Inheritance and gift taxes

Inheritance tax is levied on a beneficiary. Residents pay the inheritance tax on all inherited property – immovable and movable property, money, securities, etc. Non-residents pay the inheritance tax on inherited immovable property located in Lithuania and movable property, which is subject to legal registration. The rate of the inheritance tax must be calculated subject to the 70 % value of the inherited property. The rate of the inheritance tax depends on the value of the inherited property: the property which taxable value does not exceed EUR 150,000 is subject to 5 % inheritance tax rate, and the property which taxable value exceeds EUR 150,000 is subject to 10% inheritance tax rate.

The exemptions from the inheritance tax are when the taxable value of the inherited property does not exceed EUR 3,000, also when the property is inherited by one spouse when the other spouse dies, children (adopted children), parents (adoptive parents), guardians (custodians), wards (foster children), grandparents, grandchildren, brothers or sisters.

There is no separate gift tax – the gifts are subject to individuals’ income tax. Income received as gift from spouses, children (adopted children), parents (adoptive parents) brothers, sisters, grandchildren and grandparents, as well as the sum (value) of income received by gift from other individuals during the calendar year, which shall not exceed EUR 2,500, is non-taxable.