The Real Estate Purchase Process for Foreigners in Lithuania

Published on January 17, 2026 and written by Cyril Jarnias

Buying property in Lithuania is attracting a growing number of foreigners, whether they are looking for a foothold in the European Union, a profitable rental investment, or a base for an entrepreneurial project. The country combines a still affordable real estate market, a stable economic environment, and legislation that is relatively open to non-residents. But behind this apparent accessibility, the purchasing process has specific characteristics that must be well understood to avoid pitfalls.

An Open Market, but Regulated for Certain Profiles

The first piece of good news for a foreign buyer is simple: Lithuania largely allows non-nationals to become property owners.

Citizens of the European Union and the European Economic Area have, in practice, the same rights as Lithuanians. They can acquire apartments, houses, commercial premises, and, under certain conditions, land, including agricultural land.

Citizens of third countries can also freely purchase residential properties (apartments, houses, cottages) and commercial ones (offices, shops, warehouses, industrial buildings). They can rent, resell, transfer these properties, with ownership rights comparable to those of local residents once registration in the land registry is completed.

The main limitations therefore do not concern housing or offices, but certain types of land and sensitive areas.

Restrictions on Agricultural Land, Forests, and Strategic Areas

One of the key points for a foreigner targeting a property with land is the legal status of that land. Lithuania clearly distinguishes between urban land, agricultural land, forest land, and protected or strategic areas.

The essential points can be summarized as follows:

Type of Land / Area	EU/EEA, OECD, NATO	Non-EU/EEA (excluding exceptions)
Apartments, houses, urban premises	Free	Free
Residential / Commercial land in urban area	Generally free	Generally free
Agricultural Land	Possible but regulated (agricultural experience required in practice)	In principle prohibited, except by special permit
Forests	Very limited access, specific permit	In principle prohibited
Border areas, coastal dunes, protected parks	Permit or enhanced control	Permit essential, risk of refusal

For agricultural land, even EU citizens must demonstrate a link to agricultural activity (e.g., three years of activity in the sector in Lithuania) to be able to purchase directly. Nationals of third countries are, for the most part, largely excluded, unless they use a local structure (a Lithuanian company) and comply with a set of conditions.

Properties located in strategic areas—such as certain border zones, sensitive coastal sectors, natural parks, and reserves—are subject to enhanced oversight. Depending on the location, an opinion or authorization from the relevant ministry (e.g., National Defense) may be required, regardless of the buyer’s country of origin.

Special Case of Russian Citizens

The geopolitical context has led to a very specific restriction: Russian citizens without a Lithuanian residence permit can no longer acquire real estate in the country (except through inheritance). This prohibition applies to all types of property and also extends to certain entities they control, in the name of national security.

No Real Estate “Golden Visa”

An often misunderstood point: Lithuania does not offer a “passport for property purchase” nor automatic residency linked to the acquisition of a property. There is no official “golden visa” program based solely on the property’s value.

Owning an apartment or house in Lithuania can, at best, serve as a complementary argument (proof of accommodation, financial stability) in a visa or residence permit application, but it is never sufficient on its own to obtain a residence permit.

Understanding the Market: Prices, Yields, Key Cities

Even before discussing procedure, many foreigners want to know if the Lithuanian market is attractive from a financial point of view. Recent data shows a market in growth, but without excessive overheating.

Price Evolution and Current Levels

For a decade, prices have significantly increased. A frequently cited example: a 100 m² apartment that sold for about €160,000 five years ago reaches around €254,000 in 2025. Over the long term, the average annual increase is around 5–6%, with faster phases (over 20% in some years around 2021–2022) now normalized.

On the scale of major cities, the average prices per square meter fall within the following range:

City (apartments, 2025)	Approx. Average Price €/m²
Vilnius	2,680
Kaunas	1,846
Klaipėda	1,752
Šiauliai	~1,170
Panevėžys	~1,150

In Vilnius, internal disparities are significant: the renovated historic center and certain new business districts can exceed 3,000 to 4,000 €/m², while large residential complexes remain more affordable, often between 1,600 and 2,200 €/m².

