Authored by the expert who managed and guided the team behind the Lithuania Property Pack
Everything you need to know before buying real estate is included in our Lithuania Property Pack
Why is Lithuania emerging as a prime destination for property investment in 2025? Is it the attractive rental returns, the vibrant cultural scene, or the competitive pricing compared to other European markets? What are the key benefits for investors?
We often encounter these questions because we are actively engaged with local developers, real estate professionals, and investors like you. Given the growing interest in this market, we've decided to compile our insights into a comprehensive article for everyone's benefit.
Our aim is to present a compelling case for investing in Lithuania's real estate market, supported by our firsthand experience and market expertise.
If you feel we've overlooked an important aspect or wish to learn more, please reach out to us (we respond very quickly). Your feedback enhances the quality of our content.
Finally, please remember that this is not financial or investment advice. Real estate investment involves inherent risks, and market conditions can change unexpectedly. We strongly recommend conducting thorough research and consulting with a qualified financial advisor before making any investment decisions.
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1) There is a large student population, which makes it easier for you to find renters
The rental market in Lithuania is thriving, thanks largely to the influx of students, especially from abroad.
In recent years, international student numbers have surged by 19.7%, particularly between 2023 and 2024. This boom has naturally increased the demand for rentals, especially in university cities like Vilnius and Kaunas.
In Vilnius, for example, apartment rents jumped by 26.7% in 2022, following a 9.5% rise in 2021. The trend didn't stop there, with a further 30% increase during the second and third quarters of 2022, showing just how strong the market is.
Low vacancy rates near universities are another sign of this robust market. With so many students looking for places to stay, property owners enjoy steady rental income, which underscores the market's strength.
Private student housing developments are popping up as a response to this demand. This growth in housing options highlights the importance of the student population in driving the rental market.
Sources: Lithuania Residential Real Estate Market Analysis 2024, Lithuania International Student Statistics 2024
One of our partners sent us this video where the high demand for rental properties due to students and the availability of various accommodation options in Lithuania are detailed.
2) Lithuania's economy is growing rapidly, making it an attractive place to invest
Lithuania's economy is booming, making it one of the fastest-growing in the EU.
Over the past few years, Lithuania has seen steady GDP growth. In 2023, it grew by 2%, with projections of 2.4% in 2024 and 3.0% in 2025. This growth is happening alongside a decrease in unemployment rates. Although still above the EU average, the rate was 7.9% in 2024, showing improvement.
Foreign direct investment, especially in tech, is a big driver of this growth. Lithuania ranks second in the Central and Eastern Europe region for venture capital investment, boosting its startup scene. From 2018 to 2023, this ecosystem grew by 7.1 times, making it the fastest-growing in the Baltic region.
High-tech service exports, like IT and financial services, have surged by 222% over the last four years. This highlights Lithuania's strength in technology and innovation. The government actively supports the tech industry, creating a business-friendly environment that attracts international companies and startups.
Sources: Siauliu Bankas, Delfi, Work in Lithuania, Luminor
In this video, we can see how Lithuania's GDP growth rate and thriving sectors like fintech and IT contribute to its status as one of the fastest-growing economies in the EU.
3) The country’s location is perfect for connecting Western Europe with Eastern markets
Lithuania's strategic location is a key asset for connecting Western Europe with Eastern markets.
One major project boosting this connectivity is Rail Baltica, which links the Baltic states to the rest of Europe. This development not only enhances Lithuania's ties with both Western and Eastern Europe but also makes it a vital transit hub. Being part of the European Union further strengthens Lithuania's position, as it benefits from the single market, simplifying trade across the EU.
On the maritime front, Lithuania's position on the Baltic Sea is a significant advantage. The Port of Klaipėda is a bustling hub, handling 40.13 million tons of cargo in 2023. This port is crucial for maritime trade, connecting Lithuania efficiently with various markets.
