Government rejects tax break for manor estates

Lithuania’s Government opposes amendments proposed by Liberal MP Simonas Kairys that would exempt manor estates from real estate tax, LRT reported.

In a resolution adopted last Wednesday, the Government said municipalities can already grant tax relief to cultural heritage properties by reducing or waiving the tax at the expense of their own budgets. It said municipalities were therefore best placed to assess whether a particular property needed such relief.

The Government also noted that municipal councils can set different real estate tax rates based on criteria established by law, including a property’s purpose and use.

It added that from January 1, 2026, an additional 0.2 percent real estate tax rate has applied to such properties. Revenue from this tax is allocated to the state budget and used for the State Defence Fund.

Exempting cultural heritage properties registered in the Cultural Heritage Register from the tax would reduce state budget revenue, the Government said. It added that some of these properties may fall under the additional 0.2 percent rate based on their registered purpose, meaning an exemption would also reduce funding available for measures to strengthen national defence.

During the spring session, the Seimas approved the amendments at the presentation stage. Kairys proposed exempting real estate registered as a cultural heritage property, used to provide cultural services and managed under a protection agreement.

Kairys said the exemption would apply under strict conditions. The property would have to be open to the public, used for cultural activities and covered by a protection agreement with the Cultural Heritage Department. He also noted that municipalities can already set a minimal real estate tax for such properties, but said few municipalities practically support heritage property developers.

The amendments will be considered by the Seimas committees on Budget and Finance and on State Governance and Municipalities. The bill is expected to return to the Seimas plenary chamber during the autumn session.