Renovating a Property in Lithuania: Costs, Regulations, Incentives, and Key Trends to Know

Published on January 17, 2026 and written by Cyril Jarnias

Renovating a house or apartment in Lithuania is no longer just a simple “coat of paint.” Between energy efficiency requirements, massive public programs, strict regulations, and rising material prices, every renovation project today resembles a true strategic operation. For a foreign investor as much as for a Lithuanian homeowner, understanding this framework has become essential before touching a single load-bearing wall.

Understanding the Lithuanian Context: A Country in Need of Renovation

Lithuania inherits a massive housing stock largely built before 1993, particularly from the Soviet era. Approximately 67% of inhabitants still live in apartment buildings from that period, which are often energy-inefficient and technically outdated. According to national data, nearly 24,000 multi-unit buildings – about 70% of the stock of apartment blocks – require major renovation.

For a property owner, this means two things:

– the opportunities for energy improvement and funding are numerous;

– but choosing not to renovate is often no longer a viable long-term option: maintenance costs are exploding, and standards are tightening.

How Much Does Renovation Cost in Lithuania?

Even if detailed figures vary by country, European order-of-magnitude estimates provide a realistic idea of the budgets needed to modernize a home in Lithuania. Studies compiled in the report show that in the EU, renovating a home typically ranges between 400 and 1,500 €/m², with higher extremes for complex cases.

Order of Magnitude by Type of Renovation

Projects can be grouped into three main categories, which correspond fairly well to the typology of work done in Lithuania in both apartment buildings and single-family homes.

Type of Renovation	Typical Level of Intervention	Indicative Range (€/m²)
Refresh / Light Renovation	Finishes, paint, flooring, minor repairs, occasional compliance updates	250 – 750
Partial Renovation	Kitchens, bathrooms, revised electrical/plumbing, some structural changes	750 – 1,250
Major / Comprehensive Renovation	Complete insulation, replacement of technical systems, restructuring, possible extension	1,150 – 2,500 (or more)

For a standard “complete” modernization project in Europe (excluding complex heritage cases), several sources converge on a typical estimate of 750 to 1,500 €/m². However, costs observed in Lithuania’s public programs for renovating apartment buildings show lower amounts, as the interventions are industrialized and heavily subsidized.

Concrete Examples of Overall Budgets

Detailed calculations from other European countries – transposable to the Lithuanian reality for an idea – give the following orders of magnitude, for a “turnkey” renovation including all trades:

Housing Surface Area	Estimated Total Cost (all-in)	Approximate Average Cost (€/m²)
80 m²	53,275 €	≈ 670 €/m²
100 m²	69,075 €	≈ 690 €/m²
Possible Range	60,000 – 160,000 €	600 – 1,600 €/m²

For an apartment owner in a Soviet-era block in Vilnius, Kaunas, or Klaipėda, the reality will be different: the national program pools costs at the building scale and brings them down, on average, to around 20,000 to 25,000 € per apartment (after subsidies).

Typical Breakdown by Work Item

To understand where the money goes, it’s useful to see how the budget breaks down for a standard 80 or 100 m² project. The figures below come from a detailed European example:

Work Item	80 m² (approx.)	100 m² (approx.)
Demolition / Debris Removal	2,100 €	2,550 €
Partitions / New Walls	1,000 €	1,300 €
Plumbing	5,800 €	6,800 €
Electrical	5,500 €	7,000 €
Plastering / Patching	1,700 €	2,200 €
Exterior Joinery (Windows, Frames)	7,700 €	9,700 €
Wall/Ceiling Smoothing	2,700 €	3,400 €
Flooring	2,975 €	3,225 €
Complete Bathroom(s)	3,550 €	5,850 €
Complete Kitchen	4,200 €	5,300 €
Built-in Storage / Cabinets	2,800 €	4,200 €
Interior / Security Doors	1,750 €	2,450 €
Air Conditioning	1,200 €	1,800 €
Painting	1,600 €	2,000 €
Miscellaneous / Contingencies	1,200 €	1,700 €
Permits / Social Charges / Fees	1,300 €	1,800 €
Studies, Design, Contractor Fees	6,200 €	7,800 €

In Lithuania, unit costs may be lower than in Western Europe, but the spending structure remains largely comparable: the thermal envelope, systems (heating, plumbing, electrical), and wet rooms (kitchen, bathroom) account for the bulk of the budget.

