# Lithuania

 Country code: LT · Currency: EUR · Language: Lithuanian

**Pros**
- Competitive 15% corporate tax rate and specific tax exemptions for small businesses and R&D.
- World-class digital infrastructure and high-speed internet connectivity for seamless remote business operations.
- Efficient e-government services and rapid company registration process to minimize bureaucratic hurdles.

**Cons**
- Significant geopolitical risks due to proximity to unstable eastern neighbors to impact long-term security.
- High social security contributions to create a substantial tax wedge on labor for enterprises.
- Increasing labor shortages and talent competition to drive up operational costs in technology.

Long story short: In Vilnius, the tax office barely bothers you: flat corporate rates, an e-declaration system that actually works, and a small business regime so light you'll wonder if you're still in the EU. Company registration takes days, not months, and most of it happens online without ever setting foot in an office.

The catch: banks got spooked after money-laundering scandals a few years back, so compliance checks are now paranoid, expect intrusive questions and slow account openings if your business looks even slightly offshore or crypto-adjacent. Corruption is low by regional standards, but bureaucrats can still be sticklers for paperwork technicalities.

Beyond that: solid roads and fast internet, a banking system that's cautious but stable, safe streets in the nice parts of Vilnius, hearty if unglamorous food, and flat forested landscapes that won't blow your mind but won't bore you either.

## Will your income be taxed?

Long story short: YES, A LOT.
They'll shear you for up to **32%** at the top marginal rate in **Lithuania**, and the taxman has *long arms*: linger a bit too long, park your economic interests here, and the net closes.

Steep rate, wide catchment: the classic combo of states that don't let go of their cash cows. Don't expect a plane ticket to fix it.

**01.1 Income tax**

| Metric | Value | Detail |
| --- | --- | --- |
| Personal income tax | 20 → 32% | progressive · 3 brackets |

| Bracket (USD) | Rate |
| --- | --- |
| 0 – 96,118 | 20% |
| 96,119 – 160,197 | 25% |
| 160,198 + | 32% |

**01.2 Tax residence test**

_A single active rule is enough to make you tax-resident._

| Metric | Value | Detail |
| --- | --- | --- |
| 183-day rule | exists here |  |
| Economic interest | exists here |  |
| Family centre | exists here |  |
| Habitual abode | exists here |  |
| Extended-stay test | exists here |  |

## Will your wealth be taxed?

Long story short: YES, FAIRLY.
Capital gains in **Lithuania** cost **20%** on disposal, with no annual wealth levy. But *inheritance* comes back for seconds when assets pass down.

Same money, two tollbooths: the sale, then the succession.

**02.1 Investment income**

| Metric | Value | Detail |
| --- | --- | --- |
| Capital gains | 20% | progressive |

| Bracket (USD) | Rate |
| --- | --- |
| 0 – 293,196 | 15% |
| 293,196 + | 20% |

| Metric | Value | Detail |
| --- | --- | --- |
| Dividend tax | 15% | flat |
| Interest income | 15% | progressive |

| Bracket (USD) | Rate |
| --- | --- |
| 0 – 579 | exempt |
| 579 + | 15% |

**02.2 Wealth & estate**

| Metric | Value | Detail |
| --- | --- | --- |
| Wealth tax | NONE | no annual wealth tax · no real-estate wealth tax · no net-worth assessment |
| Inheritance system | APPLIES | heir-based · 5 heir classes |

| Heir | Top rate | Allowance |
| --- | --- | --- |
| Spouse | EXEMPT | — |
| Children | EXEMPT | — |
| Siblings | EXEMPT | — |
| Other relatives | EXEMPT | — |
| Non-relatives | 10% | EUR 3,000 |

**02.3 Crypto**

| Metric | Value | Detail |
| --- | --- | --- |
| Crypto · tax regime | PROGRESSIVE | Rate: 20% · Crypto is treated as property. For casual investors, a €2,500 annual exemption applies to the total gain from selling non-registrable assets. Gains above this are taxed at 15% PIT, rising to 20% if total annual non-employment income exceeds 120 average wages (~€242k in 2024). Professional trading is taxed as individual activity at a 15% PIT rate (with a tax credit for lower profits) plus mandatory social security (VSD) and health insurance (PSD) contributions, resulting in an effective total tax burden of approximately 33%. Crypto-to-crypto swaps are considered taxable realization events. |
| Crypto-to-crypto | TAXABLE | each swap counts as a disposal — gains realised at every trade |
| FATF travel rule | NOT SIGNED | no information-sharing obligation on VASP transfers |

