No. 41/2026

The article explains what an arbitration agreement is and why an arbitral tribunal cannot hear a dispute without one, even when a debt is undisputed. It describes two forms — a clause within a contract and a standalone agreement — and notes that since 4 July 2024 the written-form requirement can also be met through email or message exchanges. It recommends reviewing existing contracts and adding a model arbitration clause to future agreements.

Following public consultation on Welfare Ministry amendments to the State Funded Pensions Law, commenters on the TAP legal-acts portal raised concerns that the amendments do not allow full withdrawal of second-pillar pension savings before retirement. One commenter proposes barring bailiffs from seizing pension payments, including second-pillar capital and lifetime annuity policies, for debt recovery, citing the constitutional right to a dignified old age. The article reflects individual public comments, not the ministry's or legislature's position.

IT firm Baltic Software Factory, together with Expert Quality and Lightsoft solutions, has sued the State Digital Development Agency (VDAA) in Riga City Court for EUR 871,200 over development of the SKENIS election sub-system, which the agency commissioned on 25 February 2026 and then unilaterally cancelled after delivery, citing an undisclosed security-agency opinion. The company argues the contract does not release the agency from paying for completed work once cooperation ends. VDAA declined to comment, saying it had not yet received the court documents.

From 1 April 2027, the Economic Affairs Court will hear a wider range of civil cases at first instance, including claims over acquiring capital shares, losses caused by board and council members, shareholders' information rights, and consumer collective actions. From 1 September 2029 its jurisdiction expands further to winding-up of companies, insurance indemnity claims and financial-instrument disputes. The change responds to requests from business groups, including the Foreign Investors' Council, to strengthen the court's role in commercial litigation.

The Ministry of Justice clarified that under the Insolvency Law, an administrator must include all creditors' identification and contact details in the creditors' claims register and send it to every creditor, so this data disclosure is lawful. However, each creditor counts as a data recipient under GDPR and may not use other creditors' data beyond the insolvency process's purposes. The question arose after a complaint that an administrator had sent roughly 500 people's personal data to all creditors in a case.

The Court Administration reports that in the first nine months of 2026 the employees' claims guarantee fund paid out EUR 2.17 million to satisfy 808 employee claims at 52 insolvent companies — almost double the same period in 2025. The largest payouts involved employees of companies including Skai Baltija, Ditton Piedvadķēžu Rūpnīca and SmartLynx Airlines.

The Court Administration published its September review of insolvency-process administration: decisions were taken on deposit payouts in over 30 corporate and nearly 60 personal insolvency cases, 19 orders transferred deposits to the state budget, and 429 decisions covered administrators' fees. The review gives a monthly snapshot of the insolvency administration workload.

On 7 October the official gazette published amendments to the Land Register Law that simplify the streamlined transfer of mortgage loans — registering a pledge will no longer need notarial or guardianship-court certification where the request is signed with a secure electronic signature. The amendments also allow deleting a pledge where the creditor, a legal entity, has been struck from the Enterprise Register for over a year with no successor; the law takes effect 8 January 2027.

The article examines the undefined concept of "changed circumstances" in Section 2108 of the Civil Law as applied to supply contracts, a term the law does not define and which causes interpretive problems in practice.

On 7 October 2026 Latvijas Banka's supervisory committee fined AS "Rīgas kuģu būvētava" EUR 6,000 for missing the 30 April 2026 deadline to publish its audited 2025 annual report, in breach of the Financial Instrument Market Law. Given similar delays with its 2024 report, the company must publish the audited 2025 report by the end of 2026; the fine is payable within a month and the decision can be appealed to the Bank's council.

Omniva has filed complaints with the European Commission over state support for Latvia's and Lithuania's national postal operators, arguing it may breach EU rules on transparency of universal postal service (USP) compensation and fair competition. The complaint follows the Saeima's February decision to extend Latvijas pasts' USP obligations to 31 December 2028 without a new tender. The Transport Ministry says the EU postal directive no longer fits current market conditions, with new regulation planned for the fourth quarter of this year.

Amendments to Cabinet Regulation No. 173 on social-enterprise status will let social enterprises distribute part of their profit, though the dividend amount must be disclosed in the annual activity report. Profit distribution was not previously allowed for such enterprises.

