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Everything you need to know before buying real estate is included in our Lithuania Property Pack
Foreign buyers looking to purchase property in Lithuania need substantial upfront cash, typically 20-30% of the property value as a down payment. Getting a mortgage as a non-resident is challenging, with most banks requiring permanent residency and local income verification, making cash purchases the preferred route for international investors.
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Foreign buyers need at least 20-30% cash upfront for Lithuanian property purchases, with mortgage financing challenging for non-residents. Most banks require permanent residency and local income, with interest rates ranging from 4.0-5.6% for qualifying applicants.
Property prices average €2,680-2,768 per sqm in Vilnius, €1,846-1,926 in Kaunas, and €1,752-1,816 in Klaipėda, with additional costs including 0.45% notary fees and 0.1-0.3% registration fees.
| Requirement | Lithuanian Residents | Foreign Buyers |
|---|---|---|
| Minimum Down Payment | 15% | 20-30% |
| Mortgage Access | Available with local income | Very limited, requires residency |
| Interest Rates (2025) | 4.0-5.6% | 4.0-5.6% (if qualified) |
| Maximum Loan Term | 30 years | 30 years (if qualified) |
| Property Restrictions | None for apartments/houses | Cannot buy agricultural/forest land |
| Additional Costs | 0.55-0.75% of value | 0.55-0.75% of value |
| Purchase Timeline | 2-4 weeks typical | 2-4 weeks typical |
How much cash do I actually need upfront to buy an apartment or house in Lithuania?
As of September 2025, foreign buyers need significantly more cash upfront than Lithuanian residents when purchasing property.
For Lithuanian residents with stable local income, the minimum down payment is typically 15% of the property value. However, foreign buyers face much higher requirements, with banks typically demanding 20-30% of the property value as a down payment.
Beyond the down payment, you'll need additional cash for closing costs including notary fees (approximately 0.45% of the purchase price), registration fees (0.1-0.3% of the property value), and potential agency commissions ranging from 1-3% of the property value.
For a €200,000 apartment in Vilnius, a foreign buyer should budget approximately €45,000-65,000 in total upfront cash, including the down payment and all associated costs.
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Can foreigners like me get a mortgage in Lithuania, or do I have to pay fully in cash?
Getting a mortgage as a foreigner in Lithuania is extremely challenging but not impossible.
Most Lithuanian banks require permanent residency and verifiable local income to qualify for a mortgage. Temporary residents or non-residents rarely receive financing approval from major banks. EU citizens with proof of Lithuanian income may have slightly better access, but still face stricter scrutiny and higher down payment requirements.
The reality is that most foreign buyers end up paying fully in cash due to these restrictions. Banks view non-resident buyers as higher risk, leading to more stringent lending criteria that many international buyers cannot meet.
Mortgage brokers or intermediaries familiar with international clients can assist in the application process, but they cannot guarantee approval. Even with professional help, the success rate for non-resident mortgage applications remains low.
Cash purchases are therefore the most reliable and common method for foreign property acquisition in Lithuania.
What is the minimum down payment percentage required by Lithuanian banks?
The minimum down payment varies significantly based on your residency status and relationship with Lithuanian banks.
For Lithuanian residents with stable local employment, the standard minimum down payment is 15% of the property value. Banks may offer loan-to-value ratios of up to 85% for well-qualified local borrowers.
Foreign buyers face much higher requirements, typically needing to provide 20-30% or more as a down payment. Some banks may require even higher percentages depending on the buyer's profile and the specific property.
The mortgage payment cannot exceed 40% of your monthly income according to Lithuanian banking regulations, which further limits financing options for buyers without substantial local income.
These higher down payment requirements reflect the banks' risk assessment of non-resident borrowers who may have limited local financial history.
Do banks in Lithuania finance non-residents, and if yes, under what conditions?
