Lithuania Boasts Highest Wealth Rate in EU.. A Cracking Summer House Bargain and Thousands of Metres of Tat-Shopping

We hear a lot about Poland these days, their growth story is incredible, their politics closely aligned with traditional family values (which seems to be gaining popularity again), though no one could ever accuse them of being raving self promoters.

Perhaps now they can add being famous for coming third to Lithuania in real wealth growth.

Latest data released shows exactly what I’ve been saying for years, the Baltic states, including our friendly neighbours in Poland, are absolutely smashing it.

With growth rates in the high 100s, ranging from 127% in Estonia down to 163% in Poland, it’s easy to see why there are so many Lamborghini and Ferrari four-wheel-drive’s roaming the streets or Old Town. Of course, it help that these vehicles are fully tax deductible in Lithuania (they’re considered “goods vehicles”, because they’re four-wheel-drive)… And you’ve gotta love that!

Comparatively, some of the “big ticket items” in Europe, which have focused on over taxing foreigners, squirting them with water pistols, and breaking as much bureaucracy as they can in order to frustrate anyone who is rude enough to want to stay awhile and spend some real money, are looking down right (les) miserable in almost every stat.

Countries like France, Spain and Italy, all hovering below 5% growth over 25 years. Shocking.

Effectively people living in those fine countries are treading water, stagnating in terms of standard of living, wealth creation, and generally having a great time of it.

Sure, the food is great, the people, warm and friendly, but with global warming on the horizon (and not because of hair spray I would suggest), the current average summer temperatures in the early 40s in Spain looks set to turn this Jolly Capitalist into a roasted turkey at some point in the next 10 years if I spend too long in the place.

So perhaps there’s another fine reason to migrate north. Avoid a roasting, and enjoy triple digit wealth creation in real terms.

EES Rules Causing Chaos

I’ve said many times and thankfully many people have listened – Europe is Closing! Slower than a door on the Titanic’s bulkhead… but closing nonetheless.

Every week or month there’s a new rule somewhere in Europe that makes it harder to stay in the Schengen region – or cross the external border.

A few weeks ago the EU began rolling out its Entry/Exit System, or (cleverly named) EES, which has caused havoc for those without EU residency.

The idea of course sounds genius on paper. Strangely efficient, even for a bureaucrat. Taking full Biometric scans of every visitor offers tighter security and the prospect of automated processing in the future. A classic “dont worry about the loss of your freedom of movement – we’re saving you from the bad guys again” scenario.

What could possibly go wrong? Well, everything apparently. In stages.

In Athens and Lisbon, travellers experienced waiting times of up to seven hours before authorities were forced to partially suspend the system (I think it was siesta time).

In Paris, Milan and many other cities, passengers described “nightmare queues” and chaotic scenes as airports attempted to process the new biometric requirements.

Even Dover and the Eurotunnel have come close to breaking down amid fears that EES checks would create traffic chaos during peak travel periods. And we’re not even close to summer holidays yet.

Don’t just take my word for it though – have a google.. makes for some entertaining flicks and clips (if you’re not actually in it).

Of course, these petty wee inconveniences, and random delays don’t affect those of us with a magical EU residency permit (cue smug tone from those of us “holding”).

No matter what passport they’re carrying, our clients go through the much faster (I call them “VIP”) European lanes, wave their ID cards and are whisked through the formalities. A greater sense of entitlement this chubby white man has never felt. Or gratitude!

But wait there’s more – another shambles is scheduled to come in later this year. Known as ETIAS, it’s a pre-approval travel authorisation system for visitors from visa-free countries such as UK, US, Australia, Canada and New Zealand. Perfect. Can’t wait I hear you say…

So.. As I’m advising everyone these days – If you want to avoid these and the many other new restrictions expected in coming months, lock in your residency application as soon as you can. De-risk the process by at least submitting your online application so it can be considered under the current/old rules before anything else changes. You’ll still have months, or years before you need to use it in real terms, but at least your Plan B is locked away.

