The Lithuanian government is planning to introduce a real estate tax on residents who own more than one property. The aim of this 0.3 percent tariff is an attempt to control the market and avoid property bubbles. The government said that many second homes are rented out, but not declared, allowing owners to avoid paying taxes. However, many experts believe that this tax will be passed on to tenants, further increasing rental prices, especially in highly desired city locations. This tax would also create added expenses for many people who own a second countryside home that are usually only occupied during the summer months. Money from this tax will go the state budget, rather than to local municipalities.