Specific Costs in Apartment Buildings: Elevators, Roofs, Facade Seals

In Lithuanian apartment buildings, certain interventions are particularly heavy and must absolutely be anticipated by the co-owners:

Intervention in an Old Building (Lithuania)	Indicative Cost
Complete elevator replacement (9 floors)	≈ 60,000 €
Roof overhaul for a 5-story building	Up to 50,000 €
Repair of panel building joint seals	1,000 to 10,000 €
Average investment per apartment (comprehensive renovation with aid)	22,000 – 25,000 €

These amounts explain why, when purchasing an apartment, experts recommend systematically asking the building manager for the annual technical inspection report and the amount of funds already set aside for future work.

Aging of the Old Housing Stock: Technical Risks Not to Underestimate

The Lithuanian housing stock is not limited to large Soviet-era blocks. Nearly 10.2% of housing was built before 1945, and 8% between 1946 and 1960. A significant portion of these old buildings is located in the historic centers of major cities, often with cultural heritage status.

Diagnostics on these buildings point to a recurring set of pathologies.

Cracks, Weak Foundations, and Degraded Masonry

A university study on masonry walls in Lithuanian housing notes that masonry represents about 70% of residential structures. Three main causes of defects are identified:

– movement or settlement of structures (20% of defects);

– an inadequate rainwater management system;

– poor quality of masonry elements (porous bricks, weak mortars).

Old masonry, sometimes made with poor-quality bricks or stone, suffers the combined effects of gravity, wind, temperature variations, and soil moisture. Cracks appear, water infiltrates, freezes, expands, and gradually weakens the joints until entire bricks shift.

Moisture, Insufficient Ventilation, and Weakened Floors

Rising or condensation damp is very common in old houses, especially when foundation waterproofing is non-existent or degraded or when basements are poorly ventilated. Typical consequences:

– mold development;

– rot of load-bearing timber;

– musty odors;

– loss of mechanical capacity of floors.

Lightweight floors, often made of wood joists with small sections, deform, sag, become noisy. A serious renovation requires checking the condition of hidden wooden parts, reinforcing or replacing degraded elements, and possibly improving ventilation in crawl spaces.

Aging Roofs and Asbestos Risks

Old roofs can have multiple defects: cracked covering, lack of proper insulation, weakened frame, poorly executed connection details. A particular case concerns fiber-cement slate roofs containing asbestos. Even without visible leaks, the presence of this health-hazardous material often requires a complete replacement, entrusted to trained and certified teams.

Obsolete Installations: Water, Sewer, Electricity

Technicians from property management companies like Civinity Namai describe the same reality in many buildings listed as cultural heritage in Vilnius or Kaunas:

– lack of precise network plans (water, sewer, heating), requiring lengthy searches in case of failure;

– shared pipes running through several buildings, making repairs complex to coordinate;

– frequently clogged sewers;

– aging or even non-existent drinking water networks in some stairwells;

– obsolete electrical wiring, with a high fire risk.

To this is added an important legal foundation: the apartment owner is legally responsible for the condition of their share of the co-ownership, even when the building is protected as heritage. Residents often blame the municipality; in law, however, maintenance is the responsibility of the co-owners.

Renovation in Lithuania: An Energy and Financial Challenge

Lithuania is among the countries that have institutionalized large-scale energy renovation. The core of the system relies on the apartment building modernization program, managed by the Ministry of Environment and the Housing and Energy Savings Agency (BETA).

How Does Apartment Building Renovation Work?

