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Ease of Doing Business in

Lithuania

Lithuania Download Profile (1756.7KB, pdf)
Region Europe & Central Asia
Income Category High income
Population 2,910,199
GNI Per Capita (US$) 15,000
City covered Vilnius

190

1

DB 2017 Rank

1

100

DB 2017 DTF (% points)

  • local_library
  • group
Topics DB 2017 Rank DB 2016 Rank info_outline Change in Rank DB 2017 DTF (% points) info_outline DB 2016 DTF (% points) info_outline Change in DTF (% points) info_outline
Overall 21 21
0
78.84 78.60 down
0.24
Starting a Business 29 28 down
1
92.99 92.94 up
0.05
Dealing with Construction Permits 16 15 down
1
80.44 80.43 up
0.01
Getting Electricity 55 58 up
3
80.08 78.97 up
1.11
Registering Property 2 2
-
92.93 92.93
-
Getting Credit 32 29 down
3
70.00 70.00
-
Protecting Minority Investors 51 48 down
3
61.67 61.67
-
Paying Taxes 27 29 up
2
85.44 85.46 down
0.02
Trading across Borders 19 19
-
97.70 97.70
-
Enforcing Contracts 6 5 down
1
77.88 77.88
-
Resolving Insolvency 66 68 up
2
49.23 48.06 up
1.17

Positive= Doing Business reform making it easier to do business.Negative= Change making it more difficult to do business.

DB 2017 Rank:

2

DB 2016 Rank:

2

Change in Rank:

0

DB 2017 DTF (% points):

92.93

DB 2016 DTF (% points):

92.93

Change in DTF (% points):

0.00

STANDARD PROPERTY TRANSFER
Property value EUR 614,260
City Vilnius
Indicator Lithuania Europe & Central Asia OECD high income
Procedures (number) info_outline 3 5.3 4.7
Time (days) info_outline 3.5 20.6 22.4
Cost (% of property value) info_outline 0.8 2.5 4.2
Quality of the land administration index (0-30) info_outline 28.5 19.8 22.7
  • Measure of efficiency
    No. Procedure Time to Complete Associated Costs
    1

    Notary order verification and clarification of the property data

    Agency: Information system of the Real Estate Agency

    Resolution No. 527 of the Government of the Republic of Lithuania as of May 4, 2011 On the amendment of Resolution No. 1129 of the Government of the Republic of Lithuania of July 12, 2002 On the approval of the Real Estate Cadastre regulations stipulates that a notary public, at the initial stage of preparing an immovable property transaction, is required to order verification and revision of cadastral and registration data of an immovable item that are necessary for the execution of the immovable property contract. The Information System of Public E-Services for Immovable Property Transactions shall generate a notice on the future transaction and submit it to the Registrar of Real Estate. Having received the notice, the Registrar of Real Estate shall verify and, if necessary, revise the cadastral and registration data of the immovable item that are necessary for the execution of the immovable property transaction (or, in certain cases, refuse to revise the data due to specific reasons) and make a relevant note of the data revision with the Real Estate Register. The note shall be valid for 30 calendar days after the data revision. Data of the Real Estate Cadastre and Register required for the execution of the immovable property transaction must be verified and the notes of data revision or refusal to revise them must be made latest in 8 working hours or, in certain cases subject to the status of cadastral and registration data of the immovable item held by the Real Estate Register, latest in 3 working days from the receipt of notice of pending transaction from the Information System of Public E-Services for Immovable Property Transactions.

    Less than a day (online procedure)

    EUR 3.62 is a fee payable to the Center of Registers for verification and revision of cadastral and registration data of an immovable item as well as for the making of data revision notes (by the Center of Registers)
    2

    Notarization of the sale-purchase agreement

    Agency: Notary Public

    Pursuant to the Resolution No. 1129 of the Government of the Republic of Lithuania from July 12, 2002 "On the approval of the Real Property Register Regulations", Civil Code, Law on Land and Law on Companies of the Republic of Lithuania with later amendments thereof, a contract of purchase and sale of an immovable item must be made in a notarial form. Failure to comply with the requirements of the form shall render the contract invalid. The contract of purchase and sale of an immovable item may be used against third parties and have legal implications for them only in case it is registered with the public register in the statutory Procedure (procedure 3). The title (right of ownership) to the immovable item shall devolve to the buyer from the moment of transfer of the item. The transfer and acceptance of the immovable item shall be documented in a statement of transfer and acceptance signed by the seller and the buyer or in another document specified in the contract of purchase and sale. Likewise, the provisions regarding the transfer and acceptance of the immovable item may be inserted in the contract of purchase and sale. In such a case, the item and the title thereto shall transfer to the buyer at the moment of signing the contract.


