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Generic Tax Name Tax on real estate - Immovable property tax
Tax name in the national language Nekilnojamojo turto mokestis
Tax name in English Immovable property tax
Member State LT-Lithuania
Tax in force since 1995/01/01
If abolished, date on which the tax ceases to apply
Business version date 2015/01/01
Version date 2015/02/17
This file was last updated on

Type of tax
Direct taxes Personal income tax
Corporate income tax
Other

Indirect taxes VAT
Excise duty (EU harmonised)
Alcoholic beverages
Energy products and electricity
Manufactured tobacco
Other

Social security contribution Employers
Employees
Other
 
Legal base

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.

 
Who sets
The tax rate is set by




The tax base is set by




The reliefs are set by




Comments
 
Beneficiary





Comments

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.

 
Geographical Scope

All the territory of Lithuania.

 
Taxpayers

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.

 
Tax object and basis of assessment

The tax is imposed on the immovable property located in the Republic of Lithuania, except:

  1. virtually unused immovable property, construction of which has not ended;
  2. government and private subject partnership and immovable property used for its intended purpose in government and private subject partnership and immovable property used for its intended purpose in the contract.

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.

 
Deductions, Allowances, Credits, Exemptions

Immovable property or part thereof owned by natural persons and used for activities defined below is exempt from tax:

  1. manufacture of cult articles as well as for social welfare;
  2. agricultural activities;
  3. for education endeavours;
  4. the provision of burial services and property located in the territory of a cemetery;
  5. for individual creative activities;
  6. the value of real estate used for non-commercial economic purposes (including dwellings, garages, farms, real estate used for leisure and etc.) not exceeding 220,000 euros. 

The following immovable property for which tax is paid by legal persons is exempt from tax:

  1. of diplomatic missions and consular posts of foreign states, international inter-governmental organisations or missions thereof;
  2. of state or municipalities;
  3. of the undertakings of free economic zones;
  4. of a bankrupt undertaking;
  5. of traditional religious communities, societies and centres and of other religious communities, societies and centres, but used solely for non-commercial activities or for the manufacture of cult articles;
  6. used for environmental protection and fire prevention and specified general-purpose objects;
  7. used for burial services or located in the territory of a cemetery;
  8. for disabled persons and their enterprises;
  9. of entities more than 50% of their income earning from agricultural activities, including cooperative's income obtained from the sale of their members produced agricultural products;
  10. of multi-occupancy dwelling owners associations, home building societies, garages maintenance and gardeners' societies used solely for non-commercial activities;
  11. of the charity and sponsorship funds operating under the Republic of Lithuania Law on Charity and Sponsorship used solely for non-commercial activities;
  12. of science and study institutions listed in the Republic of Lithuania Law on Science and Study;
  13. of educational establishments listed in the Republic of Lithuania Law on Education;
  14. of establishments providing social services and operating under the Republic of Lithuania Law on Social Services;
  15. of trade unions used solely for the non-commercial activities provided of association of the trade unions;
  16. of legal persons operating under the Republic of Lithuania Law on Associations used solely for non-commercial activities;
  17. of the Bank of Lithuania;
  18. of legal persons operating under the Republic of Lithuania Law on the Status of Artists and Their Organisations;
  19. the immovable property used solely for provision of health care services. 

 Tax reliefs are applied in accordance with the following procedure:

  1. upon the acquisition of the right to a relief, the relief shall be applied as of the month when the right to the relief was acquired;
  2. upon the loss of the right to a relief, the relief shall cease to be applied as of the month following the month when the right to the relief was lost.

Municipal councils at the expense of their budgets have the right to reduce the tax or completely exempt from payment.

 
Rate(s) Structure

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.

 
Tax due date

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.

 
Tax collector

State Tax Inspectorate.

 
Special features

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.

 
Economic function







Comments
 
Environmental taxes



Comments
 
Tax revenue
ESA95 code d29ab

Year
Annual tax revenue (millions)
Currency
Tax revenue as % of GDP
Tax revenue as % of total tax revenue
2012 264.91 LTL 0.80
2011 275.26 LTL 0.88
2010 298.48 LTL 1.06
2009 270.50 LTL 1.00
2008 253.60 LTL 0.78
2007 240.50 LTL 0.83
2006 229.60 LTL 0.95
2005 210.50 LTL 1.00
2004 214.90 LTL 1.18
2003 219.20 LTL 1.31
2002 226.10 LTL 1.49
2001 211.80 LTL 1.49
2000 189.80 LTL 1.42
1999 178.20 LTL 1.40
1998 169.20 LTL 1.30
1997 149.10 LTL 1.27
1996 110.00 LTL 1.13
1995 70.70 LTL 0.91

Comments