Government Opposes Property-Tax Relief for Lithuanian Manor Houses

Lithuania’s government has come out against a proposal to exempt certain manor houses and other cultural-heritage properties from property tax, arguing that municipalities are better placed to decide which sites need relief.

In a decision adopted last Wednesday, the Cabinet noted that municipalities can lower the tax or waive it entirely at their own expense. Municipal councils can also set different property-tax rates based on factors such as a property’s purpose and use.

The government further warned that an additional 0.2% property-tax rate will apply to such real estate from January 1, 2026. Revenue from that charge will go into the state budget and be allocated to the State Defense Fund. Exempting properties listed in the Cultural Property Register could therefore reduce money available for measures to strengthen national defense, the government said in its conclusion on the bill.

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It is not enough simply to start restoring the property; it must already be open to the public.

The proposal, initiated by Liberal MP Simonas Kairys, would cover registered cultural-heritage properties used to provide cultural services when their managers have signed a protection agreement. Kairys said the exemption would apply under strict conditions: owners would need to restore the property, open it to the public, conduct cultural activities and sign a preservation agreement with the Cultural Heritage Department.

Parliament approved the bill at the presentation stage during its spring session. The Budget and Finance Committee and the State Governance and Municipalities Committee will now examine it, with the proposal expected to return to the plenary chamber during the autumn session. Kairys also noted that municipalities can already set a minimum property tax for such sites, although he said few provide practical support to heritage-property developers.

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I think this would be an excellent safeguard.