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
Are you considering investing in Lithuania’s real estate market? What are the legal steps, tax implications, and cultural differences you need to understand before taking the plunge? What challenges do foreign investors typically face, and how can you overcome them?
These are the questions we hear most often from foreign investors because we’re actively connected to this market. We’ve spent time working with local agents, developers, and investors, so we know what works—and what doesn’t. That’s why we’ve written this article: to provide a clear guide that answers the questions we get asked daily.
Our goal is to help you, as a foreigner, to navigate the property buying process with confidence. If you think there’s something we missed or want more details, let us know (please do!). Your input helps us refine and improve our advice for everyone.
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1) Focus on residential properties in Lithuania, as foreigners face restrictions on buying agricultural land
In Lithuania, foreigners can buy property, but there are some rules to keep in mind, especially with agricultural land.
If you're a non-EU citizen, buying agricultural land isn't a walk in the park. You need special government approval to make such a purchase. So, if you're from outside the EU, you can't just snap up agricultural land without jumping through a few hoops.
For EU and EEA citizens, the process is a bit easier, but there are still some strings attached. You must have been involved in agribusiness activities in Lithuania for at least three years. This rule is there to make sure the land is used well and helps local farming thrive.
Foreign companies can also get their hands on small plots of agricultural land, but there are conditions. These conditions help regulate how much land foreign entities can own, keeping local interests in mind.
So, while buying property in Lithuania is possible for foreigners, agricultural land comes with its own set of challenges. It's all about ensuring the land is used productively and supports the local economy.
Understanding these rules is crucial if you're thinking about investing in Lithuanian real estate. Knowing the ins and outs can save you a lot of hassle and help you make informed decisions.
Sources: Aparthotel, Smash VC, Arab MLS
2) Focus on properties with strong public transport links in Lithuania, as this is crucial for many buyers
Investing in Lithuanian properties with good public transport links is a smart move.
In Vilnius, public transport is a big deal for property demand. More than half of the city's residents regularly use buses and trolley-buses, and 34% rely on public transport for their daily commute. This means homes near these transport hubs are likely to be more valuable because of their easy access and convenience.
Surveys show that being close to public transport is a top priority for many Lithuanian homebuyers. A study on sustainable mobility in major cities found that most residents have used public transport at least once, and many are open to using combined transport options. This makes properties near public transport highly desirable.
Lithuania is actively expanding its public transport network. In Vilnius, for example, over 50 km of bike lanes have been constructed and renovated, with more on the way. This focus on sustainable mobility is likely to make properties with good transport links even more appealing.
Urban development plans are increasingly zeroing in on improving public transport connectivity. This trend is boosting the attractiveness of properties near these networks, making them a hot commodity for buyers.
Sources: Statista, Hrcak, Vilnius Tech Journals
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.
3) Consider energy-efficient properties in Lithuania, as the focus on sustainability and green living is growing
Investing in energy-efficient properties in Lithuania is a smart move because the country is increasingly focused on sustainability and green living.
In recent years, Lithuania has seen a surge in demand for sustainable housing. By 2023, there was a noticeable push to renovate multi-apartment buildings to boost their energy efficiency. This trend continued into 2024, with initiatives aiming to mobilize substantial funds for refurbishing these buildings, indicating a growing market for energy-efficient properties.
The Lithuanian government is also playing a big role by offering financial benefits and tax incentives for green building practices. For instance, in 2023, Continental Automotive Lithuania’s plant in Kaunas achieved LEED Gold certification, showcasing the country's commitment to environmentally friendly construction. By 2024, the government continued to support sustainable building practices by promoting the use of energy-efficient materials and innovative solutions for water efficiency.
Consumer demand for sustainable housing has been on the rise as well. In 2023, there was a noticeable focus on sustainable building practices driven by consumer demand for eco-friendly living. This was further solidified in 2025 when Lithuania was recognized as the European Green Capital, highlighting the country's dedication to reducing emissions and promoting renewable energy.
