CONSTITUTIONAL LAW
ON THE SUBJECTS, PROCEDURE, TERMS AND CONDITIONS
AND RESTRICTIONS OF THE ACQUISITION INTO OWNERSHIP
OF LAND PLOTS PROVIDED FOR IN ARTICLE 47, PARAGRAPH 2
OF THE CONSTITUTION OF THE REPUBLIC OF LITHUANIA
Article 1. Objectives of the Law
In implementing the provisions of Article 47, paragraph 2,
of the Constitution, the following shall be established:
1) the subjects which may be permitted to acquire into
ownership non-agricultural land plots for conducting in Lithuania
activities provided for in this Law;
2) conditions, procedure and restrictions in compliance with
which the subjects established by this Law may acquire into
ownership a plot of land;
3) grounds for determining the size of the land plot being
acquired into ownership.
Article 2. Definitions
As used in this Law:
1. "National subjects" means:
1) local governments (municipalities) of the Republic of
Lithuania;
2) enterprises set up in accordance with the procedure
established by the laws of the Republic of Lithuania and having
the rights of a legal person, which have their registered office,
central administration or principal place of business in
Lithuania, carry out economic activities here, and in which the
rights of effective control belong to the citizens of Lithuania,
municipalities, the State or to other enterprises of Lithuanian
origin in which the rights of effective control also belong to
the citizens of Lithuania, or municipalities, or the State;
3) public organisations of citizens of the Republic of
Lithuania and other associations of Lithuania's citizens with the
rights of a legal person, the registered offices whereof are in
the territory of Lithuania and which are engaged in actual
continuous (for not less than a five-year period) activities
provided for in their statutes, as well as State-recognised
traditional churches and other religious organisations with the
rights of a legal person;
4) non-profit legal persons established by the subjects
listed in subparagraph 3 of paragraph 1 hereof, which engage in
actual activities of social assistance and care.
2. "Foreign subjects" means:
1) enterprises set up or acquired by the enterprises of
foreign origin or foreign nationals and registered by the rights
of a legal person in Lithuania, which have here their registered
office, central administration or principal place of business,
carry out their economic activities here, and in which the rights
of effective control belong to the enterprises of foreign origin
or to foreign nationals;
2) enterprises of foreign origin, which have set up in
Lithuania their subsidiaries or branches without the rights of
legal persons for the purpose of their economic activities;
3) foreign nationals who are engaged in the set up business
in Lithuania.
3. Foreign subject's origin means the belonging of a foreign
enterprise which is acquiring or setting up an enterprise,
subsidiary or branch in Lithuania to a corresponding foreign
state where the subject is registered, has its registered office,
central administration or principal place of business and with
which its operations possess a real and continuous link. Real
links means principal business activities in a corresponding
foreign state or membership in business or professional
organisations. Continuous links means duration for no less than a
five-year period of joint activities in corresponding foreign
states or duration of actual relations. When the founder is a
foreign private person, his origin shall be judged from his
nationality and actual continuous relations with a corresponding
foreign state.
4. Rights of effective control means management of the
enterprise's capital and holding of the block of shares, which
ensure the possibility of taking decisions on the disposal of
property and(or) enterprise management.
5. Economic activities means unlimited and permanent
activities of industrial, commercial and professional character
and the activities of craftsmen or other activities in Lithuania,
which have been established and registered in accordance with the
procedure established by law whereby profit is sought in
compliance with the procedure and conditions established by the
laws of the Republic of Lithuania. Direct economic activities
means specific economic activities stated in the documents of
founding in Lithuania of the enterprise or its subsidiary or
branch.
6. Non-agricultural land plots means plots of land which,
according to the detailed plans approved by the State in the
established manner, are designated for the construction of
buildings and facilities required for special-purpose activities
as well as land plots under the existing buildings and facilities
designated for special-purpose activities which are necessary for
the operation of said buildings and facilities.
