Real Estate Inheritance in Lithuania: A Step-by-Step Guide

Losing a loved one is one of life's hardest moments. Unfortunately, even during a period of grief, practical matters need to be resolved: what happens to the apartment, house, or land? How do you formalize everything correctly? What taxes will need to be paid? In this article — everything you need to know about inheriting real estate in Lithuania: from your first visit to the notary to the registration of ownership rights.

Inheritance Procedure: From Start to Finish

In Lithuania, real estate can be inherited in two ways — by testament (will) or by law (when there is no will). In both cases, the process consists of three main stages.

1. Contacting a Notary

The first and most important step — within 3 months of the deceased's death, you must contact a notary at the place of inheritance (usually the deceased's last place of residence). The notary opens an inheritance case and begins collecting information about:

• the deceased's assets and debts,
• potential heirs (by testament or by law),
• whether a will exists (checked in the Testament Register).

Each potential heir can submit a declaration of acceptance. If you don't apply within 3 months, you may need to restore your right through court — which takes time and money.

💡 Tip: You can not only accept but also reject the inheritance — for example, if the deceased's debts exceed the property value. Rejection is also formalized through the notary within the same 3-month period.

2. Receiving the Inheritance Certificate

After 3 months from the opening of inheritance and once the notary has collected all necessary information, they issue an inheritance rights certificate (paveldėjimo teisės liudijimas) — the key document confirming your right to the inherited property.

How much does it cost? The notary fee for issuing an inheritance certificate is 0.08% of the inherited property's value, but no less than €17 and no more than €338 (+ 21% VAT).

Important: Before receiving the certificate, any applicable inheritance tax must be paid (more on this below).

3. Property Registration at the Register Centre

After receiving the inheritance certificate, you must register ownership rights at the State Enterprise Register Centre (Registrų centras). This can be done:

• through the notary — the most convenient option; the notary submits documents electronically,
• in person — by visiting a Register Centre client service office with an identity document.

Only after registration do you become the full owner and can sell, rent, or mortgage the property.

What Documents Do You Need?

Here's a document checklist for each stage:

For the notary (opening the inheritance case):

• death certificate,
• deceased's identity document (if available),
• documents confirming family relationship (birth certificates, marriage certificate, etc.),
• the will (if one exists),
• real estate ownership documents,
• property valuation report (recommended — more on this in the tax section).

For the Register Centre (ownership registration):

• inheritance rights certificate,
• identity document (passport or ID card),
• application to register ownership rights.

💡 Tip: Make copies of all documents — they'll come in handy both for the inheritance case and later when dealing with tax matters.

Timelines: How Long Does the Entire Process Take?

If disputes arise between heirs or court intervention is needed — the process can extend from 6 months to several years.

Inheritance and Banks: What to Do With a Mortgage?

Inheriting Property With a Loan

It's important to understand: you inherit not just the property but also the debts. If the deceased had an outstanding mortgage — it passes to the heir. You cannot partially accept the inheritance: you either accept everything (property and debts) or reject everything.

There are two acceptance methods with different levels of liability:

• General acceptance — you assume full responsibility for the deceased's debts, even if they exceed the value of inherited property. You're liable with your personal assets too.
• Inventory method — your liability is limited to the value of inherited property. This is the safer option, especially when you don't know all of the deceased's financial obligations.

💡 Tip: If you don't have a clear picture of all the deceased's debts — choose inheritance by inventory. It will protect you from unpleasant surprises.

How to Deal With the Bank?

1. Notify the bank as soon as possible — although formally the loan repayment obligation begins only after accepting the inheritance, late fees can accumulate. The bank can temporarily defer payments or review conditions.

2. Check if the deceased had life insurance — many mortgage holders have associated life insurance that covers the remaining loan balance in case of death. This could completely eliminate the debt.

3. Refinancing or loan takeover — if you want to keep the property, you'll either need to take over the existing loan (the bank will assess your creditworthiness) or refinance with a new loan.

To understand whether you can afford to take over the loan, use the borrowing capacity calculator. And to compare refinancing options — the loan calculator will help you calculate monthly payments under different conditions.

