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
Lithuania's property market offers surprisingly strong rental yields and relatively accessible rules for foreign buyers.
While transaction costs stay low at 2-4% of purchase price and legal protections remain robust, foreigners face mortgage restrictions and must navigate varying construction quality standards across different property types and regions.
If you want to go deeper, you can check our pack of documents related to the real estate market in Lithuania, based on reliable facts and data, not opinions or rumors.
Lithuania allows most foreigners to buy residential property without restrictions, with total purchase costs ranging 2-4% of property value and rental yields reaching 8.22% in regional cities like Šiauliai.
However, mortgages require permanent residency and local income, forcing most foreign buyers to pay 100% cash upfront, while property prices have doubled in major cities over the past decade.
| Aspect | Key Details | Cost/Timeframe |
|---|---|---|
| Purchase Costs | Notary, registration, legal fees | 2-4% of property value |
| Mortgage Access | Requires permanent residency + local income | 4-5.6% interest, 30% down payment |
| Best Rental Yields | Šiauliai leads, Vilnius lowest | 8.22% (Šiauliai) to 4.8% (Vilnius) |
| Foreign Restrictions | No residential limits, land restrictions | Non-EU cannot buy agricultural land |
| Annual Costs | Property tax + maintenance | 0.3-3% tax + €0.30-1/m²/month |
| Market Liquidity | Vilnius/Kaunas sell fastest | 2-6 months, 5-15% discount for quick sale |
| Price Trends | Doubled in 10 years in major cities | Currently rising 5-7% annually |
How much does it really cost to buy an apartment or house in Lithuania, including taxes and hidden fees?
Total purchase costs for buying residential property in Lithuania range from 2-4% of the property value beyond the actual purchase price.
The notary fee represents the largest single cost at 0.33-0.45% of the property value, legally capped at €5,000-€6,000 for high-value properties. Registration costs add another 0.03-0.5% depending on the urgency and property type you choose.
Legal fees, while optional, are strongly recommended and typically cost €300-€3,000 depending on the complexity of your transaction and the lawyer's experience level. Real estate agent commissions of 1-3% are usually paid by the seller, not the buyer, which keeps your costs lower.
For new properties bought directly from developers, you'll pay 21% VAT on top of the purchase price, making new builds significantly more expensive than resale properties. Property transfer tax of 2% applies mainly to land purchases rather than standard apartment transactions.
As a practical example, buying a €200,000 apartment would cost you approximately €2,600-€3,000 in mandatory notary and registration fees, plus €300-€3,000 for legal representation if you choose to hire a lawyer.
What are the typical mortgage rates and loan conditions Lithuanian banks actually give to foreigners?
Lithuanian banks currently offer mortgage rates of 4-5.6% per annum as of September 2025, but accessing these loans as a foreigner presents significant challenges.
Most Lithuanian banks only provide mortgages to foreigners who have permanent residency status and can demonstrate established local income sources. Without permanent residency, your mortgage options become extremely limited or non-existent at major banks.
When mortgages are available to foreigners, banks typically require a down payment of 30% compared to 15-20% for local residents. The maximum loan-to-value ratio for non-residents ranges from 70-85%, with most banks favoring the lower end for foreign applicants.
Mortgage rates are typically variable and tied to EURIBOR, meaning your payments can fluctuate with European interest rate changes. The approval process takes 2-8 weeks if you meet all eligibility requirements, but expect longer processing times as a foreign applicant.
Most foreign property buyers in Lithuania end up paying 100% cash due to these mortgage restrictions, which significantly increases the upfront capital requirements for your investment.
How much cash do I need upfront for down payment, notary, legal, and registration costs?
For most foreign buyers, you'll need 100% of the property value in cash since mortgage access is severely limited without permanent residency.
If you can secure a mortgage, expect to pay a 30% down payment as a foreign buyer, compared to 15-20% for local residents. Beyond the down payment, budget an additional 2-4% of the property value for mandatory transaction costs.
Mandatory upfront costs include the notary fee (0.33-0.45% of property value), registration fees (0.03-0.5%), and various small administrative charges for property history checks and documentation. These costs must be paid in full at closing.
