What is a guest house?

Guest houses are premises built for housing or provision of accommodation services.
Why there is nothing to fear buying a guest house *?
We guarantee that “Koriai” guest houses * comply with all requirements for apartments, such as:

Minimum area of rooms, bathrooms and toilets.
Insolation (solar lighting)
Temperature comfort
Parking spaces
Rights to register a guest house as a place of residence and apply for a place in kindergartens.

How to avoid real estate tax (0.7% of face value)?
Residents are exempt from tax when submitting the following documents to the Tax office:
Residence certificate in the acquired housing
(can be issued by Šnipiškės house management, or by the Registration Center)
Evidence that the resident does not own other real estate for residential purposes
(from the Registration Center)
A document proving utilities receiving for this housing
(contract or invoice)
Do banks finance guest house acquisitions?
Yes, banks finance acquisitions of guest houses on the same terms as apartments, i.e. up to 85% of the value of the acquired property.
Are apartments cheaper than guest apartments?
Yes. Even when the real estate tax for 20 years is taken into account, such housing comes out to be cheaper. Alose consider the rising trend for real estate prices in Vilnius, it is very likely that the price of real estate of any type will continue to grow thus increasing the value of your investments.
Below there is an example that compares the costs of acquiring and maintaining an apartment and a guest house.

Guest house* Apartment Guest house acquisition savings* , €
Area, m2 45 45
Price, € 72,000 81,000 -9,000
Real estate tax (0,7% of the value) for 20 years 0** 0 0
Down payment, €*** 10,800 12,150 -1,350
Bank loan, €*** 61,200 68,850 -7,650
Loan service payments, €*** 20,259 22,792 -2,532
Total savings, €: -11,532

* Guest houses are non-residential premises that fully comply with the requirements for apartments.
** Residents are exempt from tax when submitting the following documents to the Tax office:
– Residence certificate in the acquired housing (can be issued by Shnipiškės house management, or by the Registration Center);
– Evidence that the resident does not own other real estate for residential purposes (from the Registration Center);
– A document proving utilities receiving for this housing (contract or invoice).
*** The example calculation are based on 20 years mortgage terms for 85% of the housing cost with a 3% annual interest rate (2% bank margin and 1% EURIBOR).