Logistics and distribution are thriving in Lithuania, with more centers popping up. Companies like Omniva are setting up regional logistics centers, such as the automated logistics center in Kaunas. This center is a key player in parcel sorting and distribution, enhancing Lithuania's role as a connector.
Government incentives are also drawing investments into logistics and transport infrastructure. These incentives make Lithuania an attractive spot for businesses looking to expand their logistics operations. The rise in logistics centers and improved infrastructure is a testament to Lithuania's growing importance in the region.
Sources: East-CCI, Economy-Finance, IPC
4) Lithuania’s booming tech industry means young professionals are looking for homes
Lithuania's tech scene is booming, making it a hotspot for young professionals seeking new opportunities.
In 2023, Lithuania boasted over 870 startups, employing 17,800 people and adding EUR 275 million to the national budget. Big names like Vinted and Nord Security have reached unicorn status, while others like Argyle and CityBee are quickly gaining traction.
Foreign investments are pouring in, with global giants like Nasdaq and Thermo Fisher Scientific setting up shop in Lithuania. These investments are fueling job creation and attracting talent from all over the globe.
The tech industry is hungry for talent, aiming to recruit 7,600 specialists by 2025, which is twice the current workforce. This demand is pulling young professionals to cities like Vilnius and Kaunas, where the tech industry is thriving and rental properties are in high demand.
Urban areas are buzzing with activity as the tech sector grows, creating a vibrant environment for both work and play. The influx of young professionals is driving up the demand for housing, making it a great time to invest in property.
With a thriving tech ecosystem and a growing need for housing, Lithuania is becoming a prime destination for those looking to invest in real estate. The country's tech boom is not just about business; it's about creating a dynamic lifestyle that appeals to the next generation of innovators.
Sources: Euronews, Invest Lithuania, Vilnius Tech Fusion
5) With low property taxes, Lithuania offers more affordable real estate options
In Lithuania, property taxes are incredibly low, making real estate more affordable.
For 2023 and 2024, Lithuania's property tax rate was just 0.25%, one of the lowest in the European Union. This is a stark contrast to places like the UK, where the rate was 1.94%. Such low taxes mean that owning property in Lithuania is much less of a financial burden compared to other European countries.
The Lithuanian government has designed a progressive tax system where properties valued up to €150,000 are tax-exempt. This means many homeowners don't pay any property taxes at all, which is a huge relief for those looking to buy a home without breaking the bank.
These low taxes have also caught the eye of foreign investors, especially from nearby countries. This influx of investment has helped grow the real estate market, boosting the supply of available properties and making it easier for people to find affordable homes.
For anyone considering buying property in Lithuania, the combination of low taxes and a growing market makes it an attractive option. The tax system not only benefits local buyers but also encourages international interest, which in turn supports a healthy real estate market.
With such favorable conditions, Lithuania stands out as a prime location for property investment, offering both affordability and potential for growth. The low property taxes are a key factor in this, making it a smart choice for anyone looking to invest in real estate.
Sources: The Luxury Playbook, Deloitte, Glimstedt
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6) Vilnius is turning into a hotspot for international startups
Vilnius is quickly becoming a hotspot for international startups, especially in the fintech sector.
In 2023, the city boasted over 170 fintech startups, with a collective value of around €1.8 billion. This impressive figure highlights Vilnius's strong presence in financial technology. By the end of 2024, the city planned to launch TechZity, Europe's largest startup incubator, offering more than 3,000 workstations. This move underscores Vilnius's dedication to nurturing new businesses with the right infrastructure.
The Lithuanian government is also playing a crucial role by actively promoting foreign direct investment, especially in high-tech industries. This strategy has successfully attracted global giants like Nasdaq and Thermo Fisher Scientific to set up shop in Vilnius. The presence of startup accelerators and incubators, such as Startup Wise Guys, provides essential funding, mentorship, and networking opportunities, further boosting the startup ecosystem.
