Common Mistakes When Buying Real Estate in Lithuania

Published on January 17, 2026 and written by Cyril Jarnias

Buying an apartment in Vilnius or a vacation home in Palanga is a growing dream for more and more Europeans. A still affordable market, a growing economy, rental yields often higher than in the West… On paper, Lithuania ticks many boxes. Yet, behind this attractive image, buyers—especially foreigners—keep repeating the same mistakes, sometimes very costly ones.

Misjudging the Lithuanian market and its specifics

Many investors start in Lithuania thinking that all Central European markets are the same. Yet the country has its own dynamics, its strengths but also its weaknesses.

The market is generally stable, driven by steady economic growth, moderate public debt, and strong integration into the European Union and the eurozone. Prices have nevertheless soared in recent years: over five years, housing has gained about 74%, with increases exceeding 9% in 2023 in major cities.

Another trap is not taking seasonality into account. Activity is significantly stronger in spring and fall, with sales peaks for apartments notably in April and September. Trying to buy “urgently” during a peak, without preparation, often leads to overpaying, especially in high-demand areas like central Vilnius neighborhoods or seaside resorts.

To better visualize the price ranges, it is useful to compare price levels by city and property category.

Examples of price ranges per square meter

Location / Type of property	Approximate price per m²
Apartment (Vilnius average)	2,680 – 3,300 €
New build in center / Old Town of Vilnius	4,000 – 5,000 €
Housing in Kaunas	1,850 – 2,750 €
Housing in Klaipėda	1,750 – 2,000 €
Small towns (Šiauliai, Panevėžys, etc.)	1,150 – 1,200 €
New build in rural area (approx.)	1,555 €

Not knowing these price ranges leads to a second mistake: negotiating blindly, without knowing if you are paying a market price or an excessive premium due to high demand.

Underestimating hidden costs and taxation

In Lithuania, the price listed in an ad is just the beginning of the story. Many foreign buyers discover too late certain mandatory or almost indispensable expense items.

Notary fees generally represent 0.33 to 0.45% of the property price, with a minimum of around thirty euros and a cap around 5,000–6,000 €, plus 21% VAT. Registration with the real estate register (Registrų centras) in turn incurs fees, most often between 50 and 100 €, sometimes calculated as a percentage of the value (0.03–0.5%). A lawyer typically charges around 800 to 2,000 € to assist with a simple transaction, more for complex cases (land, old building, disputes).

Illustration of transaction costs for a 200,000 € property

Item	Indicative amount
Notary fees (0.45% max)	~900 € + 21% VAT
Registration fees	50 – 100 €
Attorney fees	800 – 2,000 €
Bank appraisal (if loan)	150 – 300 €
Sworn translations	200 – 600 € (depending on document volume)
Miscellaneous (copies, apostille, etc.)	100 – 200 €

In practice, you should plan for 2 to 4% of the property price in ancillary fees, sometimes more if you add renovation work, compliance upgrades, or rental setup costs.

Mistakes regarding taxation are just as common. Lithuania does not have a massive “stamp duty” like some countries, but taxation can quickly become significant if you don’t anticipate the rules:

A common confusion is mixing these rules with those of other EU countries and believing, for example, that capital gains are systematically exempt after three years, or that rental income can easily be “overlooked”. Lithuania applies specific rules, and non-compliance can trigger audits, penalties, and late payment interest.

Believing that purchase automatically grants a right of residence

One of the most widespread misunderstandings among non-Lithuanian buyers is thinking that buying an apartment or house automatically gives access to a residence permit, or even citizenship.

Ignoring this point leads to a double strategic error. First, investing with the idea of moving without planning a proper visa or residence permit application. Then, overpaying for a property mistakenly thinking it “buys” an immigration status.

For non-EU investors, it is crucial to completely separate the real estate strategy and the residency strategy. One does not replace the other.

Neglecting due diligence and basic checks

Legally, Lithuania offers a fairly transparent framework, with a public land register and mandatory notaries for any sale. Many buyers mistakenly see this as a guarantee that “everything is automatically checked.”

