Taxation of income from the sale of immovable property

Personal income tax (PIT) is calculated as follows:

PIT = (sale proceeds* – purchase price** –  compulsory payments***) x 15%

 

*sale proceeds: the amount you sold the immovable property for;
**purchase price: the purchase price of the immovable property, or, where the property is acquired by means other than purchase, the purchase price determined in accordance with the procedures established by law. For more detailed information on determining the purchase price, please see here (only in Lithuanian);

For more detailed information on determining the purchase price, please see here (only in Lithuanian);
***compulsory payments: costs necessarily incurred when selling the property (e.g. notary fee, State Enterprise Centre of Registers fee).

Income from the sale of immovable property is taxed at a 15% income tax rate. However, if the annual amount of this and other non-employment taxable income exceeds 120 average national wages (hereinafter referred to as “ANW”) (120 ANWs in 2024 amounted to EUR 228,324; 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; 120 ANWs in 2019 amounted to EUR 136,344), then the part in excess is taxed at an income tax rate of 20%. 

The annual amount of income comprised of 120 ANWs does not include income from self-employment, income from distributed profits, royalties received from the employer, profit shares and remuneration for membership in the Supervisory or Management Board, loan committee, income received under civil (service) agreements by small partnership directors in respect of management activities who, according to Republic of Lithuania Law on Small Partnerships, are not members of those small partnerships themselves.

For more detailed information, please see here (only in Lithuanian).