Housing Finance Policy

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    A. Legal and Regulatory Framework

    A.1 Legal and Regulatory Framework
    VariableEnd of 2018End of 2017End of 2016SourcesVar ID
    Basis of the legal system: Civil, Common, Islamic, Other? (Describe)CivilCivilCivil
    CIA World Factbook
    		A.1.1
    Are there specific laws that deal with mortgages? YesYesYes
    Law No. IX-1746
    		A.1.2
    Registration/Transfer of titles:A.1.3
    Does the law clearly define different types of property rights?YesYesYesA.1.3.1
     Are property rights easily transferable?YesYesYesA.1.3.2
    Identify barriers to the registration/ transfer of property title.Non-applicableNon-applicableNon-applicable
    Research
    		A.1.3.3
    Typical number of days needed for the transfer of title3.53.53.5
    WDI
    		A.1.3.4
    Can liens be effectively enforced?YesYesYes
    Research
    		A.1.4
    Are there legal constraints on mortgage features?YesYesYes
    Research
    		A.1.6
    Loan-to-Value capYesYesYes
    Bank of Lithuania Responsible Lending Regulations
    		A.1.6.2
    Payment-to-Income maximumYesYesYes
    Bank of Lithuania Responsible Lending Regulations
    		A.1.6.3
    OtherYesYesYes
    Bank of Lithuania Responsible Lending Regulations
    		A.1.6.4
    Are there consumer rights for mortgage lending? YesYesYes
    Law No. IX-1253
    		A.1.7
    Are there disclosure requirements for mortgage lending?YesYesYes
    Law No. IX-1253
    		A.1.8
    Is there specialized legislation covering:A.1.9
    Issuance of covered mortgage bondsYesYesYes
    Law No. IX-1746
    		A.1.9.1
    Issuance of RMBSNoNoNoA.1.9.2
    B. Housing Finance Subsidies
    B.1 Subsidies to Housing Finance Institutions
    B.2 Subsidies to Households
    VariableEnd of 2018End of 2017End of 2016SourcesVar ID
    Are there subsidies to households on housing finance?YesYesYes
    Research
    		B.2.1
    Buy-down of monthly/interest paymentsYesYesYes
    Republic of Lithuania Law on Financial Incentive for Young Families Acquiring a First Home
    		B.2.1.2
    Down-payment subsidies YesYesYes
    Republic of Lithuania Law on Financial Incentive for Young Families Acquiring a First Home
    		B.2.1.3
    Reach of subsidies in 2.1.1 to 2.1.4 ?B.2.2
    C. Taxation
    VariableEnd of 2018End of 2017End of 2016SourcesVar ID
    What taxes apply to Residential Real Estate?C.1
    Tax on property (home-owners) YesYesYes
    Global Property Guide
    		C.1.1
    Property transaction taxes (purchase/selling)YesYesYes
    Republic of Lithuania Law on Value Added Tax
    		C.1.2
    Tax on capital gains on property YesYesYes
    Global Property Guide
    		C.1.5
    OtherYesYesYes
    Global Property Guide
    		C.1.6
    back to top | Country Data:
    Notes:
    Notes:
    Notes: Land tax varies from 0.01-4% of market value of land. Progressive real estate tax from 0.5-2% only applies to property values over EUR220,000 (~USD275,000)
    Notes: Land tax varies from 0.01-4% of market value of land. Progressive real estate tax from 0.5-2% only applies to property values over EUR220,000 (~USD275,000)
    Notes: Land tax varies from 0.01-4% of market value of land. Progressive real estate tax from 0.5-2% only applies to property values over EUR220,000 (~USD300,000)
    Notes: Land tax varies from 0.01-4% of market value of land. Progressive real estate tax from 0.5-2% only applies to property values over EUR220,000 (~USD300,000)
    Notes: Land tax varies from 0.01-4% of market value of land. Progressive real estate tax from 0.5-2% only applies to property values over EUR220,000 (~USD300,000)
    Notes: Land tax varies from 0.01-4% of market value of land. Progressive real estate tax from 0.5-2% only applies to property values over EUR220,000 (~USD325,000)
    Notes: % of households
    Notes: % of households
    Notes: % of households
    Notes: % of households
    Notes: % of households
    Notes: % of households
    Notes: % of households
    Notes: % of households
    Notes: % of households
    Notes: % of households
    Notes: % of households
    Notes: % of households
    Notes: % of households
    Notes: % of households
    Notes: % of households
    Notes: % of households
    Notes: % of households
    Notes: % of households
    Notes: % of households
    Notes: % of households
    Notes: % of households
    Notes: % of households
    Notes: % of households
    Notes: % of households
    Notes: % of households
    Notes: % of households
    Notes: % of households
    Notes: % of households
    Notes: % of households with market rate rent
    Notes: % of households with market rate rent
    Notes: % of households with market rate rent
    Notes: % of households with market rate rent
    Notes: % of households with market rate rent
    Notes: % of households with market rate rent
    Notes: % of households with market rate rent
