Seimas adopted the Law on Immovable Property Tax

Press release, 26 June 2025 (News ● Photos ● Broadcasts and videos)

The Seimas adopted the new version of the Law on Immovable Property Tax, which differentiated the taxation of non-commercial immovable property held by residents, distinguishing between the main dwelling* and other non-commercial immovable property owned by persons.

It stipulates that municipal councils will set the tax-exempt amount of the tax value of the main dwelling at a minimum of EUR 450 000, taking into account the following criteria: the tax value of the immovable property and the economic and social situation of natural persons. 

For the portion of the tax value of the main dwelling exceeding the tax-exempt amount, the municipal council will set a tax rate from 0.1% to 1% of the tax value of the main dwelling, taking into account the aforementioned criteria.

The portion of the total tax value of single-family, semi-detached and multi-family dwellings, dwellings for various social groups, residential dwellings/apartments, amateur gardens, garages, buildings/premises used for animal husbandry, handling of agricultural products, cultivation of crops, ancillary outbuilding as well as scientific, religious, private recreation and public recreation purposes and engineering structures (including fishery structures) belonging to natural persons by the right of ownership or acquired by them, except for the main dwelling:

1) not exceeding EUR 50 000, will be subject to the tax rate of 0%;

2) exceeding EUR 50 000 but not exceeding EUR 200 000, will be subject to the tax rate of 0.2%;

3) exceeding EUR 200 000 but not exceeding EUR 400 000, will be subject to the tax rate of 0.4%;

4) exceeding EUR 400 000 but not exceeding EUR 600 000, will be subject to the tax rate of 0.6%;

5) exceeding EUR 600 000 but not exceeding EUR 1000 000, will be subject to the tax rate of 0.8%;

6) exceeding EUR 1000 000, will be subject to the tax rate of 1%.

The Law on Immovable Property Tax (draft No XVP-437 (4) was adopted by 77 votes in favour, with 46 votes against and 4 abstentions. 

The Law will enter into force on 1 January 2026.

Municipal councils will, by 1 December 2025, set the tax-exempt amount of the tax value of the main dwelling and the tax rate applicable to the main dwelling. If the municipal council does not set the specified amount and tax rate by this time limit, in 2026 the tax rate of 0.1% will apply to the main dwelling in its territory for the portion of the tax value of the main dwelling which exceeds EUR 450 000. If the municipal council does not set the tax rate by this time limit, in 2026 the tax rate of 0.1% will apply in its territory to the tax value of the main dwelling which exceeds the tax-exempt amount. If the municipal council does not set the tax-exempt amount of the tax value of the main dwelling by this time limit, in 2026 the tax rate set by the municipal council will apply in its territory to the portion of the tax value of the main dwelling which exceeds EUR 450 000.

This Law will apply to calculation and declaration of the immovable property tax for 2026 and subsequent tax periods. The immovable property tax administration procedures commenced before 31 December 2025 will be completed in accordance with the provisions of the legal regulation valid before 31 December 2025.

*Main dwelling means a residential building/premises in which the owner of the immovable property, who is a natural person, has declared his or her place of residence on the last day of a calendar month in accordance with the procedure laid down by the Law of the Republic of Lithuania on Declaration of the Place of Residence as well as ancillary outbuildings/premises and engineering structures, registered at the same address, related to the residential building/premises by a common economic purpose and intended solely for the purpose of meeting the permanent needs of the residential building/premises. In the event that a natural person does not own a residential building/premises in the territory of a municipality wherein his or her declared place of residence is located or such residential building/premises are not acquired, for the purposes of this Law, the main dwelling may be considered to be a building/premises intended for amateur gardens, garages, ancillary outbuildings, private recreation and public recreation purposes in which the owner of such immovable property, who is a natural person, has declared his or her place of residence on the last day of a calendar month in accordance with the procedure laid down by the Law of the Republic of Lithuania on Declaration of the Place of Residence.

Saulė Eglė Trembo, Chief Specialist, Press Office, Information and Communication Department, tel. +370 5 209 6203, e-mail: [email protected]