The Complete Guide to Property and Transaction Costs in Lithuania (2026)

The dream of owning a slice of Lithuania – perhaps a quaint apartment in Vilnius's Old Town, a modern flat in Kaunas, or a peaceful countryside retreat – is a beautiful one that many expats share. But let's be realistic: turning that dream into a reality can feel like navigating a dense forest, especially when it comes to understanding all the financial brambles and bushes involved. It’s not just the sticker price of the property; there's a whole thicket of transaction costs and ongoing expenses waiting to surprise you. This comprehensive guide is here to meticulously unravel every single property and transaction cost, ensuring you’re well-equipped and confident as you embark on your Lithuanian homeownership journey.

Understanding the Upfront Costs of Buying Property in Lithuania

Before you even get the keys, there are several crucial upfront costs you’ll need to budget for. These initial expenses are often overlooked by hopeful buyers, but ignoring them can quickly lead to budget overruns and unnecessary stress. From securing the deal to ensuring its legality, these steps require careful financial planning.

The Deposit and Reservation Fees

When you find a property you love, the first financial step is usually to secure it, which typically involves a deposit or a reservation fee. This isn’t just a formality; it’s a commitment. The avansas (deposit) or rezervacijos mokestis (reservation fee) shows the seller you’re serious and takes the property off the market while you complete your due diligence and arrange financing.

Typically, a deposit for a property purchase in Lithuania ranges from 5% to 10% of the property's total agreed-upon price. This sum is usually paid into an escrow account or directly to the seller (though an escrow is safer for both parties) and is deducted from the final purchase price. A reservation fee, on the other hand, might be a fixed, smaller amount, often used when dealing with new developments or through a real estate agent. It’s usually non-refundable if you pull out without a valid legal reason. For example, if you’re eyeing a brand-new apartment in a developing neighbourhood like Paupys in Vilnius, the developer might ask for a reservation fee of €1,000-€3,000 to hold the unit while you sort out your mortgage pre-approval. Always ensure the terms of this payment are clearly stipulated in a written agreement, detailing what circumstances allow for a refund. It's a bitter pill to swallow if a deal falls through and you lose a significant chunk of change because the conditions weren't clear.

Real Estate Agent Fees (Brokerio Mokesčiai)

Navigating the Lithuanian property market can be tricky, especially if your Lithuanian language skills aren't quite fluent yet. This is where a good real estate agent, or brokeris, can be invaluable. They can help you find suitable properties, arrange viewings, negotiate prices, and guide you through the initial paperwork.

The good news for buyers is that in Lithuania, the real estate agent's commission is typically paid by the seller. This doesn't mean it's "free" for you, as the cost is often baked into the property's sale price, but it won't be an additional percentage taken directly from your pocket on closing. Standard commission rates in Lithuania usually hover between 2% and 5% of the property’s sale price, plus VAT (PVM). However, there are instances where a buyer might engage their own agent, especially for hard-to-find properties or if they require specific services. In such cases, the buyer would be responsible for their agent's fee, which should be clearly agreed upon in a separate contract. For example, if you're looking for a very specific type of historical property in Kaunas and hire an agent exclusively for that search, be prepared to pay their fee directly. Always clarify who is paying what fee structure at the outset to avoid any nasty surprises down the line.

Legal and Due Diligence Costs

While a notary public is mandatory for property transfers (more on that later), hiring your own independent lawyer for legal due diligence is a highly recommended, though optional, upfront cost, especially for foreigners. This isn't just about understanding the contract; it's about protecting your interests.

An experienced property lawyer can conduct thorough checks on the property’s legal history, verify the seller's ownership rights, ensure there are no undisclosed debts or encumbrances (like mortgages, easements, or unresolved inheritance issues), and review the sales contract (pirkimo-pardavimo sutartis) to ensure it's fair and protects you. They can also help you understand any specific clauses, especially if you're buying an older property that might have unique historical or architectural protections. The fees for these services can vary widely depending on the complexity of the transaction and the lawyer's experience, ranging from a fixed fee (e.g., €500-€1,500) to an hourly rate. For an expat navigating a new legal system, this expense is often well worth it for the peace of mind it provides, preventing potential headaches and costly disputes in the future. Imagine finding out after the purchase that there's an unresolved boundary dispute with a neighbour; a good lawyer would have spotted that.