Rental Yields: An Asset for Investors

Regarding rental income, Lithuania stands out favorably compared to many Western European markets. The average national gross yield is around 6.3%, with significant dispersion:

Location / Property Type	Average Gross Rental Yield
Vilnius Center	~4.9% (studios can exceed 7%)
Vilnius Residential Districts	5–7%
Kaunas Center	~5.8%
Klaipėda Center	~6.2%
Šiauliai	>8%
Panevėžys	~7.8%
Small Towns / Student Housing	7–9%
Coastal Properties (Annual)	4–5%
Coastal Properties (Summer Season)	10–15%

Once expenses, taxation, and management are deducted, net yields are generally 1.5 to 2 percentage points below the gross yield, which remains competitive.

Where Do Foreigners Buy?

International buyers mostly concentrate on:

This geography directly influences the purchase strategy: long-term appreciation more in Vilnius and Kaunas, rental yield prioritized in regional cities or seasonal markets.

Steps of the Purchase Process: From Search to Registration

For a foreigner, the complete process of buying real estate in Lithuania generally takes between 4 and 8 weeks, from the initial offer to final registration. In simple, well-prepared cases, a window of 2 to 4 weeks is possible.

Searching and Selecting the Property

The search is largely done online, with Lithuanian real estate portals being very structured. The most used platforms include, among others, aruodas.lt, capital.lt, domoplius.lt, or skelbiu.lt. Many listings now offer an English version; for others, using a local agent or lawyer can overcome language barriers.

A foreign investor typically begins by: analyzing the local market, understanding the applicable regulations, and evaluating investment opportunities.

– Defining their strategy (personal residence, long-term rental, seasonal rental, mixed-use with office or housing).

– Targeting a city and specific neighborhoods (e.g., historic center of Vilnius / residential districts, center of Kaunas, coastal areas).

– Setting a budget that includes not only the price but also additional costs (at least 2 to 4% extra).

Due Diligence: The Heart of Legal Security

Before signing anything, legal and technical due diligence is essential. In Lithuania, property rights and encumbrances are registered in a public register, but one must know how to query it and interpret the information.

The verification focuses particularly on: information verification, compliance with standards, and process evaluation.

Practically, this phase is usually entrusted to a Lithuanian lawyer. It takes on average a few days for simple cases, up to two to three weeks for more complex ones (old building, land on the outskirts, mixed-use property).

Signing the Preliminary Contract and Paying the Deposit

Once the property is chosen and initial checks are done, the seller and buyer usually sign a preliminary agreement. This document sets out:

– the sale price,

– the timeline,

– the conditions precedent (obtaining financing, lifting of certain encumbrances),

– the deposit amount.

The deposit generally represents 10 to 15% of the purchase price. It is legally binding: withdrawing from the contract without a stipulated reason can lead to the loss of this sum. Conversely, if the seller backs out, they may be required to return the deposit or even pay an equivalent penalty, according to the stipulated clauses.

In the case of non-residents, it is common to insert specific conditions, for example the obtaining of bank financing or the provision of special authorizations if the property is located in a sensitive area.

Financing: A Delicate Point for Non-Residents

On paper, Lithuanian banks can finance foreigners. In practice, conditions are much stricter for non-residents or those without local income.

The main points are as follows:

In 2024–2025, average interest rates vary around 5.5 to 6% per year, with a downward trend. Foreigners often pay a surcharge of 0.5 to 1.5 percentage points compared to residents, due to the perceived risk profile.

To put together a loan application, banks require: personal documents, proof of income, bank statements, the financing project, and the amortization schedule.

– Employment contracts or company financials for 1 to 3 years,

– Tax declarations,

– Bank statements,

– Proof of job stability (not on probation, minimum seniority),

– Property valuation report by a certified appraiser,

– Home insurance for the bank’s benefit.

Many non-residents therefore choose either full financing with their own funds, or leveraging bank financing in their country of origin, then bringing the funds to Lithuania.

Signing the Final Deed Before a Notary

The decisive step is the signing of the final sales contract before a Lithuanian notary. The notary’s presence is mandatory: without a notarized deed, the transfer of ownership is not enforceable against third parties.

The role of the notary is central:

– Verifying the identity and legal capacity of the parties,

– Performing a final check of the title and encumbrances in the register,

– Ensuring legal conditions are met (e.g., spouse’s consent if necessary),

– Explaining the legal consequences (often in Lithuanian, with translation if needed),

– Overseeing the payment mechanism,

– Subsequently transmitting the documents to the land registry for registration.

