aA
Real estate tax collection and revenues will be handed over to municipalities to encourage them to implement the taxes more stringently under new proposals from Finance Minister Rimantas Šadžius.
Municipalities to take over real estate tax collection to increase revenues
© DELFI / Tomas Vinickas

“Now municipalities do not have sufficient incentive to take care of it themselves. Maybe there are people who in one way or another are trying to escape from this tax. The traditional way is to not register the finished construction. I think it would be a better incentive to allow municipalities to collect this tax to their budgets and not the state budget as it is now. We will try to submit proposals in this direction,” Šadžius told LNK news.

Municipalities said they would be willing to collect the tax for luxury real estate but only if they were not deprived of income tax collection which brings more revenue than the real estate tax would.

“Otherwise, the municipalities would lose a relatively larger part of income than what they would get from the new tax. Losses would be in a sense that real estate value is fixed for a 5-year term, while the income tax value increases every year,” said Rimantas Čapas, Deputy Director of the Lithuanian Association of Municipalities on LNK news.

A total of €477,100 real estate tax was declared and paid by 1,038 residents in 2015, according to the State Tax Inspectorate.

Property tax is imposed on residential buildings, gardens, garages, greenhouses, agricultural, scientific, religious, recreational purpose buildings or premises, fisheries and other buildings, the value of which exceeds €220,000, unless the asset is used for income from agricultural activities or for funeral services, educational work or as creative workshops, for craft goods production, or social care and support.

DELFI

|Populiariausi straipsniai ir video

Tensions with president push PM's rating further down

Lithuanian Prime Minister Saulius Skvernelis ' popularity rating has dropped further down amid the...

President proposes nine legislative initiatives for Seimas spring session

Lithuanian President Gitanas Nauseda has proposed including nine legislative initiatives into the...

People returning to Lithuania from China advised to avoid contact

People who have returned from China where the new COVID-19 coronavirus is spreading are advised to...

EU leaders fail to agree on new budget: Nausėda hopes for decision over month

EU leaders on Friday failed to agree on the Community's 2021-2027 budget amid disagreements over its...

Vilnius district municipality backs further asphalt-paving of PM's street

Vilnius District politicians on Friday decided to endorse a strategic activity plan for 2020–2022...

Top news

Kazakh student got “Vilnius” tattoo and honed cooking skills

Having won a Lithuanian State Scholarship , Kazakh student Adil Karim from Almaty came to...

President proposes nine legislative initiatives for Seimas spring session

Lithuanian President Gitanas Nauseda has proposed including nine legislative initiatives into the...

Experience Lithuanian culture: Užgavėnės in Kaunas

In Lithuania, we call the holiday Užgavėnės, which can be loosely translated into ‘Before fasting...

Leader in gaming and VR platforms to undergo major expansion in Lithuania

Unity Technologies , creator of the world’s most widely used real-time development platform for...

Vietnamese student feels happy living in Vilnius: back home I wear mask every day

Vietnamese student Tri Huynh Viet Minh from Saigon is full of curiosity. Having won a scholarship...

|Maža didelių žinių kaina