Car Sale Taxes in Lithuania 2026 — PIT, Declaration Guide

PIT at a Glance

When do you have to pay PIT after selling a car?

You do not have to pay PIT if you have owned the car for at least 3 years — no matter what it cost. If you owned it for a shorter time, tax arises only when the sale price exceeds the acquisition price and mandatory payments, but the sale has to be declared either way.

PIT on a car sale = 15% of the profit (the sale price minus the acquisition price and mandatory payments). In 2026, progressive rates apply to higher incomes: when the profit together with your other income not from employment and not from individual activity exceeds 12 VDU (27,745.80 EUR) in a year, the excess is taxed at 20% as long as your annual income (including salary) does not exceed 36 VDU (83,237.40 EUR), at 25% between 36 and 60 VDU (83,237.40–138,729 EUR) and at 32% above 60 VDU. Below are the exact rules, calculation examples and instructions for declaring to VMI.

What You'll Find in This Article

Illustration: What you'll find in this article

• When no taxes are due
• When you must pay PIT (Personal Income Tax)
• How to calculate the tax
• Declaration to VMI (tax authority)
• Business owners and VAT

The Main Rule

For private individuals: If you sell a car (not an asset of individual activity) that you have owned for at least 3 years, you do NOT have to pay income tax. If you owned it for a shorter time, the profit is taxed, even if you used the car only for personal purposes.

Why? VMI states that income from selling registrable movable property (such as a car) is not taxed if the property has been owned for at least 3 years. In other cases, the profit from the sale is taxed.

When You DON'T Need to Pay Taxes

1. You Have Owned the Car for at Least 3 Years

• The period runs from the day you acquired ownership according to the acquisition document (for example, the sale and purchase agreement; for a car acquired through leasing, from the date of the handover certificate)
• It doesn't matter whether you sell for more or less than you paid
• Income from selling a car registrable in Lithuania or another European Economic Area country does not have to be declared

Example: You bought a car for 10,000 EUR and sell it 4 years later for 12,000 EUR. No tax.

2. You Inherited a Car and Are Selling It

• The 3 years run from the date of death of the person who left the inheritance — VMI states that this is the acquisition date of inherited property. Exception: if the surviving spouse inherits a car the spouses owned jointly, the period runs from the date the car was acquired according to the acquisition document
• If at least 3 years have passed since then, there is no sale tax; if less, the profit is taxed at 15% PIT

3. You Received a Car as a Gift and Are Selling It

• The 3 years run from the day you acquired ownership under the deed of gift
• If at least 3 years have passed since then, there is no sale tax; if less, the profit is taxed at 15% PIT

When You DO Need to Pay Tax

1. Conducting Business Activity

If you regularly buy and sell cars for profit — this is considered individual activity.

Indicators VMI looks at: independence in decision-making, continuity and repetition of transactions, and the aim of concluding more similar transactions and gaining an economic benefit. A one-off, occasional sale of a personal car without any elements of entrepreneurship does not oblige you to register individual activity.

Tax: individual activity income tax. In 2026, when taxable income does not exceed 20,000 EUR a year, it is effectively 5%; between 20,000 and 42,500 EUR it gradually rises to 20%, and higher incomes are taxed at 20, 25 or 32%. VAT applies if you are required to register as a VAT payer (for example, when your income over the last 12 months exceeds 45,000 EUR).

2. Company-Owned Vehicle

If the car belongs to a company:

• The sale is taxed as company income
• Corporate income tax (from 2026, the standard rate is 17%; reduced rates apply to certain small entities)
• VAT may apply (21%)

3. You Sold for More Than You Paid Before Owning the Car for 3 Years

Rule: PIT = (sale price − acquisition price − mandatory payments) × 15%. The income has to be declared and the tax paid by 1 May of the following year.

In practice: Cars usually lose value rather than gain it. But if there is a profit, tax is due on a personal car too.

How to Calculate the Tax (If Applicable)

Private Sale (No Individual Activity)

Formula (VMI):

Profit = Sale price – Acquisition price – Mandatory payments
Tax = Profit × 15%

Example (you sold the car after 2 years; for simplicity, mandatory payments are left out):

• Purchased for: 10,000 EUR
• Spent on repairs: 1,000 EUR (these costs cannot be deducted)
• Sold for: 13,000 EUR
• Profit: 13,000 – 10,000 = 3,000 EUR
• Tax: 3,000 × 15% = 450 EUR

If you sell cars as part of individual activity, the allowable deductions related to the activity are subtracted from the income, and the tax is calculated under the individual activity rules.