Companies that transact with related parties face additional statutory obligations that in practice are often remembered only at year-end when closing the reporting period. The article reminds management which requirements to track and their deadlines.

A TEGOS roundup covers notable commercial-law court rulings. In case SKA-117/2026 the Senate overturned an Administrative Regional Court judgment on a company's deregistration, holding the lower court could only review the decision's lawfulness. The CJEU in case C-798/24 found EU law does not require publishing every shareholder's data, and doing so without a proven legitimate interest breaches GDPR; following that ruling the Constitutional Court resumed its case on shareholder data disclosure, to be heard in writing on 13 October.

The article looks at situations where a company's majority replaces the board, makes decisions without a minority participant, or withholds information, and analyses the legal rights available to protect minority shareholders. It stresses identifying which specific legal provisions apply to the dispute.

On 6 October the Cabinet adopted amendments letting social enterprises distribute part of their profit as dividends, provided they have not received state grant support in the past three years, while also cutting administrative burden in oversight. The Welfare Ministry will be able to assess a company's compliance on its own, without involving the Social Enterprise Commission, when requirements are met.

On 6 October the Cabinet approved amendments to the Accounting Rules allowing remote inventory checks (by video or photo), wider use of electronic reconciliation of receivables and payables with counterparties, and reliance on checks already done elsewhere to avoid duplication. The aim is to cut companies' administrative burden while placing more responsibility on management to set a suitable procedure.

The article discusses when a company should consider changing its name and how to carry out the process in practice, from choosing a new name through to registering it with the Enterprise Register. It notes that the process involves more than just the register entry.

An explainer on the role of a capital company's supervisory board: when forming one is mandatory (joint-stock companies) versus optional (limited liability companies), the minimum and maximum number of members, how the chair is elected, and restrictions on combining a board-member seat with management-board duties. The piece is a general explainer, not tied to a specific event.

From 5 October 2026 Latvia's Enterprise Register changes how it registers beneficial owners' control type and extent: differing share classes alone no longer justify an "other control type" entry, and until 9 July 2027 the register will stop recording control extent at each intermediate entity, showing only the final total. The change follows amendments to the anti-money-laundering law (effective 1 July 2026) and EU Regulation 2024/1624, to be fully transposed by 10 July 2027.

The Patent Office has issued guidelines for examining Supplementary Protection Certificate (SPC) applications, explaining the review process for medicinal and plant-protection products under EU Regulations No 469/2009 and No 1610/96. The guidelines give particular attention to key Court of Justice of the EU rulings in this area.

The article examines whether information casting doubt on a tender participant's financial reputation can justify excluding it from a public procurement. It looks at the risks a contracting authority should weigh when assessing a prospective partner's reliability.

The Procurement Monitoring Bureau summarised the third quarter's new support tools for suppliers: a "Procurement Guide for Suppliers", a data visualisation of e-catalogue transactions in the EIS system, and guidance on applying cybersecurity requirements in public procurement. The aim is to make it easier to take part in procurement and to expand analysis of procurement data.

On 7 October the official gazette published amendments to the Construction Law allowing an individual acting as a declared economic-activity provider to carry out construction work on first- or second-group residential buildings, and setting a new procedure for building projects on land owned by someone else. The law was adopted by the Saeima on 24 September and takes effect 8 January 2027, with some provisions from 1 February.

Also reported by: ifinanses.lv

On 6 October the SPRK approved amendments to the energy-sector reporting rules, removing reports whose data is no longer needed for oversight or duplicates other sources, and clarifying the content and frequency of the remaining reports. The changes follow a public consultation (30 July–28 August 2026) and a stakeholder meeting on 24 September.

An international seminar in Lithuania presented the results of the World Bank-backed technical support project "Enhancing Green Public Procurement Monitoring in Lithuania and Latvia" — three methodologies were developed to measure the impact of green procurement, for example of computers and furniture. The project builds procurement specialists' skills in both countries for assessing and reporting such impact.

A court ruling is expected in October in a years-long dispute over airBaltic's pilot employment model and status while working outside Latvia. The Latvian Aviation Trade Union (led by Dace Kavasa) says the dispute centers on subsidiary Aviation Crew Resources, transferring pilots back to airBaltic, and posting staff to work in Switzerland, where a new subsidiary was registered on 4 May 2026. In 2022 the union asked the relevant authorities about equal treatment and employment status, which led to the litigation.

