Immovable Property Tax

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

Object of taxation shall be immovable property located in the Republic of Lithuania, with the exception of:

• the immovable property actually not in use, where construction thereof has not been completed;
• the immovable property created (acquired) on the basis of 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.

Structures or premises for residential, garden, garage, farm, greenhouse, farming, auxiliary farming, scientific, religious and recreational purposes managed by natural persons, as well as fisheries and engineering structures subject to immovable property tax, but only the share of the total value of property managed by a natural person which exceeds the non-taxable amount, i.e. which exceeds EUR 150 thousand shall be taxed. For families raising three or more children (adopted children) under the age of 18, and families raising a disabled child (adopted child) under the age of 18, as well as an older disabled child (adopted child) for whom a special need for permanent nursing has been established, the amount of the value of exempt immovable property shall be EUR 200 thousand.

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

Tax rates

For the share of the total value of structures or premises for residential, garden, garage, farm, greenhouse, farming, auxiliary farming, scientific, religious and recreational purposes owned by natural persons, as well as fisheries and engineering structures exceeding EUR 150 thousand, the following progressive rates shall be applied:

- 0.5 per cent – when taxable value of the property is from EUR 150 thousand to EUR 300 thousand;

- 1 per cent – when taxable value of the property is from EUR 300 thousand to EUR 500 thousand;

- 2 per cent – when taxable value of the property is over EUR 500 thousand.

For immovable property owned by families raising three or more children (adopted children) under the age of 18 and families raising a disabled child (adopted child) under the age of 18, as well as an older disabled child (adopted child) with a special need for permanent care, the following progressive rates shall be applied:

- 0.5 per cent – when taxable value of the property is from EUR 200 thousand to EUR 390 thousand;

- 1 per cent – when taxable value of the property is from EUR 390 thousand to EUR 650 thousand;

- 2 per cents – when taxable value of the property is over EUR 650 thousand.

Other immovable property may be subject to immovable tax rate from 0.5 to 3 per cents. A specific tax rate shall be established by municipal councils taking into account one or several following criteria:

• purpose of the immovable property;
• use of the immovable property;
• legal status of the immovable property;
• technical features and maintenance condition of the immovable property;
• categories of taxpayers (size or legal form or social situation) of the immovable property;
• location of immovable property in the territory of the municipality.

Taxable value

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

The taxable value of immovable property shall be determined by the State Enterprise Centre of Registers using the method of comparative value or value of use income (using a mass method of valuation of immovable property) or the replacement value (cost) method. Valuation of immovable property shall be performed at least every 5 years.

A request by a taxpayer to consider the value of immovable property determined by individual valuation of immovable property, if the market value of immovable property determined by the property valuer differs by more than 20 per cent 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. If the immovable property is valued by the replacement value (cost) method, taxpayers must apply to the State Enterprise Centre of Registers with a request to determine the taxable value of this property.

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 endeavours.

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 organisations 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 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 per cent 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 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 Organisations;
• 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

Natural persons shall pay the tax on the share of the total value of structures and premises for residential, garden, garage, farm, greenhouse, farming, auxiliary farming, scientific, religious and recreational purposes managed by them, as well as fisheries and engineering structures which exceeds EUR 150 thousand (or EUR 200 thousand in the cases specified in the Law) by 15 December of the current tax period.

The immovable property tax shall be paid by taxpayers after expiry of the year until 15 February of the next 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: until 31 March, 30 June and 30 September of the current calendar year.

The co-owners pay the tax in proportion to their share of the immovable property. The tax on the immovable property owned by the co-ownership can be calculated, declared and paid by one of co-owners.

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 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 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.

Links

• Law on Immovable Property Tax
• Commentary on the Law on Immovable Property Tax
• Rules for Valuation of Immovable Property
• SE Centre of Registers