For those looking to invest, Lithuania's focus on green initiatives means that energy-efficient properties are not just a trend but a long-term commitment. The government’s support and consumer interest create a favorable environment for investors. With the right property, you can maximize your profit by investing in energy-efficient properties, as Lithuania is increasingly focused on sustainability and green living.
As Lithuania continues to prioritize green living, the market for energy-efficient homes is expected to grow. This makes it an opportune time for investors to consider properties that align with these values. The combination of government incentives and consumer demand ensures that investing in sustainable housing is not only beneficial for the environment but also a profitable venture.
Sources: EIB Press Release, Constructive Voices
4) Consider short-term rentals in Vilnius Old Town for high returns, as tourist-heavy areas attract many visitors
Investing in short-term rentals in Vilnius Old Town can be highly profitable.
Vilnius Old Town is a hotspot for tourists, and this popularity translates into high occupancy rates for short-term rentals. Back in 2024, Airbnb highlighted Vilnius as one of the top 10 European capitals for rental yields, showing a strong demand for these properties. This demand is a major driver of profitability for property owners.
The tourism scene in Lithuania is booming, with Vilnius at the center of it all. Known for its rich culture and history, the city’s UNESCO-listed Old Town is a magnet for visitors. This influx of tourists naturally increases the need for short-term accommodations, which in turn boosts rental yields.
In 2024, the average rental price in Vilnius saw a significant rise, increasing by 6.5% from January to July. This uptick in rental prices is a clear indicator of strong market conditions, making short-term rental properties a lucrative investment.
For those considering property investment, Vilnius offers a unique blend of cultural appeal and financial opportunity. The city’s vibrant atmosphere and historical charm attract a steady stream of visitors, ensuring a consistent demand for short-term rentals.
With its strategic location and growing popularity, Vilnius Old Town is not just a beautiful place to visit but also a smart choice for property investors looking to capitalize on the thriving tourism industry.
Sources: Inrento, Go Vilnius
5) Consider Lithuania’s strong rental market for long-term leases to secure stable income
Lithuania's rental market is booming, especially in cities like Vilnius.
In 2022, Vilnius saw a 5% population increase, which is quite impressive. Despite a 17% drop in apartment sales, rents shot up by 26.7% and kept climbing by 30% in the following quarters. This makes Vilnius a hot spot for rental investments.
People are flocking to urban areas, making cities like Vilnius and Kaunas more popular than ever. Developers are jumping on this trend, pouring money into new residential projects to cater to different tastes. The government is also playing a part by encouraging foreign investments, which is giving the real estate market a nice boost.
Real estate agencies are buzzing about the profitability of rental investments in Lithuania. They predict the rental market will stay competitive, with rents continuing to rise, though not as sharply, as things settle down. This suggests that putting your money into rental properties here could be a smart move.
Sources: Global Property Guide, Statista, Migration Department of Lithuania
In this video, we can see that rental demand in Vilnius has increased significantly, with supply dropping to 500 units from a normal 1,500 in spring 2024, leading to a 25% price increase. The market has since stabilized but remains 15% higher than the previous year.
6) Consider properties near tech hubs in Vilnius and Kaunas, as Lithuania's tech sector is rapidly growing and offers lucrative investment opportunities
Lithuania's tech scene is booming, making properties near tech hubs in Vilnius and Kaunas potentially lucrative investments.
In 2023, Lithuania's startup ecosystem was buzzing with over 800 startups, contributing to a combined ecosystem value of €8 billion. This vibrant scene is home to unicorns like Vinted and NORD Security, alongside several promising soonicorns, showcasing the country's dynamic entrepreneurial spirit.
Foreign investors are taking notice, with venture capital funding reaching approximately €292 million in 2023. This impressive figure places Lithuania second in Central and Eastern Europe for venture capital funding, underscoring the sector's growth potential.
The Lithuanian government is playing a key role in this tech boom by supporting innovation through initiatives like the Startup Visa and Startup Employee Visa programs. These efforts are attracting skilled entrepreneurs from around the world, further enriching the local tech landscape.