The notary does check the existence of the property, the identity of the parties, and the absence of obvious mortgages or entries prohibiting the sale, but their role remains limited to formalities and certain basic checks. They do not conduct a comprehensive audit of the property or its environment.

– still complex traces from the Soviet period and property restitution (old disputes, reappearing heirs, tangled rights);

– urban planning compliance issues or building permit problems, especially for extensions or reconstructions;

– easements, right of way, long-term leases, or pre-emption rights that are poorly understood.

Good due diligence covers both the legal, financial, and technical situation of the property.

Key elements of due diligence often overlooked

Area	Essential Checks
Legal	Title deed, encumbrances (mortgages, easements), pre-emption rights
Urban Planning	Compliance with zoning rules, building permits, heritage status
Tax	Status of property taxes, local taxes, any arrears
Technical	Structure, networks, insulation, safety and fire compliance
Neighborhood	Development projects, nuisances, crime rate, transport access

Failing to conduct these checks exposes you to serious setbacks: inability to convert a space into housing, ban on short-term rental, surprise of an old mortgage not cleared, or costly compliance upgrades.

Skipping the technical audit, especially for older properties

Another very common mistake: relying solely on impressions during the visit, without a thorough technical audit, even though a large part of the Lithuanian housing stock dates from before 1990, often from the 1960s–1980s.

These buildings require constant maintenance. Typical problems are well-documented: leaking roofs, degraded facades, clogged pipes, massive thermal bridges, outdated electrical installations. Heating costs are notoriously high in poorly insulated old buildings, and the near 100% increase in heating costs in 2022 was a brutal reminder of the importance of energy performance.

A pre-purchase technical audit helps detect these defects:

This audit is not limited to technical aspects: it also includes reviewing documents held by the building manager (inspection reports, work plan, fund calls, level of co-owner participation, etc.). Many buyers are unaware that in Lithuania, co-owners vote on works and that low participation rates (30% on average at meetings) sometimes delay necessary renovations.

Without this audit, it is easy to buy an apartment at a seemingly attractive price, only to be asked a few months later for 3,000 or 5,000 € towards a renovation fund or unanticipated emergency repairs.

Underestimating the legal fragility of old buildings

Properties built before independence are particularly exposed to historical complexities: nationalized properties, incomplete restitutions, poorly settled inheritances. Even though the Lithuanian real estate register is now well-structured, disputes or old rights can still lurk in the background.

Finally, one should not forget the prerogatives of certain third parties: co-owners in joint ownership, neighboring farmers with pre-emption rights, or even the state itself for certain strategic lands, border areas, national parks, coastlines, dunes, etc. Again, lack of prior verification can block or cancel a transaction.

Blindly trusting valuation estimates

Another common trap: thinking that the property’s value is already accurately reflected in official documents, notably via the mass appraisal conducted annually by the Register Center, and not requesting an independent appraisal.

The Lithuanian “mass appraisal” system is primarily for property taxation. It does not always reflect actual market prices. Studies show that in some cities, like Kaunas, the gap between mass appraisal values and transaction prices could range from 7% to 98%, with an average around 40%.

Reusing these figures as a negotiation basis, or believing they are “official,” is therefore a mistake. Conversely, one should also not place blind trust in an individual appraisal report without checking the appraiser’s credibility. A Lithuanian Supreme Court ruling challenged an appraiser whose report overvalued a property “by tens of times,” causing significant harm to a bank that had granted a disproportionate loan.

Lithuanian Supreme Court

A healthier strategy consists of:

In some highly sought-after Vilnius neighborhoods, like Naujamiestis or Paupys, negotiation margins are narrower. Conversely, a rural house or a worn-out apartment could be negotiated 5 to 10% below the initial price, or even more if the seller is in a hurry and the buyer has cash.

Overlooking currency and financing risks

Even though Lithuania uses the euro, currency risk is not zero for buyers whose income is in another currency. An unfavorable fluctuation between signing the preliminary agreement and the final fund transfer can cost several thousand euros.