Legal fees of €300-€3,000 are optional but strongly recommended, especially for foreign buyers unfamiliar with Lithuanian property law. Translation costs for documents and due diligence expenses add another few hundred euros to your budget.
For a typical €200,000 property purchase, plan to have €206,000-€210,000 available in cash to cover the property price plus all associated costs, assuming you cannot access mortgage financing.
Which Lithuanian cities or regions give the best rental yields right now, and what are the numbers?
| City/Region | Gross Rental Yield | Average Property Price/m² |
|---|---|---|
| Šiauliai | 8.22% | €1,200-€1,500 |
| Kaunas | 6-7% | €1,800-€2,200 |
| Klaipėda/Coast | 5-7% | €2,000-€2,500 |
| Vilnius | 4.8-6.3% | €2,680 |
| Regional Towns | 7-9% | €800-€1,200 |
How easy or difficult is it for a foreigner to legally buy and register property in Lithuania?
Lithuania allows most foreigners to buy apartments, houses, and commercial property without significant restrictions, making it one of the more accessible European markets for foreign investment.
The main restriction applies to agricultural and forest land, which non-EU buyers generally cannot purchase directly. Residential and commercial properties in cities face no such limitations, regardless of your nationality.
The legal process requires a mandatory notary to validate the transaction and complete registration at the Registers Center. You can handle this process through a power of attorney if you cannot be present in Lithuania for the closing.
No residency requirement exists to own property in Lithuania, though permanent residency becomes necessary if you want to access mortgage financing or stay in the country long-term. The title transfer process provides good legal protection when proper due diligence is conducted.
It's something we develop in our Lithuania property pack.
What kind of property taxes, maintenance fees, and yearly costs should I realistically expect?
Annual property tax in Lithuania ranges from 0.3-3% of the property value, though this typically applies only to properties worth more than €150,000, with lower rates or exemptions for owner-occupiers.
If you rent out your property, you'll pay 15% tax on gross rental income to the Lithuanian tax authorities. This applies to all rental income regardless of whether you're a resident or non-resident owner.
Maintenance costs for apartments typically run €0.30-€1 per square meter per month, covering basic building upkeep, common area maintenance, and shared utilities. Luxury complexes and newer buildings often charge higher maintenance fees.
Homeowners association (HOA) fees vary significantly but remain modest outside of new luxury developments. Expect additional costs for individual utilities, repairs, and property management if you hire a local company to handle your rental property.
For a 70-square-meter apartment worth €200,000, budget approximately €1,500-€3,000 annually for property taxes and €250-€850 per year for basic maintenance fees.
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How long does it usually take to rent out a property in Vilnius, Kaunas, or the coast, and at what average monthly rent?
In Vilnius, quality rental properties typically find tenants within 1-3 weeks, with average rents ranging from €800-€1,200 per month for a central 2-bedroom apartment.
Kaunas and Klaipėda generally take slightly longer at 2-4 weeks to secure tenants, with correspondingly lower rental rates reflecting the smaller markets and lower demand compared to the capital.
Coastal properties experience significant seasonal variation, with rental demand and prices spiking during summer months but dropping substantially during off-season periods. This seasonality can impact your annual yield calculations if you rely heavily on short-term rentals.
The speed of finding tenants depends heavily on your property's condition, location within the city, and competitive pricing relative to similar properties in your area. Well-presented properties in desirable neighborhoods consistently outperform average market timing.
Properties in prime Vilnius locations can command premium rents and faster tenant placement, while properties in suburban areas or older buildings may require 4-6 weeks and lower rental rates to attract suitable tenants.
What are the common pitfalls with construction quality or renovations in Lithuanian apartments?
Soviet-era apartments, which represent a significant portion of Lithuania's housing stock, often suffer from outdated electrical wiring, aging plumbing systems, and poor insulation that requires expensive renovation to meet modern standards.
New construction projects sometimes exhibit rushed quality control, with developers cutting corners to meet deadlines and maximize profits. Always verify the developer's reputation and track record before purchasing a new-build property.
Common issues in older buildings include structural problems with balconies, inadequate heating systems, and poor soundproofing between units. These problems can lead to unexpected renovation costs ranging from €10,000-€30,000 for comprehensive updates.