Notary Fees: The Essential Gatekeeper of Property Transactions

In Lithuania, the notary public plays an absolutely critical role in any property transaction. They are not merely witnesses to signatures; they are legal gatekeepers, ensuring the legality, transparency, and proper registration of property sales. Without their stamp of approval, your purchase simply won't be valid.

The Notary's Role in Property Sales

Unlike some other countries where a solicitor handles the entire conveyancing process, in Lithuania, the notaras (notary) is legally required for all real estate transactions. Their primary function is to verify the identity and legal capacity of both buyer and seller, confirm that both parties understand the terms of the sale, and ensure that the transaction complies with all Lithuanian laws. They act as an impartial third party, safeguarding the interests of both sides.

When you purchase a property, you'll physically attend the notary office to sign the official purchase agreement. The notary will meticulously review all documents, including your identification, the property's registration details from Registrų Centras, and any required permits or certificates. They will also check for any outstanding mortgages or legal claims on the property that might prevent a clean transfer of ownership. This thorough process is designed to prevent fraud and ensure that once the documents are signed and stamped, the ownership transfer is legally sound. For instance, if you're buying a property and the seller is married, the notary will ensure that the spouse's consent is also legally obtained, even if they aren't listed on the property deed, if required by law.

Calculating Notary Fees (Notaro Mokesčiai)

The fees charged by notaries for property transactions in Lithuania are regulated by law, which means there’s a fairly consistent structure, though the exact amount will depend on the value of the property. The fee is generally a combination of a fixed base amount and a percentage of the transaction value, up to a specified cap.

As a general guideline, you can expect notary fees to range from approximately 0.2% to 0.5% of the property's sale price, plus VAT (21%), often with a minimum fee and a maximum cap (which can be around €5,000-€6,000, but is subject to change). For example, if you purchase an apartment for €100,000, the notary fee might be calculated as a fixed base fee (e.g., €50-€100) plus 0.4% of the sale price. So, €100 + €400 = €500, plus 21% VAT, bringing the total closer to €605. If you're buying a more expensive property, say a house for €500,000, the percentage might be slightly lower on the higher value portion, and the total will be capped. It’s always the buyer’s responsibility to cover the notary fees, unless otherwise specifically agreed upon in the sales contract. It’s a good idea to ask your chosen notary for an estimated calculation based on your specific property's price early in the process so you can budget accurately.

Additional Notary Services and Charges

Beyond the core service of notarizing the property sale, there might be other related services offered by the notary, which will incur additional charges. These could include preparing and certifying powers of attorney if one party cannot be present, providing certified copies of documents, or even facilitating translation services if a party doesn't understand Lithuanian and requires a sworn translator to be present.

For instance, if you're abroad and need to grant someone in Lithuania the authority to sign documents on your behalf, preparing and notarizing a power of attorney (įgaliojimas) will come with its own fee. Similarly, if you need extra certified copies of your signed sales contract for various administrative purposes (like bank, immigration, or tax filings), the notary will charge per copy. Sometimes, notaries also offer the service of directly submitting the registration documents to the State Enterprise Centre of Registers (Registrų Centras) on your behalf, saving you a trip, but this will be an additional administrative fee on top of the actual registration cost. It’s important to clarify all potential extra costs with your notary beforehand to avoid any last-minute surprises on signing day.

Registration and Administrative Fees

Once the notary has done their part and the ink is dry on your purchase agreement, there’s another crucial step: officially registering your new ownership. These are the administrative fees that ensure your property is legally recorded under your name in the national registry, making your ownership official and indisputable.

State Enterprise Centre of Registers (Registrų Centras) Fees

After the notary has approved your purchase, the next essential step is to register your ownership with the State Enterprise Centre of Registers, or Registrų Centras. This is Lithuania's official property registry, and it's where all property ownership, transfers, and encumbrances (like mortgages) are recorded. Without this step, your ownership isn't fully legally recognized.

The fees for registering ownership (įregistravimas) and transferring the title with Registrų Centras are also regulated. They usually consist of a fixed base fee plus a small percentage of the transaction value, similar to notary fees, but at a much lower rate. For example, for a standard apartment or house, the registration fee might be around €10-€30, plus 0.01% to 0.05% of the property's sale price, typically capped at a few hundred euros. For a €100,000 apartment, you might pay a base fee of €15 plus 0.02% (€20), totalling €35. These fees are usually paid directly by the buyer or by the notary on the buyer's behalf if they offer that service. It's a relatively small cost compared to other transaction fees, but it's vital for securing your legal title. You can always check the property's status and ownership details later via the Registrų Centras portal, which is a powerful tool for How Do I Check a Property in the Registrų Centras in Lithuania?.

