In Vilnius, hundreds of people gathered on Sunday afternoon to protest the government’s proposal to expand the property tax system.
Demonstrators assembled in the center of the Lithuanian capital to voice their opposition to the Ministry of Finance’s plan, which would introduce a wider-reaching property tax.
Under the proposed changes, properties valued between €40,000 and €200,000 would be taxed at a rate of 0.1% of their market value. Properties worth up to €400,000 would be taxed at 0.2%, up to €600,000 at 0.5%, and any property valued higher would face a 1% tax.
The new rules would apply to all types of real estate, including gardens and garages. For jointly owned properties, the taxable threshold would be €80,000. Additionally, a 50% tax discount is proposed for first-time homebuyers if the property’s value is below €450,000.
Currently, Lithuania’s property tax system applies only to properties worth over €150,000, with rates between 0.5% and 2%. For large families, the tax-free threshold starts at €200,000.
Protesters argue that the proposed changes are unfair, particularly because they would affect properties that have already been purchased under different expectations.
