that the independence of the audit committee is not affected if it is elected by the council, as the committee still operates independently of executive bodies. The law is harmonized with European Union directives and the practice of other EU countries, where in many places audit committees are formed directly by the council or supervisory body. In addition, several technical norms are clarified, for example, the reference to a limited liability company’s “controller,” which is not provided for in the Commercial Law, is excluded. It is also stipulated that the chairman of the audit committee is elected by the committee members themselves from among their ranks.
Draft Regulatory Acts
Amendments to the Deposit Guarantee Law aim to reduce the burden on new credit institutions and introduce more flexible regulation for the deposit guarantee fund (Draft Law No. 1285/Lp14)
Adopted in 1st reading on May 21, 2026; Submitted for proposals until May 26, 2026.
Amendments to the Deposit Guarantee Law foresee the abolition of the one-time initial payment into the deposit guarantee fund, which until now had to be paid by new credit institutions and credit unions after obtaining a license. The aim of the changes is to reduce the financial burden on new market participants, especially considering the recent amendments to the Credit Institutions Law, which allow the establishment of specialized credit institutions with smaller initial capital. In addition, a more flexible procedure for payments into the deposit guarantee fund is provided. At the same time, the Bank of Latvia will be granted broader powers to determine the payment calculation procedure and the applicable interest rate in its regulations, rather than in the law itself. The amendments foresee setting a maximum target volume for the deposit guarantee fund – 3% of the total covered deposits of all fund participants. Until now, the law only stipulated a minimum fund amount of 0.8%, which meant that credit institutions and credit unions had to continue making contributions to the fund without a defined limit, regardless of the amount of funds already accumulated. The amendments foresee allowing the use of income generated from investing the deposit guarantee fund’s resources not only for fund accumulation but also for covering the costs of fund management and ensuring the operation of the guaranteed compensation system.
IMMIGRATION
Industry News
Scammers send fake emails on behalf of the Office of Citizenship and Migration Affairs (OCMA Updates)
Cyber fraudsters have launched a new campaign, impersonating the Office of Citizenship and Migration Affairs and sending fake emails to residents, claiming that their identity documents (passport/eID card) have expired, or sending invitations related to naturalization issues. In both cases, residents are asked to click on a link and fill out a questionnaire.
The Office never requests such questionnaires to be filled out or data to be provided via email links. If you want to check the validity of your document, look at the document itself or check the status on the official portal www.latvija.gov.lv.
The e-signing solution for some issued eID cards will be reviewed (OCMA Updates)
The Ministry of Environmental Protection and Regional Development (VARAM), the Office of Citizenship and Migration Affairs (PMLP), and the Latvian State Radio and Television Centre (LVRTC) inform that for Latvian residents whose eID cards were issued from September 2, 2019, to January 30, 2026, electronic signing options may change after December 9, 2026. The changes are related to the certification process carried out by the French national supervisory authority.
Technological and legal measures will be introduced to ensure that users of eID cards that may be affected by the changes will also be able to electronically sign documents with full or partial functionality. An assessment of possible long-term additional solutions will be carried out during June. It is important to emphasize that the eID card remains valid for proving personal identity both in person and in the electronic environment, as well as for traveling within the European Union.
ENVIRONMENTAL LAW
Regulatory Acts
SPRK approves new methodology for calculating natural gas transmission system service tariffs (Promulgated version)
Enters into force on May 21, 2026.
The Public Utilities Commission (SPRK) has approved the new methodology for calculating natural gas transmission system service tariffs, which includes several significant changes. The methodology improves the procedure for determining allowed revenues, clarifies the calculation, accounting, and use of the regulatory account, and introduces a new approach to calculating the cost efficiency coefficient. At the same time, the methodology provides for a gradual transition to a capacity-based tariff model and defines the procedure for calculating biomethane tariffs. The methodology also introduces a new capacity product tariff, which will henceforth be applied to biomethane producers and end-users. A new methodology for determining the fee for the exit point for supplying Latvian users has also been developed. The amendments to the methodology will reduce the administrative burden for both the natural gas transmission system operator AS “Conexus Baltic Grid” and the SPRK.
Industry News
Digital Waste Transport System (DIWASS) is open for user and operator registration (VVD Updates)
System use mandatory from May 21, 2026
The European Union’s central digital system DIWASS, designed for electronic submission and exchange of information and documents related to waste shipments, is open for user and operator registration. All operators involved in cross-border waste shipments, such as the notifier, the person organizing the shipment, the carrier, the consignee, the recovery facility, the waste generator, etc., must register in DIWASS.
INTELLECTUAL PROPERTY (IP) & INFORMATION TECHNOLOGY (IT) & DATA PROTECTION
Draft Regulatory Acts
Amendments to the Copyright Law aim to strengthen the legal protection of performing arts authors and clarify the procedure for preventing copyright infringements (Draft Law No. 1363/Lp14)
Submitted to the Saeima committee on May 21, 2026.