Registration in the Real Estate Register

After signing and payment, the transaction must be registered with the Center of Registers (Registrų centras). Without this registration, the buyer does not benefit from full legal protection of their property right vis-à-vis third parties.

Registration is generally done electronically via the notary and takes a few days (3 to 5 business days most of the time, faster with an additional fee). Registry costs remain modest, on the order of 0.03 to 0.5% of the price, or sometimes a flat fee (a typical range of €20 to €100 is often mentioned for simple operations).

Once registration is completed, the buyer receives a certificate officially confirming their status as owner.

Remote Purchase via Power of Attorney

For a foreign buyer, it is entirely possible to finalize the acquisition without traveling to Lithuania. The key is to use a power of attorney.

The classic scheme:

– The buyer appoints a Lithuanian lawyer or another trusted person as attorney-in-fact.

– They sign a power of attorney in their country of residence, before a notary.

– This document is then apostilled (for countries party to the Hague Convention) or legalized by the relevant consular services.

– The power of attorney is translated into Lithuanian by a sworn translator if necessary.

The attorney-in-fact will then be able to: act in the name and on behalf of the principal, negotiate contracts and execute legal acts according to the powers conferred.

– Sign the preliminary agreement and the final deed,

– Submit documents and files to authorities,

– Manage the registration,

– Oversee the settlement of prices and fees in escrow or notary accounts.

This arrangement is very common, especially for investors buying multiple units or for buyers living outside Europe.

Costs, Taxes, and Charges: What a Foreigner Must Anticipate

One of the frequent pitfalls for foreigners is to underestimate acquisition costs and recurring charges. In Lithuania, the total purchase cost (transaction fees and taxes) commonly represents 2 to 4% of the property price on the buyer’s side, with total “round-trip” costs (buyer + seller) potentially reaching 3 to 6%.

Transaction Costs on Purchase

The main items to anticipate are as follows:

Cost Item	Order of Magnitude for the Buyer
Notary	~0.33–0.45% of price (capped, +21% VAT)
Registry Registration	~0.03–0.5% or fixed sum (often < €100)
Lawyer’s Fees	Approx. €500–3,000 depending on complexity, or ~1%
Real Estate Agent	1–3%, generally paid by the seller
Property Appraisal (if loan)	€200–500
Home Insurance (if loan)	Variable, mandatory for mortgaged property

Regarding the property transfer tax, sources diverge: some documents indicate the absence of a “property transfer tax” for standard housing, others mention a public levy between 0.2 and 1.5% or a fixed rate of about 1%. The prevailing practice for an individual buying a residential property, however, remains relatively contained transaction costs compared to other European countries.

For new buildings, the 21% VAT applies to the sale price. It is not, however, due on the resale of older housing between private individuals.

Annual Property Taxation

Annual taxation depends on the property type and its value.

For housing:

– Residences whose cumulative value does not reach a certain threshold (approx. €150,000 per person, €220,000 for some large families) are not subject to the annual tax on residential property.

– Beyond that, a progressive rate between 0.3% and 3% of the taxable value applies, depending on the municipality and the property’s characteristics.

For commercial properties:

– The annual tax is in principle between 0.3% and 1% (or even up to 3% according to some sources and municipalities), calculated on the cadastral value.

– Vacant or unused properties may be subject to a higher rate.

There is no generalized wealth tax at the individual level, which makes the tax framework relatively attractive for asset investors.

Rental Income and Capital Gains

Foreign investors who rent out their property in Lithuania are taxed on locally generated rental income and capital gains.

For capital gains:

– A rate of 15% applies in principle to the gain realized upon resale.

– Exemptions exist if the property was the primary residence for a certain period (e.g., more than two years), or if the holding period exceeds a threshold (cited as 10 years in some sources, 3 years for some primary residence cases).

These rules require careful consideration depending on the investor’s profile, their tax residency, and applicable double taxation treaties. Specialized tax advice is strongly recommended, especially for significant portfolios or corporate structures.