Moreover, the development of tech parks and innovation hubs, such as Tech Zity in Vilnius, provides a nurturing environment for tech companies to flourish. These spaces are designed to foster collaboration and creativity, essential ingredients for tech success.
With a rapidly growing tech sector, Lithuania is becoming a hotspot for tech talent and investment. Properties near these tech hubs are not just homes; they are gateways to a thriving community of innovation and opportunity.
Sources: Tech Behemoths, Euronews, TechCrunch
7) Be ready to negotiate in Lithuania, as haggling over property prices is common and can save you money
You might be surprised to learn that Lithuanians often negotiate property prices, so being prepared to haggle can save you money.
In recent years, the real estate market in Lithuania has shifted towards a buyer's market, making negotiation a common practice. This trend was highlighted in the Lithuanian Economic and Real Estate Market Report 2023-2024, which showed that the housing market balance index has normalized, giving buyers more leverage. This means you have a good chance to negotiate a better deal when buying property.
Real estate agents in Lithuania are well aware of this shift and often emphasize the importance of negotiation. They offer specialized services to help clients navigate the process, ensuring that buyers can secure better deals. The market balance index value has dropped, indicating an increase in transaction volume and potential for price discounts, which is great news for buyers.
Many articles and guides on buying property in Lithuania stress negotiation as a key strategy. They suggest that the positive trajectory of Lithuania's economy and real estate market makes negotiation a smart move for buyers. Even though property values have risen historically, the dynamic market environment encourages negotiation to achieve favorable outcomes.
Understanding the local market dynamics can give you an edge. For instance, knowing that the transaction volume has increased can help you gauge when to push for a better price. This insider knowledge can be crucial in securing a property at a price that suits your budget.
So, if you're considering buying property in Lithuania, remember that negotiation is not just an option but a common practice. With the right approach, you can take advantage of the current market conditions to get the best possible deal.
Sources: Lithuanian Economic and Real Estate Market Report 2023-2024 by INREAL and SEB, Real Estate Investment Guide by Sulija Partners, Lithuania Residential Real Estate Market Analysis 2024
From this video, we realize that negotiation is a common practice in the Lithuanian property market, which can significantly reduce purchasing costs.
8) Prioritize properties with good insulation and heating in Lithuania, as these features are valued due to the cold climate
In Lithuania, winters can be harsh, with temperatures in Vilnius often dropping to around -4°C in January.
Because of this cold, Lithuanians really value good insulation and heating systems in their homes. These features are not just about comfort; they can significantly enhance property value. The high cost of energy is another reason for this focus. In 2022, heating prices skyrocketed by 99% compared to the previous year, making energy efficiency a top priority for homeowners.
To help with these costs, the Lithuanian government offers financial incentives for energy-efficient home improvements. These can include subsidies or loans, especially for those in multi-apartment buildings. Such incentives make it easier for people to invest in better insulation and heating systems, which is crucial given the climate.
For anyone considering buying property in Lithuania, it's worth noting that energy-efficient homes are in demand. Buyers often look for properties with modern insulation and heating systems to save on energy bills and stay warm during the long winters.
Insider tip: when viewing properties, check the quality of the insulation and the type of heating system installed. These features can make a big difference in comfort and cost. Lithuanians know this well, and it's a key factor in property value.
Sources: Climates to Travel, China-CEE Institute, OECD iLibrary
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.
9) Consider properties with home office spaces, as remote work trends drive demand for flexible living arrangements
Remote work is reshaping the real estate market in Lithuania, with increased demand for homes featuring office spaces.
Back in 2023 and 2024, Lithuania was already a remote work hotspot, ranking 8th globally for this work style. This cultural shift has made properties with dedicated office spaces more appealing, as people want to work comfortably from home.
Across Europe, including Lithuania, the coworking space market is booming. This growth reflects a broader move towards remote work, where flexible workspaces are becoming essential. By 2030, the European coworking market is expected to hit USD 12.39 billion, driven by these changing work habits.
Lithuania is also seeing a wave of foreign workers, with 150,500 arriving by mid-2024. This influx is boosting the demand for homes with office spaces, as remote workers look for suitable living arrangements.
