Published 14 Oct 2025
Lithuanian property prices have doubled in just five years. A sharp look at the Baltic economy, EU migration changes, and why smart money is moving north.
I don’t get asked a lot, to be fair, but last week a perspective client asked me “is it safe”, to get residency in Lithuania.
To be honest, I have mixed emotions about the question. Part of me thinks “that’s a bit racist” lol.. Another part of me is angry about mainstream media, whipping up a frenzy to sell column inches.
In no way, am I belittling, or undermining the horrific situation in Ukraine right now. But people have to remember, there has been war on the planet, and specifically in Europe pretty much forever. Ever since we could sharpen a piece of rock, tragically, some idiot has wanted to stick it into some poor guys head.
Keep in mind as well that the Ukraine is many hundreds of miles away from Lithuania (and light years away in terms of defence). And that Putin has been bogged down in the mud there for years now, when he expected to whip through the country, like a hungover teen at a McDonald’s drive-through.
All of this goes someway to explain why I’ve lived in bliss with my five children and attractive young wife, in two out of three of the Baltic states, for the entire duration of this war, and a couple of years before it.
When you stop reading the headlines, or listening to the talking head in America, many of whom have never been to Europe (or even have a passport), talk about the threat Russia, poses to Estonia, and actually walk the streets to talk to real people, you might also get to see first hand, the huge possibilities that exist when media, and the politicians have done their worst.
Following almost every major conflict on the planet, what is left behind is a booming war economy. Those on the ground floor, obviously benefit (often sadly), from the “rebuild”, if not just the thereat of imminent disaster.. (remember covid? €20 masks, and consultants trained in “social distancing for corporates”..)
“One example of (war) forces driving real world property demand, is the Lithuanian government paying €750 per month living/accommodation allowance, to any enlisted soldier. They simply don’t have barracks for them.”
Let’s focus on a couple of high points which have been released lately about the Lithuanian economy and put a spotlight on just how well the region is doing, partly as a result of the new regional (EU wide) war economy.
House prices in Lithuania have doubled in the last five years.
Which not only shows there’s a significant profit and real estate investment locally, but there is very little fear in terms of an actual invasion. Seriously, why would locals buy anything in Vilnius, let alone a house, if they actually expected tanks to roll into the city anytime soon? People are simply not that stupid, well at least Lithuanians anyway. They know what invasion looks like first hand, and still celebrate at least two separate independence days annually (freedom from the Germans, and the Russians) as a result of repelling them. Eventually.
A recent example that came across my desk about (war) forces driving real world growth, is the Lithuanian government who is now paying €750 per month, as an accommodation allowance, to any enlisted soldier who wants to stay in the army. They simply don’t have the barracks for them (and no, they’re not all full of migrants – thats the UK).
Local hotels are also full to the brim with NATO officers and soldiers enjoying buffet breakfasts, to “show a presence” in the region. You can’t move for aged-Argentinian-ribeye-munching higher-ups at my favourite local bistro (at €60 a steak.. plus sides). Seriously. It’s their food allowance (and your tax money hard at work).
I sometimes think if a firecracker went off nearby, the entire force would duck for cover. But the headlines look great, thousands of troops stationed on the border to repel any invasion. Watching them decimate plate after plate, I don’t really think they’re taking the whole “preparedness” that seriously to be fair. Well, not at lunch time anyway.
Of course anyone with half an ounce of common sense understands that true invasions are done in the boardroom anyway, on the street through Real Estate and of course, international company structures (note, China is still trying to give money to the Baltics for a new tunnel linking Finland and Estonia – yes – even in “war time”).
Nothing is more certain than when the bureaucrats fail to govern, as we deserve to be governed, or when they run out of ideas about how to get rid of increasing piles of debt, and aging local infrastructure, a war is a fantastic reset. A great distraction, and great for business. And Putin is one hell of a bureaucrat.
Love it, or hate it, there is opportunity everywhere up here right now, for the smart money anyway, while the dumb money sits on the fence pondering Shootin’ Pootin’s next cunning plan – perhaps attacking 32 NATO countries for a change of pace, now being totally sick of the Ukrainian bog?
Anyway, I hope that answers your question, anonymous caller? Fortune favours the brave and all I have left to say on the topic, as I appointment myself head of the Australasian Baltic Invasion Brigade.. is – lineup troops.. and charge!
– The International Monetary Fund (IMF) is urging Lithuania to increase taxes.
– Lithuania’s gross domestic product (GDP) grew 3% in 2024, reaching €79 billion at current prices.
– Apartment values in Lithuania have roughly doubled over the past five years.
– Lithuania is still weary of Chinese tech, despite wanting to rebuild ties with Beijing.
– Lithuania’s new government has pledged to raise pensions and child benefits.
– From Jan next year, the required deposit for purchasing a house is being reduced from 15% to 10% as international lender confidence in local property continues to grow.
