Real Estate Tax in Lithuania
On the January 1, 2006 a Law on Real Estate Tax has entered into force. The tax ranges from 0,3% to 3% and it is paid by real estates intended for certain purposes (administration, accommodation, trading, services, catering, transportation, manufacturing, industrial, warehouse, medical services and sports). According to it, real estate used by individuals for business or individual activities with several exceptions or disposed to the legal persons for the period longer than 1 month the real estate must pay tax. The council of the municipality on the territory where buildings and structures are located determines the exact rate of the tax.
If a natural person owns real estate property which exceeds 1 000 000 LTL (290 000 EUR) in value, the person shall pay 1% real estate property tax.
Lithuanian and foreign entities owning buildings and structures located in Lithuania are obliged to pay real estate tax as they did before the January 1, 2006.
Legal entities, as opposed to individuals, should pay advance installments on a quarterly basis. Both individuals and legal entities should provide an annual real estate tax return to the State tax authorities not later than 1 February of the next year.
Andrius Apanavičius, attorney at law of the Gencs Valters Law Firm in Vilnius
Practising in fields of Real Estate Tax in Latvia, Lithuania and Estonia
T: +370 52 61 10 00
F: +370 52 61 11 00