Taxes: What and How Much Will You Need to Pay?

Inheritance Tax

Good news — close relatives pay no inheritance tax. This means that a spouse, children, parents, grandparents, siblings, and grandchildren inherit real estate tax-free.

For more distant relatives and unrelated persons, tax is calculated on 70% of the property's value:

Property valued at under €3,000 is exempt. The tax must be paid before the notary issues the inheritance certificate.

Personal Income Tax (PIT) When Selling Inherited Property (2026 Reform)

If you plan to sell the inherited property — this is the most important part. From January 1, 2026, a new progressive PIT system applies:

Profit = sale price − acquisition price (value established at inheritance) − allowable deductions.

When PIT doesn't apply:

• you held the property for 5 or more years (was 10 years before 2026),
• you used the property as your primary residence for at least 2 years and had your address declared there,
• you sold your residence and within 1 year purchased another home where you declared your address.

Declaration deadline: by May 1st of the following year after the sale.

Annual Real Estate Tax

From 2026, annual real estate tax rules also change:

• Primary residence — tax-free up to €450,000 in value (for two owners — up to €900,000).
• Second and subsequent properties — taxed from €50,000 value, at 0.2–1% (set by municipality).

If you inherited a second property and don't plan to live there — be prepared for an annual real estate tax.

How to Reduce Taxes: Practical Tips

Here are the most important tips that people use in the Lithuanian market:

1. Get a Professional Property Valuation at the Time of Inheritance

This is the most important tip in this article. The notary can record the property value in the inheritance certificate based on Register Centre data or based on an independent appraiser's report that you provide.

The Register Centre's average market value is often lower than the actual market price. The higher the value established at inheritance — the smaller the difference between the sale price and acquisition price — the lower the PIT.

Example: The Register Centre values an apartment at €80,000, but the real market value is €110,000. If you later sell for €130,000:

• With RC value: profit €50,000, PIT ~€8,478
• With appraiser's value: profit €20,000, PIT ~€3,000

A valuation service costs €100–300 but can save thousands.

To get an initial understanding of your property's market value, you can use the property value calculator — it will help you form a preliminary picture before hiring an appraiser.

2. Hold the Property for at Least 5 Years

From 2026, 5 years is enough (previously 10) to sell inherited property completely PIT-free. If you're not in a hurry — just wait.

3. Declare Your Residence at the Inherited Property

If you plan to live in the inherited apartment or house — declare your residence there. After 2 years of living there, you can sell without PIT, regardless of how long you've owned it.

4. Document All Renovation Expenses

If you invest in repairs or reconstruction of the inherited property — keep all invoices and payment documents. These expenses increase the property's acquisition price and accordingly reduce taxable profit at the time of sale.

5. Consider Gifting While Still Alive

Some families choose to gift real estate while still alive rather than leave it for inheritance. The tax benefit is minimal — PIT on sale is calculated identically for both gifted and inherited property. However, gifting has other advantages:

• avoids the inheritance procedure and potential disputes,
• the donor can set conditions (e.g., retain usufruct — the right to live in the property until death),
• clarity about property distribution while the person is still alive.

6. Reinvestment Exemption

If you sold an inherited home where you lived and within 1 year purchased another home and declared your residence there — no PIT is due.

Disputes Between Heirs: How to Avoid and Resolve Them

Most Common Dispute Scenarios

When several people inherit property — disputes are almost inevitable. The most common cases:

• several children disagree on what to do with the property (one wants to live there, another wants to sell),
• the will is unfavorable to some family members,
• a cohabiting partner has no inheritance rights by law (only registered marriage grants the right to inherit),
• some heirs invested in property maintenance or repairs, others didn't.

Forced Heirship (Privalomoji palikimo dalis)

Even if a will leaves all property to one person, certain family members have the right to a forced share — that is, half of the share they would receive under statutory inheritance.

Who has this right?

• children (adopted children),
• spouse,
• parents (adoptive parents).