## Easy to run a company there?

Long story short: YES, BUT TAXED.
Corporate tax in **Lithuania** lands at a *moderate* **17%**, no IP-box to soften it. Standard accounting, VAT at **21**, the usual dose of paperwork. Nothing to celebrate, nothing to flee.

**03.1 Rates**

| Metric | Value | Detail |
| --- | --- | --- |
| Corporate tax | 17% | progressive · +5% taxable profits of credit institutions exceeding EUR 2 million |
| VAT standard rate | 21% | 3 distinct tiers in force |

| VAT family | Category | Rate |
| --- | --- | --- |
| Print media | books | 5% |
| Print media | ebooks | 5% |
| Print media | newspapers | 5% |
| Culture | cultural events | 12% |
| Transport | public transit | 12% |
| Hospitality | hotels | 12% |
| Health | pharma | 5% |
| Health | medical dev. | 5% |

**03.2 Regime & registry**

| Metric | Value | Detail |
| --- | --- | --- |
| IP Box · Patent Box | NONE | no IP regime · IP income taxed under standard corporate rules |
| Misuse of corporate assets | NO CRIMINAL | no criminal liability · In Lithuania, while a company is a separate legal entity, the Supreme Court (e.g., Case No. 2K-7-84/2012) has established that a sole shareholder's misuse of company assets does not constitute criminal embezzlement (Art. 183) or squandering (Art. 184) if the company remains solvent and no third-party interests (creditors, employees, or the state) are harmed. Such acts lack the 'social danger' required for criminal prosecution and are instead treated as tax violations or civil breaches of fiduciary duty under the Law on Companies (Art. 19). |
| Shareholders privacy | PUBLIC PAYWALL | State Enterprise Centre of Registers (Registrų centras) |
| Directors privacy | PUBLIC PAYWALL | State Enterprise Centre of Registers (Registrų centras) |

**03.3 Incorporation cost**

_In this country, the most standard company form is called Uždaroji akcinė bendrovė (UAB) (Private Limited Liability Company). The costs below are for incorporating a company in its simplest form, for reference only._

| Metric | Value | Detail |
| --- | --- | --- |
| State Registration Fee (Non-electronic) | USD 67 |  |
| Notary Fees for Document Certification | USD 232 |  |
| Professional Incorporation and Legal Service Fee | USD 695 |  |
| Minimum Share Capital Deposit | USD 1,159 |  |
| Total | USD 993 |  |

## A good fit for a holding?

Long story short: YES.
**Lithuania** is built for holding, plain and simple. An *extensive treaty network* (**56** signed agreements) hacks down withholding on cross-border dividends, interest and royalties, and a *full participation exemption* (**100%** on qualifying dividends and gains) lets value flow through without a domestic tollbooth.

Top-shelf plumbing: a holding parked here travels the world without leaking.

**04.1 Substance & exemptions**

| Metric | Value | Detail |
| --- | --- | --- |
| Territorial · individuals | WORLDWIDE | worldwide income taxation regardless of source |
| Territorial · corporates | WORLDWIDE | worldwide corporate taxation |
| Participation exemption | 100% | 10% holding · 12 months min |
| CFC rules | APPLY | Non-operating income of a foreign entity is attributed to the controlling Lithuanian company if the entity is located in a blacklisted jurisdiction, or if its passive income exceeds one-third of total income and its effective tax rate is less than half of the Lithuanian corporate tax rate. |

**04.2 Withholding tax · non-resident**

| Metric | Value | Detail |
| --- | --- | --- |
| WHT · dividends | 17% | non-resident outbound |
| WHT · interest | 10% | non-resident outbound |
| WHT · royalties | 10% | non-resident outbound |
| Tax-haven WHT | 17% | penalty rate · blacklisted destinations |

**04.3 Treaty network**

| Metric | Value | Detail |
| --- | --- | --- |
| Treaties signed | 54 | active |
| Treaties pending | 1 | in negotiation |

## Easy to come and go?

Long story short: SOME.
**Lithuania** taxes your worldwide income while you're resident, but at least the exit is free: *no exit tax* on the way out.

