Uniform and Universal Real Estate Tax

In order to achieve a clear and reasonable valuation of property, LNTPA, together with other business associations (Lithuanian Confederation of Industrialists and Investors’ Forum), offers to introduce a uniform real estate tax ending the existing numerous exemptions.

  1. To combine the real estate tax and land tax by introducing a single and uniform real estate tax at a rate of 0.3 to 1 percent, leaving the discretion to determine the specific rate(s) for municipal councils;
  2. The taxable value for the most of real estate should be determined using the methods of comparative value or value-in-use;
  3. To remove all exemptions, except for those provided for in international law: applicable in respect of embassies, religious buildings, etc.;
  4. To provide for an exemption to first home buyers for homes up to a certain value;
  5. The tax should be collected only into municipal budgets and used to increase the value of real estate: for the construction of social and engineering infrastructure;
  6. To subject to taxation state-owned property as well, with a view to ensuring efficient management thereof.