The standard renovation process for an apartment block follows a well-defined path, in nine main steps:

1. Preparation of the Investment Project
Specialists – often civil engineers – conduct an energy audit, define the measures to be implemented (insulation, window replacement, heating modernization, ventilation, etc.) and cost it all.

2. Vote by Co-owners
The property owners vote on the project. A quorum and at least 50% + 1 of the votes are required to approve the renovation.

3. Tender for the Technical Project
Once the principle is approved, a tender is launched to produce the detailed technical project, in accordance with procurement rules supervised by BETA.

4. Detailed Design
Engineers prepare the technical project (plans, sizing, calculation notes). This typically takes 2 to 6 months.

6. Financing Setup
After verification by BETA that the awarded contracts correspond to the initial investment project, the administrator (often appointed by the municipality) takes out a loan, typically over 20 years, with a fixed rate of about 3% for the first 5 years.

7. Work Execution
The company carries out the work (facade/roof insulation, window replacement, heating modernization, ventilation, sometimes balconies, elevator, etc.), under the supervision of the technical controller.

8. Acceptance and Control Commission
A commission including representatives from the municipality, fire services, and other authorities validates the compliance of the work.

9. Disbursement of State Subsidy
BETA performs a second documentary check, then the subsidy is paid, reducing the principal of the loan to be repaid by the co-owners.

This scheme financed, between 2014 and 2019, 2,460 apartment block renovation projects across the country. Over a longer period (2005–2016), about 1,986 buildings and nearly 59,580 apartments were renovated.

What Subsidies Are Available for Apartment Buildings?

The aid system has evolved over time, but several constants remain:

Type of Aid for Apartment Buildings	Typical Support Level
Renovation Documents (audits, investment project)	Subsidy up to 100%
Portion of Loan Repaid (capital rebate)	Up to 45% of the loan for achieving certain efficiency levels (e.g., class D then B)
“Hard” Subsidy for Work (period 2007–2013)	40% of the loan amount
“Hard” Subsidy for Work (period 2014–2020)	30% of the loan amount
Coverage for Low-Income Households	Up to 100% of renovation costs

A major difficulty encountered by authorities: very low-income households, often assisted with their heating bills, had little incentive to reduce consumption, since their actual expense remained limited by social aid. In 2013, a law introduced the possibility of reducing heating aid for households that opposed renovating their building. Simultaneously, a subsidy covering 100% of modernization costs was established for households receiving social aid, to remove any financial barrier.

Single-Family Home Renovation: B-Class and Solar Aid

Individual homeowners of single-family or two-family houses also have a specific program managed by the Environmental Project Management Agency (APVA). An envelope of 8 million euros, from the Climate program, is dedicated to these renovations.

The main rules are as follows:

– the renovated house must achieve at least energy class B;

– the renovation must reduce heating costs by at least 40%;

– the subsidy is capped at 14,500 € per house, calculated at 75 €/m² of usable area;

– a preliminary energy assessment is mandatory to define necessary work;

– after work, an air tightness test (blower door test) and an energy performance certificate are required.

Type of Renewable Energy Investment (Households)	Level of Public Support
New Domestic PV Solar Installation	≈ 18.68% of eligible costs
Investment in a Remote Solar Park	323 €/kW installed (up to 10 kW per site)
Domestic Battery (LiFePO₄)	Up to 379.73 €/kWh (capped at 15 kWh)
Domestic Battery (Li-ion)	Up to 313.81 €/kWh (capped at 15 kWh)

For a house in Lithuania, combining envelope renovation, heating system modernization (heat pump, district heating) and solar self-production drastically reduces the energy bill, while benefiting from a package of subsidies and preferential loans.

Energy Results Achieved

Available data on renovated apartment buildings is telling:

– average final energy savings: at least 50% compared to pre-renovation;

– however, a study on about fifty buildings showed actual savings closer to 30%, revealing the classic gap between theory and actual usage;

– reduction in natural gas consumption for heating by about 62%;

– a case study in Marijampolė shows a shift from energy class E to B, with a reduction of 94.67 tonnes of CO₂ per year for the building, for a pre-subsidy investment of 262 €/m².