Furthermore, many non-residents overestimate the ease of access to local credit. In practice, Lithuanian banks are cautious towards foreigners without a residence permit or stable local income. When financing is granted, it often imposes:

– a higher down payment (30–40% for a non-resident, versus 15–20% for a resident);

– a strict debt-to-income ratio (monthly payments limited to about 40% of income);

– a detailed examination of income and tax situation, sometimes over several years.

Assuming you will obtain the same credit terms as a local buyer without difficulty leads to underestimating the necessary equity. This mistake can be costly if you have already paid a 10 or 15% deposit under a preliminary contract, a deposit generally non-refundable in case of buyer default.

Misunderstanding the notary’s role and skipping a lawyer

In Lithuania, a notary’s involvement is mandatory for any real estate sale. Many foreigners, used to entrusting the entire legal security to a notary in their home country, project the same expectation here and forego hiring a lawyer, thinking it’s “redundant.”

This is one of the most dangerous mistakes.

The Lithuanian notary has a role of guaranteeing formality and certain basic checks: identity of parties, existence of the property, registration, absence of obvious mortgages, formal compliance of the deed. They do not conduct a complete historical audit, personalized tax analysis, or in-depth contract negotiation.

A lawyer, however, can: represent clients in legal proceedings, advise on legal matters, draft contracts and other legal documents, represent clients in court, and negotiate settlements.

– analyze the property’s legal history (chain of title, restitutions, ongoing disputes);

– verify consistency between actual characteristics and cadastral records;

– negotiate and draft more protective clauses for the buyer (guarantees, suspensive conditions, late penalties);

– verify tax implications based on the buyer’s personal situation (resident/non-resident, acquisition structure, resale or rental objectives);

– represent the client remotely via power of attorney, in a language they understand.

Foregoing this assistance to “save” a few hundred or thousand euros, when investing 100,000 to 300,000 € in a property, is a miscalculation.

Confusing a preliminary sales agreement with a simple reservation

Lithuanian practice generally involves signing a preliminary agreement (preliminarioji sutartis) before the final deed. This document, often neglected, is nevertheless legally binding and more akin to a sales agreement than a simple “reservation.”

It mentions the agreed price, timelines, conditions (obtaining a loan, for example) and especially the deposit amount, frequently 10% or even 15% of the sale price. In case of unjustified withdrawal by the buyer, this deposit is in principle forfeited.

Before any signature, it is essential to:

– have the entire document translated by a professional;

– have it reviewed by a local lawyer;

– clearly condition the effectiveness of the agreement on obtaining financing, when a loan is needed;

– stipulate force majeure cases and completion deadlines.

Underestimating constraints related to short-term rentals

Many buyers count on tourist rentals to make their investment profitable, especially in high-demand cities (Vilnius, Kaunas, Klaipėda) or resorts like Palanga and Nida. They project high yields, based on observed gross rates of 10–15% in high season on the coast or 7–9% in some student neighborhoods.

The mistake is to consider only the gross potential, without verifying:

Add to this an often-overlooked reality: the endemic under-declaration of rents in certain market segments. Many “yield” statistics circulating are actually calculated on undeclared gross rents, whereas the effective application of a 15% tax on rental income mechanically reduces the net yield by 2 to 3 points.

A realistic calculation must incorporate all these data, on pain of building a cash-flow plan on unrealistic assumptions.

Ignoring specific restrictions for foreigners

The Lithuanian framework is open to investors, but it contains targeted restrictions that some foreign buyers discover too late.

Citizens of the EU and the European Economic Area can buy most residential and commercial properties without restrictions. Non-EU foreigners can also buy apartments, houses, and offices, but things get complicated when it comes to agricultural land or forests. In these cases, special permits are required, sometimes with conditions of agricultural operation for several years.

Another current point: Lithuania has suspended, by a specific law, the right of Russian citizens (and entities they control) to buy real estate, except in special cases (residence or inheritance). Not checking these restrictions in advance can simply make the transaction impossible.

