The purchase price is just the beginning
Lithuania has quietly become one of the most investor-friendly property markets in the EU. Vilnius and Kaunas have seen strong appreciation in recent years, transaction costs are among the lowest in Europe, and the 2026 tax reform has made the capital gains regime even more favourable. But as with any property investment, the headline price does not tell the full story.
Between notary fees, registration costs, and ongoing expenses, you need to budget beyond the purchase price. The good news is that Lithuania has no transfer tax, which keeps upfront costs remarkably low — typically 1-2% of the purchase price. Here is exactly what to expect.
Transfer tax
Lithuania does not levy any transfer tax or stamp duty on property purchases. This is one of the key advantages of the Lithuanian market compared to other EU countries, where transfer taxes can range from 3% to 10% or more.
The only costs associated with transferring ownership are the notary fee and the registration fee at the Centre of Registers — both of which are covered in the closing costs section below.
This means that on a property worth EUR 180,000, you pay exactly EUR 0 in transfer tax. In Portugal, by comparison, you would owe EUR 5,000-8,000 in IMT alone.
Closing costs
Lithuania’s closing costs are straightforward and relatively affordable:
- Notary Fees (Notaro mokestis): A mandatory fee for certifying the purchase deed. Set at 0.45% of the purchase price, capped at EUR 5,000. On a EUR 180,000 property, this comes to EUR 810. Often shared between buyer and seller in practice.
- Property Registration (Centre of Registers): Fixed fee for registering ownership with the Registru centras. Typically EUR 35 covering ownership, building, and land parcel registration.
- Title Searches and Register Extracts: Encumbrance checks, mortgage register checks, and title verification from the Centre of Registers. Budget approximately EUR 100.
- Lawyer Fees (Advokato mokestis): Not legally required but recommended, especially for foreign buyers. Expect EUR 500-3,000 depending on transaction complexity, with EUR 1,000 being typical.
- Property Valuation: Required by the bank if financing with a mortgage. Typically EUR 150-400.
Total closing costs for a EUR 180,000 property come to approximately EUR 1,945-2,945 — well under 2% of the purchase price. If you are buying with cash and skip the valuation, costs can be even lower.
Ongoing costs
Annual holding costs for Lithuanian investment property:
- Real Estate Tax (Nekilnojamojo turto mokestis): From 2026, investment properties are taxed at progressive rates of 0.1-1% on value above EUR 50,000. Primary residences are exempt up to EUR 450,000. For a typical mid-market Vilnius apartment valued at EUR 180,000, expect EUR 100-300 per year.
- Land Tax (Zemes mokestis): Set by municipalities at 0.2-0.4% of the land’s taxable value. Usually EUR 30-100 per year for urban plots. Apartment owners pay a proportional share of the building’s land.
- Property Insurance: Building insurance runs approximately EUR 100-400 per year depending on property value and type. From 2026, a 10% security surcharge applies on non-life insurance premiums. Budget around EUR 200 per year.
- Waste Management (Atlieku tvarkymas): Municipal waste collection fees vary but typically run EUR 60-180 per year.
- Maintenance and Repairs: General upkeep, typically 1-2% of property value per year. Budget approximately EUR 1,800 per year.
- Administrator/Management Fees (apartments): Monthly building administration fees covering common areas, stairwell cleaning, and building management. Typically EUR 0.20-0.50/sqm/month — around EUR 12-30 per month for a 60sqm apartment.
- Renovation Reserve Fund (apartments): Mandatory contribution of EUR 0.09-0.115/sqm/month from July 2025. For a 60sqm apartment, that is approximately EUR 5.50-7 per month.
Annual holding costs for a house total approximately EUR 2,350-3,080. For an apartment, add the administration fees and renovation fund (roughly EUR 210-444/year), bringing the total to around EUR 2,560-3,524 per year.
Capital gains tax (Gyventoju pajamu mokestis)
Lithuania uses a flat rate model for capital gains from property sales:
- 15% flat rate on the capital gain (sale price minus purchase price and documented improvement costs).
- The first EUR 2,500 of capital gains per year is non-taxable.
There are two important exemptions that can eliminate your tax liability entirely:
- Primary residence exemption: If the property was your declared primary residence for at least 2 years before the sale, the entire gain is exempt.
- Holding period exemption: If you have owned the property for more than 5 years, the gain is fully exempt. This threshold was reduced from 10 years as part of the 2026 tax reform — a significant improvement for investors planning a medium-term hold.
Companies pay 17% corporate income tax (the 2026 rate, up from 16% in 2025) on the full gain, with no holding period exemption available.
So if you bought at EUR 180,000 and sold at EUR 250,000 after 4 years, your gain is EUR 70,000. After the EUR 2,500 annual exemption, the taxable amount is EUR 67,500. At 15%, you would owe EUR 10,125. But if you held for just one more year (5+ years total), the tax drops to EUR 0.
When selling, budget for an estate agent commission of 2-3% plus 21% PVM (VAT), typically paid by the seller, and notary fees of around 0.45% of the sale price (capped at EUR 5,000).
What does this mean in practice?
For a EUR 180,000 investment apartment in Vilnius with a 20% deposit:
Upfront costs:
- Deposit: EUR 36,000
- Transfer tax: EUR 0
- Notary fees (0.45%): EUR 810
- Registration, title searches, lawyer: ~EUR 1,135
- Property valuation: EUR 250
- Total cash needed: ~EUR 38,195
Annual holding costs:
- Real estate tax: EUR 200
- Land tax: EUR 50
- Insurance: EUR 200
- Waste management: EUR 100
- Maintenance: EUR 1,800
- Admin fees (apartment): EUR 300
- Renovation fund (apartment): EUR 84
- Total: ~EUR 2,734/year (~EUR 228/month)
Mortgage (EUR 144,000 at 4.0% over 25 years):
- Monthly payment: approximately EUR 760
To cover monthly costs, you would need rent of at least EUR 988 per month. With typical Vilnius apartment rents for a mid-market property sitting in the EUR 600-900 range, tighter properties may need short-term rental income to close the gap. However, the strong appreciation rate of around 5% in Vilnius and Kaunas means capital growth can make up for thinner rental yields.
The real advantage of Lithuania is the low entry cost. With no transfer tax and closing costs under 2%, your money starts working for you almost immediately. And with the 5-year holding period exemption on capital gains, a medium-term investment strategy can be highly tax-efficient.
Run the numbers for your property
Use our Lithuanian property ROI calculator to model the full picture — closing costs, mortgage payments, rental income, and projected capital growth. For a step-by-step overview of the buying process, read our guide to buying property in Lithuania.