These figures place Lithuania among the European countries most committed to mass energy renovation, even though, after almost twenty years of programs, less than 15% of Soviet-era blocks had been renovated. The road ahead therefore remains considerable.

Legal Framework for Work: What Changes with “Reconstruction” in 2025

Renovation in Lithuania is strictly regulated by the Construction Law (I‑1240) and technical regulations (STR). The latest major amendments came into effect in 2024–2025, with a tightening of rules around permits and energy efficiency.

Reconstruction, Simple Repair: Distinguishing Categories Clearly

Lithuanian law distinguishes several types of interventions:

– Construction: creation of a building or reconstruction of a ruined building.

– Reconstruction: work that fundamentally transforms a building to give it a “new quality“, by modifying its load-bearing structures and dimensions (length, width, height, volume).

– Repair (major or simple): restoration without modifying the load-bearing structure or volume.

Typically falling into the reconstruction category:

Considered more as simple repairs:

– replacement of windows and doors without significantly enlarging openings (less than 10% dimensional variation);

– replacement of roof covering without modifying the structure;

– refurbishment of exterior plaster and paint;

– interior layouts that do not affect load-bearing elements.

This distinction is crucial: as soon as work is classified as reconstruction, it practically requires a building permit.

When Is a Permit Required?

Since 2025, the room for maneuver to intervene without a permit has significantly narrowed. Generally:

– A permit is mandatory as soon as one modifies:

– the building’s dimensions (height, length, width, volume);

– the load-bearing structure (walls, floors, beams, foundations);

– technical systems substantially;

– or when renovating more than 25% of the envelope aiming for energy improvement.

As soon as a property is located in a city – typically in Vilnius, Kaunas, Klaipėda – or in a heritage area, a permit is almost always required for anything beyond superficial repair.

The permit processing system is fully digital via the Infostatyba platform (BIS system). The application, plans, opinions from various services, and the final decision are handled online.

Energy Efficiency Requirements for Houses

Starting in 2025, single-family houses subject to reconstruction must meet strict energy criteria:

The political message is clear: large-scale “cosmetic” renovation is no longer encouraged. As soon as one seriously touches the envelope, the legislator demands a performance leap.

Controls and Sanctions

The Territorial Planning and Construction Inspection (VTPSI) has enhanced control powers:

– verification of work compliance with approved plans and issued permits;

– monitoring compliance with STR regulations (distances to property boundaries, stability, fire safety, energy performance);

– ability to suspend construction sites in case of irregularities, impose fines, or even demand demolition or restoration to original state.

A point often overlooked by foreign owners: without a properly submitted and validated completion declaration, the Real Estate Register does not update the building’s status. Selling, mortgaging, or insuring a property with unregularized modifications then becomes problematic.

Cultural Heritage: Renovating Under Constraint

Renovating an apartment or house in the historic districts of Vilnius, Kaunas, or Klaipėda adds a layer of complexity. The old town of Vilnius is a UNESCO World Heritage site; neighborhoods like Žvėrynas, Antakalnis, Naujamiestis, or certain wooden house ensembles, are protected as cultural heritage.

Two Categories of Old Buildings

The president of the Lithuanian Housing Chamber, Algis Čaplikas, distinguishes two families of pre-1945 buildings:

– those protected as cultural heritage, often in the heart of old centers;

– those not listed, usually 2 or 3 stories, with few apartments, where work requires only resident agreement.

In the first case, any project must be coordinated with heritage authorities. This means:

International studies show that repairs on historic buildings cost on average 20 to 30% more than on ordinary buildings, due to the skills and custom products required.

Municipal Programs: The Example of Vilnius

To assist owners of heritage properties, the Vilnius municipality has implemented several programs, notably managed by the Old Town Renewal Agency:

The amounts paid illustrate the diversity of situations:

Item Financed in Vilnius (examples)	Municipal Aid Amount
Largest support for a residential building over 3 years	141,000 €
Largest annual support for a single item	94,699 €
Smallest aid (an isolated balcony)	345 €

Between 2015 and 2019, approximately 688,000 € were allocated to 52 buildings for the renovation of balconies and decorative elements in poor condition. Similar programs funded the maintenance of external façades of dozens of additional buildings.

