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 offers a surprisingly accessible property market for foreign buyers, with clear procedures and attractive yields, especially in regional cities.
As we reach mid-2025, Lithuania's real estate market continues to show strong fundamentals, with property prices rising between 3.3% and 6.5% annually across major cities. The country allows foreigners to buy residential and commercial property with relatively few restrictions, though careful legal and financial due diligence remains essential for a successful investment.
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.
Foreigners can buy apartments, houses, and commercial property in Lithuania without residency requirements, though EU citizens have slightly more rights than non-EU buyers. The average property price in Vilnius is €2,680 per square meter as of June 2025, with national rental yields averaging 6.27%.
The buying process involves mandatory notary services, costs about 2-4% in fees and taxes, and can be completed remotely through power of attorney. While mortgages are available for foreigners, they typically require permanent residency and local income for approval.
| Aspect | Details | Key Points |
|---|---|---|
| Property Types Allowed | Residential & Commercial | No agricultural/forest land for non-EU citizens |
| Residency Required | No | But needed for mortgages and long-term stay |
| Average Prices (2025) | €1,149-€2,680/m² | Vilnius most expensive, regional cities offer better value |
| Transaction Costs | 2-4% total | Notary 0.33-0.45%, registration 0.03-0.5%, agent 1-3% |
| Rental Yields | 4.83-8.22% | Šiauliai highest at 8.22%, Vilnius lowest at 4.83% |
| Mortgage Availability | Limited for foreigners | Need permanent residency, 15-30% down payment |
| Popular Areas | Vilnius, Kaunas, Klaipėda | Capital leads in appreciation, regions in yields |
What types of property can foreigners buy in Lithuania, and are there any restrictions?
Foreigners can freely purchase apartments, houses, and commercial real estate in Lithuania with minimal restrictions.
EU and EEA citizens enjoy exactly the same property rights as Lithuanian citizens, meaning they can buy any type of real estate without limitations. Non-EU citizens can also buy residential and commercial properties, but they face restrictions on purchasing agricultural and forest land unless they obtain special permission from the Lithuanian government.
As of June 2025, there are specific restrictions for properties in strategic locations such as border zones, coastal dune areas, and certain protected territories where special permits may be required. Additionally, Russian citizens without Lithuanian residency are currently prohibited from purchasing any real estate in Lithuania due to national security considerations.
The Lithuanian property market remains remarkably open compared to many European countries, with no minimum investment requirements or golden visa schemes tied to property purchases. This makes Lithuania an accessible market for international buyers seeking European real estate investments.
Do I need residency or a specific visa to purchase property in Lithuania?
You don't need to be a resident or hold any specific visa to buy property in Lithuania.
Foreign nationals from any country can purchase real estate in Lithuania as tourists or visitors, making the process straightforward for international investors. However, it's crucial to understand that owning property in Lithuania does not automatically grant you residency rights or a residence permit.
If you plan to live in Lithuania long-term after purchasing property, you'll need to apply for a residence permit through other qualifying routes such as employment, business investment, or family reunification. The property ownership itself won't contribute to your residency application, unlike some other European countries with investment residency programs.
For stays under 90 days within a 180-day period, EU citizens can freely enter Lithuania, while non-EU citizens may need a Schengen visa depending on their nationality. This is sufficient time to complete a property purchase if you've done your research beforehand.
Can I buy Lithuanian property without being physically present?
Yes, you can complete a property purchase in Lithuania entirely remotely through a power of attorney.
The Lithuanian legal system allows foreign buyers to appoint a local lawyer or trusted representative to handle all aspects of the property transaction on their behalf. This representative can view properties, negotiate with sellers, sign contracts, and complete the registration process without you needing to travel to Lithuania.
To set up remote purchasing, you'll need to prepare a notarized power of attorney document in your home country, which must then be apostilled (for countries party to the Hague Convention) or legalized through Lithuanian consular services. This document should specifically outline the powers granted to your representative, including the ability to sign the purchase agreement and complete property registration. It's something we develop in our Lithuania property pack.
While remote purchasing is legally straightforward, working with a reputable Lithuanian law firm is essential to avoid potential fraud or misrepresentation. Many international buyers successfully complete purchases this way, particularly those investing from Asia or North America.
What is the complete step-by-step process for buying property in Lithuania?