Vilnius's appeal doesn't stop there. The city benefits from a skilled IT workforce and a competitive cost of living, making it an attractive base for tech companies eyeing Europe. These factors combine to create a fertile ground for innovation and growth.
For those considering a move to Vilnius, the city's vibrant startup scene offers a unique blend of opportunity and support. With its strategic initiatives and welcoming environment, Vilnius is positioning itself as a key player in the global tech landscape.
Sources: Euronews, Invest Lithuania, The Young Economist
7) A lot of expats are drawn to the country because of its high English proficiency
Lithuania is a magnet for expatriates thanks to its impressive English proficiency.
In Lithuania, you'll find a multilingual talent pool that's among the best in Europe, especially in higher education. Many global business services (GBS) centers here operate in multiple languages, with English being a key player. This makes Lithuania a hotspot for multinational companies that appreciate the strong English skills of the local workforce.
The business services sector is thriving, and it's not just about numbers. It's about the innovative roles that require top-notch English proficiency. This growth reflects Lithuania's ability to offer sophisticated positions that attract global businesses.
Lithuania's educational system is another feather in its cap. It's known for being English-friendly, which is evident from the rising number of international students choosing to study here. This trend shows the country's dedication to maintaining high educational standards that support English language learning.
Expatriates often share their positive experiences in Lithuania on forums and social media, highlighting the country's appeal. The availability of English-language services and the growing number of English-speaking communities make it a welcoming place for those moving from abroad.
With multinational companies setting up shop and a supportive environment for English speakers, Lithuania is a top choice for expatriates looking for a new home. The combination of a high level of English proficiency and a friendly atmosphere makes it an attractive destination.
Sources: Invest Lithuania, SSONetwork
8) Lithuania’s accessible healthcare makes it a great choice if you’re retired
Lithuania's healthcare system is becoming a top choice for retirees looking for affordable and accessible medical care.
One big draw is the low cost of healthcare services. Back in 2013, healthcare spending per person was just $1,579, which is quite modest compared to what you'd find in Western Europe. This makes Lithuania a great option for retirees who need to stretch their fixed incomes.
Another plus is the availability of English-speaking doctors. While exact numbers aren't available, Lithuania's EU membership and involvement in cross-border healthcare initiatives mean more medical professionals are likely to speak English. This is a huge relief for retirees who don't know Lithuanian.
On top of that, Lithuania has been pouring money into its healthcare infrastructure. The government has been busy with reforms, focusing on upgrading regional hospitals and centers of expertise. This means better emergency response times and a more efficient healthcare system overall, which is a big win for retirees.
These improvements make the healthcare system not just affordable but also reliable and efficient. Retirees can expect a level of care that meets their needs without breaking the bank.
So, if you're thinking about retiring in Lithuania, know that the healthcare system is ready to welcome you with open arms and quality medical services.
Sources: Wikipedia, OECD iLibrary, European Commission
We made this infographic to show you how property prices in Lithuania compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
9) With high internet access, the country is a great spot for remote workers
Lithuania is a digital hotspot with a high internet penetration rate.
At the start of 2024, 89.0% of Lithuanians had internet access, a slight uptick from the previous year. This steady growth highlights the country's commitment to keeping its citizens connected.
When it comes to speed, Lithuania doesn't disappoint. In 2024, mobile internet speeds hit a median of 82.53 Mbps, while fixed internet speeds soared to 103.04 Mbps. Compare this to 2023, when mobile speeds were at 58.30 Mbps and fixed at 89.23 Mbps, and you'll see a clear upward trend.
Thanks to government efforts, Lithuania's digital infrastructure is thriving. While specific initiatives aren't detailed, the ongoing investment is clear, making the country a magnet for remote workers.
With such robust internet capabilities, Lithuania is an attractive option for digital nomads looking for a reliable and fast online experience.