Mortgage Registration Fees If Applicable

If you’re financing your property purchase with a mortgage from a Lithuanian bank, there are additional registration fees specifically for that. Just as your property ownership needs to be officially recorded, so does the hypothec, or the mortgage, against your property. This formally registers the bank's claim on the property as collateral.

These fees are also paid to Registrų Centras for recording the mortgage. The cost typically depends on the amount of the mortgage loan and can include a fixed fee plus a small percentage. For instance, you might pay a few tens of euros for the registration itself. On top of this, your bank might charge their own mortgage arrangement fees, valuation fees (for having the property appraised), and possibly fees for opening a specific mortgage account. These bank-related fees can range from a few hundred euros to over a thousand, depending on the bank and the complexity of the loan. It's crucial to get a full breakdown of all mortgage-related costs from your bank before you commit, as they can significantly add to your upfront expenses. Securing a mortgage as an expat can be a process; you can learn more by checking out How Do I Get a Mortgage from a Lithuanian Bank as a Foreigner?.

Cadastral Measurement and Energy Performance Certificate

Sometimes, during the property purchase process, you might encounter requirements for a cadastral measurement or an Energy Performance Certificate (EPC). These aren’t always mandatory for every transaction, but when they are, they represent additional costs.

A kadastriniai matavimai (cadastral measurement) might be required, for example, if you're buying a plot of land, a house that hasn't been recently surveyed, or if there have been significant unrecorded structural changes to a property. This involves a certified surveyor mapping out the exact boundaries and dimensions of the property. The cost for a cadastral measurement can range from €200 to €600 or more, depending on the property's size and complexity. The Energinio naudingumo sertifikatas (Energy Performance Certificate) is mandatory for almost all property sales and rentals in Lithuania. It rates the property's energy efficiency from A++ (most efficient) to G (least efficient). The cost for obtaining an EPC typically ranges from €50 to €150 for an apartment and €100-€300 for a house, depending on the size and complexity. Usually, the seller is responsible for providing a valid EPC, but as a buyer, it's wise to verify its existence and validity, as it impacts future utility costs and potential resale value.

Taxes Associated with Property Purchase and Ownership

Ah, taxes. The word alone is enough to make many expats groan, and Lithuanian property is no exception. While there isn't a direct "purchase tax" levied on the buyer in Lithuania, understanding the broader tax implications, both at the point of sale and for ongoing ownership, is absolutely vital.

Stamp Duty and Other Transaction Taxes

If you're coming from a country with significant "stamp duty" or land transfer taxes, you might be relieved to know that Lithuania doesn't have an equivalent, single large tax specifically for the buyer at the point of sale. Instead, the costs associated with the legal transfer of property ownership are primarily covered by the notary fees and Registrų Centras registration fees, which we've already discussed. These fees effectively serve the same purpose as a transfer tax, ensuring the state records and validates the transaction.

It's important to distinguish between buyer and seller obligations here. The buyer's primary financial responsibility for the transfer is concentrated in those regulated fees. However, the seller, particularly if they are selling a property they've held for a shorter period or that wasn't their primary residence, might be subject to capital gains tax. So, while you, as the buyer, won't be paying a direct "transaction tax," the costs are embedded in the notarial and registration processes. This is a common point of confusion for new arrivals, so understanding that the notary and registry fees are your "transfer" costs is key.

Annual Real Estate Tax (Nekilnojamojo Turto Mokestis, NTM)

Now, let's talk about the annual tax you’ll pay as a property owner: the Nekilnojamojo Turto Mokestis, or NTM. This is Lithuania's real estate tax, and it applies to all immovable property (buildings, structures, premises). However, there's a significant exemption for private individuals.

For individuals, NTM is only levied on the portion of your property's value that exceeds a certain tax-exempt threshold. For your primary residence, this threshold is generally higher, offering a significant relief for most homeowners. The threshold amount can vary slightly each year, but it's typically set by the municipality. For example, a common threshold might be around €150,000 for a primary residence. If your property's taxable value (determined by Registrų Centras based on market value) is €100,000, you wouldn't pay any NTM. If it's €200,000, you'd pay NTM only on the €50,000 exceeding the €150,000 threshold. For non-primary residential properties or properties owned by companies, the threshold is typically lower or non-existent. The tax rates themselves are set by individual municipalities and can range from 0.5% to 3% of the taxable value. It's a complex topic, and you can dive deeper into the specifics by reading Understanding Real Estate Tax NTM for Homeowners in Lithuania.