On 7 October the State Labour Inspectorate published an infographic on restrictions on employer-initiated dismissal, noting that an employee who has been a trade union member for more than six months cannot be dismissed without the union's prior consent (with exceptions set out in the Labour Law). The union must inform the employer of its decision within seven working days of the request.

On 6 October 2026 the European Parliament agreed recommendations to protect workers from psychosocial risks and stress that can lead to burnout and mental-health problems. It calls on the European Commission and member states to act to prevent or reduce such risks.

airBaltic, which employs about 3,000 people, plans to cut 500-700 jobs at its Riga, Vilnius and Tallinn bases under a new business plan that shrinks its Airbus A220-300 fleet and expands cooperation with ACMI partners. The airline has already notified the State Employment Agency of a collective redundancy and continues consultations with unions on reducing pilot and cabin-crew workloads. A new organisational structure is expected by mid-October, but no decisions on individual employees have been made yet.

The article examines whether differing work schedules among employees amount to unequal treatment, in light of planned Labour Law amendments introducing a four-day work week. It concludes that schedule differences can be objectively justified where daily customer-service needs require them.

An interview with Dace Vārna of the "Mājoklis" association explains that rules for using shared premises in apartment buildings are adopted by the owners' association, not the manager, requiring a two-thirds vote. Rules cannot restrict an individual owner's rights, while exclusive use of a room needs all owners' consent and land-register registration. For violations, the article recommends requiring correction and damages rather than arbitrary fines.

A minimum statutory land-use fee is planned at 4% of the land's universal cadastral value per year, with a floor of 50 euros a year. If the parties cannot agree on a higher fee, the landowner will be able to ask a court to set it.

An LV portāls consultation answers a question on ending joint ownership of an inherited house when one co-owner uses it alone and refuses any agreement or buyout. It explains that if co-owners cannot agree, either one may sue in court to set a shared-use arrangement or to terminate the co-ownership entirely. The court picks the appropriate remedy based on the property's characteristics and the case's circumstances.

The article explains how VAT applies to real-estate lease and rental services depending on the property type, tenant, and lease term. It focuses particularly on the distinction between letting residential premises and other types of lease.

On 6 October the government backed Justice Ministry amendments setting a minimum statutory land-use fee of 4% of cadastral value per year (at least EUR 50), responding to a Constitutional Court ruling on forced shared ownership of land and buildings. A transition period runs to end-2031, the new rules are due to take effect 1 January 2027, and the bill now moves to the Saeima.

The State Revenue Service reports tightening oversight of real-estate intermediaries in 2025, imposing fines in 24 cases totalling 15,050 euros, up from 9 cases in 2024. The most common violations were missing or outdated internal-control systems, inadequate client due diligence, and failing to notify the authority of the business type.

The Culture Ministry has proposed extending to 31 December 2030 the option for copyright-fee recipients to avoid registering as self-employed, keeping the arrangement where the payer withholds taxes (25% combined for income tax and social contributions). The current deadline is 31 December 2027; the proposal was submitted to the Saeima's Budget and Finance (Taxation) Committee ahead of the bill's second reading. The ministry says the change will not affect state budget revenue since it continues the existing procedure.

On 9 October the official gazette published amendments to the Corporate Income Tax Law that refine the tonnage-tax regime for maritime shipping, including new definitions of a qualifying sea transport vessel and conditions for vessel chartering and management contracts. The law was adopted by the Saeima on 1 October and takes effect 1 January 2027.

On 8 October the Saeima conceptually backed amendments to the Personal Income Tax Law that exempt loyalty-programme cashback from tax, widen the range of tax-free gifts, and simplify tax administration for declared economic-activity providers. It also plans to raise the tax-free compensation limit for volunteers from EUR 1,000 to EUR 3,000 a year.

On 8 October the Saeima backed urgent amendments applying the same tax treatment to crypto-assets as to shares and bonds — tax is due only when withdrawals from an investment account exceed the amount invested. A voluntary disclosure mechanism is also planned for previously undeclared crypto-assets held as of 31 December 2026.

