say whaddyaknow: Lithuania Clamps Down on Real Estate Purchases by Russians and Belarusians
Russo-Belarusian individuals now prohibited from purchasing real estate in Latvia.
In the heart of the Baltics, Lithuania has made a bold move in its ongoing battle against hybrid warfare. The country's parliament has approved legislation that restrains Russians and Belarusians from purchasing real estate within Lithuania's borders. This decision extends to legal entities, such as corporations or registered associations hailing from these neighboring nations as well.
The new law comes in reaction to the hybrid war that Russia wages against democratic states that stand in solidarity with Ukraine. On one hand, acquiring real estate in another country is considered a tool for Russia to exert non-military influence and a component of hybrid warfare. On the other hand, Russia has historically used its citizens residing abroad as a pretext for land grabs and justification for military action.
Lithuania, with its Russian-speaking minority and proximity to Russia and Belarus, has experienced a sense of increased threat since the Russian invasion of Ukraine more than three years prior. As a response, the government in Riga has already enforced visa and residence permit suspensions for Russians.
Diving Deeper:
- Latvia's Response: Latvia's parliament has passed a law titled "On Restricting Transactions That Threaten National Security," prohibiting citizens of Russia and Belarus from purchasing new real estate within Latvia. This legislation affects both individuals and legal entities, and became effective in 2025. Exceptions include Russian and Belarusian citizens who hold a permanent residence permit in Latvia, and Russians who inherit property from relatives. Existing property owners from these countries are permitted to retain ownership, but the ban pertains only to new transactions.
- Finland's Stand: Taking cues from its Baltic neighbors, Finland enacted a similar law in April 2025, limiting real estate purchases for Russian citizens to those who hold permanent residence permits in the country. This legislative move is framed as a national security measure against high-risk countries.
After careful consideration of the situation and geopolitical landscape, Lithuania, Latvia, and Finland have taken decisive action to ensure their collective security and counter potential influence.
- The employment policy in Lithuania, amongst other measures, is likely to undergo changes in response to the increasing political tensions with Russia and Belarus, as the government may intend to restrict employment for individuals and legal entities from these countries.
- In the realm of finance and investing, it is possible that we might see a shift in foreign direct investments (FDI) from Russia and Belarus into Lithuania, given the newly enacted laws restricting real estate purchases.
- As Latvia and Finland have followed suit, adopting similar legislation restricting real estate purchases for Russians and Belarusians, it may be worth considering the potential impact of these policies on regional real-estate markets, particularly in the Baltics.
- Given the recent decisions by Lithuania, Latvia, and Finland to restrict real estate purchases from Russia and Belarus, we may witness a rise in policy-and-legislation discussions related to national security, as other European nations grapple with the implications of hybrid warfare and potential influence from high-risk countries.
