🇱🇹 Lithuania Real Estate 2025: Buying Guide, Laws & Top Locations

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8/5/2025

🇱🇹 Lithuania Real Estate 2025: Buying Guide, Laws & Top Locations

Why Lithuania?

  • Rapidly growing Baltic economy, EU & eurozone member

  • Strong tech and startup scene in Vilnius and Kaunas

  • Attractive prices with relatively high rental yields

  • Low cost of living and easy access to EU/Scandinavian markets

  • Renewed interest in green building and revitalized old-town neighborhoods


Can Foreigners Buy Property in Lithuania?

Yes — non-Lithuanian individuals and companies can freely purchase residential and commercial property.

  • EU/EEA nationals are unrestricted

  • Non-EU buyers can buy apartments freely; land or houses typically require a special permit from the Ministry of Justice

  • Purchase via Lithuanian company for land/house is a common workaround


Residency & Permit Programs 2025

  • No real estate‑linked residency scheme

  • Standard visas include work permits, entrepreneur visas (Startup Visa), and family reunification

  • Owning property may support a visa application (proof of accommodation) but is not enough alone


Legal Process of Buying Property

  1. Obtain a Personal ID Number (Asmens kodas) and open a local bank account

  2. Engage a notary or lawyer for due diligence

  3. Sign a reservation agreement and pay deposit (5–10%)

  4. Perform legal and technical checks—title, encumbrances, zoning

  5. Finalize sale through a notarized contract

  6. Notary registers ownership with the Real Property Register

  7. Pay relevant taxes, notary, and registration fees


Taxes & Fees

  • Transfer Tax: Flat rate of 1% of the market value

  • Notary & Legal Fees: ~1%–2% of property value

  • Agent Fees: Usually 2%–3%, negotiable

  • Annual Property Tax: 0.3%–1% of cadastral value

  • Capital Gains Tax: 15% on profit (exempt if held >10 years)

  • Rental Income Tax: 20% flat on net rental profits


Mortgage Availability for Foreigners

  • Local banks offer mortgages to non-residents with sufficient documentation

  • Loan-to-Value (LTV): 70% for residents, 60%–70% for foreigners

  • Interest Rates (2025): Around 4%–6%, depending on client profile

  • Higher deposit may be required, with proof of income and positive credit record


Is Lithuania Right for You?

Ideal for:

  • Investors seeking affordable, EU-market entry with solid rental returns

  • Expats and entrepreneurs tied to tech, education, or startups

  • Long-term holders interested in stable, low-risk growth

  • Lifestyle buyers drawn to revitalized old towns and green suburbs

Less ideal for:

  • Buyers expecting residency from property ownership

  • Investors seeking high-yield flips—market tends toward steady gains

  • Those wanting immediate EU-standard property services without permit hurdles


Top Places to Buy in Lithuania (2025)

Vilnius (Senamiestis, Užupis, Antakalnis)

  • Capital with strong expat & rental market

  • Average yields: 4%–5%, growth in modern and heritage districts

Kaunas (Centras, Žaliakalnis)

  • Growing second‑city tech hub, modern developments

  • Yields: 4.5%–5.5%, attractive affordability

Klaipėda & Coastal Resorts

  • Port city and Curonian Spit tourism center

  • Yields: 5%–7% in coastal regions, strong short-let potential

Šiauliai & Panevėžys

  • Smaller regional centers with low entry prices

  • Yields: 5%–6%, opportunity for revitalization projects


Rental Yield & ROI Overview

LocationGross YieldNet Yield (after costs)
Vilnius4%–5%3%–4%
Kaunas4.5%–5.5%3.5%–4.5%
Klaipėda/Sea side5%–7%4%–6%
Šiauliai/Panevėžys5%–6%3.5%–5%

Trends in 2025

  • Rise in modern apartment blocks with smart and green features

  • Increasing foreign capital fueling old-town renovations

  • Expansion of short-let regulation; licensing becoming more structured

  • Improved infrastructure linking the coast, Vilnius, and Kaunas


Common Mistakes to Avoid

  • Skipping permit checks for non-EU land purchases

  • Underestimating translation, renovation, and legal fees

  • Overlooking short‑let licensing requirements in tourist zones

  • Assuming residency or citizenship follows property ownership

  • Not verifying zoning rules or future urban development plans


Conclusion

Lithuania offers a promising, cost-effective real estate market with strong rental demand and emerging urban growth centers. While non‑EU buyers must navigate permit requirements for land-based purchases, market access is broad for apartments. With proper diligence and local legal assistance, Lithuania can provide a stable, long-term investment with attractive returns in 2025.

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