For those considering property investment, this trend offers a unique opportunity. With more people working from home, homes with office spaces are increasingly sought after, making them a smart investment choice.
Investing in properties that cater to remote work needs can be a strategic move, especially in a country like Lithuania, where remote work culture is thriving. This trend is not just a passing phase but a significant shift in how people live and work.
Sources: LRT, Workland, ETIAS, NextMSC
10) Expect seasonal fluctuations in Lithuania’s real estate market, with more transactions in spring and autumn affecting prices and availability
The Lithuanian real estate market is highly seasonal, with most activity in spring and autumn.
In 2023, cities like Vilnius saw apartment sales peak in April and September. This means more people are buying and selling during these months, which can affect prices and what's available. If you're looking to buy, these are the times when you'll see the most listings.
According to Ober-Haus Real Estate Advisors, listings increase during these peak seasons. In 2023, apartment prices only went up by a modest 1–3%, showing a stable market despite these seasonal changes. So, while prices don't jump much, the number of properties and market buzz can vary a lot depending on the time of year.
Real estate agencies like Ober-Haus have noticed that even when the market is slow, spring and autumn still see a boost in transactions. This could be because of better weather or school holidays, making it a convenient time for families to move.
For anyone considering buying property in Lithuania, it's good to know that seasonal trends can influence your buying experience. More listings and activity in spring and autumn mean more options, but also more competition.
Keep an eye on these trends if you're planning to enter the market, as they can give you an edge in timing your purchase. Understanding these patterns can help you make a more informed decision about when to buy.
11) Prioritize move-in-ready homes in Lithuania, as locals often prefer them over properties needing renovation
In Lithuania, the condition of a property is crucial when buying a home.
Recently, especially in 2023 and 2024, there's been a clear trend: people prefer homes that are ready to move into without needing major renovations. This is because well-maintained homes not only sell faster but also fetch higher prices. For instance, in Vilnius, apartment prices rose by 2% in 2024, yet those in excellent condition sold at a premium.
Buyers are willing to pay more for properties in great shape, and this is evident in the market dynamics. Surveys and reports from real estate agents consistently highlight that Lithuanian buyers favor homes that require minimal work. Renovations can be both costly and time-consuming, and many people want to avoid that hassle.
Real estate agents often emphasize that turnkey properties are very popular among buyers. These homes, which are ready to move into, save buyers from the stress and expense of renovations. This preference is not just a trend but a significant factor in the Lithuanian real estate market.
Understanding this, sellers often invest in improving their properties before listing them. This strategy not only attracts more buyers but also ensures a quicker sale. In a competitive market, having a move-in-ready home gives sellers an edge.
So, if you're considering buying a property in Lithuania, remember that the condition of the home can significantly impact its value. It's a key factor that can make or break a deal.
Sources: Lithuanian Economic and Real Estate Market Report 2024 H1, Lithuania Home Ownership Rate, Hardware & Building Materials - Lithuania
In this video, we can see that properties in move-in-ready condition are highly preferred by Lithuanian buyers, which boosts their market appeal.
12) Consider properties with balconies or terraces in Lithuania, as they are preferred and can enhance investment appeal
In Lithuania, homes with balconies or terraces are in high demand.
By the end of 2023, the real estate market in Vilnius showed a clear preference for properties with outdoor spaces. Many of these homes were already reserved, highlighting the growing demand among buyers. This trend is not just a passing phase; it's a strong indicator of what people are looking for in their homes.
Real estate agents in Lithuania emphasize that balconies and terraces are key selling points. They play a crucial role in attracting clients, and this is reflected in marketing strategies. It's not just about buying; rental properties with these features also see higher occupancy rates and rental prices.
Architectural trends have adapted, with new developments often featuring large balconies or private terraces. Developers are listening to feedback and prioritizing these features to meet buyer expectations. Social media and homeowner testimonials highlight the enjoyment and value of these outdoor spaces, reinforcing their appeal.
In Lithuania, the preference for outdoor spaces is widespread, not just in Vilnius. This trend is supported by surveys and property listings that frequently highlight these features. It's clear that Lithuanians value the ability to enjoy fresh air and outdoor views from their homes.