    The Directive 2010/31/EU of European Parliament and Council of 19 May 2010 on the energy performance of buildings was enforced in Lithuania. Respective amendments to the Republic of Lithuania Law on Construction as from 9 January 2013 came into force. The energy efficiency certification is mandatory in case of sale of the property. The seller of a building being sold must provide the buyer with a valid energy efficiency certificate of a building or part thereof, save as in cases established by the Law on Construction (e.g., the energy efficiency certification shall not be mandatory for non-residential buildings of low energy consumption used for industrial, warehousing and agricultural management purposes).


    The list of documents to be submitted to notaries include:

    • Articles of association of private limited liability companies;

    • Power-of-Attorney issued by the CEO of a private limited liability company, if another authorized person, instead of the CEO, is acting on behalf of the company;

    • Personal ID of the representatives of the parties to the contract

    • Resolution of the board of a private limited liability company (if this body has been formed) in cases when the book value of the immovable property to be sold exceeds 1/20 of the authorized capital of the company or any other value established in the articles of association of the company. Where no board is formed in the company, such resolution shall be passed by the CEO of the company.


    • Where so is specified in the articles of association of a private limited liability company, approval of the aforementioned resolutions of the board or CEO (if the board is not formed) by the general meeting of shareholders;

    • Land plot plan;

    • Documentary proof of seller's title to immovable items (legal basis for the acquisition of the immovable item, for example, a contract of exchange, a contract of purchase and sale, etc., on which basis the title to the immovable item has been registered);

    • Energy Performance Certificate (an original document or a copy) shall be submitted to a notary. In case if the energy consumption of the building is low/the building is not heated, the provision of the energy certificate is not required;

    • Other documents, if requested subject to factual circumstances."

    1 calendar day Notary fees: 0.45% of property price, but not less than € 28.96 and not exceeding € 5,792.40 (€ 14,481, if more than one object is transferred)

    In addition, EUR 3.62 is a fee payable to the Center of Registers for verification and revision of cadastral and registration data of an immovable item as well as for the making of data revision notes (by the Center of Registers)
    3

    Register the transfer of title to the property in the Real Estate Register

    Agency: Notary Public / State Enterprise Center of Registers

    Due to revisions of Law on Real Property Register of the Republic of Lithuania and Regulations of the Real Property Register mentioned previously, one-stop-shop principle was fully implemented in the immovable property transfer process, i.e. a buyer and a seller visit only notary public office in order to conclude property transfer and register ownership rights. After notarisation of the sale-purchase agreement, the notary online immediately orders registration of new ownership rights in the Real Property Register. The registration of ownership rights under fast-track procedure (1 business day) can be done on the same day when notarisation of sale-purchase agreement takes place in case of a simple property transaction which is described in the current questionnaire.

    Due to introduction of euro in Lithuania on 1 January 2015, registration fees remained the same, only ranges of average market value for calculation of registration fees of buildings and land plots were adjusted. Therefore, the corrections are given below:
    Average market value of building - registration fee:
    Up to EUR 14,500 = EUR 37.65
    From EUR 14,501 to EUR 232,000 = EUR 37.65 + 0.05% difference between building's average market value and EUR 14,500
    From EUR 232,001 to EUR 870,000 = EUR 146,26 + 0.055% difference between building's average market value and EUR 232,000
    More than EUR 870,000 = EUR 496,70 + 0,05% difference between building's average market value and 870,000, but not more than EUR 1448,10 (the ultimate cap fee for registration
    Average market value of land plot - registration fee:
    Up to EUR 2,900 = EUR 23.17
    From EUR 2,901 to EUR 29,000 = EUR 23.17 + 0.3% of the difference between land plot's average market value and EUR 2,900
    From EUR 29,001 to EUR 290,000 = EUR 101.37 + 0.3% of the difference between land plot's average market value and EUR 29,000
    More than EUR 290,000 = EUR 883.34 + 0.2% of the difference between land plot's average market value and EUR 290,000, but not more than EUR 1448.10 (the ultimate cap fee for registration)


    Legal basis: Law Amending Articles 17, 23, 26 and Invalidating Article 25 of the Law on Real Property Register No I-1539 of the Republic of Lithuania as of 23 June 2015 No XII-1833; Resolution No 1194 of the Government of the Republic of Lithuania as of 18 November 2015 on Amendment to Resolution No 379 of the Government of the Republic of Lithuania as of 23 April 2014 on Approval of the Real Property Register Regulations

    1 business day
    Depends on the market value of the real estate and the desirable term of the registration (see Notes in comments for more details)

