Taxes in Europe Database v2
Law on immovable property tax No. X-233 was adopted by the Seimas of Republic of Lithuania on 2005/06/07 and entered into force since 2006/01/01. This law replaced Law on Tax on the immovable property of enterprises and organisations No. I-565, valid form 1995/01/01 till 2005/12/31.
Revenue from real estate tax falls into the municipal budget, except revenue from real estate owned by natural persons for non-commercial economic purposes (including dwellings, garages, farms and real estate used for leisure) which is to be included in the State budget.
Where immovable property is located in the territory of several municipalities, the tax is entered in proportion to the portion of the immovable property held by the relevant municipality.
All the territory of Lithuania.
Legal persons and natural persons, owning taxable real estate. Tax for the immovable property owned by natural persons, but used by legal persons, is paid by those legal persons. Tax for the immovable property that is acquired under the leasing agreement is payd by lessor.
The tax is imposed on the immovable property located in the Republic of Lithuania, except:
Taxable value of immovable property is the average market value of the immovable property determined by mass appraisal, and for specified immovable property - determined by the recoverable value (cost) method.
The taxable value of immovable property also may be the market value of the immovable property as determined by individual valuation of the immovable property. Taxpayers may submit a request to a property value to consider the value of the immovable property determined by individual valuation if it differs from the value determined by the previous methods by more than 20 per cent of the value of the immovable property.
Immovable property or part thereof owned by natural persons and used for activities defined below is exempt from tax:
The following immovable property for which tax is paid by legal persons is exempt from tax:
Tax reliefs are applied in accordance with the following procedure:
Municipal councils at the expense of their budgets have the right to reduce the tax or completely exempt from payment.
The annual tax rate is within the range of 0.3 - 3 per cent of the taxable value of the immovable property. Each municipality has a right to establish its own rate (rates) within the latter range.
Fixed 1 per cent tax rate is set for real estate owned by natural persons for non-commercial economic purposes (including dwellings, garages, farms, real estate used for leisure and etc.). Subject to a 0.5 per cent tax rate is the taxable value of such real estate exceeding 220,000 euro.
Taxpayers must submit a tax return of an appropriate tax period and pay the tax to the local tax administrator until 1 February of the next calendar year and the amount of the tax is paid to the budget not later than last day specified.
Natural persons owning real estate used for non-commercial economic purposes (including dwellings, garages, farms, real estate used for leisure and etc.) which value exceeds 220,000 euro must submit a tax return of an appropriate tax period and pay the tax to the local tax administrator until 15 December of the current calendar year and the amount of the tax is paid to the budget not later than last day specified.
Legal persons make advance payments of the tax. Each advance payment make up 1/4 of the amount calculated by applying the tax rate to the taxable value of the immovable property owned by legal person as of 1 January of the current calendar year. Advance payments of the tax shall be made respectively until 31 March, 30 June and 30 September of the current calendar year. Where the amount calculated by applying the tax rate does not exceed 435 euro, the legal person is not obliged to pay the tax in advance.
State Tax Inspectorate.
At the request of a taxpayer, a property valuer prepare, in accordance with the procedure set forth by the Republic of Lithuania Law on the Real Property Register, an extract from the Real Property Register specifying the tax value of immovable property. These extracts for the natural persons are prepared and delivered or sent free of charge.