Lithuania

Lithuania Map

PROPERTIES & RESIDENCE

Pros for obtaining a property in Lithuania
There is a number of reasons you should consider putting your money into the Vilnius real estate market. Prices in Vilnius are reasonable at the average rate of 1,700 EUR per square meter. Although new apartments around the Old Town and the city center go for a lot more; 3,000 - 5,000 EUR per sq/m. Outside of the city center prices are much more affordable; 1,700 - 2,200 EUR per m2.

Yield: around 6%. Exceptionally low buy-sell costs, except for new builds, where the hefty 21% VAT is added. The notary and registration fees come down to less than 5%; the seller fees are around 3%.

Excellent GDP growth of Lithuania proven by the fact that even during the pandemics the economy dropped by 0.8%! (In the UK GDP dropped by 9.9% in 2020).

Employment conditions: when it was 17.8% in 2010, it dropped to 6% in 2020.
Salary growth (similar to Latvia): from 5% to 15% annual growth in the last 5 years; rising to 916 EUR per month from 500 EUR per month in the last 6 years. The government debt grew during the pandemic, just as it grew in every single country in the world. But while in the UK it grew by 100% plus during the pandemic, in LT it grew up to 48%.

Fintech industry has benefited a lot from the foreign investments. Also it is a country of Revolut and a lot of other super-successful business startups.

Highly educated population: 125,000(!) students in a country of such a low population.
Additionally tourism in Lithuania is on the rise as well as the population is steady.

Residence permits on the grounds of company formation
Contact Lee & Bronski Support to learn about the latest options, as they do change frequently. You may apply for a residence permit after 6 months of setting up a company. You would need to establish a company with 29,000 EUR share capital and employ 3 Lithuanian citizens or workers with residency permits. To obtain a permanent residency you must live in Lithuania for a period of 5 years of "temporaries".

Taxes & Rental income tax
Capital Gains Tax is 15% and the Rental Income Tax is 15% with deductions of 30% allowed. If you get more than 163,000 EUR in a year for rental income you will pay additional 20%. No gift tax, no inheritance tax and property tax up to 150,000 EUR is 0%. Owning a 150-300k EUR you will pay 0.5% property tax, and then for real estate worth 300k-500k you will pay 1%. You should be charged 2% over a property valued 0.5M EUR.

Other residence types in Lithuania
There is a variety of other residence types you may choose from and they go about the standard - education, marriage, naturalization, etc.

Which residence permits offer a path to permanent residency and citizenship?
The Lithuanian passport will allow you access to 180 countries and territories making it the world's 9th best passport to get. After 10 years of living in Lithuania you may apply for citizenship. You would have to pass a Lithuanian language test. Under certain circumstances Lee & Bronski may help you with obtaining the Lithuanian citizenship on the go, without the previously stated requirements.

Restrictions & Challenges
Rental yields are not amazing, but on the rise.

Tourism aside, the US companies are increasingly keen to explore other mature but less saturated locations for the GBS & ICT sector. Similarily, the Financial Services and Research sectors currently comprise the largest employee base of the Lithuanian GBS ecosystem. The Information Technology and Services sector continues to be a leader with 41% of all Business Services Centres in Lithuania.

