Home » News » Rising Property Tax Rates for Abandoned and Neglected Real Estate in Kaunas

Rising Property Tax Rates for Abandoned and Neglected Real Estate in Kaunas

The owners of the listed property have to shake their wallet quite a bit, as the property tax even increases several times.

The real estate tax law provides that the tax rate can be from 0.5 to 3 percent. Municipal councils have the right to set specific or several tax rates in this interval.

In Kaunas, 3 percent has been in effect since 2020. tax rate for abandoned and neglected property. 0.7 and 1 percent are applied to other real estate. tariff. Such rates are also valid for calculating the real estate tax in 2023.

The list can be extended

The city authorities believe that the approval of the draft decision will increase the budget income from real estate tax, and will encourage the owners of abandoned or unmaintained real estate to start maintenance work on structures and buildings sooner.

In the latest list, you can also find well-known names in the business world – the companies “Kauno stiklas”, Kaunas Aviation Factory, “Liūtukas ir partnersai”, “Autokausta keliai”, “Mechel Nemunas”, “Dirbtinis fiostas”, “Lietuvos geležinkeliai”.

Sonata Šėlienė, head of the Licenses, Permits and Services Department of the Kaunas Municipality, explained that objects are added to the list of abandoned or neglected real estate in September, but the list can still be supplemented by the end of the year. Most of the information comes from the municipalities.

In 2023, 23 new objects were added to the list of abandoned or neglected real estate, and from 2022, more than 40 objects did not enter this year’s list.

According to S. Šēlienė, the municipal administration does not have data on the amount of collected taxes for abandoned property, because the real estate tax is administered by the State Tax Inspectorate.

The condition of the building is poor

The well-known company “Eligita” in the soft drinks production business owns an old building in the very center of Kaunas – on Šv.Gertrūdas street. Its upper floors are intended for residential housing, the lower one for commercial activities.

The director of the company, Vesta Survilienė, admitted that the condition of the structure is really bad and it needs to be repaired, but the best solutions are still being sought.

“Probably there is no single reason why the work has not started until now,” thought V. Survilienė. According to the entrepreneur, about a decade ago, a flawed detailed plan was approved, which must be changed before the start of work.

V. Survilienė guessed that it will take a lot of time to sort out the formalities, so the repair of the building can start only after two years.

Is the sharp increase in real estate tax a painful blow to the company?

“We will survive, but it would be better not to pay it,” said V. Survilienė.

Legal disputes are rare

Evaldas Sauliūnas, the director of the company “Kauno stiklas” located in Aleksoti, admitted that there are old buildings in a large area, but they are not abandoned.

“We will renovate some of the buildings and demolish some. The work is ongoing, but we cannot do it in one day,” said the head of the glass products company.

Kristina Kripienė, the deputy head of the Law and Consulting Department of the Kaunas Municipality, assured that there are not many disputes regarding the decisions of the Kaunas Municipality Council, which approved the list of unused or abandoned buildings.

In 2022, 245 such objects were approved, disputes arose only over 14 real estate objects from this list.

2023-09-18 18:02:00


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