On 8 October 2026 the Saeima gave conceptual support to amendments applying the same tax treatment to crypto-assets as currently used for investments in shares and bonds, meaning tax would be due only once withdrawals exceed the amount invested. Currently tax is charged on each individual crypto transaction.

The European Commission has objected to Latvia's request to again extend the special reverse-charge VAT regime for the timber sector, in place since 2004 and due to expire on 31 December 2026. The Commission notes that the regime - under which the buyer, not the seller, pays VAT on domestic timber supplies - has already been extended repeatedly over more than 20 years, and that Latvia's new request describes no new anti-fraud measures introduced since the last extension. The sector should therefore expect a return to the standard VAT procedure after this year if the Council follows the Commission's objection.

The State Revenue Service issued guidance explaining when individuals must pay VAT and personal income tax on transactions involving timber. The material aims to reduce uncertainty about how taxes apply in this area.

The State Revenue Service issued guidance on amendments to Cabinet Regulation No. 827 on reporting mandatory state social-insurance contributions, which took effect on 1 October 2026. The material explains the new registration and reporting requirements for contribution payers.

At its session No. 19 on 6 October 2026, the Public Benefit Commission recommended that VID grant public-benefit-organisation status, which carries tax relief, to the association "Dabas straume" and the foundation "JEWNITED ONE FAMILY," under Section 6(2) of the Public Benefit Organisations Law. The recommendation is not final - VID still must decide.

The European Commission rejected Latvia's request to again extend the reverse VAT charge for domestic timber supplies, under which the recipient rather than the supplier pays the tax. As a result, the special regime for the timber sector will not continue.

The Cabinet backed a Finance Ministry report ending the Public Benefit Commission, transferring the assessment of granting, monitoring and revoking public-benefit organisation (SLO) status entirely to the State Revenue Service (VID). The goal is to simplify and speed up SLO status administration after more than 20 years of the commission's work.

To speed up granting and overseeing public-benefit organisation status, the Public Benefit Commission is to be dissolved with its functions transferred to the State Revenue Service. The Finance Ministry's report on the change has been submitted to the Cabinet of Ministers.

On 9 October in Luxembourg the EU's Economic and Financial Affairs Council (ECOFIN) agreed a Council position on the Market Integration and Supervision package, aimed at reducing barriers to cross-border investment and strengthening unified supervision of EU capital markets. Latvia backed moving supervision of the most significant market participants to EU level while keeping member states involved in supervisory decisions.

The Credit Information Bureau (KIB), together with technology firm Fintelligence, launched a new tool for checking clients' and partners' reputation, sanctions status and politically exposed person (PEP) status, automatically analysing public information in over 100 languages. It targets banks, insurers, and law and accounting firms seeking to meet anti-money-laundering and sanctions compliance requirements. The service is available at kib.lv/screening.

On 7 October 2026 the Saeima backed, at second reading, amendments to the compulsory motor-insurance (OCTA) law that would let an injured party claim compensation from their own insurer rather than the at-fault driver's insurer in certain cases. The change is meant to speed up and simplify settling minor road accidents.

Finance Latvia is urging the incoming government's declaration to include concrete growth measures, including abolishing the bank solidarity levy from 2027, revising the capital gains tax, and trimming regulation that goes beyond EU requirements. It also proposes strengthening the Bank of Latvia's crisis role and simplifying access to credit databases.

On 8 October ESMA published an opinion stating that MiCA-authorised crypto-asset service providers must stop offering EU clients services linked to stablecoins (ARTs and EMTs) that do not comply with MiCA. National competent authorities must require remediation of any remaining non-compliant exposures no later than three months after the opinion's publication.

A Finance Latvia adviser argues that during crises, critical services such as banks, electricity, telecoms, pharmacies and fuel stations are interdependent, so a failure in one can cut off access to others. She calls for legally confirming the Bank of Latvia's coordinating role and running joint cross-sector crisis-readiness exercises.

On 8 October EIOPA launched a public consultation on a draft supervisory statement calling for more outcomes-focused supervision of the sales process and pre-contractual disclosures for insurance-based investment products (IBIPs). The statement aims to complement compliance-based supervision by helping supervisors calibrate their engagement with insurance manufacturers and distributors within the existing framework.

