Immovable Property Tax

Immovable Property Tax

The tax shall be paid by natural and legal persons of Lithuania and foreign states.

Object of taxation shall be the immovable property located in the Republic of Lithuania, except for:

the immovable property that has not been completed and is not actually used, provided that 10 years have not elapsed since the date of issue of the building permit and the requirements for registration of the construction completion are met.
the immovable property created (acquired) based on general government and private entities’ partnership, if a general government and private entities’ partnership agreement is implemented and this property is used according to the purpose specified in this agreement.

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

Tax rates

The tax-exempt amount of the main dwelling, which shall not be less than EUR 450,000, and the rates, the range of which shall be between 0.1% and 1%, shall be determined by the municipal councils, taking into account the criteria laid down by law: the tax value of the immovable property and the socio-economic situation of the natural person.

The main dwelling means a residential building/premises in which the owner of the immovable property, a natural person, has declared his or her place of residence on the last day of a calendar month, and ancillary outbuildings/premises registered at the same address, as well as civil engineering structures related to the residential building/premises by a common economic purpose and intended solely for the purpose of meeting the permanent needs of the residential building/premises. In the event that a natural person does not own a residential building/premises in the territory of the municipality in which his or her declared place of residence is located, or such residential building/premises is not acquired, the main dwelling may be considered to be a building/premises intended for amateur gardens, garages, ancillary outbuildings, private recreation and public recreation purposes in which the owner of such immovable property, who is a natural person, has declared his or her place of residence on the last day of a calendar month.

Progressive rates shall apply to the part of the total tax value of single-family, semidetached, multi-family dwellings, dwellings for various social groups, residential dwellings/apartments, amateur gardens, garages, buildings/premises used for animal husbandry, handling of agricultural products, cultivation of crops, ancillary outbuilding as well as scientific, religious, private recreation and public recreation purposes and engineering structures (including fishery structures) belonging to natural persons by the right of ownership or acquired by them, except for the main dwelling, exceeding EUR 50,000:

1) 0.2% rate applies to the tax value between EUR 50,000 and 200,000.

2) 0.4% rate applies to the tax value between EUR 200,000 and 400,000.

3) 0.6%rate applies to the tax value between EUR 400,000 and 600,000.

4) 0.8% rate applies to the tax value between EUR 600,000 and 1,000,000.

5) 1% rate applies to the tax value over EUR 1,000,000.

The fee shall be credited to the State budget (State Defence Fund).

Other immovable propertymay be subject to:

immovable tax rate from 0.5% to 3%. A specific tax rate shall be established by municipal councils considering one or several following criteria:

purpose of the immovable property;
use of the immovable property;
legal status of the immovable property;
tax value of the immovable property;
technical features of the immovable property, including energy efficiency;
categories of taxpayers (size or legal form or social situation) of the immovable property;
location of the immovable property in the territory of the municipality.

Municipal councils may set a specific rate of 1-5% for abandoned or neglected immovable property.
An additional immovable property tax rate of 0.2%. The tax shall be credited to the State budget (State Defense Fund).

Taxable value

The taxable value shall be the average market value of the immovable property.

The taxable value of the immovable property shall be determined by the State Enterprise Centre of Registers using the comparative or income method (using a mass method of valuation of immovable property) or the expenses (cost) method. Valuation of the immovable property shall be performed at least every 3 years.

A request by a taxpayer to consider the value of the immovable property determined by individual valuation of the immovable property, if the market value of the immovable property determined by the property valuer differs by more than 20 % from the value determined by the State Enterprise Centre of Registers.

Taxpayers can find out, free of charge, the tax value of their immovable property, which is valued on a mass method, on the website of the State Enterprise Centre of Registers. An Extract from the Real Property Register indicating the taxable value of the immovable property shall be prepared and issued free of charge, upon request by natural persons, once per tax period.

Tax reliefs

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

for social welfare and social attendance;
located in the territory of a cemetery;
studios for individual creative activities;
to receive (earn) income from agricultural activities;
education activities.

The following immovable property shall be also exempt from tax:

state-owned or municipal immovable property;
the immovable property of diplomatic missions and consular posts of foreign states, international inter-governmental organizations or missions thereof;
the immovable property of free economic zones;
the immovable property of bankrupt undertakings;
the immovable property of traditional religious communities, societies and centres, and the immovable property (or part thereof) of other religious communities, societies and centres used solely for non-commercial activities or for the manufacture of cult articles;
the immovable property of legal persons used for environmental protection and fire prevention, property located in the territory of a cemetery;
the immovable property of associations, enterprises and establishments of the disabled whose sole members are associations of the disabled, the immovable property of the charity and sponsorship funds used solely for non-commercial activities, the immovable property of the establishments providing social services;
the immovable property of science and study institutions, educational establishments;
the immovable property of trade unions used solely for the non-commercial activities;
the immovable property of multi-occupancy dwelling owners associations, home building societies, garages maintenance and gardeners’ societies used solely for non-commercial activities;
the immovable property of the legal entities over 50 % of whose income over the tax period consists of income from agricultural activities, the immovable property used by a natural person to receive (earn) income from agricultural activities;
the immovable property that was used to generate income from agricultural activities (to earn) before the date of cessation of agricultural activities, for 5 years from the date of cessation of agricultural activities;
the immovable property of the legal persons operating under the Republic of Lithuania Law on Associations used solely for non-commercial activities;
the immovable property of the legal persons operating under the Republic of Lithuania Law on the Status of Artists and their Organizations.
the immovable property used solely for the provision of health care services.

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

Tax payment

Legal persons must submit a tax return to the tax administrator and pay the tax on the immovable property owned by right of ownership at the end of the year by February 15 of the following year.

Natural persons must pay the tax on the immovable property owned by them by 15 March of the following year. The tax on the immovable property owned or acquired by natural persons for the relevant tax period shall be calculated, the tax return form shall be completed and submitted to taxpayers by the tax administrator by 1 March of the following calendar year.

Legal persons shall make advance payments of the tax (in case the tax amount exceeds EUR 500 per year) – each advance payment shall make up 1/4 of the annual tax amount paid three times per year: by 15 March, 15 June and 15 September.

The co-owners pay the tax in proportion to their share of the immovable property.

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

A person (taxpayer) exercising the obligations and implementing the rights laid down by this Law to the holders of the immovable property of a collective investment undertaking which is not a legal person shall be a management company of this collective investment undertaking.

The tax for the acquired immovable property under a financial lease (leasing) agreement providing for a transfer of ownership, as well as the immovable property acquired under a purchase-sale or lease agreement, shall be paid by the natural or legal person acquiring the property, provided that the details of the transaction in question are recorded in the public register of the State.

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Last updated: 02-02-2026