The government of Latvia is planning tougher restrictions on selling land, which may affect foreign investors. Among others, Latvia may introduce the right of first refusal for the relatives of the seller and owners of neighbouring land plots. The potential buyers could also be asked to present a plan for the use of the land.
The government is also working on a state-owned land fund, which could buy agricultural land from the owners who want to sell it and then lease it to other farmers. “Our aim is to use each hectare of agricultural land for profitable agricultural production,” says Arvids Ozols, head of Forestry Department at the Latvian Ministy of Agriculture. “We are not planning to restrict the purchase of agricultural land, but we do plan regulations to make sure that the land is used productively.”
“Right now, the Ministry is working on the regulations that would keep the land for its designated purpose, that is, agricultural land for agriculture and forest for forestry,” he explains. “The regulations would ensure that the buyers of the land know how to use and can use it effectively. These regulations are needed to cut down speculative deals andmencourage that land is owned by those who use it for production.”
Source: news2biz LATVIA
