Changes to property and business valuation rules take effect in Lithuania

On 1 May this year, the Lithuanian Law on Mandatory Property and Business Valuation and the Law on the Chamber of Property and Business Valuers, both adopted in 2024, came into force. As a result, the property and business valuation framework in Lithuania has changed slightly. The most significant change is the Valuation Reports Information System (VAIS), a digital platform established at the initiative of the Ministry of Finance. Since 1 May, all valuation reports falling under mandatory property and business valuation requirements must be uploaded to the system.

For example, if you take out a home loan and commission a property valuation for a bank, it is important to know that the valuation report will not only be submitted to the lending institution but will also be uploaded to the state-run Valuation Reports Information System (VAIS).

What is VAIS?

The Valuation Reports Information System (VAIS) is a state-developed database in which all valuation reports falling under mandatory property and business valuation requirements are stored. It is a central database containing all mandatory valuation reports prepared in Lithuania.

A valuation report is stored in VAIS for 10 years from the date it is submitted to the system. The law requires the valuer to upload the valuation report to VAIS no later than the next working day after it has been prepared.

When is a valuation report uploaded to VAIS?

A valuation report must be uploaded to VAIS if it has been prepared in accordance with the provisions of the Lithuanian Law on Mandatory Property and Business Valuation. Most standard property valuation cases fall within the scope of this law.

For example, this includes valuations carried out for the purpose of pledging property to credit institutions, valuations related to the contribution of assets or shares to a company, and valuations carried out to establish the market value of property for the State Tax Inspectorate (VMI). Many other types of valuation are also covered where the relevant purpose is specified in Lithuanian legislation.

Do all valuation reports have to be uploaded to VAIS? When are they not uploaded?

Not all valuation reports are subject to the mandatory valuation requirements. Valuations carried out for financial accounting purposes, for use in legal disputes, or simply because the client wants to determine the value of their property are not considered mandatory valuations.

The requirements of the Lithuanian Law on Mandatory Property and Business Valuation do not apply to such valuations, meaning that the reports are not uploaded to the state-run VAIS system.

A full list of the types of valuation that are considered mandatory and must therefore be uploaded to VAIS can be found here.

Who can access valuation reports uploaded to VAIS?

The valuer who prepared the report, the valuation client and the valuation user are entitled to obtain the valuation report from VAIS free of charge. The law also provides that valuation reports may be provided free of charge to public administration bodies for the performance of their functions. The legislation does not specify in detail which entities qualify as public administration bodies.

Is the data publicly available? What information is made public?

Some information contained in valuation reports becomes publicly available. This includes, for example, the report registration date and the date on which the value was determined, the valuer, the purpose of the valuation, the property being valued, the anonymised location of the property (to municipality level), the size of the property, the determined market value and other data.

Information about the client is not made public. However, if state-owned property is being valued or the client is a state- or municipality-owned company, the full anonymised valuation report is made publicly available through VAIS.

Valuation report data is publicly available for five years from the date the report is registered in VAIS. The public list of reports can be found here.

How long is a valuation report stored in VAIS?

A valuation report is stored in VAIS for 10 years from the date it is submitted to the information system. The law requires the valuer to upload the completed valuation report no later than the next working day after it has been prepared.

What does this mean in practice?

The law provides that only valuation reports available in VAIS may be used for decisions that require a valuation under applicable legislation. This means that, for example, when issuing a loan, a bank will rely only on the valuation report uploaded to VAIS.

A valuer may prepare and provide a valuation report to the client or bank before it is uploaded to VAIS, but the report only acquires full legal effect once it has been uploaded to the system.

How long is access to my valuation report valid? Is access free of charge?

Access to VAIS is free of charge for valuation clients and users of the report designated by the client. The client must provide the valuer with the email address to which they wish to receive a notification when the report has been uploaded to VAIS.

The client will also receive a unique link at this email address, which can be used to access the VAIS system and download the valuation report. The link is valid for 30 days, although it can be renewed.

Does VAIS affect the cost of a valuation?

No, the introduction of VAIS does not affect the valuation fee. However, clients should ensure that the information they provide is accurate and complete.

If a valuation report that has already been signed and uploaded to VAIS needs to be amended or supplemented due to inaccurate or incomplete information provided by the client, rather than an error on the part of the valuer, this may be treated as a new service and charged separately.