Lithuanian banks rarely finance non-residents, with most requiring permanent residency status as a basic qualification.
| Bank Requirement | Lithuanian Residents | Non-Residents |
|---|---|---|
| Residency Status | Lithuanian residence required | Permanent residence permit required |
| Income Verification | Local employment or business income | Lithuanian income source mandatory |
| Banking History | Lithuanian bank account preferred | Local credit history strongly preferred |
| Down Payment | 15% minimum | 20-30% or higher |
| Documentation | Standard employment docs | Extensive documentation required |
| Processing Time | 2-4 weeks typical | Extended review period |
| Approval Rate | High for qualified applicants | Very low for non-residents |
What interest rates are currently offered for mortgages in Lithuania?
As of September 2025, mortgage interest rates in Lithuania range from 4.0% to 5.6% per annum for qualified borrowers.
The specific rate you receive depends on several factors including your credit profile, down payment amount, loan term, and relationship with the bank. Borrowers with larger down payments and strong local financial history typically qualify for lower rates within this range.
These rates apply to both Lithuanian residents and the rare foreign buyers who manage to qualify for mortgage financing. However, foreign buyers may face slightly higher rates due to perceived increased risk.
Interest rates can vary between different banks, so it's advisable to compare offers from multiple lenders if you qualify for financing.
Variable rate mortgages are more common than fixed-rate options in the Lithuanian market.
How long is the typical mortgage term available to buyers in Lithuania?
Lithuanian banks typically offer mortgage terms of up to 30 years for both residents and qualifying foreign buyers.
The maximum loan term of 30 years is standard across most major Lithuanian banks including Swedbank, SEB, and Luminor. This extended term helps reduce monthly payments but increases the total interest paid over the life of the loan.
Borrowers can choose shorter terms if they prefer to pay off the loan more quickly, with 15, 20, and 25-year options commonly available.
The chosen loan term significantly impacts monthly payment amounts, with longer terms resulting in lower monthly payments but higher total interest costs.
Early repayment options are typically available, though some banks may charge prepayment penalties depending on the loan terms.
What documents will I need to provide if I want to apply for a mortgage as a foreigner?
Foreign mortgage applicants must provide extensive documentation to Lithuanian banks, significantly more than local residents.
- Valid passport or EU identification documents
- Lithuanian permanent residence permit or temporary residence card
- Proof of legal income in Lithuania (employment contracts, recent payslips, or business tax returns)
- Lithuanian bank account statements showing financial stability
- Credit history report from Lithuania (if available) or your home country
- Property details including reservation contract and valuation report
- Proof of down payment funds with source verification
- Employment verification letter from Lithuanian employer
- Tax returns filed in Lithuania for the previous 1-2 years
- Insurance policies and other financial obligations documentation
Banks conduct thorough due diligence on foreign applicants, requiring additional documentation to verify the legitimacy of income sources and compliance with anti-money laundering regulations.
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Are there any restrictions or extra rules for foreigners buying property in Lithuania?
Foreign buyers face minimal legal restrictions when purchasing apartments and houses in Lithuania, but cannot acquire agricultural or forest land.
EU citizens have the same property rights as Lithuanian nationals for residential and commercial real estate purchases. Non-EU citizens also enjoy broad property ownership rights for apartments and houses without additional permits or approvals.
The main restriction applies to agricultural land and forest properties, which require special permits and are generally reserved for Lithuanian citizens or long-term residents.
Banks impose stricter lending criteria on foreign buyers, treating them as higher-risk borrowers with requirements for larger down payments and more extensive documentation.
Anti-money laundering checks are standard for all foreign property purchases, requiring clear documentation of fund sources and compliance with EU financial regulations.
What are the average property prices per square meter in Vilnius, Kaunas, and Klaipėda?