Important: Expenses

You can deduct:

• The acquisition (purchase) price
• Mandatory payments incurred when acquiring or selling the car (for example, Regitra registration fees, customs duties)

You cannot deduct:

• Repair costs — VMI counts them neither as part of the acquisition price nor as mandatory payments
• Fuel costs
• Insurance
• Personal taxes

Declaration to VMI (Tax Authority)

If You're a Private Individual (Not a Business)

Do you need to declare the sale of a personal car?

NO — if you have owned the car for at least 3 years and it is registrable in Lithuania or another European Economic Area country.

YES — in all other cases, for example, if:

• You sold the car before owning it for 3 years (even for less than you paid)
• The car is registrable in a country outside the EEA
• You conduct business activity

If You Conduct Business Activity

You must:

1. Register your activity (if not already registered)
2. Keep an income/expense journal
3. File an annual declaration
4. Pay PIT and Sodra (social insurance) contributions

Annual Declaration

Form: GPM311 (used to declare income for 2019 and later years)

Deadline: By 1 May of the following year — the calculated PIT must also be paid by that date (payment code 1441)

Business Owners and VAT

Illustration: Business owners and VAT

When Is VAT Required?

If you sell as a VAT payer:

• Your company is a VAT payer
• The car was purchased with VAT deduction
• The sale is subject to VAT (21%)

If the car is from the EU (used):

• The "margin" scheme may apply
• VAT is calculated only on the margin (profit)

Individual Enterprise Cases

If you own an individual enterprise (IĮ) and sell a company car:

• Income is included in company revenue
• Corporate income tax may apply
• Consult an accountant

Practical Tips

Keep Your Documents

Be sure to keep:

• Purchase invoice/contract
• Sale contract
• Repair invoices
• Registration documents

For how long? At least 5 years (VMI audit period).

Write the Correct Price in the Contract

Why is this important?

• VMI can check
• Incorrect data = problems
• It matters for the buyer too (if they resell)

Don't Abuse the System

If you regularly buy/sell:

• Register your business activity
• Pay taxes
• You'll avoid fines

WHEELSTREET recommends: Looking for a car? Leave your number — we'll call you with specific offers. ☎ +370 660 09716

Common Situations

Situation 1: Selling My Personal Car

Question: I bought it for 15,000 EUR and am selling it for 12,000 EUR. Will I pay taxes?

Answer: NO — you sold for less than you paid, so there is no profit. If you owned the car for less than 3 years, you still have to declare the sale by 1 May of the following year.

Situation 2: Selling for More Than I Paid

Question: I bought it for 8,000 EUR, invested in repairs, and am selling it for 11,000 EUR. Will I pay taxes?

Answer: It depends on how long you have owned the car. If at least 3 years — NO. If less — YES: 15% PIT on the 3,000 EUR difference minus mandatory payments, so at most 450 EUR; repair costs cannot be deducted. If it is a regular activity, the individual activity rules apply.

Situation 3: Selling My Third Car This Year

Question: I've already sold 2 cars, now selling a third. Will VMI notice?

Answer: Possibly. If all sales are one-off (family cars), probably not. If a resale motive is apparent — there may be questions.

Situation 4: I Received a Car as a Gift and Want to Sell

Question: My father gave me a car as a gift, and I want to sell it. What taxes?

Answer: Gifts between close relatives are tax-free. There is no sale tax if at least 3 years have passed between the deed of gift and the sale; if less, the profit is taxed at 15% PIT.

Taxes When Buying a Car

From a Private Person in Lithuania

Taxes: Regitra fee for change of keeper — 11.30 EUR (with 20% discount 9.04 EUR) and one-off pollution tax (0 EUR up to 130 g/km CO2)

From a Company/Dealership in Lithuania

Taxes: VAT is already included in the price

Importing from the EU

Taxes: None additional (except registration)

Importing from Outside the EU (USA, UK)

Taxes:

• Customs duty: 10% (for US-origin cars from 2026-07-01 — 0%; origin decides, not the country of purchase)
• VAT: 21%

More: Car Import from Germany

Frequently Asked Questions

Conclusions

Our expert recommendation

Key takeaway: If you have owned the car (not an asset of individual activity) for at least 3 years, you do NOT have to pay taxes when you sell it.

Exceptions:

• You sold the car before owning it for 3 years and for more than you paid (15% PIT on the profit)
• You conduct resale activity
• You're selling a company car
• You regularly sell many vehicles

Tips:

• Keep your documents
• Write real prices
• If in doubt — consult VMI or an accountant

If you're considering another way to acquire a car, read about leasing with buyout or use the leasing calculator to estimate your monthly payment. And if you want to sell quickly and hassle-free, use our car buyout service.

Have questions about selling a car? Contact WheelStreet — we'll help you understand the situation.

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