Inheritance tax
Inheritance tax
Tax - Inheritance tax
Basic act - Republic of Lithuania Law on Inheritance Tax
Taxpayers:
Residents of Lithuania
“Resident of Lithuania” refers to all natural persons who are deemed to be residents of Lithuania under provisions of Article 4 of Law of the Republic of Lithuania on Personal Income Tax.
Non-residents of Lithuania
“Non-Resident of Lithuania” refers to all natural persons who are not deemed to be residents of Lithuania under Law of the Republic of Lithuania on Personal Income Tax.
Subject to tax:
Inherited property of a resident of Lithuania (any item of immovable and movable property, securities and money);IInherited property of a non-resident, in case of movable property subject to legal registration in Inherited property of a non-resident, in case of movable property subject to legal registration in Lithuania under legal acts of the Republic of Lithuania, and immovable property located in the Republic of Lithuania.
Tax rates:
The tax is calculated on the taxable value of the inherited property (70 percent of the total value of the inherited property) at the following rates:
- if the taxable value of the inherited property does not exceed EUR 150,000, then it is taxed at a rate of 5%;
- if the taxable value of the inherited property exceeds EUR 150,000, then it is taxed at a rate of 10%.
Taxable period: None; grounds for tax liability arise in cases of inheritance.
Tax relief:
- The following property is not subject to tax:
- property inherited by a spouse upon the death of the other spouse;
- property inherited by children (adopted children), parents (adoptive parents), guardians (custodians), foster children, grandparents, grandchildren, brothers or sisters;
- inherited property with taxable value thereof not exceeding EUR 3,000.
- Municipal councils may defer tax payments for a period of up to one year after the date of issuing the inheritance certificate.
- Municipal councils have the right to reduce tax or exempt individuals from payments thereof at the expense of their budget.
Tax return and payment:
- An individual who has inherited property in the Republic of Lithuania must pay the tax prior to the issuance of the inheritance certificate, except for cases where the tax payment has been deferred or exempted by a decision of the municipal council. There is no obligation to declare inherited property
- A resident of Lithuania who inherited property in foreign states during the calendar year must either himself/herself or through a person authorized by him/her submit to the local tax authority a tax return and pay the tax by 1 March of the calendar year following the calendar year during which the property was inherited.
Inherited Foreign State Property Tax Return Form FR0585 with rules for its completion and submission was approved by Order No V-325 of the Head of the State Tax Inspectorate under the Ministry of Finance of the Republic of Lithuania on 17 December 2003 (Order No VA-127 on 4 November 2014).
Details for payments to the State Tax Inspectorate:
Other information:
The obligation to calculate inheritance tax on property inherited in the Republic of Lithuania is imposed on notaries who issue inheritance documents. Inheritance tax is calculated on the basis of the inherited property valuation data submitted to the notaries, i.e. inheritance taxable value certificate issued by tax authorities through Form FR0514 approved by Order No V-80 of the Head of the State Tax Inspectorate under the Ministry of Finance of the Republic of Lithuania on 24 March 2003 (Order No 148 on 21 November 2014).