    Notes: % of households with market rate rent
    Notes: % of households with market rate rent
    Notes: % of households with market rate rent
    Notes: % of households with market rate rent
    Notes: % of households with market rate rent
    Notes: % of households with market rate rent
    Notes: % of households with market rate rent
    Notes: % of households with reduced rent
    Notes: % of households with reduced rent
    Notes: % of households with reduced rent
    Notes: % of households with reduced rent
    Notes: % of households with reduced rent
    Notes: % of households with reduced rent
    Notes: % of households with reduced rent
    Notes: % of households with reduced rent
    Notes: % of households with reduced rent
    Notes: % of households with reduced rent
    Notes: % of households with reduced rent
    Notes: % of households with reduced rent
    Notes: % of households with reduced rent
    Notes: % of households with reduced rent
    Notes: 15% flat tax rate is imposed on gross rental income
    Notes: 15% flat tax rate is imposed on gross rental income
    Notes: 15% flat tax rate is imposed on gross rental income
    Notes: 15% tax imposed on gross rental income
    Notes: 2010=100
    Notes: 2010=100
    Notes: 2010=100
    Notes: 2010=100
    Notes: 2010=100
    Notes: 2010=100
    Notes: 2010=100
    Notes: 2010=100
    Notes: 2010=100
    Notes: 2010=100
    Notes: 2010=100
    Notes: 2010=100
    Notes: 2010=100
    Notes: 2010=100
    Notes: 2010=100
    Notes: 2010=100
    Notes: 2010=100
    Notes: 2010=100
    Notes: 2010=100
    Notes: 2010=100
    Notes: 2010=100
    Notes: 2010=100
    Notes: 2010=100
    Notes: 2010=100
    Notes: 2010=100
    Notes: 2010=100
    Notes: 2010=100
    Notes: 2010=100
    Notes: 2010=100
    Notes: 2010=100
    Notes: 2010=100
    Notes: 2010=100
    Notes: 2010=100
    Notes: 2010=100
    Notes: 2010=100
    Notes: 2010=100
    Notes: 2010=100
    Notes: 2010=100
    Notes: 2010=100
    Notes: 2010=100
    Notes: 2010=100
    Notes: 2010=100
    Notes: 2010=100
    Notes: 2010=100
    Notes: 2010=100
    Notes: 2010=100
    Notes: 2010=100
    Notes: 2010=100
    Notes: 2010=100
    Notes: 2010=100
    Notes: Busto paskolu draudimas was established by the Gov of Lithuania as a housing mortgage provider in 1998. Its insurance license was revoked on January 28, 2016.
    Notes: Busto paskolu draudimas was established by the Gov of Lithuania as a mortgage insurance provider in 1998
    Notes: Busto paskolu draudimas was established by the Gov of Lithuania as a mortgage insurance provider in 1998
    Notes: Busto paskolu draudimas was established by the Gov of Lithuania as a mortgage insurance provider in 1998
    Notes: Busto paskolu draudimas was established by the Gov of Lithuania as a mortgage insurance provider in 1998
    Notes: Busto paskolu draudimas was established by the Gov of Lithuania as a mortgage insurance provider in 1998
    Notes: Busto paskolu draudimas was established by the Gov of Lithuania as a mortgage insurance provider in 1998
    Notes: Busto paskolu draudimas was established by the Gov of Lithuania as a mortgage insurance provider in 1998
    Notes: Busto paskolu draudimas was established by the Gov of Lithuania as a mortgage insurance provider in 1998
    Notes: Busto paskolu draudimas was established by the Gov of Lithuania as a mortgage insurance provider in 1998
    Notes: Busto paskolu draudimas was established by the Gov of Lithuania as a mortgage insurance provider in 1998
    Notes: Busto paskolu draudimas was established by the Gov of Lithuania as a mortgage insurance provider in 1998
    Notes: Busto paskolu draudimas was established by the Gov of Lithuania as a mortgage insurance provider in 1998
    Notes: Busto paskolu draudimas was established by the Gov of Lithuania as a mortgage insurance provider in 1998
    Notes: Busto paskolu draudimas was established by the Gov of Lithuania as a mortgage insurance provider in 1998
    Notes: Busto paskolu draudimas was established by the Gov of Lithuania as a mortgage insurance provider in 1998
    Notes: Busto paskolu draudimas was established by the Gov of Lithuania as a mortgage insurance provider in 1998
    Notes: Busto paskolu draudimas was established by the Gov of Lithuania as a mortgage insurance provider in 1998
    Notes: Busto paskolu draudimas was established by the Gov of Lithuania as a mortgage insurance provider in 1998
    Notes: Busto paskolu draudimas was established by the Gov of Lithuania as a mortgage insurance provider in 1998
    Notes: Busto paskolu draudimas was established by the Gov of Lithuania as a mortgage insurance provider in 1998
    Notes: Busto paskolu draudimas was established by the Gov of Lithuania as a mortgage insurance provider in 1998
    Notes: Capital gains are subject to a 15% flat tax. However, real property owned for at least three years are tax exempt