As of September 2025, property prices vary significantly between Lithuania's major cities, with Vilnius commanding the highest prices.
| City | Average Price per sqm (€) | New Construction Price per sqm (€) |
|---|---|---|
| Vilnius | 2,680 - 2,768 | 3,318 |
| Kaunas | 1,846 - 1,926 | 2,200 - 2,400 |
| Klaipėda | 1,752 - 1,816 | 2,100 - 2,300 |
| Vilnius Premium Areas | 3,500 - 4,500 | 4,000 - 5,000 |
| Kaunas City Center | 2,200 - 2,600 | 2,800 - 3,200 |
| Klaipėda Seafront | 2,000 - 2,400 | 2,500 - 2,900 |
| Secondary Cities | 1,200 - 1,500 | 1,600 - 1,900 |
Besides the purchase price, what additional costs (taxes, notary, registration) should I budget for?
Additional costs for property purchases in Lithuania typically range from 0.55% to 0.75% of the property value, excluding any agency commissions.
Notary fees represent the largest additional cost at approximately 0.45% of the purchase price. These fees cover the legal documentation and official transfer of property ownership through the notarial system.
Real estate registration fees charged by the Real Estate Center range from 0.1% to 0.3% of the property value for updating ownership records in the official registry.
VAT at 21% applies only to new properties purchased directly from developers, not to resale properties between private parties. Bank transfer fees within the EU are minimal, though international transfers from outside Europe may incur additional charges.
If using a real estate agency, commission fees typically range from 1-3% of the property value, though the buyer or seller pays this depending on the agreement.
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We did some research and made this infographic to help you quickly compare rental yields of the major cities in Lithuania versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
If I wanted to pay fully in cash, what is the safest way to transfer and register the funds in Lithuania?
Bank transfer through the EU SEPA system represents the safest and most efficient method for transferring property purchase funds to Lithuania.
Transfers from EU bank accounts typically process within 1-2 business days with minimal fees and full regulatory compliance. The funds should be transferred to a notary's client account or escrow account rather than directly to the seller to ensure proper legal protection.
For transfers from outside the EU, additional documentation may be required to satisfy anti-money laundering regulations, including proof of fund sources and compliance with both origin and destination country requirements.
Cash payments are strongly discouraged and may trigger additional regulatory scrutiny. Electronic transfers provide clear documentation trails required for legal property registration.
The notary handles the final fund transfer to the seller upon completion of all legal requirements and registration of ownership transfer with the Real Estate Center.
How long does the whole buying process usually take from signing a reservation to owning the property?
The complete property purchase process in Lithuania typically takes 2-4 weeks from reservation to final ownership registration.
The initial reservation stage involves paying approximately 10% of the purchase price as a deposit along with signing a preliminary purchase contract. This secures the property and begins the due diligence period.
The final purchase occurs at the notary's office where all parties sign the definitive sales contract and complete the financial transaction. This stage usually happens 2-4 weeks after reservation, depending on document preparation and any required inspections.
Ownership registration with the Real Estate Center occurs within 3-19 days after the notarized contract signing, though expedited service can reduce this to as little as one week.
Cash purchases generally process faster than mortgage-financed transactions, as they eliminate the time required for loan approval and bank documentation.
It's something we develop in our Lithuania property pack.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Foreign buyers planning to purchase property in Lithuania should prepare for significant upfront cash requirements, typically 20-30% of the property value as a down payment plus additional closing costs. While mortgage financing is theoretically available, the reality is that most non-residents find cash purchases more practical and reliable.
The Lithuanian property market offers attractive opportunities in cities like Vilnius, Kaunas, and Klaipėda, with clear legal frameworks for foreign ownership and relatively straightforward purchase processes for those prepared with adequate cash resources.
Sources
- MI Center - Mortgage Information
- InvestRopa - Lithuania Real Estate for Foreigners
- Renkuosi Lietuva - Property Purchase Guide
- TET Law - Real Estate Acquisition Guide
- Global Property Guide - Lithuania
- Swedbank - Loan Interest Rates
- Luminor Bank - Housing Loans
- Go Vilnius - Property Buying Guide
- Ober Haus - Market Report
- Immigrant Invest - Lithuania Real Estate Guide