Who can buy property in Lithuania?
Foreign individuals, regardless of their nationality, are generally allowed to purchase real estate in Lithuania. This includes residential assets such as apartments and houses. European Union (EU) citizens face no restrictions, while non-EU citizens may encounter some limitations, particularly in relation to owning agricultural land. However, in a broader sense, when it comes to properties, the rights of foreign property owners in Lithuania are largely similar to those of local residents. Once you own a property, you have the same rights over it as any Lithuanian citizen would.
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Investing in real estate in Lithuania can be appealing for various reasons. The country´s stable political environment and growing economy provide a solid foundation for investment. Lithuania´s strategic location in the Baltic region enhances its economic prospects and makes it a gateway for trade between Eastern and Western Europe. The capital, Vilnius, with its well-preserved Old Town and dynamic business environment, is a focal point for real estate investment. The overall affordability of real estate in Lithuania, compared to some Western European countries, adds to its attractiveness. The government´s commitment to attracting foreign investment and implementing investor-friendly policies supports the real estate sector. Overall, the combination of stability, economic growth, affordability, and cultural richness positions Lithuania as a promising option for real estate investment in the Baltic region.
Here are some highly desirable locations for real estate investment:
- Vilnius - As the capital and largest city, Vilnius is a major economic and cultural hub. The city´s well-preserved Old Town, modern developments, and diverse business opportunities make it a sought-after location for real estate investment.
- Kaunas - Lithuania´s second-largest city, Kaunas, has a rich cultural heritage and a growing economy. The city´s historic architecture, educational institutions, and industrial activities contribute to its popularity in the real estate market.
- Klaipeda - This coastal city on the Baltic Sea is a significant port and industrial center. Klaipeda´s maritime activities, historical sites, and proximity to the Curonian Spit impact the local real estate market.
- Trakai - Known for its medieval castle on an island in Lake Galvė, Trakai is a popular tourist destination. The town´s picturesque setting and cultural significance contribute to its appeal in the real estate market.
- Nida - Located on the Curonian Spit, Nida is a resort town known for its sand dunes and unique landscapes. The town´s popularity as a vacation destination influences the local real estate market.
- Šiauliai - As an important industrial and cultural center, Šiauliai has diverse economic activities. The city´s historical sites, including the Hill of Crosses, contribute to its real estate market dynamics.
- Palanga - A popular seaside resort town, Palanga attracts both residents and tourists. The town´s sandy beaches, lively atmosphere, and cultural events impact the local real estate market.
Where to find properties online:
Non-residents, including foreigners, have the opportunity to secure property loans in Lithuania. The Lithuanian banking system permits non-residents to seek property loans, contingent upon specific conditions and requirements. Typically, obtaining a valid residence permit, showcasing a stable income, and satisfying the particular criteria set by lending institutions are eligibility prerequisites.
Due Diligence and Sales Contract
While not mandated by law in Lithuania, conducting due diligence is strongly recommended. This procedure entails a thorough investigation into aspects such as legal matters, debts, and potential structural issues that could result in substantial repair costs. Seeking guidance from local real estate agents and/or lawyers is advisable to navigate the complexities of the process effectively.
The locally termed "Pirkimo-pardavimo sutartis," or property purchase agreement (sales contract), serves as an essential contractual arrangement between the buyer and seller. This agreement establishes and legally binds the terms and conditions of the property transaction. International buyers may be required to adhere to specific regulations, including obtaining permission from the relevant Lithuanian authorities, especially when acquiring certain types of property, primarily agricultural land. It is advisable to perform due diligence before finalizing and signing the sales contract.
Property Buying Costs and Taxes in Lithuania
|0.03% - 0.50%
|Real Estate Agent´s Fee
|1.00% - 3.00%
|Costs paid by buyer
|0.48% - 0.95%
|Costs paid by seller
|1.00% - 3.00%
|ROUNDTRIP TRANSACTION COSTS
|1.48% - 3.95%
|Source: Global Property Guide