Lithuania

Real estate websites
STEPS
Check Eligibility
- Non-Residents: Foreigners, including non-EU nationals, are generally allowed to buy property in Lithuania. However, non-EU nationals may face restrictions when purchasing agricultural land or properties in rural areas.
- Financing: Foreign buyers can obtain financing from Lithuanian banks, but they are often required to provide a larger down payment (usually 30% or more). Proof of income and financial stability is typically required.
Determine the Budget
- Budgeting: Consider all costs related to purchasing property, including the purchase price, notary fees, registration taxes, and additional expenses such as property insurance and utilities.
- Mortgage: Lithuanian banks may offer mortgages to foreign buyers, typically for up to 70% of the property value, but the buyer should be prepared for a larger down payment.
Find a Property
- Online Search: Websites such as Aruodas.lt and Ober-Haus.lt offer listings of available properties across Lithuania. You can filter by location, price, and property type.
- Real Estate Agents: Engaging with a local real estate agent can simplify the property search and negotiation process, especially for foreign buyers.
View the Property
- Inspections: It's advisable to have a professional inspection to assess the condition of the property and ensure there are no hidden issues, such as structural damage or plumbing problems.
- Visiting the Property: If you're unable to visit Lithuania in person, you can hire a representative or arrange for a virtual tour to inspect the property.
Make an Offer
- Bidding: Once you’ve decided on a property, you will make an offer. If the offer is accepted, you will typically sign a preliminary agreement and pay a deposit (usually around 10% of the purchase price).
- Contract: The contract for the sale is usually signed in two stages: the preliminary agreement (which secures the transaction) and the final agreement.
Complete Legal Formalities
- Notary Role: A notary (notaras) will oversee the transaction, ensuring that the sale complies with Lithuanian law. The notary will also facilitate the signing of the final contract.
- Taxes and Fees: Lithuania charges a registration tax, which is typically 1% to 3% of the property value. Notary fees and legal expenses should also be factored into your budget.
Register the Property
- Land Register: Once the purchase is complete, the property must be registered with the Lithuanian Land Register (Registrų centras) to officially transfer ownership.
- Insurance: Property insurance (turto draudimas) is recommended to protect the property against potential risks.
Move In
- Once the legal formalities and registration are complete, you can move into your new property in Lithuania.
ADDITIONAL CONSIDERATIONS
- Legal Assistance: It is advisable to hire a Lithuanian lawyer to guide you through the legal aspects of the transaction and ensure that all documents are in order.
- Taxes and Fees: Be aware of registration taxes, notary fees, and other administrative costs involved in purchasing property in Lithuania.
ADDITIONAL NOTICES
- Notary Role: A notary (notaras) is required to finalize the sale and register the property in the Lithuanian Land Register.
- Registration Tax: Lithuania charges a registration tax, which is usually between 1% and 3% of the property's value.
- Mortgage Financing: Foreign buyers can obtain financing from Lithuanian banks, but they typically need to provide a down payment of at least 30%.

In Lithuania, real estate taxes are regulated by the government, and they include both national and local taxes. The key types of taxes related to real estate in Lithuania include:

Property Ownership Tax

Real Estate Tax (RET): The real estate tax in Lithuania applies to the ownership of both residential and non-residential properties.

  • The general tax rate is 1% of the market value of the property, but there are exceptions for certain properties, such as agricultural land.
  • The tax is applicable to properties valued over €150,000, with residential properties being exempt if their value is under this threshold.
  • Properties with a value over €1 million are subject to a 1.5% rate on the market value exceeding this threshold.
  • The property tax is paid annually, and the owner is responsible for it.
Real Estate Transfer Tax

The real estate transfer tax applies when property changes ownership, such as during a sale or inheritance.

  • The standard transfer tax rate is 2% of the property’s purchase price or the market value, whichever is higher.
  • In certain cases, such as the transfer of property between family members or during inheritance, exemptions or reductions may apply.
Capital Gains Tax on Real Estate

Capital gains tax is levied when a property is sold for a profit, though exemptions may apply under certain conditions.

  • The standard capital gains tax rate is 15% on the profit made from the sale of the property (the difference between the sale price and purchase price).
  • If the property was owned for more than 2 years and was used as the owner’s primary residence, the sale may be exempt from capital gains tax.
  • For properties that are sold within 2 years of purchase, capital gains tax is applied on the entire profit, regardless of the use of the property.
Inheritance and Gift Tax

In Lithuania, inheritance and gift tax applies to the transfer of property or assets through inheritance or gifting.

  • The standard inheritance and gift tax rate ranges from 5% to 20%, depending on the relationship between the deceased and the beneficiary or the donor and recipient.
  • Close relatives (spouses, children, parents) benefit from a lower tax rate, with exemptions and thresholds depending on the value of the inherited or gifted property.
  • If the property is sold after inheritance or gifting, capital gains tax will apply if there is a profit made from the sale.
Income Tax on Rental Income

If rental income is generated from real estate, it is subject to both national and local income taxes.

  • Rental income is taxed as part of the overall personal income tax system, with rates ranging from 15% to 20% depending on the income level.
  • Property owners can generally deduct related expenses, such as mortgage interest, maintenance costs, and property management fees, from their rental income to reduce taxable income.
Municipal Taxes

In addition to national taxes, municipalities may impose local taxes or charges for certain types of property or services provided by local authorities.

  • Local taxes vary depending on the municipality, and may include additional charges for property maintenance, waste disposal, or infrastructure usage.
Note: Tax rates and regulations can vary based on specific circumstances and local authorities. It is advisable to consult with a local tax professional or check with the Lithuanian State Tax Inspectorate for up-to-date and accurate information.
Official
Republic of Lithuania
CIOC
LTU
Subregion
Northern Europe
Borders
BLR
LVA
POL
RUS
Capital
Vilnius
Area
65 300 km²
Population
2 795 000
Timezones
UTC+02:00
Phone
+370   
Currencies
Euro (EUR €)