On 7 October the Saeima's Budget Committee backed, at final reading, amendments to the compulsory motor insurance (OCTA) law that from 1 July 2027 let an injured party claim from their own insurer rather than the at-fault driver's (direct claims settlement), and from 1 January 2027 widen compensation options where the at-fault vehicle is unidentified. The Motor Insurers' Bureau moves under Finance Ministry oversight.

The article summarizes borrower rights: lenders must assess solvency before signing, and if the check was inadequate the borrower may demand the contractual rate be replaced by the Civil Law's 6% rate; a 14-day withdrawal right applies without compensation. Variable-rate loans may not carry early-repayment compensation, while fixed-rate loans may charge 0.5-1% on amounts above EUR 9,960. Since 23 February 2024, mortgage refinancing with another lender has been eased, saving borrowers an average of EUR 350-500 a year since 2025.

On 6 October the SPRK launched a public consultation on new rules transposing EU directive requirements on transparency of billing and consumption information for electricity and gas end users. The draft sets new requirements for invoice content so consumers can more easily compare their consumption and access their own data.

On 6 October EIOPA published a supervisory statement on authorising and supervising private-equity-backed (re)insurers, flagging mismatched investment horizons, complex financing and ownership structures, and post-acquisition business-model changes as key risks for supervisors to watch. The statement urges supervisors to scrutinise the full financing structure before authorisation and assess risks to policyholders.

From 1 April 2027 the reduced patent fee can no longer be paid alongside the starter micro-enterprise tax, under amendments adopted on 17 September 2026 to the Law on Personal Income Tax. The State Revenue Service has updated its guidance on the reduced patent fee to reflect the change.

From 1 January 2027 the Patent Office will be renamed the Latvian Intellectual Property Office to better reflect its remit. The Cabinet of Ministers approved the renaming on 29 September 2026 following a proposal from the Justice Ministry.

The article explains the labeling duties for AI-generated content under Article 50 of the EU AI Act. From a set point, developers of AI systems must ensure that AI-generated images, audio, video and text carry machine-readable markings, while people must be told when they are interacting with an AI system such as a chatbot. An extra duty applies to those who publish deepfakes or use AI to write texts meant to inform the public - they must clearly disclose the AI's involvement.

On 8 October the Saeima backed, at first reading, Copyright Law amendments that define the circle of authors of a stage work (director, set designer, choreographer, etc.) and improve civil remedies for copyright infringement. The changes add a right to a written warning and the option to claim both pecuniary and non-pecuniary damages; the bill still needs two more readings to take effect.

On 8 October the Saeima advanced, but did not finally adopt, amendments to the Film Law and the Electronic Mass Media Law that would require streaming platforms, including Netflix and Disney+, to invest at least 3.5% of last year's Latvian revenue in local film and series production. The coalition backed removing the bill's urgent status after Prime Minister Andris Kulbergs raised concerns about effects on US relations, to allow more time for debate. The bill returns to committee, with a final decision due at third reading.

On 7 October the Saeima's Legal Affairs Committee backed, at final reading, Civil Law amendments stating that animals are not things but living, sentient beings; property-law rules apply to them only insofar as compatible with their nature. The amendments also refine rules on harm caused to animals, following a collective petition signed by over 35,000 residents.

President Edgars Rinkēvičs said after a weekly meeting with PM Andris Kulbergs that work on the so-called "Netflix tax" will continue but without urgency, needing to balance the film industry's funding needs, US relations and EU requirements. He expressed confidence a long-term solution could satisfy the industry without harming strategic partnerships, though it would take more time and possibly additional work. The prime minister and relevant ministries will take part in finding that solution.

The Supreme Court's Senate suspended proceedings in case SKK-J-314/2026 and asked the Constitutional Court to assess a transitional provision that, after amendments to the Criminal Procedure Law, allows already final court rulings on criminally obtained real estate to be reopened. The Senate believes the rule may breach separation of powers and the right to a fair trial, undermining legal certainty. The dispute concerns an apartment that an earlier ruling ordered returned to the victim, while a good-faith acquirer wants to keep it.

The Senate's Administrative Cases Department has suspended proceedings on an order requiring state company "Latvijas Vides, ģeoloģijas un meteoroloģijas centrs" to stop publishing an applicant's submitted information online, since deciding the case requires a preliminary ruling from the Court of Justice of the EU on interpreting EU law. The case concerns the limits of disclosing information in waste management.

