For selling housing – bad news: scary than real estate tax?

A four -room cottage in Vilnius has just entered the real estate market in Vilnius. The owner sells it to the family who wants to live closer to nature.

« Something was different, something died, born, something improved, something worse, someone got a new job, a new opportunity to buy. Those reasons why people change their housing, » said Marius Čiulada, the Old-Haus Old Town office.

The need is changing, and it is also a duty. When selling an apartment or house, you have to pay personal income tax.

« What do residents need to know that the sale of the property will have to be given to the state, » said Daiva Čibirienė, President of the Lithuanian Association of Accountants and Auditors.

The tax now is 15 percent. from the profits earned from the home sold. However, next year, the Ministry of Finance proposes to drastically increase this tax. The rate would range from 20 to 36 percent.

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« This is a draconian leap, and the market would not understand it, » said Marius Čiulada, head of the Ober-Haus Old Town office.

The accountant says it is more terrible than real estate tax. After the sale of the dwelling, residents shine to the state to give away several tens of thousands of euros, not several.

« Folk -speaking, say, $ 200,000, you now pay $ 30,000 in personal income tax (PIT) from profits, with the approval of the changes, you will need to pay almost € 49,000 in PIT, which is almost 19 thousand euros more expensive, » explained D. Čibirienė.

« Imagine what kind of building or home, you have to sell the house to earn $ 200,000? How much did it cost to build it or buy it? » – considered Algirdas Sysas, Chairman of the Seimas Budget and Finance Committee (LSDP).

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The representative of the ruling is reassuring: such large amounts will not be paid by an ordinary Lithuanian. Because the fee is on the difference between the purchase and sales prices of the dwelling. For example, a man bought an apartment for 80 thousand. and after a while sold it for 90 thousand. The fee is only calculated on the difference – 10 thousand.

« I have no idea that there would be such profits for the sale of a home that would have to pay hundreds of thousands. Maybe the fear of fear is bigger than the real reality, » Sys said.

The Ministry of Finance assures LNK news: will not destroy exceptions already. The fee is not threatened by those who have declared their place of residence in the housing for the last two years. Or used income to purchase another home. Nor does it calculate the fee for the life of 10 years and older.

« There are many exceptions, and it seems to me that we are trying to find strange reasons to do nothing in Lithuania, » Sys said.

But the benefits may not turn on – it is enough to sell an apartment where the place of residence is not declared.

« It’s all, the benefits do not turn on, and we calculate what profit is earned, » said Daiva Čibirienė, President of the Lithuanian Association of Accountants and Auditors.

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Even this time the opposition does not stop the opposition to stay here.

« For ordinary residents who sell their own housing, they should not be afraid of something. It is important that those principles remain, » said Mindaugas Lingė, Member of the Seimas Committee on Budget and Finance.

The expert says the real estate market will also react. Already now, even less, housing transactions may take place next year.

« There will be more incentives or delay the decision to sell, stop the real estate market itself, or worse, it will start to shrink in the shadows, and there will be pure money in circulation, » said Marius Čiulada, head of Ober-Haus Old Town office.

According to the accountants’ association, not only notaries, but also value added tax may be required for the apartment sold.

« In the total amount, you may have a profitable deal you will need to give 50 % to the state, » said the president of the Lithuanian Association of Accountants and Auditors.

The ruling ones have no answer whether they promise to take more discounts.

« I could neither scare nor calm people now, » said the chairman of the Seimas Budget and Finance Committee (LSDP).

According to the tax office, last year residents declared nearly $ 271 million after selling homes. revenue and had to pay $ 41 million. personal income tax.