How will real estate tax affect residents?

Mindaugas Statulevičius, head of the Lithuanian Real Estate Development Association, explained how much will be paid and whether it will become more expensive.

– It is clear that the real estate tax will affect the market, but let’s talk about rent. Could it be that the owner will tell the tenants to cover the difference? Maybe the burden will occur for those who rent apartments?

– may be agreed individually. If the contracts between the tenant and the landlord are concluded, it is provided that, in the event of additional taxes or other circumstances, it would be decided: either half between the tenant and the lessor or the lessee or the lesson. Everything is individual here, so now it’s hard to say how things will look. Will also depend on the amount at which the value of the assets would be – be it one hundred, two hundred euros a year or a significant amount compared to the total rent. If it is a more expensive asset, the annual amount of the $ 200 fee may not be a significant part, so it is likely that the landlord himself would agree to take it. In practice, we will see, but the established circumstances are already being formed – consulting.

LNK stop shot.

– What can it look like? Will the rent for all apartments change? Both the very economic price could rise and very luxurious?

– According to the tax versions currently being considered and publicized, some of the real estate will simply be tax -free. Some people can rent property where they have declared their place of residence – a bit of a bit. In this case, the assets become tax -free or applied only 50 %. rate. Such people may be touched by the fee very slightly or not at all. More expensive assets may be much more affected, but as I mentioned, we are still talking a little at the theoretical level – we will see everything next week.

LNK stop shot.

– Those who have more expensive real estate, such as worth 200,000. up to 400 thousand. now pays 1 percent. real estate tax. If the Law on Real Estate Tax exchanged how it is being considered now, their tax would be reduced from 1 percent. up to 0.2 percent. Honest or not very well?

– It is difficult for me to appreciate it from the perspective of specialists. Probably this is the desire of politicians to expand the base of those who know how to make a low rate so that it is not very painful and that they are more learning. In general, when it comes to what the real estate tax is and where it will be used, we are talking about a certain social level that is being made to introduce that tax. In fact, it is a municipal infrastructure fee for the environment we see, improve, clean up, update and manage. It is necessary to talk about this – that we all pay little after and see how the environment is improving to everyone. Not someone who has precious assets « for some reason », although it paid for it dearly, but for anyone who uses that infrastructure, walks along the sidewalks, drives the streets, uses lighting and the like.

In answer to the question of whether it is fair, sometimes the fee with those values ​​will decrease – this is apparently political will: let’s expand what pays, but apply a consistent rate. Tax rates tend to change, so the constant that will be accepted this year will be able to be reviewed, reviewed because we do not know how much money we will raise. We talk about the rate about how it will affect people, but the state itself, which communicates very loudly, does not know yet. Maybe he knows, but does not publish – there are no calculations of how many tens or hundreds of millions will be re -fee will be collected.

Full LNK Report – In Video:

– When it comes to province, smaller cities – did the Center of Registers take the real estate market value when pricing housing in the regions? Not only in the capital – 70-80 percent also jumped there.

– We need to look at the regions very much, as the Center of Registers has certain algorithms for evaluating. He watches in general how many transactions in the area or town. If there were any, they can compare it, if they were not – they have to use their own models, compare the surrounding cities, and it is worth it. Values ​​arise where there is life, vitality, where municipalities invest, businesses invest which cities are active, proactive and good to live there. Naturally, there are more expensive transactions, businesses and manufacturing companies are not really surprising. In some cities, the value of the property could have doubled in five years. It does not feel goodness or dishonesty here – an indicator of city activity and vitality.

People also have to feel that their assets are increased. Theoretically, they only receive that value by selling assets, but now they have to pay a fee for it. However, taxes in the regions will not be very significant, and very expensive wealth that exceeds 500,000. And more, there are very little.