Should it matter who the immovable property is sold to when taxing income from the sale of immovable property
Should it matter who the immovable property is sold to when taxing income from the sale of immovable property
If immovable property was sold to a company, then the company must calculate, withhold and pay 15% income tax on the proceeds of the sale.
The company calculates, withholds and pays income tax on the proceeds of the sale without deducting the cost of acquiring the immovable property. To deduct the purchase price, claim income tax adjustment and refund, you must submit this written application.
If immovable property is sold to natural persons, then you yourself must pay 15% income tax on the sale proceeds.
* Income received in Lithuania which is subject to tax: interest, royalties, rental income from immovable property located in Lithuania, income from sporting and performing arts activities, income from the sale/other transfer of ownership of immovable property located in Lithuania and movable property subject to legal registration in Lithuania. If the amount of such income does not exceed 120 average national wages per year (hereinafter referred to as “ANW”) (120 ANWs in 2023 amounted to EUR 202,188; 120 ANWs in 2022 amounted to EUR 180,492; 120 ANWs in 2021 amounted to EUR 162,324; 120 ANWs in 2020 amounted to EUR 148,968), then it is taxed at an income tax rate of 15%; and if it exceeds 120 ANWs, then the part in excess is taxed at an income tax rate of 20%.