The draft law was developed on the initiative of the Ministry of Culture to ensure legal clarity in the Copyright Law regarding authors of performing arts works, as well as to improve the legal regulation concerning final civil law remedies.
The list of copyright subjects will be supplemented with authors of performing arts works. At the same time, a new article is introduced that defines authors of performing arts works and provides a presumption that these persons are co-authors of the work, unless proven otherwise. The draft law also clarifies in which cases the use of copyright or related rights without consent is considered an infringement, emphasizing the need to observe the exceptions and limitations provided by law. A new instrument – a warning about copyright infringement – is also introduced, which will allow rights holders or licensees to request in writing the cessation of the infringement even before litigation begins. The regulation on claims in copyright infringement cases has also been significantly revised, more clearly defining who may bring a claim and what remedies the court may apply.
TAXES
Industry News
New toolkit published to support consistent implementation of global minimum tax (read here)
2026. On April 30, 2026, the OECD published a new section with a toolkit for implementing the Global Minimum Tax (GMT) and frequently asked questions about GMT. The toolkit is primarily intended for tax administrations implementing GMT, but for businesses, it can help illustrate the differences and deviations in the interpretation and application of GMT local rules, which is a key area of focus before the June 2026 declaration deadlines, and calls for setting exemption periods for correcting declarations, penalty exemptions, and extensions of declaration deadlines where justified; however, it remains to be seen whether administrations will implement this.
The FAQ document is an update to the previous FAQ document and includes 27 questions divided into five sections. Two sections are dedicated to the basic rules for collecting and calculating GMT (and largely repeat the content of the previous FAQ document), while the other three sections are dedicated to the Side-by-Side package.
VAT in the Digital Age: 2026 work program available (read here)
The European Commission has published the work program “VAT in the Digital Age” (ViDA), covering the implementation activities planned for 2026. The aim of the ViDA reforms is to modernize the EU VAT system, make it more business-friendly and resilient to fraud, and address VAT challenges arising from the development of the platform economy. The package of measures was formally adopted in March 2025, and its implementation will take place gradually until 2035.
SRS has updated methodological material “Personal income tax on the disposal of investment fund certificates” (SRS: Latest Explanations)
Updated on May 15, 2026.
The SRS has clarified example 8 of the material regarding the deadlines for submitting the annual capital gains income adjustment declaration in accordance with the amendments to the Law “On Personal Income Tax” of December 4, 2024, and its appearance in accordance with the amendments to Cabinet of Ministers Regulation No. 662 “Regulations on Personal Income Tax Declarations and Their Completion Procedure” of October 21, 2025.
Changes regarding the submission deadline are effective from January 1, 2025. Changes regarding the appearance of the declaration apply when completing the declaration for the 2025 tax year and subsequent tax years.
SRS has updated methodological material “Income from the sale of crypto assets” (SRS: Latest Explanations)
Updated on May 19, 2026.
The definition of crypto assets has been clarified in the section “General Information” and the explanation regarding the taxation of additional crypto assets earned on an exchange with personal income tax has been deleted from the section “Date of Income Acquisition.” The date of income acquisition has also been clarified in the section “Date of Income Acquisition” and information on non-residents has been added at the end of the section “Declaration and Tax Payment.” Furthermore, the term “virtual currency” has been replaced with “crypto assets” and the annual capital gains adjustment declaration has been supplemented with a column for tax withheld abroad. Accordingly, images in examples 11–17 in the section “Declaration and Tax Payment” have been adjusted.
CUSTOMS
Industry News
A three-euro customs duty will tax on goods introduced for low-value shipments (SRS: News)
Effective from July 1, 2026.
From July 1, 2026, customs duty will be payable on goods purchased by residents from online stores and trading platforms outside the European Union (EU). This is provided for by changes in EU legislation on the application of customs duty to e-commerce shipments from third countries received by individuals in the EU, including Latvia.
DISPUTE RESOLUTION
Regulatory Acts
Amendments to the Law “On State Compensation to Victims” (Draft Law No. 1156/Lp14)
Entered into force on May 19, 2026.
The amendments to the law stipulate that in the event of a person’s death, state compensation will henceforth be paid in full to each victim, instead of being proportionally distributed among several compensation recipients, as was previously the case. The new procedure does not apply to situations where a person was recognized as a victim in criminal proceedings before December 31, 2025. The Transitional Provisions of the Law clarify (point 11) that requests for state compensation for criminal offenses resulting in a person’s death, where persons were recognized as victims within the framework of criminal proceedings until December 31, 2025, will be reviewed by the Court Administration and a decision will be made in accordance with the provisions of this law that were in force until December 31, 2025.
Draft Regulatory Acts
The Criminal Law’s regulation on environmental crimes will be expanded (Draft Law No. 1325/Lp14) and the Law “On the Entry into Force and Application of the Criminal Law” will be amended (Draft Law No. 1326/Lp14)
Adopted in 1st reading on May 21, 2026; Submitted for proposals until June 4, 2026.
