Changes in the tax policy in Latvia were important already in 2009, however, more substantial increase of tax rates and tax base increase were introduced also in 2010 when the income tax was increased as well as the base of the individual income tax of social insurance contributions and the real estate tax were enlarged and capital gains tax was introduced. It must be admitted that it was done at a burdensome and inopportune moment for tax payers. Consequently, the country remains uncertain about tax policy development in the future. Economic, political and social development of each country is determined and affected by its ownership of real estate resources – land, natural resources, buildings, structures, etc. Real estate is one of the most important economic resources and one of the essential components of national wealth, which all-in-all constitutes 50% from all the world wealth. Real estate tax is a very important component in the economy of each country.