How many years do you need to hold onto real estate to sell it tax-free?

Dauguma savininkų Vilniuje planuodami pardavimą baiminasi, kad didelę dalį uždirbtų pinigų teks atiduoti valstybei. Tačiau tiesa ta, kad parduoti būstą galite bet kada – klausimas tik, kada atsiranda prievolė mokėti 15 % gyventojų pajamų mokestį (GPM) nuo uždirbto pelno.

Here is a clear guide to help you understand how to legally avoid the tax burden.

Main rule: 5 years

If you want to be completely at ease about taxes, the answer to the question, How many years must real estate be held, is 5 years.

This term is calculated from the date of registration of ownership in the Real Estate Cadastre until the signing of the sales contract. If this period has passed, all profits received remain yours.

How to sell early and not pay taxes?

If you don't want to wait five years, there are three main ways to sell property without additional taxes to the state:

Declared place of residence (2 years)

If you have declared your place of residence for the last 2 years Two sales – you don't have to pay Personal Income Tax, no matter how much the housing price increased.

2. Housing exchange (1 year)

If you declared residency for less than 2 years, you may not have to pay a tax if:

• Are you selling this property?.
• Per 1 year then you sell the property, buy another home, and declare your residence there.

3. Sales without profit

GPM tax is calculated only on earnings. If you sell an asset for the same price, for which you bought, or cheaper – No taxes are due because there is no profit.

Example: You bought an apartment for €180,000, and a year later, due to changed plans, you sell it for the same €180,000. Although you only owned it for a year, you won't have to pay taxes because your profit is zero.

Summary: When are there no taxes?

Situation	Will I have to pay 15 % withholding tax?
The turtle is kept 5 years and longer	North-east
Residence declared place 2 years	North-east
For sale for the same price Is it cheaper	North-east
When buying another home 1 year	North-east

How to find out the value if you inherited property?

In the case of inheritance, there is no purchase price, so many people wonder: from what amount should this 15% % tax be calculated?

The „acquisition cost“ of inherited property is considered Estate value as of the date of death.

Where did you find this number?

You will see this amount in your Certificate of inheritance rights, which was issued by a notary. Notaries usually rely on the average market value established by the Registry Center, which was valid on the date of death.

Example:

• In 2021, you inherited an apartment. The notary documents state that the apartment was valued at €100,000 on the day of death.
• In 2026 (not exceeding 5 years), you sell it for €130,000.
• Your profit, from which the tax is calculated, is €30,000.

Important tip: Retrospective assessment

There are cases where the value recorded in notary documents from the Centre of Registers is significantly lower than the real market price on the day of death. In such a situation, your „paper“ profit appears larger, and the taxes seem more painful.

What to do? You can order an independent property appraisal retrospective evaluation. Appraisers will determine the actual value of the asset on the day you inherited it. If this value is higher than that of the State Enterprise Centre of Registers, your official profit will decrease, and consequently, the income tax payable will also decrease.

Looking for a real estate agent in Vilnius?

The best solutions are born from a professional perspective and attention to detail. Choose the assistance you need in Vilnius:

• NT consultation – if you plan to buy or sell property yourself but want advice on strategy (e.g., accurate pricing or risk assessment for purchasing).
• NT broker services - Finding a buyer „from A to Z“: from preparing quality advertising to a smooth sale closing by a notary.