Legislation Harmonised with That of the European Union

Harmonisation of the legal acts with those of the European Union and the reform of the administrative system in Lithuania has contributed to the protection of ownership, legal occupancy and investments. The real estate market in Lithuania is regulated following generally accepted principles of ownership immunity and protection of rights of a just acquirer (possessor). In addition, the principles of equal treatment and equal protection are the main principles of the investment law, meaning that both Lithuanian and foreign investors are subject to equal business conditions and their rights and lawful interests are equally protected by law.

Direct Investment into Real Estate is Uncomplicated
Unlimited Acquisition of Buildings 

Principally, there are no substantial restrictions to the acquisition of buildings, flats or other premises by Lithuanians or foreigners. Foreign investors have the right to buy or lease buildings for their commercial activities.

Construction Activities not Restricted

There are no particular restrictions imposed on the construction activities of foreign companies either. Procedures for issuance of planning permissions, building permits and commissioning are simplified and based on a one-stop-shop principle.
Special preservation requirements apply to cultural heritage.

Limited Direct Acquisition of Land

The main requirement for foreigners wishing to acquire land in Lithuania is meeting the criteria of origin – citizenship, permanent residency or establishment in a European Union Member State, or a member state of the Organisation for Economic Co-operation and Development (OECD) or of the North Atlantic Treaty Organisation (NATO), or a state which is a party to the European Economic Area Agreement. Foreigners that do not comply with the established criteria may lease land plots or use them based on other kinds of contracts. 

Sale-Purchase Agreements Certified by a Notary Public and Registered

For protection of owner interests, real estate sale-purchase agreements must be certified by a notary public. Lithuanian law is always applied to international transactions concerning real estate located in Lithuania. The transfer of real estate must be documented by a statement of transfer-acceptance signed by the buyer and the seller.

A notarised agreement on the sale-purchase of real estate is binding on the seller and the buyer. However, the sale and purchase of real estate may be invoked against third parties only in the event of being properly registered with the Real Property Register.

Property Registration is Easy

Lithuania is second in the world on ease of registering property, according to the World Bank Report “Doing Business in 2006: Creating Jobs”.
The Real Property Register contains all actual information on buildings and land plots, rights to real estate and encumbrances thereof. One can receive information from the Real Property Register on changes in real estate, mortgages on buildings or land plots including pledges of land lease rights, imposed attachments, civil cases brought to the court regarding real estate as well as registered agreements or decisions made regarding the legal status of real estate, such as concluded lease agreements and equivalent.

Registration of Mortgages is Quick

Information on real estate mortgages in the Real Property Register comes from the Register of Mortgages. Divisions of Mortgages at the local courts are in charge of the registration of mortgages that come into effect upon registration in the Register of Mortgages. It takes three days to register a real estate mortgage. Real estate mortgages are common collateral on loans issued by Lithuanian banks for the acquisition and development of real estate.

No Restrictions for Indirect Acquisition of Real Estate

Enterprises established in Lithuania notwithstanding who has their effective control are entitled to acquire real estate without any specific restrictions. Companies of limited liability are the common legal form in Lithuania. Private limited liability companies with minimum capital of approx. € 2,900, up to 250 stockholders and public limited liability companies with a minimum capital amount of approx. € 43,443 are the two alternatives for companies. Registration of a limited liability company takes two weeks on average.

Lithuanian law, designated to satisfy private interests, has established a number of other legal forms for private ownership and the use of real estate: a personal enterprise, a general partnership and a limited partnership. With the exception of limited partners in a limited partnership, personal enterprises and partnerships are regarded as companies with unlimited responsibility.

A new integrated Register of Legal Persons has been established for the purpose of accumulating, protecting and providing information on all Lithuanian companies and other legal persons. A company is considered to be established only when this company is registered in the 

Register of Legal Persons.

No Limitations on Letting of Real Estate 

Both Lithuanian companies and foreigners may lease land and buildings, either from the state or from private owners. Any agreement for the rent of real estate is to be concluded in written form and no further approval by a notary public is required. Such agreement may also be invoked in respect to third parties only upon its registration with the Real Property Register. With the exception of certain lease conditions specified by law, provisions of the lease of real estate are negotiable. One of the lease conditions regulated by law is that terms of state-owned land leases may not exceed 99 years (25 years for agricultural land) and other real estate may not exceed 100 years.

Commercial real estate leases typically have terms of three or more years. A lessee that has duly performed under the terms of a lease agreement shall be entitled to a pre-emptive right to renew the lease agreement and is entitled to restitution if the lessor has failed to comply. A lease agreement may be terminated under certain circumstances as established by law and the contract.