Buying off-plan without safety benchmarks

The appeal of new buildings is very strong in Lithuania, where many households prefer modern housing, more energy-efficient and better equipped. Developers often market apartments off-plan, sometimes well before construction is finished.

Buying off-plan is not specifically Lithuanian, but the local context combines several risks:

– financial failure of the developer;

– significant delays linked to rising construction costs, labor shortages, or regulatory changes;

– project modifications (materials, finishes, square footage, views) compared to initial plans;

– late or questionable obtaining of certain building or operating permits.

To secure an off-plan purchase in Lithuania, it is prudent to: verify the seller’s legitimacy, consult a notary or a real estate professional, conduct research on the property and request legal documents.

– independently check the land title deed and all necessary permits;

– verify the developer’s track record (delivered projects, any disputes);

– include clauses detailing technical specifications, timelines, delay penalties, contract termination conditions, and the fate of the deposit;

– prefer, when possible, schemes where deposits are placed in an escrow account and released in stages.

Underestimating long-term operating costs

Many investors focus on the purchase price and initial fees, without building a multi-year budget for operating the property. Yet in Lithuania, certain recurring items can weigh heavily:

In an unrenovated Soviet-era building, winter heating bills can sometimes far exceed those of a recent apartment with an A or B energy rating. Not integrating this reality into projections risks turning a theoretically attractive yield into a barely break-even investment.

Not taking infrastructure and neighborhood dynamics into account

Lithuania is investing heavily in its infrastructure: railway projects like Rail Baltica, improvement of electric bus lines in Vilnius, extension of bike lanes, highway modernization on the Vilnius–Kaunas axis, etc. Some operations, like the redevelopment of Naujamiestis in Vilnius or the expansion of Klaipėda port, already influence prices.

Conversely, dismissing a changing neighborhood a priori, like Šnipiškės in the past or certain urban fringes today, simply out of ignorance, can mean missing out on significant value increases.

Good preparation consists of: planning the details, getting organized, and anticipating the unexpected.

– consult urban planning plans with the municipality;

– check for existing or planned major transport (buses, rail, bike lanes);

– look at the neighborhood’s demographic dynamics (young families, students, tech companies, etc.);

– assess the depth of the local rental market (stable or very seasonal demand).

Settling for an approximate translation of contracts

All authentic deeds are drafted in Lithuanian. Many foreigners rely on a cursory oral translation during the notary appointment, or a non-official English version, and sign without truly understanding the commitments made.

The risks are multiple:

Lithuanian law also stipulates that the buyer cannot later claim compensation for defects that were visible and could have been detected during the visit. Signing without understanding what you are accepting means waiving certain protections in advance.

Prudence requires having a complete written translation of key documents (preliminary contract, promise to sell, deed of sale) and having them reviewed by an independent lawyer, not by the agent hired by the seller.

Neglecting remote management and insurance

For a non-resident investor, buying a property is only the first step. Day-to-day management (re-leasing, rent collection, tracking fees, emergency interventions) requires either a local presence or a property manager.

Again, Lithuanian legislation, rather protective of owners, does not exempt one from good insurance coverage. Omitting this item can turn a minor incident (water damage, short circuit) into a costly dispute.

Concluding without an exit plan

Finally, many buyers focus exclusively on acquisition and rental setup, without thinking about the exit strategy: medium-term resale, inheritance, switching to another property type.

In Lithuania, some tax benefits are linked to the holding period (potential capital gains exemption after ten years, for example), others to primary residence status. Conversely, regular sales in a purely speculative approach can be considered a professional activity, with different tax treatment.

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The most costly mistakes are not the visible ones—the tile to replace or the outdated kitchen—but those you don’t look for: obscure titles, zoning constraints, misunderstood taxation, explosive condominium fees, contracts signed without real understanding. Surrounding yourself with local professionals (lawyer, technical expert, possibly property manager), taking time for due diligence, and integrating all long-term costs remains the best insurance to turn a real estate project in Lithuania into a real success, rather than a source of disputes and disappointments.