Lithuania Property Tax Guide 2026

Overview — Property Taxation

Property taxes in Lithuania are administered at both national and municipal levels. The main taxes are the real estate transfer tax (mokestis už žemę/nekilnojamąjį turtą) and the annual real estate tax (nekilnojamojo turto mokestis). Property is valued based on the official cadastral value determined by the State Enterprise Centre of Registers. The cadastral value is generally updated periodically and serves as the tax base for most property taxes.

Real Estate Transfer Tax — 0% to 10%

The real estate transfer tax is payable by the buyer on the acquisition of immovable property. The rate is calculated on a sliding scale based on the property's market value or cadastral value (whichever is higher):

• 0% — on the first EUR 50,000 of property value (standard relief for most residential purchases)
• 2% — on the portion from EUR 50,001 to EUR 100,000
• 4% — on the portion from EUR 100,001 to EUR 150,000
• 6% — on the portion from EUR 150,001 to EUR 200,000
• 8% — on the portion from EUR 200,001 to EUR 250,000
• 10% — on the portion exceeding EUR 250,000

Certain exemptions apply, including transfers between spouses, gifts to direct descendants, and property acquired through inheritance.

Annual Real Estate Tax — 0.3% to 3%

The annual real estate tax (NT mokestis) is levied on the cadastral value of property. The base rate is set by municipalities within the range:

• 0.3% to 3% — depending on the municipality and property type

Key features of the annual real estate tax:

• Primary residence: Exempt if the cadastral value does not exceed EUR 150,000. For values above EUR 150,000, the tax applies only to the amount exceeding EUR 150,000
• Commercial property: Generally taxed at higher rates (up to 3%)
• Land: Taxed separately under the land tax regime at rates up to 4%

The tax is self-assessed and paid annually. Property owners must declare their property and pay the tax by the annual deadline.

Land Tax

In addition to the real estate tax, land is subject to a separate land tax (žemės mokestis). The rates are:

• 0.5% to 4% — depending on the type of land (agricultural, commercial, residential) and the municipality

Agricultural land typically attracts lower rates, while commercial land attracts higher rates. The land tax is based on the official land valuation.

Exemptions and Reliefs

Key exemptions and reliefs include:

• Primary residence: Exempt from annual RE tax if cadastral value under EUR 150,000
• Spouses and children: No gift tax or inheritance tax on property transfers between spouses and to direct descendants
• Property used for agricultural activities: Reduced rates may apply
• Property owned by certain entities: Diplomatic missions, religious institutions, and charitable organisations may qualify for exemptions

FAQs

How is the cadastral value determined?

The State Enterprise Centre of Registers determines cadastral values based on mass appraisal methods. Values are updated periodically (typically every 3–5 years).

Is there a property tax on rental properties?

Rental properties are subject to the standard annual real estate tax. Additionally, rental income is taxable under IIT (20–32%) or the optional 15% flat rate.

Do non-residents pay property tax in Lithuania?

Yes, non-residents who own property in Lithuania are subject to the same property tax rules as residents. The primary residence exemption does not apply to non-residents for the annual RE tax.

Disclaimer

This guide provides general information about Lithuanian property taxes for the 2026 tax year. Tax laws and rates may change. Always consult with a qualified Lithuanian tax advisor or VMI directly for advice specific to your situation. InvestmentKit does not provide tax advice.