  • Measure of quality
    Answer Score
    Quality of the land administration index (0-30) 28.5
    Reliability of infrastructure index (0-8) 8.0
    What is the institution in charge of immovable property registration? The State Enterprise Centre of Registers
    In what format are the majority of title or deed records kept in the largest business city—in a paper format or in a computerized format (scanned or fully digital)? Computer/Fully digital 2.0
    Is there an electronic database for checking for encumbrances (liens, mortgages, restrictions and the like)? Yes 1.0
    In what format are the majority of maps of land plots kept in the largest business city—in a paper format or in a computerized format (scanned or fully digital)? Computer/Fully digital 2.0
    Is there an electronic database for recording boundaries, checking plans and providing cadastral information (geographic information system)? Yes 1.0
    Is the information recorded by the immovable property registration agency and the cadastral or mapping agency kept in a single database, in different but linked databases or in separate databases? Single database 1.0
    Do the immovable property registration agency and cadastral or mapping agency use the same identification number for properties? Yes 1.0
    Transparency of information index (0–6) 4.5
    Who is able to obtain information on land ownership at the agency in charge of immovable property registration in the largest business city? Anyone who pays the official fee 1.0
    Is the list of documents that are required to complete any type of property transaction made publicly available–and if so, how? Yes, online 0.5
    Link for online access: http://info.registrucentras.lt/
    Is the applicable fee schedule for any property transaction at the agency in charge of immovable property registration in the largest business city made publicly available–and if so, how? Yes, online 0.5
    Link for online access: http://www.registrucentras.lt/p/85
    Does the agency in charge of immovable property registration commit to delivering a legally binding document that proves property ownership within a specific time frame–and if so, how does it communicate the service standard? Yes, online 0.5
    Link for online access: http://www.registrucentras.lt/p/86
    Is there a specific and separate mechanism for filing complaints about a problem that occurred at the agency in charge of immovable property registration? No 0.0
    Are there publicly available official statistics tracking the number of transactions at the immovable property registration agency? Yes 0.5
    Number of property transfers in the largest business city in 2015: 34836 property transfers
    Who is able to consult maps of land plots in the largest business city? Anyone who pays the official fee 0.5
    Is the applicable fee schedule for accessing maps of land plots made publicly available—and if so, how? Yes, online 0.5
    Link for online access: http://www.registrucentras.lt/p/86
    Does the cadastral or mapping agency commit to delivering an updated map within a specific time frame—and if so, how does it communicate the service standard? Yes, online 0.5
    Link for online access: http://www.registrucentras.lt/p/86
    Is there a specific and separate mechanism for filing complaints about a problem that occurred at the cadastral or mapping agency? No 0.0
    Geographic coverage index (0–8) 8.0
    Are all privately held land plots in the economy formally registered at the immovable property registry? Yes 2.0
    Are all privately held land plots in the largest business city formally registered at the immovable property registry? Yes 2.0
    Are all privately held land plots in the economy mapped? Yes 2.0
    Are all privately held land plots in the largest business city mapped? Yes 2.0
    Land dispute resolution index (0–8) 8.0
    Does the law require that all property sale transactions be registered at the immovable property registry to make them opposable to third parties? Yes 1.5
    Is the system of immovable property registration subject to a state or private guarantee? Yes 0.5
    Is there a specific compensation mechanism to cover for losses incurred by parties who engaged in good faith in a property transaction based on erroneous information certified by the immovable property registry? Yes 0.5
    Does the legal system require a control of legality of the documents necessary for a property transaction (e.g., checking the compliance of contracts with requirements of the law)? Yes 0.5
    If yes, who is responsible for checking the legality of the documents? Notary.
    Does the legal system require verification of the identity of the parties to a property transaction? Yes 0.5
    If yes, who is responsible for verifying the identity of the parties? Notary.
    Is there a national database to verify the accuracy of identity documents? Yes 1.0
    For a standard land dispute between two local businesses over tenure rights of a property worth 50 times gross national income (GNI) per capita and located in the largest business city, what court would be in charge of the case in the first instance? Vilnius County Court (Vilniaus apygardos teismas)
    How long does it take on average to obtain a decision from the first-instance court for such a case (without appeal)? Less than a year 3.0
    Are there any statistics on the number of land disputes in the first instance? Yes 0.5
    Number of land disputes in the largest business city in 2015: During 2015 were heard 704 disputes on the lease of land (in first instance courts)
    Equal access to property rights index (-2–0) 0.0
    Do unmarried men and unmarried women have equal ownership rights to property? Yes 0.0
    Do married men and married women have equal ownership rights to property? Yes 0.0