Immovable property tax

Tax: Immovable property tax

Basic act: Law on Immovable Property Tax

Taxpayers: Lithuanian and foreign natural and legal persons

Subject to tax:

Immovable property tax is imposed on immovable property located in the Republic of Lithuania, with the exception of:

  1. immovable property not actually in use, where construction thereof has not been completed in accordance with the procedure established by Law of the Republic of Lithuania on Construction;
  2. immovable property created or acquired on the basis of public-private partnership as defined by Law of the Republic of Lithuania on Investments as long as the relevant public-private partnership contract is performed and the immovable property is used for the purposes set out in that contract.

Tax rates: 

Tax rate of 0.5% to 3% (0.3% to 3% until 31 December 2019) is determined by municipalities using taxable value ascribed to immovable property, taking into account one or more of the following criteria: immovable property purpose, use, legal status, technical characteristics, maintenance, dilapidations, taxpayer category (size, forms of legal, social status), location in the municipal territory (according to priorities set forth in strategic planning and territorial planning documents).

The specific tax rate that will apply in the municipal territory from the beginning of the next tax period is to be determined by the municipal council before 1 July of the current tax period. If, in accordance with Article 9(3) of Law on Immovable Property Tax, from the next tax period, the tax on immovable property referred to in Article 9(2)(1) and (2) of Law on Immovable Property Tax will be calculated on the basis of value determined by a new mass appraisal of the immovable property, the municipal council may set the tax rate in force by 1 December of the current tax period. If the municipal council does not set new specific tax rates within the time limits referred to in this paragraph, the last set specific tax rates are applied for the next tax period.

If the municipal council fixes or changes the specific tax rates for the next tax period after the time limits referred to in Article 9(2), the new specific tax rates will be applied in the municipality for the tax period following the next tax period.

If the total value of structures (premises) owned by the right of ownership or acquired by natural persons and intended for use as residential buildings, gardens, garages, farms and auxiliary farm buildings, greenhouses, science, religious worship, recreational structures/premises, fishery structures and engineering structures exceeds:

  1. the non-taxable amount of EUR 150,000 but does not exceed EUR 300,000, then it is taxed at a rate of 0.5%;
  2. EUR 300,000 but does not exceed EUR 500,000, then it is taxed at a rate of 1%;
  3. EUR 500,000, then it is taxed at a rate of 2%.

If the total value of structures (premises) intended for use as residential buildings, gardens, garages, farms and auxiliary farm buildings, greenhouses, science, religious worship, recreational structures/premises, fishery structures and engineering structures, and owned by the right of ownership or acquired by members of families raising three and more children (adopted children) under 18 years of age and families raising children with disabilities (adopted children) under 18 years of age and older children with disabilities (adopted children) identified as in special need of permanent care, exceeds:

  1. the non-taxable amount of EUR 200,000 but does not exceed EUR 390,000, then it is taxed at a rate of 0.5%;
  2. EUR 390,000 but does not exceed EUR 650,000, then it is taxed at a rate of 1%;
  3. EUR 650,000, then it is taxed at a rate of 2%.

Taxable period: the taxable period for immovable property coincides with the calendar year.

Tax relief:

Immovable property tax is not applied to property used for earning income from agricultural activities, for educational work, for social services and welfare, as studio for individual creative activities by natural persons with artist status, or located in the territory of a cemetery. If the total value of structures (premises) owned by the right of ownership or acquired by natural persons and intended for use as residential buildings, gardens, garages, farms and auxiliary farm buildings, greenhouses, science, religious worship, recreational structures/premises, fishery structures and engineering structures does not exceed EUR 150,000 (EUR 220,000 until 31 December 2019), then immovable property tax is not applied. As for immovable property belonging to members of families raising three and more children (adopted children) under 18 years of age and families raising children with disabilities (adopted children) under 18 years of age and older children with disabilities (adopted children) identified as in special need of permanent care, the non-taxable value of the immovable property is increased to EUR 200,000 (EUR 286,000 until 31 December 2019).

