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According to the report, the average market value of all-purpose buildings in the country increased by an average of 9 percent during the year due to market changes. According to the evaluators of the Registry Center, this was mainly influenced by the general growth of the Lithuanian economy: with the increase in the purchasing power of the population and the affordability of housing, the demand for housing and its price increase, thus that their average market value is higher.
Furthermore, job creation, business investment in development, the influx of foreign investors, as well as good connections and well-adapted infrastructure are driving up the prices of various real estate objects.
Across the country, the median market value of apartments in 2020, compared to 2019, increased on average by 5 percent, and of residential buildings, also by about 5 percent. Average property values in the country for commercial and administrative use increased 3 percent during the year. Due to market changes, the average market values of all parcels of land in the country increased by about 6 percent on average during the year: agricultural parcels – by 10 percent, residential parcels – by 3 percent. percent, commercial land – by 5 percent.
In total, around 6.6 million have been estimated this year. buildings and land: 1.4 percent. (about 94 thousand) more than last year.
Relevant for property owners: new tax values have come into force
Each year, the Records Center determines the average market values of land and buildings, which can then be used to calculate the value of taxes or to determine the sale or rental prices of state properties. The average market values every five years are equal to the fiscal values on which the taxes are based.
Since 2021 January 1 New tax values for buildings (apartments, houses, commercial premises, etc.) came into force. While residents of the State Tax Inspection of real estate in excess of 150 thousand. Tax returns must be submitted by December 15 of each year, and residents can now quickly and easily find out the tax value of their real estate.
The easiest way to find out the tax value of your managed real estate is to use the free search on the Records Center website at www.registrucentras.lt/masvert/paieska-un. A unique property number is required for the search, it can also be found on the Records Center website at www.registrucentras.lt/ntr/p/.
The property tax is not paid separately for each real estate object, but by adding and valuing all the assets that belong to a person. Extracts of the average market or tax value determined by mass valuation are provided to the owners in the self-service Registry Center.
Property owners can also find out the value of the tax by visiting the Customer Service Department of the Registry Center and completing the application (pre-registration is required for the visit during quarantine). At the request of individuals, declarations of the corresponding tax value are prepared and submitted free of charge once during the tax period.
In cases where the tax values of jointly owned real estate need to be determined, a marriage certificate must be presented. To know the tax values of real property owned by a spouse or other owner, it is necessary to present a power of attorney.
For some real estate objects, such as engineering structures, the tax value is calculated using the cost method, therefore it is calculated and recalculated by the Registry Center only by requesting it to the Registry Center’s customer service department after completing the application and pay for the recalculation work. The tax value calculated using the cost method is valid for 5 years, but the applicant can submit a request to recalculate the tax value more frequently.
How is a mass evaluation done?
The massive valuation of real estate is a valuation method in which a group of similar real estate objects is evaluated within a certain period of time, using the data collected in the databases of the Registry Center, and their average market value is determined based on real estate transactions.
The average market value of a particular object may differ from the purchase and sale price of that particular object, which is influenced not only by objective criteria but also subjective, such as a price agreement, etc.
Determination of average market values is influenced by the location of the structure and land, its intended use, physical properties, and other factors. However, no increase or decrease in the value of the property due to temporary improvements or deterioration of the environment, restrictions in the form, use, management and arrangement of the property, planning, style, design, interior decoration and others is not taken into account. individual characteristics.
The tax value determined by mass valuation is considered the most objective amount from which property taxes can be calculated. The massive valuation methodology allows a large number of assets to be valued in a relatively short period of time, using the same principles and low costs.
Where are the average market values of properties used?
Average market values are not only used to calculate property taxes. These values are also relevant for residents, for example, in the case of inheritance or donation of real estate, the taxes to be paid are calculated on the basis of average market values. Average market values can also be used to determine the sale and rental prices of state assets.
These values are also used to address the issue of social assistance and 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 often calculated on the basis of average market values.
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