For decades, real estate has been considered an excellent asset for capital investment. For this reason, both residents and non-residents consider real estate in Lithuania (as EU member state) a profitable asset. If you have decided to acquire real estate in Lithuania for investment, residence or business, here are what you should know about the special aspects of the acquisition and about property taxes in Lithuania.
1. Who can buy real estate in Lithuania?
Lithuanian and foreign individuals and legal entities may acquire residential and commercial property, subject to applicable acquisition restrictions and sanctions. Minors may own property, but transactions on their behalf must comply with legal representation and child-protection requirements.
2. Are there restrictions on acquisition of real estate by foreigners?
Foreign nationals may acquire land in Lithuania if they meet the eligibility criteria established by the constitutional law implementing Article 47 of the Constitution. Agricultural and forest land are not subject to a blanket prohibition for foreigners, but additional acquisition conditions, consent requirements, ownership limits and pre-emption rights may apply. Eligibility also depends on applicable sanctions and restrictions affecting the buyer or the particular property.
3. Is there a residential property tax in Lithuania?
From 2026, an individual’s qualifying main residence benefits from a municipal tax-free threshold of at least EUR 450,000. The taxable value above that threshold is subject to a municipal annual rate of 0.1%-1%. Other qualifying residential and similar property is subject to separate progressive annual taxation based on its combined taxable value. From 2026, qualifying property other than the main residence is taxed progressively: 0% up to EUR 50,000; 0.2% on the portion above EUR 50,000 up to EUR 200,000; 0.4% up to EUR 400,000; 0.6% up to EUR 600,000; 0.8% up to EUR 1,000,000; and 1% above EUR 1,000,000. Statutory exemptions may apply.
4. How much is the tax on high-value property?
Lithuania does not impose a general 1% acquisition tax on property exceeding EUR 150,000. Annual property tax is separate from the purchase transaction. Notarial and registration fees, and VAT where applicable, must be assessed separately.
5. Are there any taxes on commercial real estate in Lithuania?
From 2026, taxable commercial property generally attracts a municipal annual rate of 0.5%-3% of its taxable value, plus an additional 0.2% statutory rate. A municipal rate of 1%-5% applies to qualifying abandoned or neglected property. Statutory exemptions may apply.
6. Does ownership of property in Lithuania grant permanent residence?
Ownership of real estate in Lithuania does not grant the right of residence in the country. The owner of the property may visit Lithuania on a tourist visa or on the basis of another permit, but this does not depend on the ownership of immovable property in Lithuania. Property ownership may help demonstrate suitable accommodation where required, but it is not an independent ground for temporary or permanent residence. Applicants must meet the statutory requirements for their particular residence category.
7. Can foreign nationals obtain a mortgage to purchase real estate in Lithuania?
Foreign nationals may obtain mortgages from Lithuanian banks if they meet the lender’s eligibility and creditworthiness requirements. Approval depends on factors such as residence status, verified income, existing liabilities, the down payment and the property offered as security. Requirements differ between lenders.
Company in Lithuania UAB teikia teisinę ir reguliavimo pagalbą įmonėms, siekiančioms gauti kriptovaliutų turto paslaugų teikėjų (CASP) leidimą Lietuvoje pagal Reglamentą (ES) 2023/1114 (MiCA). Nuo 2026 m. sausio 1 d. buvusi Lietuvos nacionalinė VASP registracijos tvarka nebesuteikia leidimų teikti reguliuojamas kriptovaliutų turto paslaugas. Įmonės, ketinančios teikti paslaugas, patenkančias į MiCA taikymo sritį, paprastai turi gauti CASP leidimą iš Lietuvos banko arba atitikti taikomų išimčių reikalavimus.
8. What is the process of buying real estate, and when one needs to pay property tax in Lithuania?
As a rule, the acquisition of immovable property in Lithuania can be divided into the following steps, including the payment of tax (if applicable):
- Obtaining a certificate from the Real Estate Registration Center confirming the seller’s ownership of the property.
- Where agreed, conclusion of a preliminary purchase agreement specifying any advance payment, its amount and the conditions for its refund or retention. A 10% advance payment is not a statutory requirement.
- Drafting and signing of a notarised contract.
- Exchange of necessary documents with the seller and settlement,
- Payment of property tax, if applicable.
- The notary submits the transaction and registration documents to the Centre of Registers. The supporting documents depend on the property, ownership and family circumstances; many details are obtained directly from public registers. A property-tax payment receipt or tax-clearance certificate is not a universal registration requirement.
Since 2016, legal experts and accountants of Company in Lithuania UAB have helped individuals and legal entities to successfully conclude contracts for the sale and purchase of property in Lithuania and in timely payment of property taxes, if applicable. If you wish to acquire residential or non-residential property in Lithuania, we are ready to provide you with legal support at all stages of the transaction: from finding suitable property and negotiating the purchase price with the owner to the signing of the notarised deed.