Important condition: the right to a forced share belongs only to those who needed support on the date of the deceased's death — i.e., they couldn't support themselves due to health, age, or other circumstances. The court evaluates each person's financial situation individually.

Resolution Methods

1. Family agreement — the best option. Heirs agree on property division or share buyout. The agreement can be notarized.

2. One heir buys out the others' shares — the most common solution when one person wants to live in the inherited property. You'll need funds or a loan — check your options with the borrowing capacity calculator.

3. Sell the property and split the proceeds — when nobody wants the property, the simplest approach is to sell and divide. To understand whether the property is more profitable rented or sold — check with the profitability calculator.

4. Mediation — informal third-party assistance in negotiations. Cheaper and faster than court.

5. Court — the last resort when agreement is impossible. The statute of limitations to challenge inheritance rights is 1 year from the date of inheritance opening. Court proceedings can take a year or longer.

💡 Tip: If your family has several potential heirs — talk about property plans before misfortune strikes. An open conversation can save you from years of litigation.

Additional Tips

Check for Life Insurance

Many mortgage holders have life insurance that covers the remaining loan amount in case of death. This can fundamentally change the situation — instead of inheriting debt, you receive property free and clear.

Neglected Property Tax From 2026

From 2026, municipalities can apply an increased real estate tax (1–5% per year) on neglected or vacant property. If you inherit property and don't plan to look after it — this is an additional financial risk.

Inherited Property Abroad

If the deceased owned real estate in another country — inheritance is governed by that country's laws. In EU countries, the European Succession Regulation (No. 650/2012) applies, which generally applies the law of the deceased's last habitual residence. In such cases, consulting a lawyer is essential.

Renting as an Alternative to Selling

If you're not in a hurry to sell — you can rent out the inherited property. This allows you to generate income while waiting for the 5-year PIT exemption period to pass, and the property won't be considered neglected.

When to Consult a Lawyer?

• When there are disputes between heirs,
• when inheriting property abroad,
• when the deceased's debts may exceed the property value,
• when the will seems unclear or contestable,
• when you need to challenge the forced share.

Frequently Asked Questions (FAQ)

How long do you have to accept an inheritance?

3 months from the date of the deceased's death. If the deadline is missed, you can apply to court for its restoration, but you'll need to justify why you didn't apply on time.

Do close relatives pay inheritance tax?

No. A spouse, children, parents, grandparents, siblings, and grandchildren pay no inheritance tax, regardless of the property's value.

How long must you hold inherited property to avoid PIT?

From 2026 — 5 years from the inheritance date. Alternatively — if you declare your residence and live there for at least 2 years, or reinvest in another home within 1 year of selling.

What should you do if inherited property has a mortgage?

First — notify the bank. Check if there's life insurance that would cover the debt. Then decide: accept the inheritance (with the loan) or reject it. If you accept — you can take over the loan, refinance, or sell the property and repay the debt from the proceeds.

Can you reject an inheritance?

Yes. Within 3 months of death, you can officially reject the inheritance at the notary. After rejection, you don't have to pay any of the deceased's debts, but you lose the right to all inherited property. Rejection is final.

Sources:

1. VMI — Inheritance Tax — accessed 2026-03-28
2. VMI — Real Estate Tax Changes from 2026 — accessed 2026-03-28
3. Ministry of Finance — Inheritance Tax — accessed 2026-03-28
4. Constat — Taxes When Selling RE in 2026 — accessed 2026-03-28
5. Asta Samulionytė — Selling Inherited Property and Taxes — accessed 2026-03-28
6. Luminor — Mortgage Inherited From a Loved One — accessed 2026-03-28
7. Teisės Garantas — Inheritance in Lithuania — accessed 2026-03-28
8. Teisės Garantas — Disputing Inheritance Rights — accessed 2026-03-28
9. Lithuanian Civil Code, Art. 5.20 — Forced Heirship — accessed 2026-03-28
10. Loreta Selilionė — Selling Gifted and Inherited Property — accessed 2026-03-28
11. NT7 — 2025 Tax Reform: Inherited Property — accessed 2026-03-28