Sources: DataReportal - Digital 2023: Lithuania, DataReportal - Digital 2024: Lithuania
10) In Lithuania, you’ll benefit from a transparent and investor-friendly legal system
Lithuania's legal system is transparent and investor-friendly, especially since 2023.
They've revamped how judges are appointed, making the process more transparent and efficient. This means the Supreme Court can fill positions without the usual hold-ups, giving investors a more predictable legal landscape.
In 2023, the Council of Judges rolled out a Transparency Policy for the courts. This policy is all about stamping out corruption, banning bribery, and ensuring no favoritism. It's a big deal for keeping the legal system fair, which is key for investor trust.
Being part of the European Union, Lithuania sticks to EU legal standards, which are known for strong property rights and enforcement. This alignment makes the legal environment stable and attractive for investors.
These changes are not just on paper; they are actively shaping a legal system that is reliable and fair. Investors can feel more secure knowing that the rules are clear and consistently applied.
With these reforms, Lithuania is positioning itself as a prime destination for property investment, offering a legal framework that supports and protects investors.
Sources: European Commission, Economy and Finance, LIBERTIES RULE OF LAW REPORT 2024
This video specifically discusses the increasing rental market in Vilnius, highlighting the growing demand from young professionals.
11) With Lithuania’s rich cultural heritage, you can easily rent out your property to tourists short-term
Lithuania's rich cultural heritage is a major draw for tourists and short-term renters.
In 2023, Lithuania experienced a 13% rise in foreign tourists, with expectations to hit 1.7 million visitors by 2024. This surge is fueled by vibrant cultural festivals and events that invite visitors to explore historical sites and national museums. Imagine wandering through centuries-old castles or attending lively folk festivals that showcase Lithuania's unique traditions.
The buzz around these cultural attractions has sparked a boom in short-term rental properties. By December 2023, there were 4,793 touristic establishments, catering to the growing demand for accommodations that offer a taste of local culture. The expansion of low-cost airlines has made it easier for tourists to flock to Lithuania, further energizing the tourism scene.
Travel platforms are buzzing with positive reviews and high ratings for Lithuanian cultural sites. The locals' friendliness and the country's spotlight in international travel guides make it an irresistible destination. These elements are key in driving the growth of tourism and short-term rentals in Lithuania.
Sources: LRT, Baltic Times, Trading Economics
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12) The government's support for innovation leads to smart city developments
Lithuania is becoming a hub for smart city developments thanks to strong government support for innovation.
In 2023, Lithuania made a bold move by raising over €292 million to boost tech startups. This financial backing has been a game-changer for many fintech companies, including big names like Vinted and Nord Security, which have reached unicorn status.
Vilnius, the capital, is buzzing with innovation hubs and tech parks. These spaces are like playgrounds for startups, especially in fintech and proptech, where they can test and refine their ideas before hitting the market. It's all about creating a culture where new technologies can thrive.
Partnerships between the government and tech companies are also making waves. Vilnius has teamed up with Smart City Vilnius to roll out IoT technology across different sectors. This collaboration has sparked the rise of smart city startups like Trafi, which are transforming urban mobility and cutting down travel times.
These efforts are not just about technology; they're about making life better for everyone. By integrating IoT solutions, Vilnius is setting a new standard for urban living, making the city more efficient and connected.
Sources: Euronews, EU-Startups, Invest Lithuania
13) You can take advantage of government incentives for energy-efficient home upgrades
The government is offering incentives to make homes more energy-efficient, which helps cut down on energy bills and greenhouse gas emissions.
In Lithuania, homeowners have shown a lot of interest in these programs, especially in 2023 and 2024. The European Investment Bank (EIB) teamed up with the Lithuanian government to renovate thousands of buildings, proving how effective these incentives can be.
These energy-efficient upgrades don't just save money on bills; they also boost property values, making homes more appealing to buyers. It's a win-win situation for homeowners looking to invest smartly.
