In the summer of 2026, Vilnius City Council approved a decision that sounds almost exotic in the real estate market — the lease agreement with the International American School was extended until 2109. That means a lease term of 84 years, something most business or residential contracts in Lithuania will never come close to. But this case is a great opportunity to unpack what "long-term property leasing" actually means, and what it means for you if you're planning to rent an office or flat for longer than a year or two.
In short:
- Vilnius extended its contract with the school until 2109 — a term possible only for the public sector or specific cases, not standard commercial leasing.
- Lithuania's Civil Code allows lease terms of up to 100 years, but in the real market, contracts rarely exceed 10-15 years.
- Contracts signed for longer than 1 year must be registered in the Real Property Register.
- For both businesses and residents, what matters most is the indexation, termination, and assignment terms — not the length of the term itself.
The 84-Year Contract: What Happened and Why It's Unusual
According to the source, Vilnius City Council decided to extend the lease of municipally owned premises to the International American School until 2109. Counting from the moment the decision was made, that's roughly 84 years ahead — a period during which at least three generations of tenant leadership will change.
Such a term is no accident in the market. Educational institutions, embassies, or international organisations often seek long-term stability, since they invest in infrastructure whose returns are measured in decades, not years. The municipality, in turn, gains a guaranteed, long-term source of rental income without needing to find a new tenant every few years.
In ordinary business or residential leasing practice, such a term simply makes no economic sense. Companies plan their operations on a 5-10 year horizon, and people rent for as long as their job, family situation, or city choice stays the same. The 84-year contract is the exception that proves the rule: the longer the term, the more specific the circumstances that justify it.
How Long-Term Leasing Actually Works in Lithuania
Lithuania's Civil Code allows lease agreements of up to 100 years, but that's a theoretical ceiling, not a practical norm. In reality, long-term commercial property leasing usually means a 5-15 year contract, while for residents it means anywhere from one to five years.
Short-Term, Long-Term, and Emphyteusis-Type Contracts
It's worth distinguishing between three different models. Short-term leasing — up to 12 months, usually without registration, flexible for both parties. Long-term leasing — from one year to over a decade, with fixed terms and usually registered in the public register. Emphyteusis, or the long-term right to use land or a building, is close to ownership — the tenant gains almost owner-level rights for an extended period, but this is a rare and complex legal construct, most often applied to state or municipal land.
When a Contract Must Be Registered
If the lease term exceeds one year, the contract must be registered in the Real Property Register to be legally valid against third parties — for example, if the owner sells the premises. An unregistered long-term contract risks becoming invalid against a new owner, even if it remains perfectly valid between the original parties.
For Businesses: What to Include in a Long-Term Office or Premises Lease
When signing a long-term office lease, what matters most isn't the term itself, but the conditions that will apply throughout that time.
- Indexation. Most long-term contracts provide for annual price indexation in line with inflation (usually based on the Eurostat HICP index). Without this clause, the landlord risks losing real income value within 5-7 years.
- Termination conditions. A long-term contract must specify how many months' notice is required before termination and what penalties apply if the contract ends before its term.
- Assignment. If a company grows or shrinks, it's important whether the contract allows subletting part of the premises or assigning lease rights to another company without requiring the landlord's separate consent each time.
If you need to change offices during the contract term — whether due to expansion, downsizing, or simply finding a better location — it's worth planning ahead for an office move to new long-term rental premises. The most common mistake we see among clients is planning the move during the last week before the contract ends, when the old premises already need to be vacated but the new ones aren't yet ready to receive equipment and furniture.
For Residents: Long-Term Flat or House Rental — Risks and Terms
In the flat rental market, "long-term" usually means a contract lasting from one to three years. The difference between a one-year contract and a multi-year one isn't cosmetic — it determines how much stability you have and how far ahead you can plan.
A one-year contract typically allows either party to terminate it once the term ends, without additional grounds. A multi-year contract usually fixes the rental price for the whole period or sets a clear indexation schedule, and can only be terminated early with a penalty or serious cause.
To protect yourself from a sudden termination, insist that the contract include a specific notice period — usually 1-3 months — and compensation if the landlord terminates the contract early without valid grounds.