Potential Capital Gains Tax for Sellers

While this isn't a direct cost for you as a buyer, it's a crucial piece of information for any expat considering future property investment and resale. Understanding the seller's tax obligations provides valuable context for the market and can influence negotiations.

In Lithuania, when a property is sold, the seller may be subject to capital gains tax (which falls under personal income tax, GPM) on any profit made from the sale. The standard GPM rate applies to this gain. However, there are significant exemptions. A seller is typically exempt from capital gains tax if:

1. They have owned the property for at least 10 years.
2. They have owned the property for at least 5 years and it was their declared primary residence (gyvenamoji vieta) for at least the last two years before the sale.
3. The property was acquired as an inheritance.

If these conditions aren't met, the seller will pay tax on the difference between the selling price and the acquisition price (plus documented improvement costs). This tax can be a substantial amount, so it's a major factor for sellers and something you, as a future potential seller, should keep in mind. Understanding these nuances is part of the broader discussion of Understanding Capital Gains Tax in Lithuania.

Ongoing Ownership Costs and Maintenance

Congratulations, you've bought your property! But the financial journey doesn't end there. Owning a home in Lithuania, like anywhere else, comes with a host of recurring costs that you need to factor into your monthly or annual budget. These range from essential utilities to building maintenance and insurance.

Utility and Communal Service Fees (Komunaliniai Mokesčiai)

One of the most significant ongoing costs for any property owner in Lithuania is the collective "communal fees," known as komunaliniai mokesčiai. These encompass all your household utilities and services, and they can vary dramatically depending on the season, your property type, and its energy efficiency.

Your monthly komunaliniai mokesčiai typically include:

• Electricity: Supplied by ESO, costs depend on consumption and chosen tariff.
• Water and Wastewater: Provided by municipal companies like Vilniaus Vandenys.
• Gas: If your property uses natural gas for heating or cooking (e.g., Lietuvos Dujų Tiekimas).
• Heating: This is often the biggest bill, especially in winter. For apartments in centralized heating systems, this is managed by companies like Vilniaus Šilumos Tinklai. The cost is based on square footage and actual consumption, meaning older, less insulated buildings can incur eye-watering bills during the cold months.
• Waste Collection: Managed by local municipal companies.
• Building Administration/Maintenance: Fees for the upkeep of common areas.

A real-life scenario: An expat couple living in a well-insulated, modern 60 sqm apartment in Vilnius might see their komunaliniai mokesčiai total €100-€150 in summer, but this could easily jump to €250-€400 in winter, primarily due to heating costs. In an older, less efficient building of the same size, that winter bill could potentially be even higher, sometimes exceeding €500. It's a huge factor to consider for your budget. For a detailed breakdown, check out Understanding Utility and Communal Costs Komunaliniai Mokesčiai in Lithuania.

Property Management and Maintenance Fees

If you've bought an apartment in a multi-unit building, you'll be part of a community with shared responsibilities for common areas. This means paying regular property management and maintenance fees, separate from your individual utility consumption.

These fees cover the ongoing costs of maintaining the building’s common areas, such as hallways, roofs, facades, elevators, and surrounding grounds. They also contribute to a renovation fund (remonto fondas) for larger, future repairs. The management might be handled by an appointed building administrator (bendrijos pirmininkas) or a professional property management company. The amount you pay is usually calculated based on the square footage of your apartment. Expect to pay anywhere from €0.50 to €1.50 per square meter per month for these services, depending on the age of the building, its condition, and the services provided (e.g., if there's a concierge or higher-level security). For example, owning a 70 sqm apartment might mean an additional €35-€105 per month. Occasionally, unexpected, larger renovation projects might require a one-off special contribution from all owners, which can be a significant expense if you haven't budgeted for it.

Home Insurance and Other Optional Expenses

While not always legally mandatory (unless required by your mortgage lender), securing home and contents insurance is a truly sensible ongoing expense that provides peace of mind against unforeseen events.