    Notes: Capital gains are subject to a 15% flat tax. However, real property owned for at least three years are tax exempt
    Notes: Capital gains are subject to a 15% flat tax. However, real property owned for at least three years are tax exempt
    Notes: Capital gains are subject to a 15% flat tax. However, real property owned for at least three years are tax exempt
    Notes: Creditor must disclose agreed fee
    Notes: Creditor must disclose agreed fee
    Notes: Creditor must disclose agreed fee
    Notes: Creditor must disclose agreed fee
    Notes: Creditor must disclose agreed fee
    Notes: Creditor must disclose agreed fee
    Notes: Creditor must disclose agreed fee
    Notes: Creditor must disclose agreed fee
    Notes: Creditor must disclose agreed fee
    Notes: DTSI cap of 40% with some exceptions up to 60%
    Notes: DTSI cap of 40% with some exceptions up to 60%
    Notes: DTSI cap of 40% with some exceptions up to 60%
    Notes: DTSI cap of 40% with some exceptions up to 60%
    Notes: DTSI cap of 40% with some exceptions up to 60%
    Notes: DTSI cap of 40% with some exceptions up to 60%
    Notes: DTSI cap of 40% with some exceptions up to 60%
    Notes: DTSI cap of 40% with some exceptions up to 60%
    Notes: Estimate
    Notes: Estimate
    Notes: Estimate
    Notes: Estimate
    Notes: Estimate
    Notes: Estimate
    Notes: Estimate
    Notes: Estimate
    Notes: Estimate
    Notes: Estimate
    Notes: Estimate
    Notes: Land tax varies from 0.01-4% of market value of land.
    Notes: Land tax varies from 0.01-4% of market value of land.
    Notes: Land tax varies from 0.01-4% of market value of land.
    Notes: Land tax varies from 0.01-4% of market value of land.
    Notes: Land tax varies from 0.01-4% of market value of land.
    Notes: Land tax varies from 0.01-4% of market value of land.
    Notes: Land tax varies from 0.01-4% of market value of land.
    Notes: Land tax varies from 0.01-4% of market value of land.
    Notes: Land tax varies from 0.01-4% of market value of land.
    Notes: Land tax varies from 0.01-4% of market value of land.
    Notes: Land tax varies from 0.01-4% of market value of land.
    Notes: Land tax varies from 0.01-4% of market value of land.
    Notes: Land tax varies from 0.01-4% of market value of land.
    Notes: Land tax varies from 0.01-4% of market value of land.
    Notes: Land tax varies from 0.01-4% of market value of land.
    Notes: Land tax varies from 0.01-4% of market value of land. Progressive real estate tax from 0.5-2% only applies to property values over EUR220,000 (~USD250,000)
    Notes: Land tax varies from 0.01-4% of market value of land. Progressive real estate tax from 0.5-2% only applies to property values over EUR220,000 (~USD250,000)
    Notes: Land tax varies from 0.01-4% of market value of land. Progressive real estate tax from 0.5-2% only applies to property values over EUR220,000 (~USD250,000)
    Notes: Land tax varies from 0.01-4% of market value of land. Progressive real estate tax from 0.5-2% only applies to property values over EUR220,000 (~USD260,000)
    Notes: Land tax varies from 0.01-4% of market value of land. Progressive real estate tax from 0.5-2% only applies to property values over EUR220,000 (~USD270,000)
    Notes: Land tax varies from 0.01-4% of market value of land. Progressive real estate tax from 0.5-2% only applies to property values over EUR220,000 (~USD290,000)
    Notes: Land tax varies from 0.01-4% of market value of land. Progressive real estate tax from 0.5-2% only applies to property values over EUR220,000 (~USD290,000)
    Notes: Lithuanian Central Credit Union lends to its member credit unions for mortgage origination
    Notes: Lithuanian Central Credit Union lends to its member credit unions for mortgage origination
    Notes: Lithuanian Central Credit Union lends to its member credit unions for mortgage origination
    Notes: Lithuanian Central Credit Union lends to its member credit unions for mortgage origination
    Notes: Lithuanian Central Credit Union lends to its member credit unions for mortgage origination
    Notes: Lithuanian Central Credit Union lends to its member credit unions for mortgage origination
    Notes: Lithuania's system for registering a property/title is among the most efficient in the world. The system is fully computerized
    Notes: Lithuania's system for registering a property/title is among the most efficient in the world. The system is fully computerized
    Notes: Lithuania's system for registering a property/title is among the most efficient in the world. The system is fully computerized
    Notes: Lithuania's system for registering a property/title is among the most efficient in the world. The system is fully computerized
    Notes: LTV cap at 85%
    Notes: LTV cap at 85%
    Notes: LTV cap at 85%