If the landlord decides to sell the property during the lease term, a registered contract remains valid for the new owner until the end of the term — this is provided for by the Civil Code. An unregistered contract offers no such protection, which is why, for long-term leases, registration in the Real Property Register is not a formality but a genuine safety measure.
When Is It Worth Choosing Long-Term Rental Over Buying?
Let's compare simply: a €70,000 mortgage over a 30-year term at a 4% annual interest rate means a monthly instalment of around €330, plus interest, which over the full term can exceed half the original loan amount. Renting a similar flat in Vilnius currently costs €500-700 per month, depending on the neighbourhood, with no down payment or credit obligations.
Renting becomes more rational when:
- Your job or life plans might change within the next 3-5 years — due to career, family, or a choice of city.
- You don't have a 15-20% down payment, and mortgage rates are currently high.
- You want the flexibility to change city or country without the burden of selling property.
For businesses, long-term leasing is often more advantageous than buying a building outright if the company is actively expanding and may need larger or different premises within 3-5 years. Owned property in that case would become a burden rather than an asset.
A Practical Checklist Before Signing a Long-Term Lease
Before signing any long-term lease agreement, check the following:
- Ownership rights. Check the Real Property Register to confirm that the person you're signing the contract with is genuinely the owner and that the property isn't mortgaged without your knowledge.
- Existing encumbrances. The register will show whether the premises are subject to seizure, a mortgage, or other lease agreements.
- Payment arrangements. Never pay in cash without a receipt, and avoid transfers to personal accounts without a clear basis in the contract — we've written separately about how to safely settle payments with a landlord, since scams in the rental market happen more often than you'd like.
- Repair and insurance terms. The contract should clearly state who is responsible for routine maintenance, who covers major repairs, and whether the premises are insured, and against what.
- Deposit return terms. How long after the contract ends, and under what conditions, the deposit is returned.
Moving into a Long-Term Rental Home or Office: How to Prepare
After signing a contract for ten years or more, the actual move often seems like a minor detail compared to the legal nuances. In reality, this is exactly where unnecessary stress and losses tend to occur — broken furniture, damaged walls in the new premises, missed deadlines for vacating the old home.
Over 12 years in the market and more than 9,500 completed moves, we've noticed that people planning long-term rentals often put off organising the move until the last week — even though it's precisely the long contract term that gives them the chance to plan everything calmly, without rushing.
If there's a transitional period between the old and new location — for example, if the new premises are still being renovated or the interior is being arranged — storing your belongings during the transition period solves the problem without rushed decisions. Furniture and equipment are stored in a dry, insured warehouse until the premises are ready to receive them.
When choosing who will carry out the actual flat move after signing a long-term lease, it's worth checking the team's experience and reviews — we wrote more about this in the article how to choose a reliable moving team. Incidentally, some people avoid changing their rental home altogether simply because of the stress of moving — we discussed why this happens in the piece why people avoid changing their rental home.
Frequently Asked Questions
What is the maximum lease term allowed under Lithuanian law?
The Civil Code allows lease agreements of up to 100 years. In practice, such a term is rarely applied — mostly for state or municipal land and specific buildings, as in the case of the Vilnius contract with the American School running until 2109.
Must a long-term lease agreement be registered in the Real Property Register?
Yes, if the lease term exceeds one year. Registration protects the tenant if the landlord sells the property — the contract remains valid for the new owner until the end of the term.
How does long-term leasing differ from emphyteusis rights?
A standard long-term lease grants the right to use premises for a set period according to the contract terms. Emphyteusis grants almost owner-level rights for an extended period, is usually applied to land or state property, and is a rare, complex legal construct.
How can I protect myself if the landlord wants to terminate a long-term contract early?
The contract must clearly specify the notice period and compensation for early termination without grounds. A registered contract provides additional legal protection, as it remains valid even if ownership changes.
Is it worthwhile for a business to sign an office lease for longer than 10 years?
It depends on growth plans. If the company intends to expand or change the nature of its operations within the coming years, a contract longer than 5-7 years without a flexible assignment or subletting clause could become a burden.
If you already know the date you'll need to move into new long-term rental premises, calculate the cost in advance using our moving cost calculator or go ahead and book your move online — we'll help plan the date so the move doesn't become extra stress on top of an already substantial amount of legal paperwork.