7. Buildings and facilities means such buildings and
facilities which are connected with the land and which may not be
moved without changing their purpose and essence:
1) buildings and facilities of enterprises, their
subsidiaries or branches as well as buildings and facilities
required for the direct economic activities of foreign nationals
in Lithuania;
2) buildings and facilities required for the performance of
direct functions of the national subjects -legal persons which
are not enterprises;
3) buildings and facilities required for the implementation
of functions of municipalities as established by law.
Article 3. Subjects which may be Permitted to Acquire Land
Plots into Ownership
Acquisition into ownership of land plots required for the
construction and operation of buildings and facilities shall be
permitted under this Law to:
1) national subjects;
2) foreign subjects whose origin corresponds to the one set
forth in Article 4 of this Law, with the exception of foreign
nationals;
3) foreign nationals - no later than after the expiry of the
transitional period provided for by the Europe Agreement
establishing the Association of the European Communities and
their member states and the Republic of Lithuania.
Article 4. Foreign Subjects Meeting the Criteria of
European and Transatlantic Integration
The criteria of European and Transatlantic integration
embarked on by Lithuania shall be met by the foreign subjects
which, judging by the indicators of their origin, are from:
1) the European Union member states or States Parties to the
Europe Agreement which have established the Association with the
European Communities and their member states;
2) states which at the moment of the enactment of this Law
are members of the Organisation for Economic Co-operation and
Development (OECD) or the North Atlantic Treaty Organisation.
Article 5. Rights of other Foreign Subjects
Foreign subjects which do not meet the criteria set forth in
Article 4 of this Law and which conduct economic activities in
Lithuania may only be leased land plots required for the
construction and operation of buildings and facilities designated
for the above activities.
Article 6. Land Plots which may be Acquired by the Subjects
Specified in this Law
1. Complying with the procedure and conditions established
in this Law, municipalities may acquire into ownership non-
agricultural land plots necessary for the operation of buildings
and facilities designated for the purpose of implementation of
their functions as well as land plots for the construction of
such buildings and facilities designated for the above-mentioned
purpose, with the exception of land, specified in Article 7 of
this Law.
2. Other subjects determined by this Law may acquire into
ownership, complying with the procedure and conditions
established in this Law, non-agricultural land plots necessary
for the operation of the existing buildings and facilities
designated for the purpose of their direct activities as well as
land plots for the construction and operation of such buildings
and facilities, with the exception of land specified in Article 7
of this Law. Other land which is necessary for their direct
economic activities in Lithuania may only be leased by the above-
mentioned subjects.
Article 7. Land which may not be Acquired by the Subjects
Determined by this Law
1. The subjects determined by this Law may not acquire into
ownership the following land:
1) land under the objects belonging to the Republic of
Lithuania by the right of exclusive ownership;
2) land of national parks, national reservations, reserves,
protective area of the territory of biosphere monitoring;
3) agricultural land;
4) forestry land, with the exception of plots necessary for
operation of buildings and facilities designated for economic
activities which have been provided for in the approved planning
documents;
5) land of recreational forests and forest shelter belts,
rivers and other water bodies exceeding 1 hectare in size as well
as their protective bank area;
6) land of resorts and communal recreational territories,
separate communal public recreational areas and objects;
7) land of state-protected natural carcass, monuments of
nature, history, archaeology and culture as well as the
surrounding protective areas;
8) land of territories reserved, according to design
projects, under communal roads and engineering service lines,
objects of infrastructure of communal use in towns or other
localities, and for other common needs of the community;
9) land under public roads, railway lines, airports, sea and
river ports, main pipe-lines and other engineering service lines
of communal use as well as land necessary for their operation;
10) land allotted, in accordance with the procedure
established by law, under the free trade (economic) zones
territory;
11) land of protected territories where deposits of mineral
resources and other natural resources have been found, with the
exception of land which, according to planning documents, has
been directly allotted for the construction of buildings and
facilities required for the mining or use of said mineral
resources;
12) land of the Curonian Spit, the 15-km wide strip of
coastal land of the Baltic Sea and the Curonian Lagoon, with the
exception of towns that are not resorts;
13) land assigned to the frontier;
14) land of the territories assigned or reserved for the
needs of the national defence as well as territories where land
acquisition restrictions are established by laws or Government
decrees for safety reasons.