    Notes: LTV cap at 85%
    Notes: LTV cap at 85%
    Notes: LTV cap at 85%
    Notes: LTV cap at 85%
    Notes: LTV cap at 85%
    Notes: Max tenure of 30 years
    Notes: Max tenure of 30 years
    Notes: Max tenure of 30 years
    Notes: Max tenure of 30 years
    Notes: Max tenure of 30 years
    Notes: Max tenure of 30 years
    Notes: Max tenure of 30 years
    Notes: Max tenure of 30 years
    Notes: new regulation introduced in 2015 that shortened the maximum term by 10 years
    Notes: Nordea and DNB merged to form Luminor
    Notes: Property sale tax of 21% only on new buildings
    Notes: Property sale tax of 21% only on new buildings
    Notes: Property sale tax of 21% only on new buildings
    Notes: Property sale tax of 21% only on new buildings
    Notes: Property sale tax of 21% only on new buildings
    Notes: Property sale tax of 21% only on new buildings
    Notes: Property sale tax of 21% only on new buildings
    Notes: Property sale tax of 21% only on new buildings
    Notes: Property sale tax of 21% only on new buildings
    Notes: Property sale tax of 21% only on new buildings
    Notes: Property sale tax of 21% only on new buildings
    Notes: Property sale tax of 21% only on new buildings
    Notes: Property sale tax of 21% only on new buildings
    Notes: Property sale tax of 21% only on new buildings
    Notes: Property sale tax of 21% only on new buildings
    Notes: Property sale tax of 21% only on new buildings
    Notes: Property sale tax of 21% only on new buildings
    Notes: Right to early repayment, withdrawal, and information
    Notes: Right to early repayment, withdrawal, and information
    Notes: Right to early repayment, withdrawal, and information
    Notes: Right to early repayment, withdrawal, and information
    Notes: Right to early repayment, withdrawal, and information
    Notes: Right to early repayment, withdrawal, and information
    Notes: Right to early repayment, withdrawal, and information
    Notes: Right to early repayment, withdrawal, and information
    Notes: Right to early repayment, withdrawal, and information
    Notes: Rounded average LTV ratio for new mortgages
    Notes: Rounded average LTV ratio for new mortgages
    Notes: Rounded average LTV ratio for new mortgages
    Notes: Rounded average LTV ratio for new mortgages
    Notes: Subsidy of 10-20% of housing loan amount is offered by the government to individuals or families under certain income and asset requirements. It can be used to subsidize loan payment or to subsidize the down payment.
    Notes: Subsidy of 10-20% of housing loan amount is offered by the government to individuals or families under certain income and asset requirements. It can be used to subsidize loan payment or to subsidize the down payment.
    Notes: Subsidy of 10-20% of housing loan amount is offered by the government to individuals or families under certain income and asset requirements. It can be used to subsidize loan payment or to subsidize the down payment.
    Notes: Subsidy of 10-20% of housing loan amount is offered by the government to individuals or families under certain income and asset requirements. It can be used to subsidize loan payment or to subsidize the down payment.
    Notes: Subsidy of 10-20% of housing loan amount is offered by the government to individuals or families under certain income and asset requirements. It can be used to subsidize loan payment or to subsidize the down payment.
    Notes: Subsidy of 10-20% of housing loan amount is offered by the government to individuals or families under certain income and asset requirements. It can be used to subsidize loan payment or to subsidize the down payment.
    Notes: Subsidy of 10-20% of housing loan amount is offered by the government to individuals or families under certain income and asset requirements. It can be used to subsidize loan payment or to subsidize the down payment.
    Notes: Subsidy of 10-20% of housing loan amount is offered by the government to individuals or families under certain income and asset requirements. It can be used to subsidize loan payment or to subsidize the down payment.
    Notes: Subsidy of 10-20% of housing loan amount is offered by the government to individuals or families under certain income and asset requirements. It can be used to subsidize loan payment or to subsidize the down payment.
    Notes: Subsidy of 10-20% of housing loan amount is offered by the government to individuals or families under certain income and asset requirements. It can be used to subsidize loan payment or to subsidize the down payment.
    Notes: The sole state-owned insurer had its license revoked on January 28, 2016
    Notes: up to 60 with special interest rates
    Notes: up to 60 with special interest rates
    Notes: up to 60 with special interest rates
    Notes: up to 60 with special interest rates