Many homeowners are eager to jump on board with these government initiatives, thanks to the financial support and improved living conditions they offer. It's a great opportunity to make a home more comfortable and valuable.
By making these upgrades, homeowners are not only saving money but also contributing to a greener and more sustainable country. It's a move that aligns with the European Union’s energy efficiency goals.
So, if you're thinking about buying a property in the country, consider the benefits of these energy-efficient upgrades. They offer long-term savings and increased property value, making them a smart choice for any homeowner.
Sources: European Sting, CE Energy News, EuropaWire
14) Lithuania’s strong education system makes it a great place for families to settle down
Lithuania's education system is known for its stability and quality, making it an attractive option for families considering a move to the country.
In recent years, while many EU countries struggled with educational challenges, Lithuania managed to keep its students' performance steady in reading and mathematics, with only a slight dip in science. This consistency highlights the country's strong educational foundation and commitment to maintaining high standards.
During the COVID-19 pandemic, the Lithuanian government made significant investments in education infrastructure. They expanded Wi-Fi and mobile connections, provided computers and mobile devices, and introduced digital tools to support learning. These efforts not only improved the learning environment but also showed the government's dedication to enhancing educational quality.
Lithuania's universities, such as Vilnius University, have formed partnerships with international institutions, boosting the quality of education and attracting students from around the world. This international collaboration is a testament to the global recognition of Lithuanian degrees, making it easier for graduates to find opportunities across Europe.
Families moving to Lithuania can feel confident in the education system, knowing that the government is committed to continuous improvement and innovation. The country's focus on education is evident in its efforts to provide students with the tools they need to succeed in a digital world.
Sources: LRT, OECD iLibrary, European Union Publications
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Lithuania. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
15) In Lithuania, you’ll find a stable banking system that supports real estate investments
Thinking about buying property in Lithuania? The banking system here is rock solid.
One standout feature is the incredibly low non-performing loan ratio, which was just 0.4% in 2022. This means that almost everyone is paying back their loans, showing that banks are doing a great job managing their money and that borrowers are keeping up with payments.
Another reassuring aspect is the high capital adequacy ratios of Lithuanian banks. This means they have plenty of capital to handle any potential losses, making them tough against economic hiccups. The Bank of Lithuania is also on the ball, boosting the Countercyclical Capital Buffer to tackle any real estate market issues head-on.
Internationally, Lithuania's banking system gets a thumbs up too. The IMF, in their 2024 Article IV Consultation, highlighted that the banks are well-capitalized and highly profitable. Such positive feedback from a respected global body can really boost investor confidence.
All these factors make Lithuania a prime spot for real estate investments. The stability and proactive measures in place ensure that the banking system can weather any economic storms, making it a safe bet for your investment.
With a stable banking environment and international endorsements, investing in Lithuanian real estate seems like a smart move.
Sources: The Global Economy, IMF, IMF eLibrary
16) Being in the Eurozone means you’ll face less currency risk in this country
Lithuania uses the euro, which is a big plus for anyone looking to buy property there.
Being part of the Eurozone means stable exchange rates, which is great news for investors. This stability comes from the Eurozone's exchange rate mechanism, which keeps rates within a tight range, making things predictable for businesses.
Before adopting the euro, Lithuania's currency, the litas, was pegged to the euro since 2002. This long-standing connection has helped create a predictable economic environment, which is a magnet for foreign investors who want to avoid currency swings.
The euro's reliability makes it a favorite for international trade and investment. It has been shown to boost trade and investment flows, which is a win for countries like Lithuania. Plus, using a single currency cuts down transaction costs for cross-border deals, making financial transactions smoother.
For anyone considering property investment, the euro reduces the hassle of currency conversions and the risks that come with them. This means more straightforward financial planning and less worry about fluctuating exchange rates.
In short, Lithuania's use of the euro offers a stable and predictable financial landscape, making it an attractive option for property buyers. Investors can expect stable returns without the headache of currency volatility.