In addition, the FIXUS Mobilis project acts as a “heritage ambulance”: mobile teams freely inspect historic buildings, perform simple preventive interventions (waterproofing, minor repairs) on about 200 edifices, and provide owners with a maintenance plan for the following years.

For owners, the challenge is twofold: benefit from this aid, while understanding that conservation obligations represent an additional cost, but also an added value in terms of prestige and property rarity.

Project Management: Planning, Budgeting, Piloting

Even in a highly regulated context like Lithuania, much of the success – and failure – of renovation stems less from public aid than from the quality of project management.

Clarify Objectives and Scope

Before comparing quotes, it is essential to precisely define:

– the project objectives:

– improve energy efficiency?

– increase resale value?

– adapt the home for rental use?

– preserve historic character?

– the work scope:

– envelope only, or interior as well?

– technical (heating, ventilation) or only finishes?

– creation of new spaces (attics, basement)?

A good reference is to apply the SMART method to objectives: specific, measurable, achievable, relevant, time-bound.

Build a Realistic Budget (with Margin)

Once the scope is defined, it is necessary to:

Common mistakes are underestimating hidden costs (construction waste, diagnostics, overruns due to asbestos or undocumented networks), and not integrating cash flow constraints related to the aid calendar (subsidies often paid after work completion).

Role of Key Stakeholders

A structured renovation team typically includes:

The report recommends not confusing the role of the contractor and the project manager: not all artisans are trained in project management. In complex renovations (heritage, high-end), it is relevant to use dedicated project management, or even an “EPCM” (Engineering, Procurement, Construction Management) model where a single point of contact coordinates everything.

Monitoring and Communication

The construction sites that overrun the most in time and budget are generally those with deficient communication. Good practices include:

– regular meetings (e.g., weekly) with minutes;

– a detailed schedule (e.g., Gantt chart) shared with all stakeholders;

– written formalization of any change order with quantified impact on cost and duration;

– use of digital project management tools to track progress, site photos, documents.

In Lithuanian public programs, some of the observed failures (low-quality audits, insufficient supervision) stem precisely from room for improvement in project management. Authorities have since strengthened the role of BETA and municipal administrators.

VAT, Taxation, and Foreign Investors

For international investors or foreign companies carrying out work in Lithuania, the VAT dimension is not trivial.

VAT Applicable to Work and Materials

The standard VAT rate in Lithuania is 21%. It applies to:

– construction materials;

– work services (labor);

– professional fees (architects, engineers, etc.).

A reduced rate of 9% applies to residential energy (district heating) and some specific services, but most renovation work remains subject to the standard rate.

Recovering VAT as a Foreign Company

Foreign companies can recover VAT paid in Lithuania, under certain conditions:

Applications must respect minimum thresholds (400 € for 3 to 12 months, 50 € for a full year), include original invoices or copies, and a VAT status certificate issued in the country of origin. Invoices must be sufficiently detailed, in Lithuanian or English, with the VAT amount clearly indicated.

Individual Investors: What Strategies?

For an individual – Lithuanian or foreign – who renovates a residential property to rent or resell, several elements weigh in the balance:

In other words, from a strictly financial standpoint, not all work is justified by the resale premium value alone. However, it improves rentability, safety, comfort, and legal compliance – decisive arguments for an investor looking to limit long-term risks.

2025 Design Trends: Making Renovation Rhyme with Modernity

Beyond technical and regulatory aspects, renovating a property in Lithuania in 2025 is also about choosing a style. Trends observed in the country and more broadly in Europe can guide choices that are both contemporary and sustainable.