The Lithuanian property purchase process follows a clear, structured path that typically takes 4-8 weeks from initial offer to final registration.
First, you'll search for properties through online portals like aruodas.lt or capital.lt, or work with local real estate agents. Once you've identified a suitable property, conduct thorough due diligence by reviewing the property's title, checking for encumbrances, and verifying its legal status through the Land Register.
| Step | Timeline | Key Actions |
|---|---|---|
| Property Search | 1-4 weeks | Browse listings, view properties, compare prices |
| Due Diligence | 3-5 days | Title check, encumbrance review, legal verification |
| Preliminary Agreement | 1-2 days | Sign preliminary contract, pay 10-15% deposit |
| Financing Arrangement | 2-3 weeks | Secure funds or mortgage approval |
| Notary Appointment | 1 day | Sign final contract before Lithuanian notary |
| Registration | 3-5 days | Register ownership at Registrų centras |
| Final Documentation | 1-2 days | Receive ownership certificate |
Essential documents you'll need include a valid passport or ID, Lithuanian Tax Identification Number (TIN), proof of funds such as bank statements or loan approval letters, and if you're a non-EU citizen planning long-term stays, a valid visa or residence permit. For remote purchases, you'll also need a notarized and apostilled power of attorney.
The preliminary agreement (preliminari sutartis) is legally binding and typically requires a 10-15% deposit. This protects both parties and sets out the terms for the final sale. The main sale-purchase contract (pirkimo-pardavimo sutartis) must be signed before a Lithuanian notary, who verifies all parties' identities, confirms the seller's ownership rights, and ensures the contract's validity.
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Is hiring a lawyer or notary mandatory, and what roles do they play?
A notary is absolutely mandatory for all real estate transactions in Lithuania, while a lawyer is strongly recommended but not legally required.
The Lithuanian notary plays a crucial role in property transactions, going far beyond simply witnessing signatures. They verify the seller's ownership rights, check for any encumbrances or liens on the property, ensure both parties have the legal capacity to enter the agreement, and confirm that the transaction complies with all Lithuanian laws. The notary also calculates and collects certain taxes and fees on behalf of the state.
While not mandatory, hiring a lawyer is particularly valuable for foreign buyers unfamiliar with Lithuanian property law. A lawyer can conduct comprehensive due diligence, negotiate contract terms in your favor, explain legal implications in your native language, and represent you through power of attorney if you're buying remotely. They can also identify potential issues that might not be obvious to foreign buyers, such as zoning restrictions or planned infrastructure changes.
As of 2025, notary fees typically range from 0.33% to 0.45% of the purchase price, often capped at €5,000-€6,000 for expensive properties. Legal fees vary but generally range from €1,000 to €3,000 depending on the transaction's complexity.
What are all the taxes, fees, and hidden costs when buying and selling property?
Total transaction costs for buying property in Lithuania typically range from 2% to 4% of the purchase price, making it one of the more affordable markets in Europe.
Notary fees are the most significant cost, ranging from 0.33% to 0.45% of the property value, with a maximum cap around €5,000-€6,000. Registration fees at the Registrų centras are modest, typically 0.03% to 0.5% of the property value, with higher fees for expedited processing. Real estate agent commissions usually run 1% to 3% of the purchase price, though these are often paid by the seller.
For new construction properties, buyers must pay 21% VAT on top of the purchase price, which significantly increases the total cost. However, this doesn't apply to existing properties. Annual property tax ranges from 0.3% to 3% for residential properties and 0.3% to 1% for commercial properties, based on the property's market value and set by each municipality.
When selling property, you'll face a 15% capital gains tax on any profit if you sell within three years of purchase. After three years, the sale may be tax-exempt if it was your primary residence. Rental income is also taxed at 15% of gross receipts. Hidden costs to watch for include potential encumbrances like unpaid utility bills or property taxes from previous owners, which should be discovered during due diligence.
Can foreigners get mortgages in Lithuania, and what are the current terms?
While foreigners can technically apply for mortgages in Lithuania, approval is challenging without permanent residency and local income.