Understanding this trend can be crucial for potential investors. You should be aware that Lithuanians often prefer properties with balconies or terraces, which can increase the appeal of your investment. These features are not just a luxury but a necessity for many homebuyers and renters.
Sources: INREAL Report, OECD Report
13) Avoid properties in Lithuania with unclear ownership histories due to potential Soviet-era restitution claims
When thinking about buying property in Lithuania, be aware of potential issues with unclear ownership histories.
Many properties in Lithuania have a tangled past due to restitution claims from the Soviet era. Back then, numerous properties were nationalized, and the process of returning or compensating for these properties has been a long and incomplete journey. For instance, properties owned by non-governmental organizations before World War II often remain in public hands because of Soviet nationalization.
This situation has led to ongoing disputes, with groups like the Lithuanian Catholic Federation Ateitis actively seeking the return of their properties. The government is aware of these challenges and is working on solutions, such as drafting bills to return expropriated assets to non-profit organizations that were active before 1940 and reestablished after 1990.
The real estate market in Lithuania is feeling the impact of these unresolved issues. In Vilnius, for example, the market balance index shows a buyer's market, with developers offering price discounts to attract homebuyers. This indicates that the lack of clarity in property ownership is affecting market dynamics.
Real estate professionals often stress the importance of conducting thorough historical research to verify ownership history. This process can be time-consuming and costly, but it's crucial to avoid potential legal complications.
Be cautious of properties with unclear ownership histories, as Lithuania has had issues with restitution claims from the Soviet era. Understanding the historical context is key to making informed decisions in this market.
Sources: Lithuania - WJRO, Incomplete restitution? Lithuanian NGOs want their interwar properties back, Lithuanian economic and real estate market report
14) Consider properties in smaller Lithuanian towns or rural areas for better deals, as they attract fewer foreign investors
In 2023 and 2024, property prices in smaller towns and rural areas have been significantly lower than in major cities.
Imagine buying a new apartment in the countryside for just €1555 per square meter, while in bustling cities, you'd pay €2451. This huge price gap makes rural properties much more affordable for potential buyers.
Rural real estate markets have also seen slower price growth. From 2020 to 2023, prices for secondary market apartments in rural areas rose by 44%, which is a more stable increase compared to the rapid growth in cities.
Foreign investors tend to flock to urban areas like Vilnius and Kaunas, thanks to government incentives like residency permits for property purchases. This has driven up demand and prices in cities, leaving rural areas less crowded with foreign buyers.
For those seeking a stable investment, rural properties offer a unique advantage. The slower price growth and lower saturation of foreign investors mean less competition and more opportunities for buyers.
So, if you're considering a property purchase, exploring rural areas might just be the smart move. You can often find better deals in these less saturated markets.
Sources: Statista, Glimstedt, Integra Dom
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.
15) Consider investing in Lithuania’s co-living spaces, as interest in them is growing
You might be surprised to learn that Lithuania has a growing interest in co-living spaces, which can be a unique investment opportunity.
In cities like Vilnius and Kaunas, traditional housing is giving way to shared living arrangements. This shift is driven by a surge of young professionals and digital nomads flocking to Lithuania. The country is becoming a hotspot for remote workers, thanks to its affordable lifestyle and friendly regulations.
These newcomers are looking for more than just a place to sleep; they want flexible, community-focused living options. Co-living spaces meet this demand by offering a blend of privacy and social interaction, making them highly appealing.
One standout project is "SHED Co-living" in Vilnius, which has gained international recognition. It's not just about having a roof over your head; it's about creating, discovering, and networking. This innovative approach has shown that investing in co-living spaces can be quite profitable.
Investors are taking note of Lithuania's co-living trend, seeing it as a chance to tap into a growing market. The success of these ventures is drawing attention from abroad, highlighting the potential for lucrative returns.
As more people seek out these modern living arrangements, the demand for co-living spaces is expected to rise. This trend is reshaping the housing landscape in Lithuania, offering exciting opportunities for those looking to invest in real estate.
