| Abstract [eng] |
This master's thesis analyses the legal models of residential immovable property taxation with the aim of identifying the most suitable taxation model for Lithuania. The research object is the legal regulation of residential immovable property taxation and the different taxation models, encompassing the tax subject, object, base, rate, reliefs and the procedure for tax calculation and payment. By employing comparative, systematic and other research methods, the paper evaluates the advantages and disadvantages of the immovable property tax models applied in Lithuania and selected foreign jurisdictions, with regard to the principles of fairness, efficiency and administrative simplicity. The analysis established that the immovable property tax performs fiscal, regulatory and penalising functions within the Lithuanian tax system and is of particular importance for municipal fiscal autonomy. The examination of Lithuanian models revealed that the 2006–2011 model was excessively narrow, the 2012–2025 model operated as excessively narrow base, and the model effective from 2026, despite broadening the scope of taxation, raises concerns regarding compliance with the fairness principle and fiscal efficiency due to the high tax-exempt threshold for the primary residence. The comparative analysis of the Polish, Danish, Irish and French models demonstrated that none of them is universally optimal. Based on the analysis, the thesis recommends abandoning the concept of preferential taxation of the primary residence, establishing progressive tax rates at the central level, basing the tax on market value determined through mass appraisal, and and to ensure social sensitivity through a mechanism for deferring the payment of real estate tax for persons with disabilities whose level of working capacity does not exceed 40 percent, as well as for persons of retirement age whose monthly pension does not exceed the average pension in Lithuania, as well as through a reduced rate for families raising three or more minor children or a child with a disability. |
