BDAR

Land Tax

Law on land tax, No. I-2675, adopted by Supreme Council (Reconstituent Seimas) of Republic of Lithuania in 1992/06/25.

Private land except forest land is the object of land tax. Land tax must be paid by owners of private land (both natural and legal persons)

Tax Base

Tax base is the average market value of the land, which established for the period of 5 years by massive appraisal. The average market value of the land is calculated according to the procedure established by the Government of the Republic of Lithuania. According to the Law on Land Tax the value reduction coefficient of 0.35 applies to the land of agricultural nature,except deserted land plots.

Tax Rate

Starting from 1 January 2013 the annual tax rate sets the municipal councils and it can vary from 0.01 up to 4 percent of the market value of the land.

Taxpayers

The tax shall be paid by Lithuanian and foreign natural and legal persons.

Tax Reliefs 

Land owned by diplomatic and consular missions of foreign states, land of Bank of Lithuania and land of bankrupt companies are exempt from tax. The exemption also applies to land-owners, whose total land tax sum for all land owned does not exceed EUR 2.

Land tax exemptions also are applied to:

  • commonly used roads;
  • commonly used garden plots;
  • land used for the purposes of nature protection (like national parks, nature reserves and etc.);
  • land of historical, archaeological, natural, cultural ant etc. monuments and land of ethnographical homesteads;
  • land of riparian buffer strips;
  • land for farmer's farm establishment (first three years).

Land tax exemptions also are applied to disabled land-owners, old-age pensioners and minors, provided that at the beginning of the taxation period there are no persons capable of work in the families of said land owners, and provided that the size of the land plot owned by them does not exceed the tax exempt area of land established by municipal councils.

Municipal councils have the right to reduce the amount of land tax or grant exemption from the payment of land tax compensating sums from their respective budgets.

Tax Year

One calendar year is the tax year for land tax. Tax is calculated and tax declarations are filled in and issued by territorial State Tax Inspectorates by 1 November of each year and the term for payment of land tax is 15 November of the same year.

The Tax Information Centre of State Tax Inspectorate under the Government of the Republic of Lithuania provides general information and consultations on issues of taxes administered by the State Tax Inspectorate within the scope of the Law on Tax Administration by telephone 1882 (telephone number for calls from abroad — +370 5 2553190);

Last updated: 02-09-2015