Financial Services, Legislation, Lithuania, Real Estate, Taxation

International Internet Magazine. Baltic States news & analytics Thursday, 28.03.2024, 15:11

Real estate brokers in Lithuania don’t pay taxes

Danuta Pavilenene, BC, Vilnius, 03.04.2014.Print version
Every year over 100,000 transactions including leasing or sale of real estate are made in Lithuania, their value is estimated in billions. Yet taxes, paid to the state budget, are ridiculously small, writes LETA/ELTA, referring to Respublika.

Unscrupulous real estate brokers not only cheat on customers, but also do not pay taxes. MPs intend to put an end to it and are drafting a law on activities of real estate brokers.

 

MP Kestutis Masiulis has turned to the Ministry of Justice with a request to tame real estate intermediaries, agents and brokers. "I receive many complaints about the activities of real estate intermediaries, when ethics, respect for customers is disregarded, sellers and buyers of land and housing are deceived, doubts arise over transparency of activities of these persons and taxes paid by them," said MP Masiulis.

 

In 2013, approximately 123,000 real estate objects were transferred for several billion litas, the majority of transactions involved intermediaries, yet the taxes they have paid amount only to LTL 15 million (EUR 4.3 million). Masiulis proposes to regulate the activities of real estate brokers, to adopt their Code of Ethics and to appoint a monitoring body.






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