My father left me his flat in Vilnius. Do I pay inheritance tax?

No. Children are exempt from Lithuanian inheritance tax whatever the value of the property, and that applies whether you live in Lithuania or abroad.

My aunt left me a flat. How much will I pay?

Aunts and uncles are not on the exempt list. If you are not resident in Lithuania, the flat is taxed because it is real estate in Lithuania. The rate is 5% where the taxable value is up to EUR 150,000 and 10% where it is higher. The notary tells you the exact amount before issuing the certificate.

Does my partner pay tax if we were not married?

The exemption covers a spouse. An unmarried partner is not on the list, so they are taxed like any other heir unless the value is EUR 3,000 or less or the municipality grants relief.

Who decides whether I am a Lithuanian resident?

Residence for this tax follows the personal income tax rules: where your permanent home and the centre of your interests are, and how long you spend in Lithuania. Nationality does not decide it.

Is there tax when I later sell the inherited property?

Inheritance tax and tax on a later sale are separate. Income tax may apply to a gain on selling inherited property, depending on how long it is held and other conditions, and your country of residence may tax the gain too. Check before agreeing a sale.

Can the tax be postponed?

The municipal council where the property is can defer payment for up to a year after the certificate is issued, and it can reduce or waive the tax. An application to the municipality is needed.

Inheritance tax in Lithuania: who pays and how much

Who pays nothing

Lithuanian inheritance tax is not charged on property inherited by:

the spouse of the deceased;
children, including adopted children;
parents, including adoptive parents;
guardians, custodians and the children in their care;
grandparents and grandchildren;
brothers and sisters.

For these heirs the value does not matter. A child who inherits a house worth EUR 500,000 pays no inheritance tax, whether they live in Kaunas or in Manchester.

On top of that, any inheritance with a taxable value of EUR 3,000 or less is tax-free, whoever inherits it.

Two groups often assume they are covered and are not: unmarried partners and nephews, nieces, aunts and uncles. A cohabiting partner who inherits under a will is taxed like an unrelated person.

Rates for everyone else

For heirs who are not exempt, the tax is charged on the taxable value of what each of them inherits:

EUR 3,000 or less: no tax;
up to EUR 150,000: 5%;
more than EUR 150,000: 10%.

The taxable value is not simply what a buyer would pay. It is calculated under rules approved by the Government, and the notary obtains the figures and works out the amount before the certificate is issued.

The municipal council can reduce the tax, waive it entirely or defer it for up to a year after the certificate of inheritance is issued. This is discretionary and needs an application.

Living abroad: what is taxed

The answer depends on whether the heir is a Lithuanian resident for tax purposes, not on nationality.

Residents

are taxed on everything they inherit: real estate, movable property, securities and money, wherever it is.

Non-residents

are taxed only on:

real estate located in Lithuania, and
movable property that must be registered in Lithuania, such as a car registered there.

So a niece living in Ireland who inherits her uncle’s flat in Klaipėda pays Lithuanian tax on the flat. A son living in Norway who inherits the same flat pays nothing, because children are exempt. What matters is the relationship to the deceased and, for heirs who are not exempt, their tax residence and where the property is.

Residence for this tax follows the Lithuanian personal income tax rules. If you have recently moved, or split your time between Lithuania and another country, check your status before the notary calculates the tax.

Three examples

A son in Norway

Jonas lives in Oslo. His mother, who lived in Šiauliai, leaves him her flat and her savings. Children are exempt, so he pays no Lithuanian inheritance tax, whatever the flat is worth. He still needs a certificate of inheritance to register the flat in his name.

A niece in Ireland

Rūta lives in Cork and is not a Lithuanian resident. Her uncle leaves her a flat in Klaipėda with a taxable value of EUR 80,000. Nieces are not exempt, and real estate in Lithuania is taxed even for non-residents. The rate is 5%, so the tax is EUR 4,000, unless the municipality grants relief. She pays it before the notary issues the certificate.

A friend’s small bequest

A friend leaves Mark, who lives in Vilnius, EUR 2,500 in savings. The taxable value is under EUR 3,000, so there is no tax.

What the notary will ask for

To apply the exemption for close family, the notary needs proof of the relationship: birth certificates linking you to the deceased, and a marriage certificate if names changed. Foreign certificates need a Lithuanian translation, and documents from outside the EU usually need an apostille. See documents from abroad.

If you claim to be non-resident, be ready to explain where you live and work. The notary relies on the information and data available to it, so gaps can cause delays.

How the tax is collected

For an inheritance handled in Lithuania, there is no separate return to file. The process runs through the notary:

You accept the inheritance and ask for a certificate of inheritance. See inheriting property in Lithuania when you live abroad.
The notary obtains the taxable value of the property and calculates any tax.
You pay the tax, unless the municipality has deferred or waived it.
The notary issues the certificate.

A Lithuanian resident who inherits property abroad is in a different position. They must file a return and pay any tax by 1 March of the following year.

Tax in your own country

The EU Succession Regulation does not cover tax. Each country applies its own rules.

Some countries tax the person who receives an inheritance if they live there, wherever the property is. Others tax the estate of a person who lived or was domiciled there. So a Lithuanian inheritance that is tax-free in Lithuania may still be taxable where you live, and the reverse can also happen. Check with a tax adviser in your country, especially if the estate is large or the heirs live in several countries.

Selling inherited property

Inheritance tax is charged on receiving the property. Selling it later is a separate event. Lithuanian income tax may apply to the gain, depending on how long the property is held and other conditions, and your country of residence may tax the same gain. Get tax advice before you agree a price, not after. The same applies if several heirs plan to buy each other out: a buy-out between co-heirs is a sale too, with its own tax consequences.

If you plan to sell from abroad, the practical steps are in our guide to inheriting property in Lithuania when you live abroad. If the estate has debts, read deadlines, refusing an inheritance and the deceased’s debts first: debts can matter far more than tax.

Inheritance tax in Lithuania