Anyone who visited Lithuania (and most of the former UUSR) even a few years ago will remember rows and rows of tired Soviet-era apartment blocks, neglected industrial zones and crumbling public infrastructure.

Fast forward to today and the transformation has been breath taking and the pace of change is staggering. I’ve never seen such a pace in construction.

In Auckland, we spent 5 or 10 years debating a cycle lane, next to a section of the northwest motorway. After years of construction and tens of millions of dollars in budget overrun, the four people in Auckland that we were riding bicycles at the time with thrilled.

Conversely, when I arrived in Lithuania a little over three years ago, almost all of the pavements around the city were Soviet era. A little broken, cracked, and sometimes downright hazardous. Over the course of just one summer, last year, the entire city was repaved so that everything now looks like Disneyland on a good day. But without the lolly wrappers and cigarette buts. Lamp posts were replaced from rusty grey to powder coated charcoal. New intersections, roundabouts and traffic lights. Cycle lanes everywhere, wider than most highways, and more solid than a roman road. And people actually use them here! The weather’s fantastic and the streets are flat.

Just have a look at these before and after photos of an apartment building not far from our office in central Vilnius.

This level of development is being repeated all over the city and wider country, raising the standard of living, enjoyment and prosperity for all. It’s a true wonder to behold.

Old grey districts are rapidly becoming modern residential neighbourhoods, landscaped and beautiful, office hubs, retail spaces and green public areas full of fruit tress and spring blossom. The architecture now feels much closer to Scandinavia than Eastern Bloc..

A significant amount of this transformation has been driven by substantial EU investment over the past two decades and by a rapidly growing economy that is attracting international business and talent.

This in turn is driving demand for quality housing, modern offices and lifestyle developments.

Unlike many overheated Western European property markets, Lithuania still offers incredible value for money with high rental yields for owners and investors. But remember – you heard it here first!

Vilnius is a small capital city by European standards, yet it has an incredible number of activities to keep residents and visitors alike entertained.

These include the Kaziukas Fair, which offers a huge collection of cultural displays and food, Capital Days, massive city-wide arts festival, Street Music Day with a host of live musicians performing throughout the streets and parks, and of course the Pink Soup Fest, a colourful summer celebration of Lithuania’s famous cold beetroot soup (apparently delicious on a summers day – though I’ve not yet taken the pink-plunge personally).

Last weekend I spent a lot of time (and money!) at Sentimenia – the largest flea and “antiques” market ever hosted in the city.

Held at the city’s shiny new conference centre LITEXPO, the event covered over 14,000 square metres of stalls offering an incredible array of second hand items to the more than 10,000 shoppers, scroungers and browsers.

Items were as unique as the residents, and a refreshing break from the from the sort of tat-markets I’ve rummaged through in other parts of the world, and included old military uniforms and weapons, Soviet-era appliances, classic enamel signs, vinyl records, retro furniture, with antique crystal and oil paintings alongside Cold War memorabilia.

There was also an assortment of bizzare industrial items that looked like they were stolen from the set of a classic sci-fi or horror movie. Or may end of there soon!

FOR SALE:

Price: JUST 62 000 Eur

READY-TO-USE GARDEN ESCAPE, NEAR LAKES AND VILNIUS

Located in Aukštuolė, Vilnius district, this fully equipped garden house offers a simple and practical retreat – a place where everything is already in place, and nothing needs overthinking.

Surrounded by lakes and a lived-in community, it provides both quiet and convenience, with access to Vilnius still within reach.

PROPERTY SPECIFICATIONS

Address: Aukštuolės k., Vakaro 5-oji g., Vilniaus r.

House Area: ~30 m²

Plot Size: 6 ares

Floors: 2 (with mansard)

Construction Year: 2004

Building Type: Wooden

House Type: Garden house

Heating: Electric + solid fuel (new stove)

Water Supply: Seasonal (summer)

Electricity: 5 kW

Surroundings: Near Tapeliai and Baldis lakes, green and inhabited area

Access: Maintained gravel road (~800 m from asphalt)

Website for the sales listing –