– From Jan next year, Lithuanians will be able to self-direct their state pensions. Property pundits are forecasting a “significant” shift from pension pots to Real Estate early in the new year as Lithuanians love property. and boast one of the highest home ownership rates in the OECD.
– Declining interest rates – people are becoming more active in searching for homes, especially in the primary market. Banks are currently offering mortgage rates around 1.5% + EURIBOR (about 2%).
– Strong labor market – low unemployment and rapidly growing wages (about 10% per year) are increasing residents’ purchasing power.
– High activity among young buyers – people aged 30–39 have the highest incomes and housing loans (average around €100,000).
– Positive demographic trends reported – the population in major cities has been growing for six consecutive years due to both immigration and internal migration.
– Recent statistics released show that in Lithuania, owning a home is seen as an essential part of middle-class identity (only about 11% of residents rent their housing).
The Lithuanian parliament is moving toward tightening requirements for foreign workers and students. And Germany has just shredded a very popular path to EU citizenship.
One of the ways, Lithuanian lawmakers are looking to adapt to EU pressure, is to establish a language proficiency benchmark for those who wish to stay in the country longer term.
It’s nothing to panic about, but we do want to keep an eye on the changing landscape.
I’ve been saying for some time that Europe is closing, with this recent change in Germany as an indicator of local feeling on the ground, we are sure Lithuania will be no exception.
Of course, migration law changes tend to get announced out of the blue, and will affect any new applications, past the point of announcement. So it’s always a great idea, to pull your decision-making forward and get your online application underway, even if you’re not entirely ready to move the kids and dog. At least your application will be considered under the old rules.
“Of course, migration law changes tend to get announced out of the blue, and will affect any new applications, past the point of announcement. So it’s always a great idea, to pull your decision-making forward and get your online application underway, even if you’re not entirely ready to move the kids and dog.
At least your application will be considered under the old rules.”
Currently there are some great opportunities to obtain European residency, through Lithuania, in under four weeks if your passport is on the “preferred passport list”, and of course you let us do the heavy lifting for you, structuring each application so as to avoid any delays or the many, questions most EU migration departments are trained to ask.
There is currently no Lithuanian language requirement, for foreigners on temporary residence permits.
This is perhaps why some foreigners have been here for many, many years, renewing their temporary residence permits every five years. The problem is, most of these “foreigners” come from countries that Lithuania is not particularly fond of attracting labour from (former soviet states, the Ukraine, Belarus, India, China etc..).
Any rule change to affect those countries though could spill over into our preferred passport list so I will be advocating locally, at a senior political level to avoid this.
Fortunately, I’m told that for ourselves, and our clients on the preferred passport list who already have their residence cards, any impact could still be several years away, if at all.
For more information on Germany’s new rules click HERE
For the latest announcement from the Lithuanian parliament click HERE
When I think of a business career, of now over three decades, and all that I have got to discover on that journey, I feel blessed that it’s led me to this very table!
I’ve moved everything from lawn mowers, (my first job was cutting grass), to shipping container loads of consumer electronics under my own brand through a major international retailer. Nothing though, has brought me any more joy than what I do now.
One of the things I love about our Gateway to Europe is the incredible people we get to meet on the way, and who are starting their own incredible journey.
Every one of them has become a great friend, and we love having people to the house, as we did this week with two separate client familes from Australia.
Greg and Margot (pictured left), have just arrived in Lithuania again, having driven their camper van all the way from South Korea, through Mongolia and Russia, and across the border into Sunny Lithuania (more on their journey in our next missive).
They say they had the absolute best time, that Russia is a stunning place, and they didn’t feel worried in the slightest. (Which should also go some way to support my comments above!)
Tash and Ben from Australia, pictured on the right and end of the table, are an incredible couple who were referred to us by the original Sourdough Mama Herself!
We all had a fabulous time swapping stories well into the night, and I’m looking forward to doing it again!
Maybe one day, you can join us around the table as well (if you haven’t already), perhaps at the start of your own European adventure!
“‘Two stuffed ducks, 5 stuffed clients, a case of red and every schnapps in the place.”
FOR SALE:
Price: 87 000 Eur
GARDEN HOUSE FOR SALE WITH A 8.6 ARES PLOT NEAR THE RIVER IN A QUIET LOCATION
GENERAL INFORMATION
FEATURES OF THE HOUSE
LOCATION
Website for the sales listing –
Less than 40 minutes from Vilnius – where the road winds past pine trees and quiet fields, and city noise fades into birdsong and the steam of Sauna fills the air!
This cozy wee house has everything you need for that perfect weekend escape – a fireplace, fruit trees, a brand-new gazebo, and your own private gate straight to the forest. All that peace and fresh air… for under €90K? Take the win!
Come see it for yourself – pack a thermos (or hip flask), gasp in the forest air, and picture sunny mornings and late nights by the fire pit.
Why not join the upwardly mobile who’ve traded city chaos for a slice of calm near Vilnius. There’s plenty of space, sunshine, and sauna heat to share 🙂
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