How to calculate rental yield in Lithuania (2026)

Rental yield (ROI) is the single number that lets you compare a real-estate investment against other alternatives: bank deposits, stocks or bonds. The most common investor mistake is looking only at gross yield and forgetting taxes, expenses and purchase costs. Here is the full logic for calculating ROI correctly in Lithuania.

The ROI formula — what the percentage really hides

The classic formula is simple: ROI = (Annual net profit / Total investment) × 100%. The whole challenge is computing those two variables correctly.

Total investment is more than the purchase price. Add notary fees (~0.45%), registry, valuation, bank loan fees and initial renovation. If you are not an expert, budget 3–5% on top of the purchase price.

Annual net profit is rental income minus all expenses and taxes. This is where most public calculators stop short.

Lithuanian rental taxes in a nutshell

Income tax (GPM) — flat 15% on rental income without individual activity. Progressive when run as an individual activity.
Property tax (NT) — applies above a threshold (currently €150k for residential; from €50k for commercially rented units). Rates 0.5–2% depending on municipality and class.
Social insurance (VSD) — applies to individual activity, currently 12.52% on 90% of taxable income.

Together these turn a pretty 6% gross yield into a real 3.5–4.5%. The calculator pulls these rates from the database for the selected region and rental type.

Long-term vs short-term rental

Short-term (Airbnb) rental often looks great with 10–15% gross yield. Then subtract management (15–25%), cleaning, utilities on empty nights and 30–40% vacancy. Long-term gross is lower (4–7%) but net-after-tax is often similar, with a fraction of the workload.

A Vilnius example

A 2-bedroom 55 m² apartment in Naujamiestis for €180,000, rented at €850/month with 8% agency management, €1,200 annual expenses and a €144,000 loan (30 years, 4.5%). Gross €10,200, net of expenses €8,184, income tax (15%) €1,228, net after tax ~€6,956. Total investment with fees ~€188,000. Net after-tax yield ~3.7% per year.

When is it worth investing

Rule of thumb: net after-tax yield should beat bank deposits by at least 1.5% to compensate for liquidity risk. Right now in Lithuania that means ~4–5% per year. If the calculator shows less, look for a cheaper property, higher rent or a different region. A good investor runs dozens of scenarios before committing.

Conclusion

Rental yield is math, not gut feeling. With an accurate calculator and real tax data you can eliminate bad deals in 30 seconds and focus on the ones that actually pay — which is exactly what NuomosPelnas is for.