Real estate taxation

Lithuania: Amendments to taxation of real estate belonging to natural persons.

From 1 January 2015 natural persons will be subject to real estate tax if the total value of real estate owned or acquired by them exceeds 220 000 EUR (non-taxable value). The rate of tax amounts to 0.5% of the taxable value of real estate exceeding the non-taxable value. For example:

(280 000 EUR – 220 000 EUR) x 0.5% = 300 EUR

It is important to note that real estate of all family members is brought together when calculating the taxable value of real estate. Family members include spouses as well as single parents with children that are under 18 years of age and that live with them. Up to now, natural persons were subject to real estate tax for taxable value exceeding 289 620 EUR. The tax rate was 1%. Following the amendments, more individuals will be subject to real estate tax. However, real estate tax will decrease by almost half for the owners of very expensive real estate.

Source: TAR, 2014-12-22 Nr.2014-20429.

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