The following property is to be exempt from tax: immovable property owned by foreign diplomatic missions and consular posts, international intergovernmental organizations or missions thereof; immovable property owned by state or municipality; immovable property owned by free economic zone enterprises, bankrupt enterprises, traditional religious communities, communities and centers; immovable property (or part thereof) owned by other religious communities, communities and centers, if used exclusively for non-commercial activities or for the production of ceremonial goods. Furthermore, the following property is to be exempt from tax: immovable property owned by legal persons whose more than 50 percent of income during the tax period is sourced from agricultural activities, including cooperative societies which fully or partially use the immovable property to receive income from the sale of agricultural products produced by their members or purchased from their members; immovable property (or part thereof) owned by multi-apartment residential building owners’ associations, building societies, garage management and gardeners’ associations and used solely for non-commercial activities; immovable property (including property taken over from natural persons) owned by research and study institutions, educational institutions, social service providers, trade unions, legal persons operating under Republic of Lithuania Law on Associations, the Bank of Lithuania, legal persons operating under Republic of Lithuania Law on the Status of an Artist and the Status of an Organization of Artists. Immovable property owned by legal persons (including property taken over from natural persons) used for environmental protection and fire prevention, located in the territory of a cemetery, as well as immovable property (or any part thereof) used for providing health care services is also exempt from tax.

Municipalities may exempt or reduce the tax for natural and legal persons at the expense of their budget, except in cases where natural persons pay immovable property tax when the total value of the immovable property owned by the right of ownership or otherwise acquired exceeds the tax-free amounts referred to in Article 7(1)(6)-(7) of Law on Immovable Property Tax.

Tax return and payment:

Natural persons who own by the right of ownership or have otherwise acquired structures (premises) intended for use as residential buildings, gardens, garages, farms and auxiliary farm buildings, greenhouses, science, religious worship, recreational structures/premises, fishery structures and engineering structures the total value of which exceeds EUR 150,000 or EUR 200,000 (EUR 220,000 or 286,000 until 31 December 2019), must submit tax returns using Form KIT715 (version 2) approved by Order No.VA-47 of the Head of the State Tax Inspectorate under the Ministry of Finance of the Republic of Lithuania on 10 May 2012, and pay immovable property tax by 15 December of the current tax period.

Immovable property tax returns and payments must be submitted and made for other immovable property owned by the right of ownership or otherwise acquired by taxpayers (both natural persons and legal persons) following the end of the year, by 15 February of the next year. Immovable Property Tax Return Form KIT711 was approved by Order No VA-40 of the Head of the State Tax Inspectorate under the Ministry of Finance of the Republic of Lithuania on 29 May 2007.

Legal persons must also make advance tax payments of ¼ of the annual tax amount three times per year: by 15 March, 15 June, 15 September. However, legal persons must make advance tax payments for immovable property owned by the right of ownership or otherwise acquired on 1 January of the current calendar year only if the annual tax amount of such property exceeds EUR 500. In addition, if the taxable value of immovable property during the current calendar year is higher than last year value, then advance tax payments for the immovable property are calculated according to the previous calendar year taxable value.

Advance tax returns are to be submitted using Annex A to Tax Return Form KIT711. Legal persons are not required to pay advance tax for immovable property taken over from natural persons. Advance tax payments are also not played by natural persons for immovable property belonging to them by the right of ownership. 

Immovable property tax values determined using mass appraisal standards as of 1 January 2021 and used to calculate tax for a period of 5 years (2021, 2022, 2023, 2024, 2025) are available on the State Enterprise Centre of Registers website (www.registrucentras.lt). To search for specific tax values, select Nekilnojamojo turto kadastras ir registras -> Nekilnojamojo turto vertinimas -> then enter the unique identification number of the immovable property in section Mokestinės vertės paieška pagal unikalų numerį.

To find the unique identification number of the immovable property, please see the State Enterprise Centre of Registers website using the following link: www.registrucentras.lt/ntr/p/, and enter the address of the immovable property therein.

Details for payments to the State Tax Inspectorate: