LITHUANIA Law and Practice Contributed by: Evaldas Klimas and Mantas Lideika, WALLESS
the rights to develop the land plot are in danger due to the vague requirements of the Law on Architecture. The Law on Architecture also introduces region - al councils of architects, which may decide on the aesthetics of future developments, and any developments that do not satisfy subjective cri - teria may be stopped. The Law on Spatial Plan - ning provides for the possibility of concluding an agreement on the implementation of the solu - tions of the detailed plan; however, in practice, such agreements are rarely concluded, and they regulate only infrastructure development issues. 2.9 Condemnation, Expropriation or Compulsory Purchase Land expropriation procedures can only be initi - ated if the land is required for public needs, and upon relevant compensation being provided to the owner. Land expropriation is initiated by the Lithuanian Land Service. The owners are duly informed about any such initiated procedure and can participate in the evaluation of the compen - sation. The state has a priority right to purchase private agricultural or forest land for sale within certain areas. Agricultural or forest land may also be compul - sorily purchased by the state where it appears that it was acquired by a buyer who infringed the rules and restrictions for the acquisition of such land. 2.10 Taxes Applicable to a Transaction A real estate acquisition transaction is subject to notarisation. The notary fee for the acquisition of real estate is equal to 0.37% of the transaction value and cannot exceed the established cap of EUR5,000. If more than one real estate unit is
subject to the same sale and purchase agree - ment, the notary fee may not exceed EUR12,000. The registration fee for ownership of the real estate with the Real Estate Register for legal persons is based on the value of the real estate, and may not exceed EUR17.19 per unit. The notary costs are typically shared by the buyer and the seller in equal parts. The transfer of at least 25% of shares in the property-owning company is also subject to notarisation, except in the following cases: • when the personal securities accounts of the shareholders of the private limited company have been transferred for management to a legal person who is entitled to open and man - age personal accounts for financial instru - ments; and • when the price for shares is less than EUR14,500. The notary fee for the acquisition of shares is equal to 0.26% of the transaction value, and cannot exceed the established cap of EUR5,000. A mortgage/pledge of real estate and/or shares in the company is always subject to notarisation. However, notary fees for the mortgage of real estate as well as shares, based on the value of the object, may not be more than EUR360. The taxes listed above are also applied in the case of a partial ownership transfer; there are no exemptions. 2.11 Legal Restrictions on Foreign Investors A foreign investor wishing to acquire land must comply with the criteria of European and Trans -
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