Private land is the object of land tax. Land tax must be paid by owners of private land (both natural and legal persons).

The annual tax rate is 1.5% of the land price (the price of standing timber is excluded when calculating the price for forest land). A resolution adopted by the government establishes that the following coefficients are applied for the purposes of calculation of land tax: 0.35 — for agricultural land, land owned by multi-apartment building owners‘ and apartment construction associations, cooperatives and cooperative companies; 0.5 — for land lots owned by gardeners‘ societies and their members, land on which private houses have been built, land lots for multi-apartment buildings, and land lots used for economic, commercial and other activities.

Tax Reliefs

1. The following are exempt from land tax:

• roads of common use;
• land lots owned, by the ownership right, by diplomatic and consular offices of foreign states (on parity basis);
• forest land.

2. Tax reliefs for land of protected forests, land of environmental purposes and land where natural, historical and cultural monuments are located are established by the government (established by resolution of the government).

The following persons are exempt from land tax:

• land owners — persons for whom a 0–40% degree of disability has been established  (by 30 June 2007 — also disabled persons of Groups I and II), persons who have reached pension age, and minor children, provided that families of the aforesaid land owners have no persons able to work as of the beginning of the tax period and provided that the size of the land lot owned does not exceed the area not subject to taxation by decision of the relevant municipal council;
• land owners for whom the land tax amount payable for all the land lots owned by the ownership right does not exceed LTL 5 (since 01-01-2007).

Municipal councils may exempt natural or legal persons from or reduce the land tax rate at the expense of their own budgets.

One calendar year is the tax year for land tax. The tax amount is calculated on the basis of the land price, which is equal to the value of the land calculated in accordance with the Land Valuation Methodology approved by the resolution of the Government No. 205 of 24 February 1999. Territorial tax offices must calculate tax amounts and present tax returns to taxpayers by 1 October of every calendar year. The tax must be paid by 1 November of the calendar year.

The Republic of Lithuania Law on Land Tax was adopted on 25 June 1992.

For the purposes of implementation of the law, a resolution of the Government Concerning Land Tax was adopted on 3 August 1993 (No. 603). A comment on the Law on Land Tax has been published on the website of the State Tax Inspectorate under the Government of the Republic of Lithuania.

Information from the website www.finmin.lt of The Ministry of Finance of the Republic of Lithuania.