Do I have to pay inheritance tax when inheriting property in Lithuania?
It depends who inherits: the closest relatives pay no inheritance tax at all, while other people pay it only when the taxable value of the property exceeds 3,000 Eur. Exempt are the spouse, children (including adopted), parents (including adoptive), grandparents, grandchildren, brothers, sisters, and guardians and wards - regardless of the value of the inherited property. So the widespread myth that children or a spouse 'will have to pay a large inheritance tax' is false. For other heirs the rate depends on the value: 5% where the taxable value does not exceed 150,000 Eur, and 10% where it does; the taxable value is taken to be 70% of the total value of the property. What people miss: separately from this tax, notary fees are paid for the certificate of the right of inheritance, and if you later sell inherited real estate you may have to pay personal income tax. A municipality can reduce or defer the tax.
📋 The rules
- Close relatives (spouse, children, parents, grandparents, grandchildren, brothers, sisters) pay no tax
- For other heirs, property up to 3,000 Eur of taxable value is tax-free
- The rate is 5% where the taxable value is up to 150,000 Eur
- The rate is 10% where the taxable value exceeds 150,000 Eur
- The taxable value is taken to be 70% of the total value of the inherited property
🔓 Exceptions
- The municipal council can reduce the tax, fully exempt from it, or defer payment for up to one year
- Notary fees for the certificate of the right of inheritance are paid separately from the inheritance tax
- Selling inherited real estate before the set period can give rise to personal income tax
⚠️ Penalties & fines
The biggest mistake is confusing inheritance tax with notary fees and assuming that close relatives pay a large 'inheritance tax'. The closest relatives pay none at all, while other heirs pay only when the taxable value exceeds 3,000 Eur. What people miss: separately from this tax, notary fees are paid for the certificate of the right of inheritance and for valuing the property, so there are costs anyway. The inheritance tax must be paid before the certificate of the right of inheritance is issued, so if the tax is not dealt with, formalising the inheritance stalls. A separate and often unexpected risk is that selling inherited real estate within the period set by law can give rise to personal income tax on the increase in value. From 2026 this holding period was shortened from 10 to 5 years, so heirs should assess the consequences of a sale in advance.
📎 Official sources
❓ Frequently asked
Do children and a spouse pay inheritance tax?
No, the closest relatives - the spouse, children, parents, grandparents, grandchildren, brothers and sisters - are fully exempt from inheritance tax, regardless of the value of the property. So the belief that close relatives will have to pay a large inheritance tax is false and often frightens people needlessly.
What is the inheritance tax rate?
For heirs other than close relatives, a 5% rate applies where the taxable value of the property does not exceed 150,000 Eur, and 10% where it does. The taxable value is taken to be 70% of the total value of the inherited property, and property up to 3,000 Eur of value is not taxed at all.
From what amount is an inheritance tax-free?
When someone other than a close relative inherits, no tax applies if the taxable value of the inherited property does not exceed 3,000 Eur. Above that threshold, the tax is calculated on the whole taxable value at the 5% or 10% rate, depending on the size of the estate.
Are notary fees included in the inheritance tax?
No, notary fees for the certificate of the right of inheritance and for valuing the property are paid separately from the inheritance tax. So even close relatives who are exempt from the tax still incur notary costs, the size of which depends on the value of the inherited property.
Will I have to pay tax on selling inherited property?
Selling inherited real estate within the holding period set by law can give rise to personal income tax on the increase in value. From 2026 this period was shortened from 10 to 5 years, so before selling it is worth checking whether a duty to pay income tax arises.
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