“Forest Transaction Taxes in Latvia: What You Need to Know”

There are special tax rules in Latvia for selling forest land or just growing trees. The tax you pay depends on whether you are selling the land itself or just the felling rights. Income from the sale of forest land is usually subject to capital gains tax, while the sale of timber is subject to personal income tax.

Certain deductions may apply, including documented forest management expenses. Additionally, if the forest is inherited, tax rules vary depending on the inheritance group. Understanding these nuances before concluding a transaction will help you avoid unexpected costs and plan your finances with confidence.