BDAR

Real Estate Tax

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

The object of the tax shall be the immovable property located in Lithuania, with the exception of:

  • actually unused immovable property with unfinished construction;
  • immovable property created (acquired) on the basis of public and private partnership, if the public and private partnership agreement is under implementation and this type of property is used for the purpose prescribed by the agreement.

Residential facilities, gardens, garages, farms, greenhouses, holdings, home farms, education, religious and recreational facilities or premises owned by natural persons, as well as fishery and engineering structures attributed to the object of the real estate tax, however a part of the total value of such property owned by the natural person which exceeds a non-taxable value, i.e. EUR 150 thousand, shall be subject to taxation. For families with three and more children (adopted children) under 18 years of age, and families with a disabled child (adopted child) under 18 years of age as well as older disabled child (adopted child) who has a special need for permanent care, the non-taxable rate of the value of the immovable property shall be EUR 200 thousand.  

A tax period of the tax shall be a calendar year.

Tax Rates

The following progressive tax rates  shall be set for a part of the value of  residential facilities, gardens, garages, farms, greenhouses, holdings, home farms, education, religious and recreational facilities or premises owned by natural persons as well as fishery and engineering structures which excceds EUR 150 thousand:

  • 0.5% rate when the taxable value of property is from EUR 150 thousand to EUR 300 thousand;

  • 1% rate when the taxable value of property is from EUR 300 thousand to EUR 500 thousand;

  • 2% rate when the taxable value of property is over EUR 300 thousand.

The following progressive tax rates shall be set for the immovable property owned by families with three and more children (adopted children) under 18 years of age, and families with a disabled child (adopted child) under 18 years of age as well as older disabled child (adopted child) who has a special need for permanent care:

  • 0.5% rate when the taxable value of property is from EUR 200 thousand to EUR 390 thousand;

  • 1% rate when the taxable value of property is from EUR 390 thousand to EUR 650 thousand;

  • 2% rate when the taxable value of property is over EUR 650 thousand.

Other immovable property may be subject to the real estate tax rate from 0.5 % to 3 %. A specific tax rate shall be established by municipal councils on the basis of one or several of the following criteria:

  • purpose of immovable property;

  • utilisation of the immovable property;

  • legal status of the immovable property of the immovable property;

  • technical characteristics and maintenance condition of the immovable property;

  • categories of taxpayers (size, legal form or social situation);

  • location of immovable property in the territory of the municipality.

Taxable Value

Taxable value shall be the average market value of the immovable property.

Taxable value of the immovable property shall be set by the state enterprise Centre of Registers by applying the comparative value method or value-in-use method (by applying a mass valuation of the immovable property) or the recoverable value (costs) method. Valuation of immovable property shall be performed at least every 5 years.

Taxpayers may, each tax period (within three months from the beginning of the period), submit a request to consider the value of the immovable property individually set by the property appraiser as the tax value of the immovable property, if the average market value of the immovable property set by the property appraiser is different from the value set by the state enterprise  Centre of Registers by more than 20 %.

Taxpayers may find out the taxable value of their immovable property evaluated by the mass valuation method free of charge on website of the state enterprise Centre of Registers. In case the immovable property is evaluated by the recoverable value (costs) method, taxpayers shall have to apply to the state enterprise Centre of Registers with a request to set the taxable value of this type of property.

Tax Reliefs

The following immovable property belonging to natural persons by the right of ownership shall be exempt from tax:

  • used for social welfare;

  • used for funerary services, also located in the territory of a cemetery;

  • used as workshops for individual creative activities;

  • used to get (earn) income from agricultural activities;

  • used for education work.

The following immovable property shall be also exempt from tax:

  • immovable property owned by the State of Lithuania and municipalities;

  • immovable property of diplomatic missions and consular posts of foreign states, international inter-governmental organisations or missions thereof;

  • immovable property of free economic zones;

  • immovable property of bankrupt undertakings;

  • immovable property of traditional religious communities, societies and centres, and immovable property of other religious  communities, societies and centres used solely for non-commercial activities or for the manufacture of cult articles;

  • immovable property of legal persons used for environmental protection and fire prevention, located in the territory of a cemetery;

  • immovable property of societies for disabled persons, enterprises and institutions the members of which are solely societies for disabled persons, institutions providing social services used for non-commercial activities of charity and sponsorship funds;

  • immovable property of science and study institutions, educational establishments;

  • immovable property of trade unions used solely for non-commercial activities;

  • immovable property of multi-occupancy dwelling owners associations, home building societies,garages maintenance and gardeners’ societies used solely for non-commercial activities;

  • immovable property of the Bank of Lithuania;

  • immovable property of the legal persons, the income of which from agricultural activities makes up more than 50 % of revenue during the tax period, used to get (earn) income from agricultural activities;

  • immovable property of the legal persons operating under the Republic of Lithuania Law on Associations used for non-commercial activities;

  • immovable property of the legal persons operating under the Republic of Lithuania Law on the Status of Artistic Creators and Their Organisations;

  • immovable property used for provision of health services.

Moreover, municipal councils shall have the right to exempt natural and legal persons from paying the tax at the expense of their budget or to reduce it.

Tax Payment

Natural persons shall pay the tax from the part of total value of their owned residential facilities, gardens, garages, farms, greenhouses, holdings, home farms, education, religious and recreational facilities or premises as well as fishery and engineering structures exceeding EUR 150 thousand (or in cases prescribed by the law - EUR 200 thousand) by  December 15 of the current tax period.

Taxpayers shall pay the tax on other immovable property by February 15 of the next year following the end of the year.

Legal persons shall also pay advance tax (if the amount of the tax exceeds EUR 500 per year) for the immovable property belonging to them by the right of ownership, by paying 1/4 of the annual amount of the tax three times per year: by March 15, June 15 and September 15.

Co-owners shall pay the tax in proportion to the proportion of immovable property held by them. The tax imposed on the immovable property belonging by the right of joint ownership may be calculated, declared and paid by one of co-owners.

In the case of the immovable property taken over from natural persons for a time period exceeding one month, the tax shall be calculated, declared and paid by legal persons.

The tax on immovable property acquired under the financial leasing contract, which envisages the takeover of the ownership right, also under the contract for the sale of immovable  property on instalment credit terms or hire purchase contract, shall be paid by a natural or legal person acquiring this type of property, if the data on an appropriate transaction is recorded in the public state register.

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Last updated: 13-11-2020