This Law establishes the modalities of application of immovable property tax. Objects of taxation for natural and legal persons shall be immovable property located on the national territory except for subsidiary small-holding, agricultural constructions, educational entities, fishing and engineering constructions (if they are not used for economic activity).
The objective of this Law is to establish privitization of state-owned and municipal property. The Privatization Commission is established for the purpose of this Act and shall approve privatization programmes as well as control their implementation.
This Law regulates land registration and restriction of the right of ownership. In the Register of immovable property shall be recorded plots of land that have been attributed cadastre number (Art. 9). The following rights shall be recorded in the Register: (a) ownership; (b) servitude; (c) usufruct; (d) mortgage; and (e) long-term rent (Art. 11).
This Act makes provision for the taxation of ownership of private land. The annual rate of land tax shall be one and a half percent of the "cost" (not defined) of the land. In the case of forest land the value of trees shall not be included.
This Law regulates purchase of land by the foreign legal and natural persons, and also by foreign institutions and organizations that have no status of legal person but have legal capacity. It also establishes terms, conditions and restrictions on the purchase of land by foreigners.
Land shall be divided according to its use into land used for agricultural purposes and non-agricultural land. Land owners and land users (natural and legal persons) using land on the territory of the Republic of Lithuania, which has been allotted to them by State bodies or which they possess by right of ownership, shall be liable to land taxation.