Home insurance (turto draudimas) in Lithuania typically covers damage to the structure of your property (the walls, roof, foundations) and often your personal belongings inside, against perils like fire, theft, water damage, and natural disasters. The cost of insurance varies based on the property's value, location, age, and your chosen coverage level. For an average apartment, you might expect to pay anywhere from €100 to €300 per year. For a house, it could be higher. While it's an extra cost, imagine the financial devastation of a fire or burst pipe without it – that small annual fee suddenly looks like an incredible bargain. You can read more about options in Understanding Home and Contents Insurance in Lithuania. Additionally, don't forget optional expenses like internet and TV subscriptions, alarm system monitoring fees, or gardening services if you have a private garden. These might not be mandatory, but they certainly add to the quality of life and the monthly budget.

Financial Considerations and Transferring Funds

So, you've tallied up the costs, signed the initial papers, and now you're ready for the big transfer of funds. This step can be daunting, especially for large international sums, so understanding the financial mechanics and potential pitfalls is crucial.

Mortgage Options and Related Costs

For many expats, especially those looking to buy a larger or more expensive property, a mortgage from a Lithuanian bank is a necessity. While it opens up homeownership, it also brings its own set of costs beyond the principal and interest.

Lithuania's main banks for mortgages include Swedbank, SEB, and Luminor. While these banks are generally open to lending to foreigners with stable incomes and residence permits, the process can sometimes be more rigorous than for Lithuanian citizens. Beyond the interest rate you'll pay over the life of the loan, common mortgage-related costs include:

• Loan Application/Arrangement Fees: A one-time fee charged by the bank for processing your mortgage application, often a percentage of the loan amount or a fixed fee (e.g., €150-€500).
• Property Valuation Fee: The bank will require an independent valuation of the property to ensure it's worth the loan amount. This fee, typically €100-€200, is usually paid by the buyer.
• Legal Fees: While the notary is key, the bank may also require its own legal review, adding minor costs.
• Mortgage Insurance: Some banks may require you to take out mortgage life insurance or property insurance as a condition of the loan.

Navigating the mortgage landscape as a foreigner can be complex, but it's not impossible. A good starting point for detailed information is How Do I Get a Mortgage from a Lithuanian Bank as a Foreigner?.

International Money Transfers

When it comes to transferring a large sum of money for a property purchase from your home country to Lithuania, you need a reliable, cost-effective, and secure method. Exchange rates, transfer fees, and the speed of the transaction can all significantly impact your overall costs.

Traditional bank wire transfers can be expensive due to high fees and often less favourable exchange rates. This is where modern fintech solutions come into their own. Companies like Wise (formerly TransferWise) have become incredibly popular with expats for their transparent pricing, competitive exchange rates (often using the mid-market rate), and lower transfer fees. For example, if you're transferring €200,000 from a UK bank account in GBP to your Lithuanian bank in EUR, the difference in the exchange rate and fees between a traditional bank and a service like Wise could easily amount to hundreds, if not thousands, of euros. It’s absolutely essential to compare rates and fees before initiating such a large transfer. Always factor in the time it takes for the funds to arrive, especially when working with strict deadlines for property payments.

Understanding Bank Fees for Large Transactions

Even once the money is in your Lithuanian bank account, or as it moves through it, be aware of potential bank fees for large transactions. While receiving a large sum shouldn't incur significant charges, there are other aspects to consider.

Lithuanian banks (like Swedbank, SEB, Luminor) are subject to strict anti-money laundering (AML) regulations. If you're receiving a large sum from abroad, it’s always a good idea to inform your bank in advance, explaining the source of the funds (e.g., sale of property in your home country, savings for property purchase). They may ask for documentation to prove the origin of the money. While this might feel intrusive, it's a standard procedure to prevent delays or freezes on your funds. Additionally, if you need bank drafts or specific certified payment methods for the final transfer to the seller's account, there might be small associated fees. Always check with your Lithuanian bank about their policies for large incoming and outgoing payments, as well as any specific requirements for final payment during the property closing process. You can learn more about general banking for new residents in How Do I Open a Bank Account at a Lithuanian Bank as a Foreigner.

Important Considerations and Practical Advice for Expats

Buying property in a new country is a massive undertaking, and for expats in Lithuania, there are unique challenges. Beyond the financial aspects, a few practical considerations can make or break your experience, ensuring a smoother transition into homeownership.