Lithuanian banks typically require permanent residence permits and stable employment or business income within Lithuania before considering mortgage applications from foreigners. Temporary residents or non-residents face significant hurdles, as banks view them as higher-risk borrowers. Some banks may consider applications from EU citizens with temporary residency, but terms are often less favorable.
| Mortgage Terms | Requirements | Current Rates (2025) |
|---|---|---|
| Down Payment | 15-30% of property value | Higher for second properties |
| Interest Rates | Average 5.6% annually | Variable or fixed options |
| Loan Term | Up to 30 years | Age restrictions apply |
| Income Requirements | Monthly payment ≤40% of income | Local income preferred |
| Documentation | Extensive financial history | 3+ years of tax returns |
| Credit History | Lithuanian credit record preferred | International records sometimes accepted |
| Property Insurance | Mandatory | Lender-approved policies only |
To improve your chances of mortgage approval, establish permanent residency in Lithuania first, maintain steady employment or business income for at least 12 months, build a Lithuanian credit history through local banking relationships, and prepare a substantial down payment of at least 20-30%. Working with mortgage brokers familiar with international clients can also help navigate the application process. It's something we develop in our Lithuania property pack.
What are the most popular areas for foreigners buying property, and why?
Vilnius dominates foreign property purchases, attracting over 40% of international buyers due to its status as the capital and economic powerhouse.
The Lithuanian capital offers the country's strongest job market, best international schools, and most vibrant cultural scene. Popular neighborhoods for foreigners include the UNESCO-listed Old Town for its historic charm, Naujamiestis for modern amenities and business proximity, and Žvėrynas for its green spaces and family-friendly atmosphere. Property prices in Vilnius average €2,680 per square meter as of mid-2025.
Kaunas, Lithuania's second city, attracts foreigners seeking more affordable options while maintaining urban amenities. With several universities and a growing tech sector, Kaunas offers properties averaging €1,846 per square meter. The city's interwar architecture and emerging startup scene particularly appeal to younger international buyers and investors.
Coastal areas like Klaipėda and Palanga draw foreigners seeking seaside properties. Klaipėda, the country's main port, combines maritime industry opportunities with beachside living at €1,752 per square meter. Palanga, Lithuania's premier beach resort, attracts investors interested in vacation rentals, with strong summer tourism driving rental yields despite seasonal fluctuations.
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.
Which Lithuanian locations offer the best lifestyle, rental income, or appreciation potential?
Different Lithuanian cities excel in different investment categories, from lifestyle quality to rental yields and capital growth potential.
For lifestyle and livability, Vilnius leads with its international community, cultural offerings, and modern amenities. The capital offers everything from trendy cafes in Užupis to business facilities in the new CBD. Kaunas provides a more relaxed pace while maintaining urban conveniences, making it popular with families. Coastal Klaipėda appeals to those seeking maritime living with its proximity to the Curonian Spit's beaches and nature.
Rental income potential varies significantly across Lithuania. Šiauliai surprisingly offers the highest gross rental yields at 8.22%, driven by strong demand and relatively low property prices. Kaunas follows with 6.14% yields, benefiting from student housing demand. While Vilnius yields are lower at 4.83%, the capital offers more stable, year-round occupancy and easier tenant finding.
For capital appreciation, Vilnius and Kaunas show the strongest potential due to continued economic growth and infrastructure development. Marijampolė, strategically located near the Polish border, is emerging as a logistics hub with rising property values. The Rail Baltica project, connecting the Baltic states to Poland, is expected to boost property values in cities along its route through 2030.
What are the current property prices across Lithuania's major cities?
Lithuanian property prices vary significantly between regions, with the capital commanding premium rates while regional cities offer substantial value.
As of June 2025, Vilnius remains the most expensive market with apartments averaging €2,680 per square meter and houses at €3,804 per square meter. Premium new developments in prestigious areas like Antakalnis or Naujamiestis can reach €4,900-€5,000 per square meter. The capital's prices have grown 3.3% annually, reflecting steady but moderate appreciation.
Regional cities offer more affordable entry points. Kaunas apartments average €1,846 per square meter with 5.6% annual growth, while Klaipėda follows closely at €1,752 per square meter with 5.4% growth. The most affordable major cities are Šiauliai and Panevėžys, both around €1,150 per square meter for apartments, but showing the strongest growth rates at 6.5% and 6.4% respectively.
The price disparities create opportunities for different investment strategies. Budget-conscious buyers can acquire properties in regional cities for under €100,000 total, while those seeking premium investments can find luxury apartments in Vilnius for €300,000-€500,000. Rural properties and houses in smaller towns can be found for as little as €30,000-€50,000.
