Government Rejects Exemption for Historic Estates From Property Tax

Lithuania’s government opposes exempting manor properties from real estate tax, arguing that the change would leave less money in the budget for defense.

The state will apply an additional 0.2 percent tax rate to this property from January 1, 2026. Revenue from the tax will go to the State Defence Fund, a fund intended to finance the country’s defense.

Lawmaker Simonas Kairys has proposed exempting part of this real estate from taxation. His proposal would cover property registered in the Cultural Heritage Register, used for cultural services and covered by a protection agreement.

The government says municipalities already have the ability to grant tax relief to cultural heritage properties from their own budgets. Kairys argues that municipalities rarely use that option.