The Importance of an Asmens Kodas Personal Code

While it's technically possible to initiate some property-related procedures without an asmens kodas (personal code), having this unique 11-digit identifier is paramount. It’s not just a number; it’s your key to fully integrating into the Lithuanian administrative and financial system.

You absolutely need an asmens kodas to:

• Register your place of residence (gyvenamoji vieta) at your new property.
• Set up utility accounts (electricity, gas, water) in your name.
• Register with the Lithuanian Tax Authority (VMI) for annual tax filings.
• Open a bank account seamlessly.
• Access various e-government services.

Without it, you might find yourself hitting bureaucratic walls at every turn. Imagine trying to get your electricity connected only to be told you can't officially register without this code – it happens! While you might be able to sign a preliminary purchase agreement, securing utilities and fully integrating your ownership will be much harder. If you don't have one yet, prioritize getting yours. You can learn more about this essential identifier in How to Get an Asmens Kodas and Register with the Lithuanian Tax Authority.

Language Barriers and Translation Services

Let's face it: unless you're fluent in Lithuanian, the language barrier is a significant hurdle. Property contracts, official documents, and discussions with notaries, real estate agents, and even utility providers will primarily be in Lithuanian.

Do not underestimate the importance of fully understanding every word of your purchase agreement and any other legal documents. Even with a good grasp of the language, legal jargon can be tricky. It's highly advisable to use certified translation services for critical documents. Many notaries require a sworn translator to be present during the signing if one of the parties does not understand Lithuanian, and the cost of this service will be added to your notary fees. While your real estate agent might speak English, their role is to facilitate the sale, not to provide legal translation or advice. Invest in professional translation where necessary; it's a small price to pay for ensuring you know exactly what you're agreeing to, preventing costly misunderstandings down the line.

Due Diligence and Background Checks

We touched on legal due diligence earlier, but it bears repeating: thorough background checks are not just an option, they're a necessity, especially for expats unfamiliar with local property norms. This goes beyond just the legal contract; it's about the physical property and the financial standing of the seller.

Utilize the Registrų Centras portal not only for current ownership but for any historical data – checking for past disputes, liens, or changes to the property. Ask for copies of all relevant building permits, energy certificates, and maintenance records. If buying an older property, consider an independent property inspection to uncover any hidden structural issues, plumbing problems, or electrical faults that aren't immediately visible. A local, independent lawyer is your best friend here, as they can navigate the intricacies of Lithuanian property law and spot potential red flags that you might miss. It’s tempting to cut corners to save money, but skipping thorough checks can lead to significant financial headaches and emotional distress later on.

Navigating Property Ownership with Tax Implications

Owning property in Lithuania has wider tax implications, particularly for expats who might also be tax residents in another country. It’s crucial to understand how Lithuanian tax laws interact with your overall financial situation, especially if you plan to rent out your property or eventually sell it.

Tax Residency and its Impact on Property Tax

Your tax residency status – where you are considered a tax resident – is a fundamental concept that dictates your global tax obligations. For expats owning property in Lithuania, understanding this can have a significant impact on how your property is taxed, beyond just the annual NTM.

If you are a tax resident of Lithuania, you are generally taxed on your worldwide income and assets here. If you are not a tax resident of Lithuania (e.g., if you spend less than 183 days a year here and your main center of interests is elsewhere), you are typically only taxed on income sourced within Lithuania. This distinction is vital for potential rental income or future capital gains from your Lithuanian property. For instance, if you decide to rent out your apartment, your tax residency will determine if you declare that rental income only in Lithuania, or if you also need to report it in your home country and rely on double taxation agreements. It's a complex area, and services like Taxes for Expats specialize in helping foreigners navigate these cross-border tax issues. Getting it wrong can lead to serious penalties. For a more comprehensive overview of this topic, refer to Tax Residency in Lithuania: A Definitive Guide for Expats (2027).

Reporting Rental Income from Your Lithuanian Property

Should you choose to rent out your newly acquired Lithuanian property, you are legally obliged to declare that rental income to the Lithuanian Tax Authority (VMI). How you do this, and the tax rate applied, depends on whether you register as an individual activity (individuali veikla) or simply declare it as a private person.