On 8 October (press release No 145/2026) Advocate General Laila Medina delivered her opinion in Case C-222/25 concerning Estonia's financial intelligence unit, finding that the relevant EU directive applies to personal-data processing by financial intelligence units. The opinion says data subjects' access to their own data may be restricted, but any restriction must be proportionate and backed by safeguards against misuse — relevant to the practice of Latvia's own Financial Intelligence Unit.

On 6 October 2026 the Economic Affairs Court fully upheld AS "Rīgas kuģu būvētava"'s claim and voided its sale of real estate in Ādaži to SIA "MNT." The court found the deal was a related-party transaction under Commercial Law Section 184.1 that did not meet market terms, and that the company's legal-protection (insolvency) process did not exempt it from the Section 184.2 approval procedure. The ruling is not yet final and may be appealed.

The Constitutional Court summarized September's litigation: it ruled that rules allowing a person's release from debt without assessing their assets are unconstitutional (case No. 2025-23-01, 30 Sep 2026). It also reopened the case on publishing shareholders' personal data following a CJEU ruling, and declined to open a case on the form of assignment (cesija) contracts. Published 7 Oct 2026.

Also reported by: ifinanses.lv

Ruling on a COBALT client's case, the Senate found that Article 20 of the Damage Compensation Law fails to address a situation where a person is not notified that a criminal process has ended, even though that moment starts the six-month deadline for claiming compensation. The client's funds of over EUR 2.4 million had been frozen, the process was closed in February 2025, but the client only learned of it in September after requesting information himself, leading the prosecution and courts to reject his claim as time-barred. The Senate held that this gap conflicts with the right to adequate compensation under Article 92 of the Satversme.

The article reviews case law on the line between fair references to another brand in advertising and using someone else's brand as a tool to boost one's own reputation. It looks at when such references cross into trademark infringement.

Sworn advocate Normunds Šlitke criticizes the Senate Civil Department's 11 March 2026 ruling in case SKC-154/2026 on the validity of an apartment lease signed by an estate administrator, pointing to internal inconsistency in its reasoning about when the contract was made. He argues the Senate, by relying on the 2025 inheritance-law reform and an unproven testator's "wish," effectively crossed the line between interpreting the law and creating new rights, re-evaluating evidence beyond a cassation court's role. The piece invokes former Constitutional Court chair Sanita Osipova's warnings about "judicial law-making."

iFinanses compiled what its editors consider the most notable Senate rulings in civil cases from September 2026, including case SKC-122/2026 on employees' priority right to continued employment during staff reductions. The roundup is meant as a practical guide to current case law.

A parallel roundup covers September rulings by the Senate's Administrative Cases Department, including case SKA-768/2026 on the limits of the Senate's own competence. It helps readers track current administrative-court practice.

A Court Administration representative, together with the Prosecutor's Office and the Supreme Court, discussed the use of AI tools in the justice sector at the "Mirklis Juristiem" conference, stressing that AI is a support tool rather than a decision-maker. Already-deployed solutions were presented, including a ruling-anonymisation tool, an AI assistant and court-hearing audio transcription.

After attending an EU judicial-training summit on AI's impact on courts, Riga District Court deputy chair Guntis Lauskis said Latvia's AI adoption matches European trends. Since August, judges have had access to a Courts Administration AI assistant for handling documents, and guidelines for its safe use are being developed. Published 6 Oct 2026.

Finance Ministry advisor and 15th Saeima MP Guntars Vītols said on TV24's "Price of Money" that a tax increase is not currently planned but could become unavoidable if the state does not cut budget spending. He noted the budget must balance by 2030, when a special defence-borrowing exception ends, and outlined two possible reform directions - structural changes in public administration and a substantive spending review. If there is no political readiness to cut spending, a tax increase could become necessary.

Following a market study of wood pellets, the Competition Council concluded that the roughly 73% rise in average base retail prices (October 2025 to August 2026) resulted from several combined factors - higher raw-material costs, winter demand, rising exports and the end of Belarusian imports - rather than coordinated conduct. It found no sufficient grounds to suspect retailers of price coordination and recommended the ministry keep monitoring the market. Published 9 Oct 2026.