Global Daily Tax News, Lithuania Legislates For Luxury Vehicle Tax, (Nov 10, 2025)

Draft legislation tabled in Lithuania's legislature, the Seimas, at the end of October would establish a new motor vehicle luxury tax from January 1, 2026.

The legislative proposal includes provisions for the imposition of an additional tax on the registration of motor vehicles with high-power engines, based on engine capacity.

The tax will apply at a rate of one percent of the value of the vehicle, for vehicles with engine power of between 151 kW and 300 kW, while a two percent rate would apply for more powerful vehicles.

The tax will not apply to vehicles with an engine power of less than 150 kW, or to SUV class vehicles or 6+ seat vehicles with an engine of up to 250 kW and purchased by a married couple raising two or more children, providing also that the vehicle does not exceed by 20 percent the average price of a car in the same vehicle segment in the previous year.

The tax will be refunded if the vehicle is deregistered and exported within a period of 90 days of registration.