LITHUANIA Law and Practice Contributed by: Evaldas Klimas and Vygintas Kuprys, WALLESS
6.12 Insurance Issues The costs of insuring the building are usually paid proportionally by the tenants as part of the operational fees. Commercial property tenants are usually required to obtain the following insurance: • tenant’s civil liability insurance against third- party claims arising from physical injury, property loss or damage; and • property insurance covering losses of and damage to all the tenant’s assets in the prem - ises as a result of fire, water, theft, breaking of glass, natural calamities, unlawful activity of third parties and other usual risks, etc. The tenant and the landlord usually agree on some rent discount or delay of payments as there is very little incentive for tenants to insure leases as part of business interruption insurance. Tenants with business interruption insurance policies that cover rent payments did seek compensation during the COVID-19 pandemic. However, there is no information on recovered rent payments. 6.13 Restrictions on the Use of Real Estate Real estate can only be used in line with the pur - pose registered for it in the public register and the main purpose of use included in the lease agreement. If the tenant uses real estate in a way that is not in line with the purpose or main purpose of use as agreed in the lease agree - ment, the landlord has the right to terminate the lease agreement.
changed or increased through court proceed - ings. 6.7 Payment of VAT VAT is payable on rent. It is not applicable in certain cases related to general tax regulations (eg, a foreign tenant who is not registered as a VAT payer). 6.8 Costs Payable by a Tenant at the Start of a Lease In addition to the payment of rent, the tenant typically covers the costs for communal services rendered in the premises as well as operational fees intended to cover maintenance, repairs, management, insurance of the building, real estate, land tax and related costs. Operation fees are typically calculated in proportion to the size of the area occupied by the tenant. 6.9 Payment of Maintenance and Repair The costs for the maintenance and repair of areas used by several tenants, eg, parking lots and gardens, are usually shared by all the ten - ants as part of the operational fees described in 6.8 Costs Payable by a Tenant at the Start of a Lease . 6.10 Payment of Utilities and Telecommunications Utilities and telecommunications that serve a property occupied by several tenants are usu - ally divided in proportion to the area leased by each of the tenants. 6.11 Payment of Property Taxes The tenants are typically responsible for real estate taxes and this is standard in the market in Lithuania.
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