Investment Real Estate in VilniusHistoric lanes with studiossquares, and gardens

Real Estate in Vilnius, Lithuania

Why Invest in Property in Vilnius

Vilnius, the capital of Lithuania, is an increasingly attractive destination for real estate investors, expatriates, and remote workers. Blending a UNESCO-listed medieval Old Town with a modern business district, Vilnius offers strong rental yields, political stability, and a favorable legal environment for foreign ownership. Its strategic location in the Baltics, dynamic tech ecosystem, and affordable property prices compared to Western Europe make it a smart choice for both residential and commercial investment. With growing demand from both locals and international buyers, Vilnius is rapidly emerging as one of the most promising real estate markets in Northern Europe.

Types of Real Estate in Vilnius

Vilnius provides a broad range of property types, catering to diverse investor profiles:

• Historic apartments — Located in the Old Town (Senamiestis), these feature high ceilings, exposed brick, and baroque façades. Ideal for short-term rentals or boutique restorations.
• Modern condos — Found in areas like Šnipiškės and Naujamiestis, offering new builds with elevators, underground parking, and smart-home systems.
• Detached houses and townhomes — In suburban areas like Žvėrynas, Antakalnis, and Pilaitė, often with gardens and good access to nature.
• Commercial property — Office space, retail outlets, and mixed-use buildings in central business districts and shopping streets.
• New development projects — Vilnius is undergoing continuous construction, particularly in the North City (Šnipiškės) and Tech Park zones.

Foreign Ownership and Legal Framework

Lithuania offers full property rights to foreign individuals and companies:

• No citizenship or residency required — Foreign nationals may buy residential or commercial property with no restrictions.
• Clear land registry — All titles are registered through the national Real Property Register (Registrų centras), offering legal transparency.
• No requirement for a local entity — Individual investors can own property directly without creating a Lithuanian company.
• Property inheritance and resale — Are legally protected and straightforward under EU law.
• Bank financing — Available to EU residents; non-EU buyers typically purchase in cash unless they open a local bank account and meet loan requirements.

This legal openness makes Vilnius a desirable market for global investors, especially compared to nearby countries with more restrictive policies.

Property Prices and Market Trends

Vilnius remains affordable by European standards while showing consistent growth:

• City center apartments: €2,800 – €4,500 per m²
• New builds in popular districts: €2,500 – €3,800 per m²
• Suburban homes: €1,800 – €3,000 per m² depending on plot size and build quality
• Commercial real estate: €6 – €16 per m²/month for office rental, or €2,000 – €3,000 per m² to purchase

Property values have been rising 6–10% annually in recent years, supported by demand from young professionals, tech workers, and foreign buyers.

Rental Yields and Investment Scenarios

Vilnius offers solid returns for buy-to-let investors, particularly in centrally located or newly developed areas:

• Long-term residential rental yield: 4%–6% net annually
• Short-term rental yield (e.g. Airbnb): 7%–9% net annually in high-demand zones like Senamiestis or Užupis
• Commercial property ROI: 6%–8% depending on lease terms and tenant quality
• Student housing: High demand from local and Erasmus students due to expanding universities

Example: A 50 m² new apartment in Naujamiestis bought for €140,000 can rent for €850–1,000/month long-term, or €60–80 per night short-term, offering gross annual returns of 7%–8%.

Top Districts for Property Investment

Vilnius is divided into several distinct neighborhoods, each with unique appeal:

• Senamiestis (Old Town) — Historic center with high tourist traffic; perfect for vacation rentals and high-end restoration projects.
• Užupis — Bohemian quarter across the river; attracts artists, designers, and creative investors.
• Šnipiškės — Rapidly developing business district, home to skyscrapers, tech offices, and upscale apartments.
• Naujamiestis — Young and vibrant area undergoing gentrification; popular with students and digital workers.
• Žvėrynas and Antakalnis — Prestigious green districts offering villas and upscale homes near parks and embassies.
• Pilaitė and Pašilaičiai — Growing suburbs with family-friendly housing, good schools, and easy road access.

Taxes and Costs

Real estate transactions in Lithuania come with minimal bureaucracy and competitive taxation:

• Stamp duty: 0.5%–2% of purchase price
• Property tax: 0.3%–3% annually for commercial property; residential properties are mostly exempt for individuals
• Rental income tax: 15% flat rate on gross rental income for non-residents
• Capital gains tax: 15% for non-primary residences held less than 10 years
• Notary and registration fees: Typically €300–€800 total per transaction

Most investors find Lithuanian property taxation relatively mild and easy to manage.

Who Should Invest in Vilnius

Vilnius is ideal for:

• Buy-to-let investors — Seeking strong yields in a stable EU market
• Remote workers — Looking to settle in a walkable, green city with good digital infrastructure
• Second-home buyers — Interested in a peaceful European base with excellent access to nature
• Commercial investors — Targeting the growing office and retail space sector in the capital
• Developers — Capitalizing on the city’s active demand for modern housing and coworking hubs

The real estate market in Vilnius is not speculative or inflated, making it a smart long-term play in the European real estate landscape.

Conclusion

Vilnius combines historic charm, economic momentum, and investor-friendly policies, making it a rare gem in the European real estate scene. With strong rental yields, full ownership rights for foreigners, and a rising international profile, the Lithuanian capital is a compelling choice for residential, commercial, or lifestyle-based investment. As the city continues to evolve into a digital and cultural hub of the Baltics, now is a strategic time to consider acquiring property in Vilnius.