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Photo 5In massive valuations, properties tend to revalue to a higher value. Photo of Elta
Not just for taxes
“The real estate appraisal for the needs of the state – mass appraisal – is done by the Center of Records every year. Determine the average market values of the land and buildings. Average market values will be equated to tax values at least every five years. This year’s mass appraisal is special because the average market values of buildings recalculated during this year will equal the tax rates, which will be taxed by building owners, “said Kazys Maksvytis, Director of Records for the Records Center.
However, average market values are not only used to calculate tax values.
“They are relevant to residents when it comes to calculating the taxes to pay in the case of gifts or inheritance of property. They are used to identify regions that provide a financial incentive for young families to purchase their first home. When notaries approve asset transfer transactions, their service fees are also calculated based on average market values. In addition, these values can be used to determine the sale or rental prices of state properties, “said K. Maksvytis.
Taxes will go up
Arnoldas Antanavičius, real estate expert and director of the Realdata company, predicted that most real estate objects would appreciate to a higher value.
“The previous massive appraisal took place in 2015. Since then, the real estate market has grown significantly, so the new tax values are likely to be higher. This will lead to an increase in the number of people who have to pay property tax, ”said the specialist.
In his opinion, if the municipalities of the individual cities do not adjust the tax system applied so far, not only will the range of taxpayers increase, but the amount paid will also increase. It is true that only those whose buildings or dwellings fall into the category of taxable property.
If the property is owned or acquired by individuals, the part of the tax value of this property that exceeds the non-taxable base (150 thousand euros), but that does not exceed 300 thousand euros. 0.5% will be applied. Tax rate. For the top 300 thousand. EUR, but not more than 500 thousand. 1% EUR will be applied. tax rate, an even higher property value is subject to a 2% tax rate. tariff.
Although the ranks of those who pay property tax should increase, according to A. Antanavičius, there should be no particularly radical changes in the property market.
“The adjustments are unlikely to be very important and, in principle, the real estate market should not be affected. Of course, it will not be very pleasant for people who have joined the ranks of taxpayers, perhaps there will be a slight decrease in investments, but it will not have a significant impact on the general situation or the mood of the people and real estate purchase decisions, ”said the specialist.
He recalled that real estate tax is paid on tax values that are calculated on the basis of a mass valuation, and the Center of Records generally charges lower rates, so mass values are rarely discussed by anyone.
“For example, if a person’s property was valued at 140,000 LTL before the revaluation. After the revaluation, the price can go up between 20% and 30%. – up to 160-170 thousand. euros. In this case, the annual fee for the owner would be 50-100 euros “, – the specific figures were provided by the manager.
On the other hand, according to him, those who have already paid the property tax, except in more exceptional cases, may not notice these changes.
“In individual cases, if a person has acquired more luxurious homes or more real estate objects in the last five years, the taxes can reach the zone of three zeros. The amount of the luxury tax is likely to be adjusted as well, but if the real estate managed by one person is worth a million or even more, a few thousand euros a year will definitely not become an unbearable burden for him, “summarized A Antanavičius.
Information from the Registry Center: On the massive valuation of real estate
Mass real estate valuation is a valuation method in which a group of similar real estate objects are valued over a specified period of time, using a common methodology and automated data analysis and valuation technologies, value zone maps and models. average market valuation based on real estate market transaction data.
The public hearing of the land appraisal documents of all municipalities took place from September 14 to 25, except for Elektrėnai, Šalčininkai district, Širvintos district, Švenčionių district, Trakai district, Ukmergė district. and the municipalities of the city and the Vilnius district, where the examination of these documents takes place from September 21 to October 2.
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