The Property Banks Buyers Guide to Lithuania
As EU member states there are
no restrictions to foreigners owning property in Estonia, Latvia and
Lithuania. The buying process is a relatively straightforward one
but you should ensure that you engage the services of an independent
English-speaking solicitor who will look after your interests and
not the seller’s. Do not think, that the notary will look after your
interests, he will not.
He is a government employee and his role is to register the sale
transaction, not to offer advice or adjudicate on legal matters
between the buyer and seller.
When you have found a property that you are interested in buying, as
you would in the UK, you should make an offer to purchase through an
estate agent, such as The Property Bank, who market properties in
Latvia. Depending as to whether the property is new or a resale you
may be asked to pay a reservation fee of £1,000 that forms part of
the agent’s commission. (The company charges a fee of 3% of the
property price, or a minimum of £1,495.)
Fees, that you as the buyer are liable to pay in Latvia / Lithuania,
are:
2% purchase tax that has to be paid before the property can be
registered in the land registry
Notary fees of €250
Land registration fees of €100
Valuation fees of €100
Insurance of €250 depending on the type and size of the property
Bank fees of €50 + 1% of the mortgage amount for arranging the loan
(that can be added on to the mortgage).
Latvian banks will loan 85-90% of the property value based on your
ability to repay from income; interest rates are as low as 4%. In
total, completion fees should not exceed €1,000, excluding purchase
tax. On selling, there is no Capital Gains Tax after one year’s
ownership.