Your Legal Guide to Real Estate Investment in Lithuania

Foreign investors benefit from a clear regulatory framework, with no restrictions on purchasing residential or commercial properties (excluding agricultural land). Our law firm in Vilnius provides specialized legal services to guide both local and international clients through every stage of purchasing and managing real estate in Lithuania. Whether you are purchasing an apartment in Vilnius or leasing industrial space, our lawyers ensure compliance with Lithuania’s legal requirements. We guide clients through financial requirements, including mortgage options and potential tax implications, and maintain transparency on fees for notarization, property appraisal, and registration. We are also experienced in conducting due diligence, helping prospective buyers assess property histories, ownership rights, and potential encumbrances, as well as handling the complex requirements of agricultural land transactions.

Lithuania’s real estate market offers exciting opportunities for local and foreign investors alike, from residential apartments in Vilnius to commercial developments and industrial properties. Our Vilnius-based law firm provides comprehensive legal support through each step of the process.

Here’s everything you need to know to successfully invest in Lithuanian real estate.

Step-by-Step Real Estate Purchase Process in Lithuania

1. Preliminary Research and Due Diligence

• Property Inspection: Verifying the property’s legal status is crucial. Our attorneys review title deeds, property rights, liens, and encumbrances to ensure a clean transfer of ownership.
• Market and Legal Research: Understanding the market dynamics in Lithuania’s major cities, such as Vilnius, Kaunas, and Klaipeda, can inform your investment choices. We assist with comprehensive evaluations to align with your investment goals.
• Ownership Verification: Buyers must obtain a Certificate to execute the transaction. For properties registered separately, such as commercial complexes, two certificates may be necessary. This certificate also verifies the seller’s right to transfer ownership, protecting buyers from legal disputes.

2. Preliminary Agreement and Deposit

• Drafting a Preliminary Agreement: This agreement, signed before the final sale, confirms mutual interest, defines the price, payment terms, and deposit requirements (usually 10% of the property price). It binds both parties to proceed under agreed terms.
• Legal and Financial Provisions: It’s essential to outline specific deposit conditions in case either party withdraws from the agreement.

3. Final Sales Agreement and Notarization

• Notarized Contract: In Lithuania, all real estate sale-purchase agreements must be notarized to be legally valid. This ensures compliance with Lithuanian law, with both parties’ identities and terms verified.
• Transfer of Ownership Clause: Lithuanian law stipulates that ownership is officially transferred once the notarized contract is signed. Both buyer and seller sign an act of transfer-acceptance, legally recording the buyer’s new ownership status.

4. Payment and Registration

• Financing Options: Payments may be completed in cash or through a mortgage. Local banks in Lithuania offer mortgage options with loan conditions based on income, credit history, and financial assets. Our attorneys can help you compare mortgage terms and guide you through financing options.
• Registration of Property Rights: Following payment and notarization, the final step is registering the ownership transfer with the State Enterprise Center of Registers, formalizing the new ownership.

5.  Additional Legal and Financial Aspects

• Taxes and Fees: Lithuania’s tax structure is investor-friendly, with no transfer tax for real estate transactions. However, parties must pay notary and property registration fees.
• Optional Power of Attorney: For international buyers, our attorneys can manage the entire process via a power of attorney, allowing the transaction to be completed without requiring the buyer’s physical presence in Lithuania.

6. Bank Loans and Mortgages

• Mortgages: The property can be mortgaged to secure the lender's interests.
• Creation of a Special Purpose Company (SPV): It is possible to create an SPV—a separate legal entity with its own assets, liabilities, and legal status—often to isolate financial risk.

7. Key Considerations for Foreign Investors

• Agricultural Land Restrictions: While foreigners cannot directly purchase agricultural land, they may acquire a Lithuanian company with land rights.
• Residency and Visa Options: Buying real estate in Lithuania does not grant residency or a residence permit, though it can support residency applications. Holding Lithuanian property may also aid in Schengen visa applications.

With these steps, our Vilnius-based attorneys provide a seamless real estate acquisition process, tailored to the specific needs of local and international clients, ensuring compliance with Lithuanian regulations and maximizing investment security.

For comprehensive legal assistance in purchasing real estate in Lithuania, contact our Vilnius office. Our lawyers will support you at each step, safeguarding your interests and ensuring a smooth, compliant process, whether you are buying property for personal use, as an investment, or for commercial development.

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