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