LITHUANIA Law and Practice Contributed by: Evaldas Klimas and Mantas Lideika, WALLESS
8.5 Tax Benefits Premises used in commercial activity are fixed assets of the entity. Fixed assets (buildings) may be depreciated for up to eight years for new buildings and 15 years for other commercial buildings.
receiving the application from the taxpayer, the municipality council adopts a decision on the reduction of the tax rate or exemption from taxa - tion). 8.4 Income Tax Withholding for Foreign Investors Foreign investors’ income from the transfer and/ or rent of a property located in Lithuania is tax - able in Lithuania by applying the general taxation principles. The received taxable rent income is decreased by costs related to real estate mainte - nance. Taxable income (gains) from the transfer of the property is decreased by the acquisition price (minus depreciation, if applied). In 2024, real estate-related income is subject to 15% income tax, and to 20% income tax on the taxable income exceeding EUR 228,324 (20% applies only to natural persons). When the buyer or the lessee is a Lithuanian entity, it must withhold taxes and pay them to the state on behalf of the foreign investor. If the buyer/lessee is a natural person, the foreign investor must take care of the Lithuanian tax liabilities themselves.
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