Buying a property in Latvia: Guide for foreigners
How high are realtors´ and lawyers´ fees in Lithuania? What about other property purchase costs?
How difficult is the property purchase process in Lithuania?
Except for agricultural lands, there are virtually no restrictions in foreign ownership of land in Lithuania.
At the initial stage of a property transaction, the notary republic is required to order verification and revision of cadastral and registration data of the immovable property. This document is necessary for the execution of the sales contract. The process usually takes seven days but the buyer can opt for 1-day expedited processing at increased costs.
Every sale agreement of any real estate must be certified by a notary. Failure to notarize an agreement makes it null and void. Transfer of real property is documented by an act of transfer-acceptance signed by both seller and buyer. Notarization of the sales contract usually takes two days.
Registration of sale-purchase agreement is not mandatory. However, to protect the interest of both parties, registration with the Real Estate Register is highly recommended. Registration typically takes 10 days, but it can be expedited by paying a surcharge. It is worthwhile to note, however, that the registration of the agreement on the Real Estate Register is not a precondition to its validity.
It takes an average of 12 days to complete the three procedures needed to register a property in Lithuania.
What are the property purchase costs like in Lithuania?
|Registration fees||0.03% - 0.50%||buyer|
|Real Estate Agent Fee||1.00% - 3.00%||seller|
|Costs paid by buyer||0.48% - 0.95%|
|Costs paid by seller||1.00% - 3.00%|
|ROUNDTRIP TRANSACTION COSTS||1.48% - 3.95%|
| See Footnotes
Source: Global Property Guide
Footnotes to transaction costs table
The round trip transaction costs include all costs of buying and then re-selling a property - lawyers´ fees, notaries´ fees, registration fees, taxes, agents´ fees, etc.
Notary fees are generally around 0.45% of the property value.
|Value of property (in €)||Fee (in €)|
|Up to €8,688.60||1% of the value, but not less than € 14.48|
|from € 8,688.61 to € 28,962||€ 86.89 + 0.7% of the amount exceeding € 8,688.60|
|above € 28,962||€ 228.80 +0.5% of amount exceeding € 28,962|
Registration of sale-purchase agreement is not mandatory. However, to protect the interest of both parties, registration with the Real Estate Register is highly recommended.
Registration typically takes 10 business days, but it can be expedited by paying a surcharge based on the table below; 30% mark-up for fast track procedure that takes 3 business days, 50% mark-up for fast track procedure that takes 2 business days, and 100% mark-up for fast track procedure that takes 1 business day.
A cap of €1,448.10 is applied for registration fee. The cap applies separately to building and land so for a property composed of building and land, a total cap of €2,896.20 will apply.
|Market value of Building (in € )||Rate (in €)|
|Up to €14,481||€37.65|
|€14,481 - €231,696||0.05% on band over €14,481|
|€231,696- €868,860||0.055% on band over €231,696|
|Over €868,860||0.05% on all value over €289,620,
- maximum of €1,448.10
|Market value of Land Plot( in €)||Rate (in €)|
|Up to €2,896.20||€23.17|
|€2,896.20- €28,962||0.30% on band over €2,896.20|
|€28,962 - €289,620||0.30% on band over €28,962|
|Over €289,620||0.20% on all value over €7,240.50
-maximum of €1,448.10
New buildings, defined as buildings sold within 24 months of completion or improvement, are subject to 21% VAT.
Usually, real estate agent´s fee is 1.5% to 3.0% of the purchase price, plus 21% VAT.