2. The prohibition set forth in sub-paragraph 12, paragraph
1 hereof shall not apply to the municipalities of appropriate
territories wishing to acquire a plot of land required for the
operation of buildings and facilities designated for the
performance of their functions prescribed by law or for the
construction of such buildings and facilities.
Article 8. Prohibition to Sell Land prior to the Restoration
of Citizens' Rights to it
The subject who holds the land to which, under the laws of
the Republic of Lithuania, the rights of ownership of a citizen
of the Republic of Lithuania must be restored may not sell the
land prior to the restoration of said rights. The subjects
specified by law may acquire such land only after the
restoration, in accordance with law, of the ownership rights to
the citizen of the Republic of Lithuania and after the
registration of land ownership in accordance with the procedure
established by law.
Article 9. Determining the Size of the Land Plot being
Acquired
The size of the land plot, required for the operation,
according to their functional requirements, of buildings and
facilities designated for economic activities, including land for
the facilities appurtenant to the buildings shall be determined
according to the plan of the land plot with the buildings and
facilities located thereon which has been approved by the
authorised institution and drawn up in compliance with the design
standards and technical conditions as well as rational land use
requirements valid or recognised in the Republic of Lithuania.
Land plot boundaries shall be approved according to the procedure
established by law.
Article 10. Procedure for the Issue of Permits to Acquire a
Land Plot
1. The subjects as defined in this Law, which desire to
acquire a plot of non- agricultural land shall file a written
application with the Government of the Republic of Lithuania.
2. An enterprise that applies for the permit for the
acquisition into ownership a land plot must, along with the
application, submit documents and other official information
specified by the Government, necessary for the determining the
origin of the subject and the possessor of the rights of
effective control, as well as documentation provided by the state
land surveyor, concerning the plot in question. If the permit is
requested for the acquisition of a land plot for the construction
of buildings or facilities necessary for economic activities, the
investing subjects must also furnish required information as to
the capital being invested, specific investments and the plans of
direct economic activities in Lithuania, creation of new jobs
being, and environmental safety guarantees.
3. The subjects specified in Article 2 of this Law, except
enterprises and municipalities, that are willing to obtain the
permit for the acquisition into their ownership a land plot for
the operation of buildings and facilities necessary for their
direct activities or for the construction of such buildings and
facilities, must, along with the application, submit documents
evidencing that the subject and the purpose of the property being
acquired meet the conditions established by this Law.
4. The subject who applies for the permit for the
acquisition of a land plot for the investment associated with the
construction of buildings and facilities, must make a written
obligation to the Government of the Republic of Lithuania to
complete the construction of buildings and facilities by a
certain deadline and to start economic activities of a certain
planned type. The subject that fails to fulfill its obligations
shall pay penalties in the amount prescribed by the law.
5. The agency that keeps land cadastre must, at the request
of the owner, issue necessary documentation concerning the plot
of land.
6. The Government shall set the form of the application,
specify the documents and information that must be submitted, as
well as establish the procedures for filing and consideration of
applications and the issue of permits.
7. Upon receipt of an application for the acquisition of a
land plot into the ownership, the Government or an institution
authorised by it, shall consider it and being ascertained that
the entity which desires to acquire a land plot and said plot
meet the conditions established by this Law, shall adopt the
decision relative to the issue of permit.
8. The permission to acquire a land plot may not be granted
if the requested activity is subject to restrictions or
prohibitions established by the law or other legal act.
Article 11. The Seimas Commission Supervising the
Implementation of this Law
The Seimas, adhering to the principle of proportional
representation of parliamentary groups, shall form the commission
which, acting in accordance with the powers conferred on it by
the Seimas and its approved regulations, shall supervise whether
the Government or an institution authorised by it issue permits
to subjects that meet the conditions established by this Law for
the acquisition into their ownership the land plots necessary for
the construction and operation of buildings and facilities.
