Vilnius has climbed to 32nd place among 148 cities in the latest IMD Smart City Index 2026, reinforcing its position as one of the most dynamic and competitive cities in the region. The Lithuanian capital moved up two places this year and was the only city in the Baltic states to record sustained growth in the ranking.
According to Lithuania’s Innovation Agency, the most significant leap came last year, when Vilnius rose by 13 positions. This year’s result is no less important: rather than representing a one-off surge, it suggests that the city is successfully sustaining a high level of international competitiveness. That matters not only for attracting investment, but also for creating an environment in which talented people can choose to live and work.
Vilnius’s progress is particularly notable in a regional context. While Vilnius continued its upward trajectory, Tallinn fell four places to 26th, and Riga slipped by one place to 47th. As a result, Vilnius was the only Baltic capital to maintain consistent growth in the index.
At the top of the ranking, the global leaders remain unchanged from last year. Zurich and Oslo once again lead the index, while Geneva retains third place.
Yet the report also reveals an intriguing contrast in Vilnius’s performance. The city scores more highly for infrastructure, including healthcare, safety and mobility, which received a BBB rating, than for digital solutions, which were rated BB. In other words, Vilnius is seen as performing strongly in the fundamentals of urban life, even as there remains room to further strengthen its digital offer.
Simona Buziliauskienė, Head of the Progress Department at the Innovation Agency, noted that Vilnius outperforms the average for cities in its group across several key indicators.
One of the clearest examples is in payment behaviour, with 71.5 per cent of residents preferring digital alternatives to cash. The city also performs strongly on quality-of-life measures: 84.6 per cent of respondents identified cultural activities as a major asset, while 78.7 per cent highlighted the easy accessibility of green spaces. In terms of the business environment, 79.7 per cent gave positive assessments of basic technological infrastructure and internet speed, underlining the city’s attractiveness for high value-added sectors.
At the same time, the study shows that residents remain clear about the city’s shortcomings. Housing affordability stands out as the most pressing challenge, identified by 62.9 per cent of respondents. Traffic congestion, although somewhat less severe than in previous years, is still regarded as a significant obstacle by 50.8 per cent of Vilnius residents. Meanwhile, 46.8 per cent would like to see greater transparency in city governance and more active involvement of local communities in decision-making.
Taken together, the findings point to a broader lesson about what makes a city truly smart. Infrastructure and technology matter, but so do governance, coordination and public trust. Managing a modern city is a complex undertaking involving ministries, agencies, businesses and service providers, and meaningful progress depends on their ability to act in concert.
The world’s highest-performing cities show that success does not stem from concentrating power in a single set of hands. Rather, it comes from the capacity to collaborate across institutions and sectors. The leading cities are those that build shared platforms for exchanging information, coordinating investment and pursuing common goals, while remaining flexible enough to adapt to innovation and evolving public expectations.
Vilnius’s latest result in the IMD Smart City Index 2026 suggests that the city is moving in the right direction. Its continued rise reflects not only tangible progress, but also a growing ability to compete internationally, support innovation and improve everyday life for its residents.
