Finance and economy ministers want to simplify the land lease policy

The conversation unfolded after the Cabinet of Ministers adopted the procedure by which a public person implements legal land use relations. Although amendments to the Public Entity Land Lease and Building Rights Regulations were adopted, the ministers expressed their belief that the government should think about reviewing the policy as a whole.

Asheraden said that there are enough plots of land that are leased to investors for a long period, but it is difficult for them to understand such a lease for 40-50 years. Liquidity is also important for investors. Asheraden panel believes that the rental policy should provide for the possibility for investors to become land owners as well.

Valainis agreed with the Minister of Finance, saying that he also sees a problem, especially in situations where investors represent companies passed down through the generations.

Valainis explained that at one time “unsuccessful constructions of the law created divided properties”, which was later tried to be solved with land lease, but this made everything too complicated.

“We have to try to get out of this, returning to normal property structures, without the complex schemes that have been created here,” Valaniis said.

TVNET already reported that on Tuesday the government determined the procedure for a public person to implement legal land use relations, and cases in which a public person, as a land owner, agrees on a lower fee than the law provides, with certain groups of building owners or owners of buildings of different classifications.

With the amendments to the Law on Entry into Force, which were adopted by the Saeima on September 30, 2021 and entered into force on October 29, 2021, the regulation of forced lease in cases of shared property has been replaced by the legal right to use land for a fee.

The entry into force law states that if the building is an independent property object and the land owner is a public person, the requirements of this law shall apply from January 1, 2024.

The entry into force law stipulates a delegation to the Cabinet of Ministers to determine the procedure by which a public person implements the legal use of land, and the cases in which a public person, as a land owner, agrees on a lower fee than provided for in the law with certain groups of building owners or different classifications for building owners.