Latvia drops funding-source disclosure for private construction

Latvia’s Saeima has adopted amendments to the Construction Law removing the requirement for private individuals to declare the origin of funds when applying to start construction works. The change applies to people building for their own needs and organising the works themselves.

The amendments also instruct the Cabinet of Ministers to define additional cases where construction may be carried out “by own means” without involving a construction company. Farmers, fishers and cooperatives will be allowed to self-build agriculture-related buildings such as barns or sheds up to 800 m². The size limit will not apply to industrially manufactured agricultural structures, including greenhouses and canopy-type constructions.

The amendments enter into force on the day following promulgation.

Context

The funding-origin declaration had only recently been introduced via government regulations as part of Latvia’s shadow-economy reduction plan. Builders were required to select categories such as wage income, business income, loan or other sources in the Construction Information System.

Supporters of the repeal argued that the requirement was disproportionate, as construction projects often span several years and funding sources can change over time. The decision signals a rollback of administrative controls that lawmakers say created uncertainty for private builders without delivering clear anti-shadow-economy benefits.

Source: LSM; Saeima press service