Commercial Property Lithuania

BUYING COMMERCIAL PROPERTY/REAL ESTATE – LITHUANIA

1. Are there any restrictions on an overseas company or business buying commercial property?	No, but foreign companies may not acquire agricultural and forestry land. Foreign citizens may acquire agricultural land subject to certain exceptions. Foreign companies and individuals must comply with the ‘European and Transatlantic Integration’ criteria.
2. Is land/property generally ‘registered’ so that the title/ownership is guaranteed?	Any rights to immovable property can be exercised against the third parties only when they are registered with the Real Estate Register.
3. What are the basic requirements/procedures?	Following a written notarised agreement, an application for registration to the appropriate branch of the Real Estate Register.
4. On average, how long does the process take?	The ownership rights have to be registered within 10 working days and other rights - within 5 work days from the day of the submission of the application. A faster registration is subject to additional fees.
5. What searches are advisable?	Searches in the Real Estate Register, the Mortgage Register and the Property Seizure Register are advisable.
6. What are estimated disbursement costs?	Varies according to the average market price of the property.
7. What are the local and/or national tax considerations in the country of purchase?	According to the Lithuanian Law on Corporate Profit Tax, income received by a foreign company from the sale of real estate situated in Lithuania is taxed by way of withholding at 10% rate.
8. What other annual local charges are obligatory?	Annual land tax amounting to 1.5 % of the land price. Annual immovable property tax amounting to 1 % of the taxing value (cadastral value).
9. Are there any other issues to consider?	It is advisable to perform an environmetal investigation, as well as search for possible tax debts