THE PROCEDURE AND STAGES OF TRANSFER TO FREE LAND MARKET IN THE COUNTRIES THAT JOINED THE EC IN 2004 WITH THE SEVEN-YEAR TRANSITORY TERM FOR AQUISITION OF CULTIVATED LANDS AND FOREST AREAS – Lithuanian experience National Land Service under the Ministry of Agriculture of Lithuania Director of Land Management Department Algis Bagdonas TAIEX Workshop INT MARKT Київ, Україна,

LITHUANIA – key facts and figures  Population: 3.50 mln.  Total area: 65,300 km²  10 counties, 60 municipalities Capital City – Vilnius (600 th. people)  Agricultural land km2  Forest land km2  Water cover km2  Other land km2

Organisational structure of land management and administration GOVERNMENT National Land Service Ministry of Finance Ministry of Justice Ministry of Agriculture Land Management Divisions in Districts (Cities) (48) SE Center of Registers Companies, executing Cadastral Surveying or/and prepearing Land Management Plans SE GIS Center JSC Aerogeo- desy Institute SE STATE LAND FUND Tax Inspectorate s Municipalities (60) FOUNDER METHODICAL GUIDANCE Notaries EXANGE OF INFORMATION

The Constitution of the Republic of Lithuania (1992) 1. The Law on Land Reform (1991; new amendment in 1997) 2. The Law on Restoration of Citizens’ Ownership Rights to the Existing Real Property (1991; new amendment in The Law on Land (1994; new amendment in 2004) 4. Constitutional Law on Implementation of 3rd part of article No. 47 of the Constitution of Lithuanian Republic (1996; new amendment 2003) 5. Law on real property register (1996) 6. Law on real property cadastre (1996) 7. Civil Code of the Republic of Lithuania (2000) 8. Provisional Law on acquisition of agricultural land of the Republic of Lithuania (2003; new amendment 2004)

 25 October The Constitution of the Republic of Lithuania was adopted  the acquisition into ownership of land in Lithuania was allowed only to Lithuanian citizens and the State  20 June Article 47 of the Constitution was supplemented with Paragraph 2  municipalities, other national entities and foreign entities engaged in economic activity in Lithuania was allowed to acquire land for non-agricultural activities  23 January amendments to Article 47 of the Constitution  legal persons were allowed to acquire into ownership land plots of agricultural purpose and forest land plots and internal waters.

Article 47 The underground, internal waters, forests, parks, roads, historical, archaeological and cultural objects of State importance shall belong by the right of exclusive ownership to the Republic of Lithuania. The Republic of Lithuania shall have exclusive rights to the airspace over its territory, its continental shelf and the economic zone in the Baltic Sea. In the Republic of Lithuania foreign entities may acquire ownership of land, internal waters and forests according to a constitutional law. Plots of land may belong to a foreign state by right of ownership for the establishment of its diplomatic missions and consular posts according to the procedure and conditions established by law.

 terms and conditions -  procedure and restrictions -  Foreign subjects which may be permitted to acquire into ownership land, internal waters and forests in Lithuania;  The criteria of European and Transatlantic integration. in compliance with which the foreign subjects may acquire into ownership land, internal waters and forests

 1. “Foreign subjects” means foreigners and foreign legal persons, as well as other foreign organisations.  2. “Foreigners” means foreign nationals and permanent residents of foreign states, as well as permanent residents of the Republic of Lithuania who are not citizens of the Republic of Lithuania.  3. “Foreign legal person” means an enterprise, agency or organisation set up in a foreign state which may acquire and exercise rights and duties in its own name, act as a plaintiff or defendant in court.  4. “Other foreign organisations” means organisations set up in foreign states without the status of a legal person, but with the civil capacity laid down in the laws of their states.

 European Union member states;  States parties to the Europe (Association) Agreement concluded with the European Communities and their member states;  Member states of the:  Organisation for Economic Co-operation and Development (OECD);  North Atlantic Treaty Organisation (NATO);  States parties to the Agreement on European Economic Area (EEA).

 Foreign subjects can’t acquire agricultural land and forestry land before the end of the 7-year transitional period defined in the Treaty of Accession of the Republic of Lithuania to the European Union.  with the exception of those :  foreigners who have been permanently living and engaged in agricultural activities in Lithuania for at least three years,  foreign legal persons and other foreign organisations which have set up representative offices or branches.

 Foreign subjects shall have the right in the Republic of Lithuania to acquire into ownership land, internal waters and forests under the same procedure and subject to the same terms and conditions as the citizens and legal persons of the Republic of Lithuania.  Foreign subjects not meeting the criteria of European and Transatlantic are prohibited to acquire into ownership land, internal waters and forests, however, they may manage or use such property in accordance with the procedure established by laws of the Republic of Lithuania.

 There are established entities who can acquire the land of agricultural purpose by the aid by the State:  Natural person who has occupational skills and competence.  Competent natural person is called a person who was:  returning details of the agricultural land and (or) crops;  was administering accounting not earlier than one year before giving the application  has experience of practical farming and has been registered the farm according  or he has experience of practical farming and diploma of agricultural background or the document, confirming occupational preparation for farming;  Legal entity:  which is producing products of agriculture and its annual income are more than 50 percent of all its income  whose economical vitality can be proven evaluating this legal entity perspectives according to the order established by the Ministry of the agriculture of the Republic of Lithuania.

LAND PARCEL IS FORMED LAND PARCEL IS REGISTERED IN THE RP REGISTER LAND PARCEL IS SUBJECT TO SALE ACCORDING TO A DEVELOPED LAND MANAGEMENT PLAN SE CENTRE OF REGISTERS MAKES REGISTRATION UNDER REQUEST OF HEAD OF NLS THE PLANS ARE DEVELOPED BY LICENCED COMPANIES HEAD OF NLS SIGNS THE – PURCHASE-SALE CONTRACT SALE-PURCAHSE CONTRACT IS APPROVED BY NOTARY PURCHASE-SALE CONTRACT IS REGISTERED IN THE REAL PROPERTY REGISTER ACT OF TRANSFER - ACCEPTANCE SIGNED

Distribution of farmers’ land tenures registered in the Farmers’ Farm Register according to the fluctuation of grouped (declared) agricultural farming land areas in , in per cent.

The main reasons why Lithuania decided to ask for the extension of the transitional period:  the price of the agricultural land parcels;  The global economic crisis has affected Lithuania and its agricultural sector more than most EU Member States;  the difference of the financial abilities of the Lithuanian and foreign entities;  The land reform is going on in Lithuania. The Ministry of Agriculture asked European Commission to extend the transitional period for additional three years – until May 1 st, 2014

THANK YOU FOR YOUR ATTENTION !