What rental yields and economic growth can investors expect across Lithuania?
Lithuania offers some of Europe's most attractive rental yields, with the national average reaching 6.27% gross as of Q2 2025.
- Šiauliai leads with exceptional 8.22% gross yields, driven by industrial growth and limited housing supply
- Kaunas delivers solid 6.14% yields supported by university students and growing tech workforce
- Klaipėda provides 5.90% yields with steady port-related employment and tourism
- Panevėžys offers around 6.5% yields as manufacturing expansion drives housing demand
- Vilnius, despite lower 4.83% yields, provides the most liquid market and stable tenancy
The rental market remains particularly tight in Vilnius, where housing supply hasn't kept pace with demand from the growing workforce and international community. Small apartments under 50 square meters command premium rents per square meter, making studio and one-bedroom units especially profitable investments.
Lithuania's economic fundamentals support continued property market growth. The country maintains EU membership benefits, steady GDP growth around 2.5-3% annually, and increasing foreign direct investment, particularly in fintech and shared services sectors. Major cities are benefiting from ongoing infrastructure improvements, including the Rail Baltica project and expanded airports.
Tourism contributes significantly to rental demand in certain areas. Vilnius, Kaunas, and Trakai attract year-round cultural tourism, while coastal resorts like Palanga and Nida see strong summer demand. Spa towns like Druskininkai maintain steady occupancy from wellness tourism. Short-term rental regulations remain relatively relaxed compared to other EU countries.
What mistakes do foreigners commonly make when buying Lithuanian property?
Foreign property buyers in Lithuania often stumble over similar issues that can be easily avoided with proper preparation and professional guidance.
The most critical mistake is insufficient due diligence on property titles and encumbrances. Many foreigners skip comprehensive checks of the Land Register and municipal records, missing crucial information about existing mortgages, unpaid taxes, or legal disputes. Some properties may have servitudes (easements) granting neighbors access rights, or restrictions on modifications due to heritage protection status.
Another common error is misunderstanding zoning and usage restrictions. Not all residential properties can be legally used for short-term rentals, and some areas have specific regulations about commercial activities. Foreigners often assume they can freely convert properties to Airbnb rentals without checking local municipality rules, leading to fines or forced closure of rental operations.
- Underestimating total costs: Buyers forget to budget for notary fees, registration costs, potential VAT on new builds, annual property taxes, and maintenance expenses
- Assuming property purchase grants residency: Many believe buying property provides residence rights, but Lithuania has no such program
- Choosing the wrong legal structure: Some investors purchase through foreign companies without understanding Lithuanian tax implications
- Ignoring mortgage limitations: Non-residents often waste time pursuing mortgages without establishing local income first
- Overpaying in hot markets: In competitive areas like central Vilnius, emotions can drive overbidding without proper valuation
- Remote purchase risks: Buying sight-unseen without trusted local representation can lead to misrepresented property conditions
- Language barriers: Misunderstanding contract terms due to poor translation can create legal complications
- Rushing the process: Impatience can lead to skipping crucial verification steps
To avoid these pitfalls, always engage a reputable Lithuanian lawyer for thorough due diligence, verify all property documentation through official channels, understand all costs before committing, get professional property valuations in competitive markets, and never skip the property inspection, even if buying remotely through representatives. 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 offers compelling opportunities for foreign investors in 2025, combining EU market access with relatively affordable prices and strong rental yields.
While the buying process is straightforward and open to international purchasers, success requires careful navigation of legal requirements and market dynamics. Working with experienced local professionals and conducting thorough due diligence remains essential for avoiding common pitfalls and maximizing your investment potential in this growing Baltic market.
Sources
- Migration Information Center - Property Purchase Guide
- Global Property Guide - Lithuania Buying Guide
- Lawyers Lithuania - Property Purchase Process
- Integra Real Estate - Buying Property Guide
- Ober-Haus Real Estate Market Report 2025
- Global Property Guide - Lithuania Rental Yields
- CEE Legal Matters - Lithuania Real Estate Law
- Property Investment Lithuania Analysis
- TEN Law - Legal Guidance for Property Purchase
- Lithuania Real Estate Market Trends 2025