Legislation

On 16 December, 2011, the Parliament of the Republic of Lithuania after a long discussion approved the new Law on the Taxation of Luxurious Immovable Property.

Under the new regulation real estate tax will be set to real estate (buildings for residential living, gardens, garages, farms, greenhouses, auxiliary farm, scientific, religious, recreational purposes, fishery buildings and civil engineering works) owned by all natural persons, and all natural persons holding the real estate of the value in excess of 1 million Litas will be taxed at 1 per cent rate.

1 million-worth will be applied to all immovable property owned or acquired by family members. Family members under this Law shall be considered spouses, persons who are single parents, and their children (adopted children) under the age of 18 residing with them.

If the President of the Republic of Lithuania approves the new legislation, it will enter into force on 1 January, 2012.

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