Ownership and Residency: Two Distinct Realities

Many foreigners still associate property purchase with right of residence. In Lithuania, this link does not exist. Owning one or more apartments in Vilnius does not in itself grant the right to settle permanently in the country.

Residency Pathways Based on Activity, Not Property

The main routes for long-term residence are based on:

– Salaried employment (work contract with a Lithuanian employer),

– Creating or investing in a local company,

– The status of an innovative entrepreneur (e.g., via a program like “Startup Visa”),

– Studies,

– Family reunification.

In these schemes, real estate can play a supporting role (registered office, housing, asset on the balance sheet) but remains legally secondary.

Schengen Short-Stay Visa Linked to Property

Some documents mention the possibility, for a foreign owner, to obtain a multiple-entry Schengen type C visa, provided the property value reaches a certain threshold (e.g., €15,000). This type of visa allows repeated short stays (up to 90 days within 180) in the Schengen area, without granting a right of residence or access to public services (education, healthcare, etc.).

Again, the property is a positive factor (a proven place to stay) but not a gateway to a permanent residence permit.

Risks, Common Pitfalls, and Best Practices for Foreigners

On paper, the Lithuanian legal framework is clear and fairly protective. In reality, a number of risks await buyers unfamiliar with the terrain. Several typical mistakes recur in dispute cases.

Insufficient Due Diligence

This is pitfall number one: being satisfied with documentation provided by the seller or agent, without independently verifying the registry data and any debts attached to the property.

The associated risks:

– Unnoticed mortgages or seizures,

– Easements or usage rights that limit the property’s exploitation,

– Arrears of condominium fees or district heating bills,

– Non-compliant work (extensions or transformations done without permits),

– Special heritage status (listed building) imposing heavy constraints for renovation.

A systematic verification by an independent lawyer, in liaison with the notary, is the best way to reduce these risks.

Poor Understanding of Total Costs

Some foreigners base their budget solely on the advertised price of the property, without including:

For a rental project, this is a major pitfall: miscalculating expenses can turn a theoretical yield of 6% into a significantly lower real yield.

Confusion Between Ownership and Right of Residence

Another frequent misunderstanding: thinking that a property purchase will be enough to obtain a residence permit or eventual naturalization. As seen above, this is not the case in Lithuania. Some investors find themselves owning profitable assets but forced to visit only occasionally with simple Schengen visas.

Language Problems and Poorly Understood Contracts

The official language of deeds is Lithuanian. Even if some notaries and lawyers speak English, the legally binding version remains the local text. Without quality legal translation and support, a foreigner may sign clauses they do not fully understand: hidden penalties, commitments on deadlines, obligations towards the condominium, etc.

It is crucial to:

– Demand a written translation of the contracts,

– Ask all necessary questions beforehand,

– Not hesitate to postpone signing if a point remains unclear.

Remote Purchase Without a Reliable Local Contact

Finally, in entirely remote purchases, a specific risk lies in the lack of physical control: enhanced photos, defects not visible online, the property’s environment (nuisances, neighborhood, infrastructure) difficult to assess from abroad.

Again, using an independent lawyer, a technical expert, or a local manager helps limit these risks, through on-site visits, technical reports, and market evaluations.

Practical Advice for Structuring a Purchase Project as a Foreigner

Considering all the previous elements, some guidelines emerge for a smooth purchase.

An investor or future foreign resident is well advised to: seek legal advice to understand tax implications, property regulations, and immigration laws in force in the country where they wish to invest or settle.

Finally, it is useful to keep in mind the macroeconomic dynamic: GDP growth, gradual decrease in inflation, wage increases faster than price increases in some years, infrastructure investments (like Rail Baltica), and the growth of the technology sector support real estate demand in the medium term.

Conclusion: An Accessible Market, Provided You Take It Seriously

The real estate purchase process for foreigners in Lithuania is, overall, simpler and more transparent than in many neighboring countries. It does not require prior residence, offers broad freedom to purchase housing and commercial premises, and relies on a clear public register and indispensable notaries.

For the well-informed foreign buyer, ready to invest in serious legal support and to project over a medium to long-term horizon, Lithuania offers a rare compromise: a still affordable market, attractive rental yields, European-style legal security, and appreciation prospects supported by a growing economy. It is under these conditions that acquiring property in the country can become a true asset, both patrimonial and strategic.