Security Deposit Laws for Commercial Properties in Lithuania

Unlike the residential sector, commercial leasing in Lithuania is characterized by substantial financial stakes and bespoke contractual arrangements. The mechanisms for securing a commercial landlord against financial loss are robust and largely unrestricted by statutory caps.

Disclaimer: This guide provides general legal information for educational purposes only and does not constitute legal advice. Commercial real estate laws are complex. Always consult a licensed attorney in Lithuania for advice specific to your situation. Information last verified: March 2026.

Maximum Commercial Deposit Amounts

The Lithuanian Civil Code does not impose any cap on the amount a landlord can demand as a security deposit for a commercial property.

The amount is entirely driven by negotiations, the perceived risk of the tenant's business, and standard practices within specific real estate sectors (e.g., retail, logistics, office).

• While residential properties typically require 1 to 2 months' rent, commercial properties frequently demand the equivalent of 3 to 6 months of rent, plus estimated common area charges (service fees) and applicable VAT.

Forms of Commercial Security

In the Lithuanian commercial market, raw cash deposits are common for smaller enterprises. However, sophisticated landlords and corporate tenants frequently utilize superior financial instruments:

1. Bank Guarantees

A first-demand bank guarantee is the gold standard for securing prime commercial real estate in Lithuania. If the tenant breaches the contract, the landlord can draw upon the funds directly from the tenant's bank upon presentation of a simple demand, bypassing any immediate need to litigate the breach.

2. Corporate Guarantees

If the local tenant entity is a subsidiary, the landlord may accept a corporate guarantee from a heavily capitalized parent company located abroad or elsewhere in the EU, effectively promising to cover any rent defaults or damages.

Collecting and Managing the Security

When structuring the security clause in the commercial lease, landlords must address the following to avoid compliance and operational hurdles:

• Currency: Ensure the deposit or guarantee aligns with the currency of the rent (overwhelmingly the Euro).
• Validity Period: If using a bank guarantee, it must remain valid for the entire lease duration, often extending 30 to 90 days beyond the lease expiration date.
• Top-Up Requirements: If the landlord draws upon the deposit or guarantee due to a breach, the contract should obligate the tenant to "top up" or replenish the security within a specific timeframe (e.g., 14 days).

Deductions from the Deposit

Because commercial properties often undergo extensive tenant fit-outs and alterations, deductions must be carefully defined. Allowable deductions usually encompass:

• Arrears in rent, service charges, or utilities.
• Costs incurred by the landlord to remove unauthorized tenant fit-outs and restore the premises to "shell and core" or the originally agreed handover state.
• Accrued default interest (delspinigiai).

To justify deductions upon move-out, both parties absolutely must rely on an exhaustive Handover Protocol executed at the start of the lease and an exit protocol at termination.

Getting Started with Compliance

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