Updated November 2026

Rent it out or sell?

The wrong answer can cost tens of thousands. The right one depends on three things: the yield, your plans, and whether you want to be a landlord at all.

Path 1Rent it outIncome every month, the flat stays yoursPath 2SellCapital freed, the duties end

By the TopMakleri.lv editorial team

A new timber-clad apartment building among treesRīga nowRent14.8 €/m²a monthSale2,686 €/m²median asking priceRatio a year ≈ 6.6%

In short

5%–11%

market ratio in the larger towns

Gross rental yields in Latvia vary a lot by town and building; costs, empty months and the 10% tax take their cut.

Rent out

Rent it out when the yield is decent, the mortgage balance is small and you believe in the area, or might move back yourself.

Sell

Sell when you need the capital elsewhere, the building faces big investments, or you do not want landlord duties.

Decide on numbers, not gut feeling: compare your apartment’s rent estimate and sale estimate.

Work out your yield →

Start with the yield

Gross yield is the annual rent divided by the apartment’s value. In Latvia it varies a lot: it is usually higher in cheaper Soviet-era series flats and smaller towns, and lower in expensive new developments and central Rīga.

Get your own numbers from two estimates: what rent your apartment would earn and what it would sell for. Towns are compared in the rental section of our market report.

Formula

Gross yield=annual rentapartment value

Apartment blocks by the water in autumn

Rent and sale price in the larger towns

The median listing price per m² for flats: rent and sale shown apart, then their ratio over a year. It is a rough market ratio, not your flat’s yield.

TownRent a monthSale

Ratio = rent €/m² a month × 12 / sale price €/m². Asking prices, not transaction prices; costs and taxes are not included.

From gross to net: what is left

  • Empty months: budget about one month a year between tenants.

    In the calculator: Empty months

  • Repairs and wear: a refresh between tenants, appliances, the building’s repair fund.

    In the calculator: Repairs and other costs

  • Tax: 10% of the rent received; only the property tax may be deducted.

    In the calculator: Income tax

  • Your time or the agent’s commission: usually 50% of one month’s rent, often paid by the tenant.

    In the calculator: Repairs and other costs

Example: with a 6% gross yield, after one empty month, the 10% tax and the owner’s costs, the net yield often lands around 4–4.5%. Add (or subtract) the change in the apartment’s value.

Yield calculator

Your flat’s numbers: gross, every cost on its own line and what you actually keep each year.

No figures of your own yet?

Start from the town’s median listing price per m². For your own flat, get an estimate on the sale price and rent price pages.

€
€/month

Management fee, the building’s repair fund, insurance: what the tenant does not pay.

€/month

The only cost that may be deducted from rental income.

€ a year

Empty months a year

Rule of thumb: one month a year.

A refresh between tenants, appliances, the cost of finding a tenant.

€ a year

For example a deposit rate or a loan rate you know. Enter it yourself.

% a year

Gross and net at a glance

Enter the flat’s value and monthly rent. Each cost appears here on its own line, so you see exactly where the gap comes from.

Sale price estimate →Rent price estimate →
A bright living room with a house plant

Path 1

When letting wins

  • The yield is decent for the area and tenant demand is steady (universities, jobs).
  • You believe in long-term price growth in the area: rent then tops up the appreciation.
  • You might move back into the apartment yourself (work, children, parents).
  • The remaining mortgage is small or the interest rate low: rent covers the costs with a margin.
See the rent price →How to rent out an apartment →
Old roofs and worn façades

Path 2

When selling wins

  • You need the capital elsewhere: a new home, a business, a more diversified portfolio.
  • The building faces major costs (roof, insulation, utility networks): they will eat several years of yield.
  • The yield is low and you do not believe in the area’s growth.
  • You do not want the landlord role: tenant changes, late-night calls, arrears risk.
See the sale price →What selling costs →

A tax nuance: if you have owned the apartment for more than 60 months and during that time it was your declared residence for at least 12 consecutive months, or it was your only real estate for 60 months, the sale is usually tax-free, even if you let it out in between. Otherwise 25.5% personal income tax is due on the gain, so it pays to plan the timing of the sale.

State Revenue Service (VID): first steps for landlords (in Latvian) ↗Law on Personal Income Tax (likumi.lv, in Latvian) ↗What selling costs →

The third way: try a year

If in doubt, let it for a year and check the real numbers: actual rent, actual costs and how it feels. You can always sell later. The practical letting steps and a properly drawn-up lease keep the risks under control.

  1. 1

    Before

    Two estimates

    See what rent the flat would earn and what it would sell for. Put both into the calculator and write down the result.

  2. 2

    Month 1

    Lease and tenant

    A written fixed-term lease, notice to VID within 5 working days, a handover act with the meter readings and a clear agreement on who pays what.

  3. 3

    Months 2–11

    Real numbers

    Write down the actual rent, the actual costs and the time letting takes. That way you have something to compare at the end of the year.

  4. 4

    Month 12

    Decision

    Put the real numbers into the calculator and see whether the net figure and the feeling are right. Then the choice is surer: keep letting or sell.

If the tenant falls behind with payments, see the “Tenant not paying” guide.

Decided? Find the most active real estate agents in your area

Enter the apartment address and contact them if you wish.

I’m selling

Sales agents near you. Check the price yourself first: sale price estimate.

I’m letting

Letting agents near you. Look first: rent price estimate.

Frequently asked questions

What is a good rental yield in Latvia?

It depends a lot on the town and the building. Compare your apartment’s rent and sale estimates and work out the net figure: after empty months, owner costs and the 10% tax it is usually 1–2 percentage points below gross.

Do I lose the tax exemption on a sale if I rent the flat out?

Not necessarily. If you have owned it for more than 60 months and it was your declared residence for at least 12 consecutive months during that time, or it was your only real estate, the sale is usually tax-free. Otherwise 25.5% income tax is due on the gain.

How many empty months should I budget?

A cautious rule of thumb is one month a year: the change of tenant, small repairs and finding the next tenant. A well-priced apartment may see less.

How do I calculate the gross yield?

Multiply the monthly rent by 12 and divide by the apartment’s value. For example, €500 a month and a value of €100,000: €6,000 / €100,000 = 6% a year. For the net yield, deduct empty months, owner costs, repairs and the tax from the annual rent before dividing.

How is rental income taxed?

A private person without a registered business pays 10% of the rent received; only the property tax may be deducted. Notify VID of the lease within 5 working days, declare the income in the annual return and pay the tax by 23 June.

Where can I get a rent and sale estimate for my apartment?

The rent estimate is on the TopMakleri.lv rent price page and the sale estimate on the home valuation page: enter the address and see a range based on current listings in the area. Both are free.

Do I need an agent to rent out my apartment?

No. You can find a tenant yourself. A real estate agent takes care of the photos, listings, viewings, the tenant check and the lease, so your time stays free. The commission is usually 50% of one month’s rent, often paid by the tenant.

Sources

This is general information, not legal, tax or investment advice; for exact terms rely on the State Revenue Service (VID), your bank and official sources.

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