Most individuals renting out one or two properties will declare their rental income as a private person. The income is subject to personal income tax (GPM), typically at a rate of 15%, on the gross rental income. You can deduct certain expenses related to the rental activity (e.g., property management fees, property insurance, NTM) if you keep meticulous records. Alternatively, if you plan to manage properties more actively or have several, you might consider registering for individual activity for rental services. This allows for more extensive expense deductions but also involves social security contributions and different tax calculation methods. It's important to understand the distinctions and implications for your overall tax burden. This isn't exactly about foreign rental income, but it's part of the broader framework covered in The Complete Guide to Taxes in Lithuania for Expats (2027).

Double Taxation Agreements

For expats, the spectre of being taxed twice on the same income – once in Lithuania and once in their home country – is a constant concern. This is where double taxation agreements (DTAs) come into play. Lithuania has an extensive network of DTAs with many countries worldwide.

A DTA is an agreement between two countries that aims to prevent double taxation of income and capital gains. If you are a tax resident of a country that has a DTA with Lithuania, and you earn rental income from your Lithuanian property, the DTA will specify which country has the primary right to tax that income, and how the other country will provide relief (e.g., by granting a credit for taxes paid in Lithuania). For instance, if you're a tax resident of the UK and rent out a property in Vilnius, the UK-Lithuania DTA dictates how your rental income will be treated. You would still declare the income in Lithuania, pay tax there, and then, under the DTA, claim relief in the UK to avoid paying tax on the same income twice. Always consult with a tax professional who specializes in international taxation to understand the specifics of your situation and the applicable DTA.

Table: Estimated Property Transaction and Annual Costs in Lithuania (2026)

To give you a clearer picture, here's a table summarizing the typical costs you might encounter when buying and owning a property in Lithuania. Please note that these are estimates for 2026 and actual figures can vary based on property value, location, and specific circumstances.

Cost Category	Type of Cost	Estimated Range (for a €150,000 apartment)	Who Pays (Typically)	Notes
Upfront Costs	Deposit/Reservation Fee	5-10% of purchase price (€7,500 – €15,000)	Buyer	Shows commitment, deducted from final price. Reservation fees may be smaller, fixed amounts.
	Real Estate Agent Fee	2-5% of purchase price (+ VAT)	Seller	Usually paid by seller, but buyers may pay if they exclusively hire an agent.
	Legal Due Diligence	€500 – €1,500	Buyer	Highly recommended, especially for expats, for contract review and property checks. Varies by complexity.
Notary & Registration Fees	Notary Fee	0.2-0.5% of purchase price (+ VAT)	Buyer	Legally mandatory for all property transfers. Regulated fee, with minimums and maximums (e.g., up to ~€5,000-€6,000 max).
	Registrų Centras Registration	€30 – €150 (small fixed + % of value)	Buyer	For official recording of ownership in the national property register.
	Mortgage Registration	€50 – €150 (fixed)	Buyer	If applicable, for registering the hypothec (mortgage) with Registrų Centras.
	Energy Performance Certificate	€50 – €150	Seller	Usually provided by seller, but buyer might incur costs if seller doesn't provide or if new assessment is desired.
Mortgage Related Costs	Loan Arrangement Fee	0.5-1% of loan amount or fixed (€150-€500)	Buyer	Charged by the bank for processing the mortgage.
	Property Valuation Fee	€100 – €200	Buyer	Bank's requirement for independent property appraisal.
Ongoing Annual Costs	Annual Real Estate Tax (NTM)	€0 – €500+ (for primary residence)	Owner	Taxable on value exceeding a threshold (e.g., ~€150,000 for primary residence), rates 0.5-3% on taxable portion.
	Home & Contents Insurance	€100 – €300	Owner	Highly recommended. Varies by coverage, value, and property type.
Ongoing Monthly Costs	Utility & Communal Fees	€100 – €400+ (seasonal variance)	Owner	Electricity, water, heating (major winter cost), gas, waste. Varies by size, efficiency, and season.
	Building Maint. / Renovation	€35 – €105+ (for a 70 sqm apt)	Owner	For common area upkeep and renovation fund contributions. Calculated per sqm.

Disclaimer: The information provided in this guide is for general informational purposes only and does not constitute legal, financial, or tax advice. While we strive to provide accurate and up-to-date information, laws and regulations in Lithuania, particularly those related to property and taxation, can change. It is essential to consult with qualified legal, real estate, and financial professionals in Lithuania for advice tailored to your specific situation before making any property purchase or financial decisions. We do not assume any liability for actions taken based on the information contained herein.