>Growth And Business Advantages

Lithuania’s economy recovers and accelerates during the pandemic. The economic performance results, released in July, has shown unprecedented growth of the economy in Lithuania. The GDP growth for the second quarter this year has risen by 8,6 per cent, compared with the same period last year. The economists have announced that Lithuania’s economy has not only bounced back but, effectively, returned to the period before the global financial crisis in 2008. Moreover, contrary to the precipitous growth more than a decade ago, the current economic expansion is balanced, driven by moderate public debt, increased production and exports, raising salaries and domestic consumption. The economy has demonstrated resilience to the restrictions for global commerce and trade under the pandemic. The analysts conclude that the economy is on a sustainable track, with the annual GDP growth to continue at 4-5 per cent. The consensus is that there exist no fundamental barriers in the economy that could stop this upward trend. Lithuanian government has a strong emphasis of creating new jobs and therefore they are happy to support businesses who are planning to grow using Lithuanian specialists, using Lithuania to enter the rest of EU market and the businesses planning to export. Lithuanian government has launched a start-up visa for entrepreneurs from other countries who want to do business in Lithuania. It is designed for innovative entrepreneurs wishing to establish a start-up in Lithuania. They no longer need to fulfill certain capital or employment requirements to obtain a residence permit. If the business idea is approved by the panel of experts, it is a basis to apply for a temporary residence permit. In conclusion, Lithuania is a convenient and inexpensive jurisdiction to register a company in and to do business with good development prospects. Lithuanian companies are often used for trade, development of manufacturing, international transportation, IT, medicine, financial services and for many other activities. They are popular due to the low costs of accounting and administration, low taxes and good geographical position. But that’s not all. We would like to point out several reasons what makes Lithuania so attractive in the eyes of foreigner entrepreneurs. Lithuania is a part of the Eurozone and is a stable, west and business-oriented government, where you are likely to be understood in Lithuanian, Russian, English, often also in Polish. Lithuania has concluded agreements with many countries on avoiding of double taxation, therefore, there is a possibility of payment of dividends without tax. It is a country with relatively inexpensive labour, low price level and no exchange controls. Lithuania is one of the leaders in the ranking of the worlds freest economies on the ease of starting a business, as well as one of the leaders in Europe according to the index of investment attractiveness.

REAL ESTATE TRENDS

The country's major cities – Vilnius, Kaunas and Klaipėda remain the main markets for new construction apartments, however if we had to name the absolute winner of the housing market in 2020, it would undoubtedly be the seaside region. After restrictions were imposed on travelling abroad and social contacts, and after a person's freedom of movement within the country was "tied down" to his owned real estate, a significant number of people decided to invest in seaside housing. In the segments of individual residential houses and land plots, the country's three major cities and their district municipalities were the most active. For these markets, 2020 was not as successful as for the seaside region, but they weathered the pandemic better than the urban apartment market, and even managed to grow.

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Statistics

Capital City
Vilnius
Currency
EUR
GDP Growth
-0.8%
GDP Per Capita
€17,500
Annual Inflation
1.1%
Unemployment
8.5%
Avg net salary
€950
Avg salary growth
4.6%
Area (km²)
65000
Border states
LV, PL, RU
Residence

Company formation with €29,000 capital*

For Sale
Miniature
€566,500
For Sale
Miniature
€155,000
For Sale
Miniature
€223,000
For Sale
Miniature
€240,000
For Sale
Miniature
€170,000
For Sale
Miniature
€357,000
For Sale
Miniature
€273,000
For Sale
Miniature
€100,000
For Sale
Miniature
€600,000

Greece > Halkidiki > Pallini — Villa 150 m²

Greece > Halkidiki > Pallini
For Sale
Miniature
€610,000
For Sale
Miniature
€430,000
For Sale
Miniature
€211,000
For Sale
Miniature
€72,000
For Sale
Miniature
€195,000
For Sale
Miniature
€200,000
For Sale
Miniature
€499,000
For Sale
Miniature
€610,000
For Sale
Miniature
€127,000
For Sale
Miniature
€169,000
For Sale
Miniature
€550,000
For Sale
Miniature
€114,000
For Sale
Miniature
€305,544
For Sale
Miniature
€296,945
For Sale
Miniature
€235,000
For Sale
Miniature
€496,000
For Sale
Miniature
€410,000
For Sale
Miniature
€61,000
For Sale
Miniature
€302,500
For Sale
Miniature
€261,800
For Sale
Miniature
€700,000
For Sale
Miniature
€284,900
For Sale
Miniature
€260,000
For Sale
Miniature
€577,000
For Sale
Miniature
€134,500
For Sale
Miniature
€247,000
For Sale
Miniature
€671,000
For Sale
Miniature
€410,000
For Sale
Miniature
€127,000
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