Building permits and renovation approvals can be complex, especially in historic areas or apartment buildings with strict HOA rules. Ensure you understand renovation restrictions before purchasing if you plan significant improvements.
Thorough technical due diligence by qualified inspectors is essential before purchase, as construction standards vary significantly across different eras and builders in Lithuania's property market.
What protections do I have as a buyer if something goes wrong with the property after the sale?
Lithuanian property law provides robust buyer protections when transactions and due diligence are properly conducted, including legal recourse for undisclosed encumbrances or title issues.
New-build properties typically come with mandatory warranty periods ranging from 1-5 years, covering structural defects and major building systems. Always confirm warranty terms and the developer's financial stability to honor these guarantees.
For latent defects not apparent during purchase, Lithuanian law requires sellers to disclose known problems, but practical recourse depends on the specific contract wording and how quickly you take legal action after discovering issues.
Professional legal representation during purchase significantly strengthens your protection by ensuring proper contract terms, thorough due diligence, and clear documentation of the property's condition at closing.
It's something we develop in our Lithuania property pack.
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.
How liquid is the property market in Lithuania—if I need to sell, how fast and at what discount can I expect?
Properties in Vilnius and Kaunas typically sell within 2-6 months when priced fairly according to current market conditions, offering the best liquidity in Lithuania's real estate market.
Premium properties and rural locations take significantly longer to sell, often requiring 6-12 months or more to find suitable buyers willing to pay asking prices.
For quick sales, expect to discount your property by 5-15% below peak market asking prices, with larger discounts required in regional markets or for properties with specific issues or locations.
Market liquidity varies significantly by property type, with standard apartments in good condition selling faster than unique properties, luxury homes, or properties requiring significant renovation work.
The Lithuanian property market's relatively small size means fewer potential buyers compared to major European markets, which can extend selling timeframes, especially for higher-priced properties above €300,000.
What are the specific legal risks or restrictions for non-EU buyers in Lithuania?
Non-EU buyers face restrictions on purchasing agricultural and forest land directly, though residential and commercial properties remain fully accessible regardless of nationality.
Lithuanian banks may require more extensive documentation from non-EU buyers and frequently decline mortgage applications from those lacking Lithuanian residency status, forcing cash-only purchases.
Always verify current municipal rules and potential new legislation, as local governments occasionally implement additional restrictions or requirements for foreign property ownership in specific areas.
Tax implications for non-EU buyers can be complex, particularly regarding inheritance, capital gains, and ongoing rental income obligations. Professional tax advice is essential to understand your full legal obligations.
Non-EU buyers should also consider visa and residency implications, as property ownership alone doesn't grant residence rights, and extended stays may require separate visa arrangements depending on your nationality.
How do property prices in Lithuania compare today with five or ten years ago, and what's the trend going forward?
Property prices in Vilnius have increased from approximately €1,850 per square meter in 2020 to €2,680 per square meter in 2025, representing a 45% increase over five years or roughly 5-7% annual growth.
Over the past decade, prices have approximately doubled in major Lithuanian cities since 2015, driven by economic growth, EU membership benefits, and increasing rental demand from young professionals and international workers.
As of September 2025, prices continue rising moderately at 5-7% annually across major markets, with no signs of overheating or unsustainable speculation that characterized some other European markets in recent years.
Regional cities have experienced similar but slightly lower price appreciation, maintaining better affordability while still offering strong investment returns for early adopters in the Lithuanian market.
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.
Lithuania's property market presents a compelling opportunity for foreign investors seeking strong rental yields and accessible entry requirements.
However, the lack of mortgage access for most foreigners and the need for thorough due diligence on construction quality remain important considerations for successful investment outcomes.
Sources
- INVESTROPA - Lithuania Real Estate for Foreigners
- INVESTROPA - Average House Prices in Lithuania
- Novyny Live - Buying Property in Lithuania Guide
- MI Center - Property Purchase Guide
- CEE Legal Matters - Real Estate Lithuania
- The Global Economy - Lithuania Mortgage Rates
- Swedbank Lithuania - Loan Interest Rates
- Realtor Europe - Lithuania Property Market
- INVESTROPA - Lithuania Price Forecasts
- Immigrant Invest - Real Estate Costs in Europe