Ieva Pukelienė, a lawyer at Citus, a creative real estate projects' development and placemaking company:
Buying or gifting real estate, inheriting it or making any other transfer deal isn’t just a legal matter but also a decision with financial implications. Knowing what obligations may arise can make this process smooth and strategically planned.
Buying real estate? Consider more than just the price in the advert
Susiję straipsniai
Most buyers know that the price of a home is a key factor, but additional costs should be considered in advance. These include fees for the notarisation of an agreement, services from the Centre of Registers, property valuation, insurance, mortgage registration and drawing up the credit agreement.
Main fees when buying real estate:
Notary fee – 0.37% of the transaction value (ranging from EUR 76 to EUR 5,000 + VAT);
Centre of Registers fees – for registering ownership, legal facts and annotations (fixed rates are not based on property value, but depend on urgency – e.g. registering ownership within one working day costs EUR 34.38, within 3 days – EUR 22.35, within 5 days – EUR 17.19);
Mortgage agreement (required if buying with a loan or credit) – up to EUR 360 for the notary + EUR 8.60 for the Centre of Registers;
Credit administration fee – often 0.4% of the loan amount;
Property valuation – from EUR 100 (depending on the type and location of the property);
Home insurance is usually mandatory if the property is purchased with a loan.
Pukelienė continues:
These are not hidden costs, but part of transparent procedures. With preparation, these amounts allow for realistic budgeting and a transparent procurement process.
Did you inherit or receive your home as a gift? It is important who gifted it to you
When real estate is acquired through donation or inheritance, it may not meet the new owner's needs, so the owners may decide to exchange such property (e.g. sell and purchase a larger or smaller property). In such cases, tax obligations may arise.
When the donor is not a close relative, personal income tax (PIT) applies:
If the value of the gift exceeds EUR 2,500 but does not exceed 120 times the average national wage (vidutinis darbo užmokestis – VDU), a 15% PIT rate applies; if it exceeds 120 VDU, a 20% rate applies. The same applies to cash gifts that are subsequently used as a down payment for the purchase of real estate. In the case of inheritance:
If the taxable value of the inherited property is up to EUR 150,000, a 5% inheritance tax is payable. A 10% inheritance tax is payable if the value exceeds this limit. However, there are important exceptions. For example, PIT does not apply if real estate or cash is gifted to immediate family members: spouses, children (including adopted children), parents (including adoptive parents), brothers, sisters, grandparents or grandchildren.
Pukelienė:
This procedure has been established so families can plan the long-term transfer of assets without additional burdens. However, if the assets are transferred to a wider family circle, the possible taxes are worth checking.
Already got a place? That’s a responsibility too
Owning property also comes with annual obligations. If the total taxable value of your property is over EUR 150,000, you’ll have to pay a yearly property tax, set by the local council.
The main rates currently applicable in the main cities are as follows:
City/RE tax rate, calculated based on the taxable value
Vilnius: 0.7–3.0% (standard rate – 1.0%)
Kaunas: 0.7–3.0% (standard rate – 1.0%)
Klaipėda: 0.5–3.0% (standard rate – 0.8%)
Neringa: 0.5–3.0% (standard rate – 0.5%)
A land tax also applies if the property includes a plot of land (or a share) along with the premises or buildings. The rate varies between 0.01% and 4%, depending on the municipality.
Pukelienė:
An infrastructure development fee may also be required when building a new home or renovating an old one, especially if infrastructure is needed (e.g. access roads, utility networks). In Vilnius, this fee is EUR 15 per sqm for detached residential houses. Owning and developing property is not only a right but also a responsibility. However, with a clear understanding of the structure, all these processes become more predictable and manageable.
Sale: When do you pay income tax?
If the property is sold earlier than 10 years after its acquisition or has not been declared a place of residence for the last two years, income tax is applied to the profit earned. If the income from the sale of real estate does not exceed 120 times the average wage in the country (AW), a 15% rate applies; if it exceeds this amount, a 20% rate applies. In 2025, 120 AW amounts to EUR 253,065.60.
This tax does not apply if you have declared your place of residence in the flat or residential house (even if you have declared it for less than two years) and have purchased another home within one year.
What is most important?
Purchasing a home is a lifelong investment – not only financially, but emotionally. The more we know about the related procedures and obligations, the more confident we can be in our decision.
Citus legal expert Pukelienė summarises:
We're not just buying sqm – we're creating our own space, a sense of security, and a future. And having a clear understanding of everything, from taxes to registration, allows us to do so without stress and with confidence.
Summary of facts
Situation/ Possible Taxes and Fees
Property purchase: Notary fee, registration with the Centre of Registers
Purchase with a mortgage: Mortgage registration, loan arrangement fee, property valuation, property insurance
Gift (from non-relatives): 15–20% income tax on property value exceeding EUR 2,500
Inheritance: 5–10% tax, depending on the property's value
Property ownership: Real estate tax (from 2025, for property over EUR 150,000), land tax
Construction/renovation: Infrastructure contribution (e.g., EUR 15/m² in Vilnius)
Property sale: 15–20% income tax, unless exemptions apply