TRINITI JUREX
Can anyone (including foreigners) own and occupy real estate in your jurisdiction (including shares in property owning companies)? Are there any restrictions?
In Lithuania, a temporary law prohibits Russian citizens and non-residents (including their companies) from acquiring real estate. Other foreign nationals and companies may acquire real estate, but restrictions apply to land plots. Citizens and permanent residents of EU, EFTA, OECD, and NATO countries may purchase residential or commercial land without permits. Agricultural land is restricted to residents of these countries, additional formalities are applied, while acquisition by others is not allowed. There are no restrictions on renting real estate, regardless of nationality or residency, except for agricultural land.
Are there restrictions on lending for the purchase of real estate by foreign companies? If so briefly give an outline?
There are no general legal restrictions on lending for the purchase of real estate in Lithuania. However, when evaluating a borrower's creditworthiness, banks may treat foreign nationality or residency status as a potential risk factor. In addition, compliance with EU anti-money laundering (AML) regulations is mandatory, and the relevant procedures must be completed before a lending decision can be made.
Buying
Please provide a short summary of the fees and costs (including tax) relating to buying real estate in your jurisdiction.
When acquiring real estate in Lithuania, a fee must be paid to the notary for certifying the transaction. The fee amounts to 0.37% of the price of the property as stated by the parties, but no less than €33 and no more than €5,000, plus 21% VAT. Additionally, a registration fee must be paid for recording ownership in the Real Estate Register, the amount of which depends on the processing time and the number of properties involved. Real estate transactions are subject to VAT (21 per cent), some exemptions are applied.
Owning
Are there taxes applicable to owning real estate and can the burden of the taxes be passed to someone else (e.g. a tenant or an occupier - not being the owner
Real estate tax is mandatory for all commercial property owners in Lithuania. Depending on the property's use and the municipality in which it is located, the tax rate ranges from 0.5% to 3%. Some municipalities provide tax relief or exemptions for certain categories of property owners or for properties serving specific purposes. A higher tax rate is typically applied to unused or vacant properties. The tax is payable by the property owner, although under triple net lease agreements, tenants usually compensate the respective portion of the tax related to the leased premises. Real estate taxation for residential property is currently undergoing reform.
Tax Breaks
Are there tax breaks or other incentives for foreigners to buy real estate in your jurisdiction? If so, what are they?
Lithuania does not offer substantial benefits, nor tax breaks for foreign buyers, these apply only through Free Economic Zones (FEZ) and to business entities. FEZ tax breaks include: (a) 0% corporate income tax for first 6–10 years, then up to 50% reduction for next period; (b) 0% on real estate and dividend taxes.
How is the ownership of Real Estate evidenced in your jurisdiction?
The title to real estate is transferred by a notarial deed of transfer and acceptance, which is typically part of a sale-purchase agreement. Transactions that do not comply with this formal requirement are considered null and void. Once such a contract is certified by a notary, it becomes legally binding between the parties from the moment of its formation. Subsequently, the transfer of ownership must be registered in the Real Estate Register to satisfy the principle of publicity.
Is it possible to keep the identity of owners of real estate confidential in your jurisdiction?
No, the fact of transfer of ownership shall be mandatory registered in Real Estate Register. Access to data in the Real Estate Register is subject to certain restrictions.