Lithuanian government opposes tax exemptions for manors

The Lithuanian government has expressed opposition to proposed legislative amendments that would exempt manors and cultural heritage sites from real estate taxes. In a recent decision, the Cabinet of Ministers noted that municipalities already possess the legal authority to reduce or waive property taxes for specific cultural objects using their own budgets, making them better positioned to assess the necessity of such relief.

A primary concern cited by the government is the impact on the State Defense Fund. Starting January 1, 2026, an additional 0.2 percent real estate tax rate will apply to certain properties, with revenues allocated to national defense. The government argues that exempting registered cultural heritage sites would reduce these revenues, thereby limiting the financial capacity to fund state defense strengthening measures.

The proposal, supported by Member of Parliament S. Kairys during the spring session, sought to exempt property registered in the Register of Cultural Values that is used for cultural services and managed under protection agreements.