The amendments to the Criminal Law are intended to implement EU Directive 2024/1203, which provides for rules on the criminal protection of the environment, while establishing the need to harmonize the definitions of criminal offenses, the severity of penalties, and the regulation of criminal offenses in all European Union member states. The draft law aims to expand the criminal offenses against the environment regulated by law, responsibility, and to impose harsher penalties. The aim of the draft law is to target perpetrators of criminal offenses, while the draft law does not intend to target legitimate forestry and agricultural operators.
Amendments to the Law “On the Entry into Force and Application of the Criminal Law” will clarify in which cases significant harm is caused by a criminal offense against the environment, and will also determine when liability will arise for the illegal placing on the market of certain raw materials and products derived from them.
The Civil Law aims to stipulate that an animal is not a thing (Draft Law No. 1366/Lp14)
Submitted to the Saeima on May 20, 2026.
The issue of the legal status of animals and the need to more clearly establish animals as living and sentient beings in regulatory frameworks is increasingly being raised in society. This need has been particularly highlighted in a public initiative on the portal “ManaBalss.lv,” with society demanding that the law stipulate that an animal is not property, but a living being.
Amendments to the Civil Law will stipulate that an animal is not a thing and will establish the obligation to compensate for damage caused by animals.
Case Law
The Senate refers to the Court of Justice of the European Union (CJEU) requesting clarification of the understanding of unfair commercial practices (Case No. SKA-14/2026)
Decision adopted on May 18, 2026.
The dispute is between a residential building manager and the Consumer Rights Protection Centre (PTAC). After an audit, the company found that apartment owners had been sent erroneous bills with a lower management fee than agreed for a long time. The company recalculated and asked residents to pay the difference. The PTAC recognized such actions as unfair commercial practice, as consumers were provided with misleading information about the price, and imposed a fine of 5000 euros on the company. The Senate believes that to resolve the case, clarification from the CJEU is needed on how broadly the concept of commercial practice should be interpreted in relation to invoicing.
The Senate recognized that the legitimate heir’s will to inherit the reserved portion can be declared in ways other than just an application to a notary (Case No. SKC-88/2026)
Judgment delivered on May 18, 2026.
The Senate examined the cassation appeal against the regional court’s judgment in a civil case concerning the confirmation of inheritance rights and the recovery of money. The Senate upheld the judgment in part, which rejected the claim for inheritance rights to the grandmother’s estate, as the plaintiff had not accepted the inheritance in the manner and within the time limit prescribed by law. However, the Senate overturned the judgment in part, which rejected the claim for the reserved portion rights to the father’s estate and the recovery of money, as the court had not properly evaluated the evidence regarding the plaintiff’s declaration of rights. The Senate emphasized that the Civil Law requires the legitimate heir to declare their rights, but the law does not stipulate that this must necessarily be done only to a notary or only in a specific form. Respectively, the Senate considered that the regional court had not adequately evaluated the Plaintiff’s letter to the Defendant, in which he clearly indicated that he was not waiving his reserved portion.
Parliament must await the opinion of the European Central Bank before adopting regulations on mortgage loan support (Advocate General’s opinion in case No. 242/25)
Opinion delivered on May 21, 2026.
Advocate General Maciej Szpunar of the Court of Justice of the European Union today delivered his conclusions in a case initiated following preliminary questions from the Constitutional Court of the Republic of Latvia regarding the obligation to consult the European Central Bank before adopting legislation falling within the European Central Bank’s competence. The case is related to the mortgage loan borrower support mechanism adopted in 2023, which was financed by a fee imposed on credit institutions. The Constitutional Court referred to the Court of Justice of the European Union to ascertain whether the Saeima had complied with the obligation to consult the European Central Bank in a timely manner.
The Advocate General concluded that the obligation to consult the European Central Bank is not observed if Parliament adopts a law before receiving the European Central Bank’s opinion. Such a procedural infringement does not in itself mean that the national legal provisions concerned automatically become inapplicable.
Industry News
Five persons convicted of money laundering exceeding one million euros (Available here)
According to the indictment, one of the defendants in the criminal case, while serving a prison sentence for money laundering, formed a criminal organized group of no less than five persons, and, as its leader, organized and distributed tasks and duties from the correctional facility, and controlled their execution, while the other members of the organized group, being at large, carried out activities aimed at legalizing criminally acquired funds. In total, the members of the criminal group legalized financial resources amounting to no less than 1,119,961.83 euros – they acquired vehicles, real estate, and various luxury items, and carried out cash and non-cash transactions and cryptocurrency transactions, with the aim of concealing the criminal origin of the financial resources.
By the judgment of the Economic Affairs Court of April 1, 2026, the leader of the organized group was found guilty and sentenced to five years and six months imprisonment without confiscation of property and with probation supervision for two years. The other members of the organized group were sentenced to probation supervision for five years without confiscation of property and for four years with and without confiscation of property.
Need help? Contact us
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.