Article 12. Methods of the Acquisition into the Ownership of
Land Plots
Upon obtaining the Government's permission, the subjects
specified in Article 3 of this Law may acquire a plot of land:
1. From the citizens of the Republic of Lithuania and the
subjects specified in this Law with the exception of land which
is the property of the State or a municipality by the following
methods :
1) by purchase;
2) by exchange;
3) other methods that do not contradict the conditions
established by this law.
2. The land which is the property of the State and
municipalities:
a) by public purchase-sale;
b) in the case the buildings and facilities are owned
already by an entity that meets the conditions established by
this Law and it rents the land from the state -by purchase.
3. Special procedures for the acquisition and transfer of
the land plots necessary for the fulfilment of the functions of
municipalities shall be established by the law.
Article 13. Conditions of the Transfer of Land to other
Person
1. The subjects may transfer the land plot acquired into the
ownership in accordance with the procedure and conditions
established by this Law to the citizens of the Republic of
Lithuania and the State of Lithuania without restrictions,
whereas to other subjects specified by this Law - only in
accordance with the procedure and conditions provided by this
Law.
2. The provision of this Article shall also apply when
acquiring a shareholding ensuring effective control of an
enterprise.
Article 14. Land Plot Transfer Transactions
1. The transaction of the acquisition of a land plot
irrespective of the method of acquisition must be notarised and
registered in accordance with the procedure established by the
law. The notary may certify the transaction only after the permit
issued in accordance with the procedure established by this Law
is presented.
2. No transaction may be concluded and shall be in effect
under which the land plot with the buildings and facilities on it
has been acquired into the ownership by a subject that does not
meet the conditions established by this Law.
Article 15. Declaring Land Acquisition Transactions Invalid
1. If the permit to acquire a land plot has been issued on
the basis of submitted fraudulent information or not in
compliance with the procedure and conditions established by laws,
the permit and the transaction concluded on the basis thereof may
be declared invalid by court.
2. Land transfer transactions violating the requirements of
this or other laws shall be declared invalid by court.
3. Special statute of limitations shall apply in respect to
transactions concluded in violation of the conditions, procedure
and restrictions established by this Law.
Article 16. This Law and International Agreements
1. The right of foreign subjects, whose origin is specified
in Article 4 of this Law, to acquire land plots in Lithuania
shall be the preference the purpose whereof is the implementation
of the European and Transatlantic integration into state
alliances and organisations embarked on by Lithuania and the
provisions of the Europe Agreement establishing an association
between the European Communities and their Member States and the
Republic of Lithuania. This preference shall be applied on the
reciprocal basis, when the subjects of Lithuanian origin are
accorded not less rights in a foreign state.
2. No international agreement may be concluded and shall not
be valid, which would establish the right to acquire land plots
into the ownership to foreign subjects which do not meet the
conditions specified in Article 4 of this Law.
3. No international agreement of the Republic of Lithuania
concluded prior to the entry into force of this Law, with the
exception of the agreement specified in paragraph 1 hereof, may
be interpreted as providing the grounds for the obtaining the
permit to acquire a land plot into the ownership to foreign
subjects which do not meet the conditions of Article 3 of this
Law.
Article 17. Entering of the Law into the List of
Constitutional Laws
This constitutional law must be entered into the list of
Constitutional Laws of the Republic of Lithuania.
Article 18. Entry into Force of this Law
1. This Law shall enter into force on the day after the
entry into force of Europe Agreement establishing an association
between the European Communities and their Member States, of the
one part, and the Republic of Lithuania, of the other part.
2. From the day on which the Republic of Lithuania becomes a
full and equal member of the European Union and until the
adoption of the law replacing this constitutional law only those
provisions of this Law shall be in force which will not
contradict the agreement of Lithuanian's membership in the
European Union.
I promulgate this Law passed by the Seimas of the Republic
of Lithuania.
Algirdas Brazauskas
President of the Republic
Vilnius
20 June 1996
No. I-1392