Sources: European Exchange Rate Mechanism (ERM II), Foreign Direct Investment (FDI) in Europe, Monetary Policy in the Euro Area, Lithuania Action Plan Review 2023-2025
17) You can rely on Lithuania’s stable political environment for property security
Lithuania's political stability is a key factor in ensuring property security.
Being part of the European Union, Lithuania follows EU property laws, which offer a reliable framework for property transactions. This means your property rights are well-protected and respected, making the buying process smoother and more predictable.
Lithuania consistently scores high on global political stability indices, which is a good sign for potential property buyers. Thanks to low corruption levels, as noted by Transparency International, you can trust the legal system to handle property transactions fairly and transparently.
The country also boasts a strong legal framework for property transactions. According to the World Bank's Doing Business report, Lithuania has robust property rights protection. This ensures that your property transactions are secure and your rights are upheld.
For those considering a property purchase, Lithuania's stable environment and adherence to EU laws provide a sense of security. The country's commitment to transparency and fairness in property dealings makes it an attractive option for buyers.
With a solid legal system and low corruption, Lithuania offers a trustworthy environment for property investments. This stability is a significant advantage for anyone looking to invest in real estate in the country.
Sources: BTI Project, ELRA, Trading Economics
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18) With a low crime rate, properties in this country are more desirable
Lithuania is known for its low crime rate, making it an attractive place to buy property.
In 2023, Lithuania was ranked 26th in the Crime Index with a score of 33.0, which is quite low compared to other European countries. This ranking shows the country's dedication to public safety, enhancing its reputation as a safe place to live. The Safety Index for Lithuania was 67.0, placing it among the safer countries in Europe, which is a point of pride for locals and a draw for foreign investors.
Many investors and expatriates are attracted to Lithuania because of its safety, which is often cited as a primary reason for investing there. This influx of investment boosts the local economy and the property market, making it a win-win situation for everyone involved. The government has been proactive in keeping crime levels low, focusing on prevention and fostering cooperation between law enforcement and the public.
People in Lithuania generally feel secure, which is a big part of why the country is appealing to live in. The sense of safety is not just a statistic but a real feeling among the population, which further enhances the country's appeal. The government’s efforts in crime prevention have created an environment where residents feel safe, and this is reflected in public perception.
For those considering buying property in Lithuania, the low crime rate is a significant factor. It’s not just about numbers; it’s about the peace of mind that comes with living in a place where safety is a priority. This commitment to safety is a key reason why Lithuania is becoming increasingly popular among property buyers.
Sources: Macrotrends, Numbeo, TF Vilnius University
19) You’ll enjoy a lower cost of living compared to many Western European countries
Lithuania offers a lower cost of living compared to many Western European countries.
One of the biggest savings comes from rent. In 2024, the average rent in Lithuania was 18 euros per square meter, a stark contrast to cities like London or Dublin, where monthly rents can soar over 3,000 euros. This makes Lithuania an attractive option for those looking to stretch their budget further.
Groceries are another area where you can save. In Lithuania, food prices are about 28.6% cheaper than in Germany. This means a family can comfortably spend between €200 to €400 a month on groceries, leaving more room in the budget for other expenses.
Transportation is also budget-friendly. Thanks to an efficient public transport system and reasonable fuel prices, getting around doesn’t break the bank. This is a big plus for anyone considering a move to Lithuania.
Utility bills are another area where you’ll find savings. They typically add only about €100 to €150 to monthly expenses, which is quite manageable. This is a relief for anyone used to higher utility costs in other parts of Europe.
Healthcare in Lithuania is both affordable and accessible. This is a significant advantage for both locals and expatriates, as it helps keep the overall cost of living down. With these savings, Lithuania becomes an even more appealing place to call home.
Sources: Numbeo, UOL Blog, Invest Lithuania
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility. Finally, please note that we are not affiliated to any of the sources provided. Our analysis remains then 100% impartial.