Sources: Inreal, Nuova, Tech Behemoths, Baltic Times
16) Consider investing in new constructions in Lithuania, as locals often prefer modern developments over older properties
Many Lithuanians are showing a strong preference for buying new construction properties.
Despite a dip in the housing market, with dwelling permits dropping significantly in 2023, the completion of new constructions has actually gone up. This suggests that even with fewer permits, there's a solid demand for new homes. In cities like Vilnius, apartment sales have decreased less than house sales, indicating a stronger market for newer developments.
People are drawn to new builds because they often come with modern amenities and energy efficiency, which are highly valued. This trend is evident in consumer surveys, where these features are frequently highlighted as top priorities for buyers.
Developers are also investing more in new residential projects. Take the wind farm in Pagegiai, for example, which includes a new residential area. Such projects often benefit from government incentives, making them more appealing to both developers and buyers.
Investing in modern developments can be more profitable than older properties. This is partly because many Lithuanians prefer new constructions, which might seem odd at first but makes sense given the current market dynamics.
Sources: Real Estate Magazine, OECD iLibrary, Global Property Guide
17) Hire a local lawyer in Lithuania to navigate the bureaucratic property buying process
Buying property in Lithuania can be a bit tricky, especially if you're not familiar with the local system.
In recent years, the number of building permits issued by Lithuanian municipalities has dropped by 11.3%, which means you might face longer transaction times. This decline, from 9,958 to 8,833 units, can make the process feel slow and complicated. Navigating these hurdles often requires a good understanding of the local bureaucracy.
Foreign buyers often encounter challenges like verifying property history and obtaining necessary certificates. These tasks can be daunting without a solid grasp of Lithuanian property law. That's why many real estate professionals stress the importance of hiring a local lawyer, as they can significantly increase your chances of a smooth transaction.
Local lawyers play a crucial role in managing paperwork and verifying existing documents, ensuring that all legal aspects are covered. Their expertise can safeguard your interests, making the buying process less stressful and more efficient.
Testimonials from foreign buyers who have successfully purchased properties in Lithuania often highlight the invaluable assistance of local lawyers. These professionals help navigate the complex legal landscape, ensuring that everything is in order and protecting the buyer's interests.
So, if you're considering buying property in Lithuania, remember that hiring a local lawyer can be a game-changer. They can help you navigate the maze of rules and paperwork, making the process much smoother and more manageable.
Sources: Lawyers Lithuania, Sulija Partners, Statista Market Forecast
In this video, the bureaucratic process of buying property in Lithuania is discussed, and the benefits of hiring a local lawyer are emphasized.
18) Lithuania’s flat property tax rate simplifies financial planning for investors
You might be surprised to learn that Lithuania has a flat property tax rate, which can simplify your financial planning.
In Lithuania, the property tax rate is straightforward, ranging from 0.01% to 4.00% based on the property's value and location. This is quite different from many other European countries, where rates often vary between 0.6% and 1.9%. The simplicity of this system makes Lithuania an attractive spot for foreign investors.
The State Land Cadastre and Register (SLCR) handles property valuation for taxation, ensuring transparency and ease in financial planning. This straightforward approach means you won't have to deal with a complicated tax system, making it easier to plan your finances.
Real estate agencies and financial advisors often highlight the benefits of Lithuania's flat tax rate. They emphasize that it creates a stable and predictable environment for property investment, appealing to both local and foreign investors. The consistency of Lithuania's property tax rate over time further enhances its attractiveness.
Investors appreciate the stability of Lithuania's property tax policies, which have remained consistent over the years. This reliability allows investors to plan long-term without worrying about sudden changes in taxation, making Lithuania a reliable choice for property investment.
With a flat tax rate, Lithuania offers a unique advantage in the European real estate market. This system not only simplifies financial planning but also provides a competitive edge for those looking to invest in property.
Sources: Property Taxes in Every European Country (2024), Progress Toward Value-Based Taxation of Real Property in Lithuania, Lithuania Residential Real Estate Market Analysis 2024
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.