Toward Warm, Natural, and Personalized Interiors

Scandinavian interiors, very popular in Lithuania, are evolving: clinical white and extreme minimalism are giving way to:

– earthy palettes: beige, moss green, terracotta, blue-gray;

– deep accents: burgundy, mahogany, mustard yellow, jewel tones (sapphire, emerald);

– natural materials: light wood, stone, linen, cotton, leather, ceramic;

– matte or satin finishes, with glossy lacquers seen as dated.

Soft Shapes and Space Flexibility

“Orthogonal rigidity” is gradually making room for:

– organic forms (round tables, curved sofas, alcoves);

– curves in interior architecture (rounded partitions, softened corners);

– multi-purpose spaces (living room-office, bedroom-playroom, merged kitchen-dining room).

Lofts and apartments in old Lithuanian centers, often with high ceilings, lend themselves well to these volume plays, provided the constraints of load-bearing structures and heritage are respected.

Kitchens and Bathrooms: Functional Sobriety

2025 kitchens focus on:

– sober cabinets, often with hidden handles;

– countertops in wood or stone (or quality imitation), with a matte finish;

– advanced integration of connected appliances: adaptive ovens, smart refrigerators;

– a neutral color palette (soft gray, off-white, grayed green or blue), accented with a few bolder touches.

In bathrooms, several trends stand out:

– using the same tile on the floor and wall (playing with formats like 90×90, 60×120, etc.) for a cohesive look;

– showers with full-height glass panels;

– neo-Victorian inspiration (freestanding tubs, ornate faucetry) integrated into very contemporary settings.

Integrating Home Automation Without Dehumanizing

Home technical management systems are becoming standard:

– centralized control of heating, ventilation, lighting, sometimes blinds and security;

– lighting scenarios with dimmers, multiplication of wall sconces over harsh overhead lighting;

– motion sensors, touch or voice controls.

Lithuania, committed to digitization (including for building permits), sees the development of residential home automation specialists. The challenge for an old home is to integrate these devices without betraying the architecture, especially in old town buildings where visible interventions on façades are regulated.

Renovating in Lithuania: A Summary Guide

For a property owner or investor considering renovating a property in Lithuania, a typical path might look like this:

– 1. Initial Diagnostic

– commission a technical and energy audit, especially for old buildings;

– identify any potential structural risks (foundations, masonry, roofs, balconies).

– 2. Clarifying Objectives

– balance energy improvement, regulatory compliance, heritage valorization, space redistribution, and design.

– 3. Verifying the Legal Framework

– consult the town hall or an architect on the need for a permit (reconstruction vs. simple repair);

– check zoning constraints (urban / rural, heritage, natural park).

– 5. Design and Permits

– work with an architect/engineer to develop the technical project compliant with STRs;

– submit the file via Infostatyba and follow the processing.

– 6. Selecting Companies

– consult several companies, check references, insurance, renovation experience (and heritage experience if applicable);

– clarify responsibilities (coordination, deadlines, penalties, contingency management).

– 8. Acceptance and Registration

– go through the acceptance commission if required;

– submit the completion declaration, have the Real Estate Register updated.

– 9. Operation and Valorization

– monitor post-renovation energy consumption to verify promised performance;

– capitalize on the renovation for rental or resale (considering the local market: in Vilnius, apartments trade at an average of 4,500–5,000 €/m², with moderate annual increases of 3 to 7%).

Conclusion: Renovation, a Necessary Step… But Manageable

Renovating a property in Lithuania in 2025 means navigating between several requirements:

– technical, in a country where a large part of the housing stock is aging, sometimes structurally fragile;

– regulatory, with a construction law and energy standards that impose real qualitative leaps;

– financial, in a context of rising material and labor costs, but also subsidies and preferential loans;

– aesthetic and heritage, when intervening in historic centers or protected wooden houses.

By combining a serious diagnostic, a competent team, and a robust financial plan – integrating available aid and contingency margins – it is possible to transform an energy-guzzling Soviet-era block or a time-worn old house into a high-performing, comfortable, and attractive property in a Lithuanian real estate market undergoing full transformation.