Leaving costs you paperwork, not money; your unrealised gains walk out the door with you, untouched.

**05.1 Exit & dual nationality**

| Metric | Value | Detail |
| --- | --- | --- |
| Exit tax | NONE | no triggers active · residence change tax-free · no deemed-disposal mechanism |
| Dual citizenship | FORBIDDEN | naturalisation requires renouncing existing citizenship |

**05.2 Citizenship paths**

| Metric | Value | Detail |
| --- | --- | --- |
| Residence | 10 years | available path to naturalisation |
| Marriage | 7 years | available path to naturalisation |
| Birth | — | not available |
| Descent | 1 gen | available path to naturalisation |
| Investment | — | not available |

## Is your money watched?

Long story short: YES, CLOSELY.
**Lithuania** signed *every exchange framework that matters* and runs a *public corporate registry*. Whatever you do here (earn, hold, structure) is reported, searchable, or both.

Your money is watched from every angle; if discretion is part of your plan, this isn't your jurisdiction.

**Multilateral reporting frameworks — 5/9 active · 3 pending**

| Item | Status | Detail |
| --- | --- | --- |
| CRS | In force | 2017 |
| CARF | Signed | 2024 |
| FATCA | In force | 2014 |
| MLI | In force | 2018 |
| BEPS | Signed | — |
| MAAC | In force | 2014 |
| GLOBAL FORUM | Signed | — |
| EOIR | In force | — |
| CRYPTO TRAVEL RULE | None | — |

## Is it blacklisted?

Long story short: NO.
**Lithuania** sits on no major blacklist, though it's *outside* the FATF club.

Some counterparties will run a bit of extra due diligence out of habit, but there's no formal stigma: you won't get hassled for dealing with it.

**Blacklist exposure — Clear everywhere**

| Item | Status | Detail |
| --- | --- | --- |
| EMBARGO | Clear | un / us / eu sanctions |
| FATF | Clear | grey / black list |
| EU | Clear | non-cooperative list |
| FRANCE | Clear | ETNC list |
| SPAIN | Clear | tax-haven list |
| PORTUGAL | Clear | favourable regimes |
| BRAZIL | Clear | low-tax list |

## Do you feel free there?

Long story short: PARTLY.
**Lithuania** is an EU member, which puts it on the *digital euro* conveyor belt: a programmable, traceable CBDC built to run on the same rails as the currency itself.

Under *MiCA*, crypto is regulated rather than banned, but the direction of travel for money in the bloc is *state-controlled rails* by default.

Press freedom may sit high (RSF rank **\#14**); financial freedom is caught in a ratchet, and ratchets only turn one way.

**08.1 Press freedom**

| Metric | Value | Detail |
| --- | --- | --- |
| Press freedom · RSF index | 14/180 | score 82 · ↓ 1 rank year-on-year |

Central bank digital currency

    Program Status Cross-border Sources     Digital Euro

A digital euro could support the Eurosystem's objectives by providing citizens with access to a safe form of money in the fast-changing digital world.

European Central Bank

   RESEARCH   —   [announce →](https://www.ecb.europa.eu/press/intro/news/html/ecb.mipnews250409.en.html "Announcement")    Wholesale Digital Euro

Main motivations are to (i) consolidate and further develop the ongoing work of Eurosystem central banks in this area, and (ii) gain insight into how different solutions could facilitate interaction between TARGET real-time gross settlement (RTGS) services and DLT platforms.

European Central Bank

   PILOT   —   —    Stella

It explores the opportunity for using DLT to improve financial market infrastructure to support payment and securities settlement.

European Central Bank

   RESEARCH   —   [announce →](https://www.boj.or.jp/en/announcements/release_2020/data/rel201009e1.pdf%0D%0Ahttps://www.boj.or.jp/en/announcements/release_2020/data/rel200212a1.pdf%0D%0Ahttps://www.tbstat.com/wp/uploads/2020/08/KPMG-CBDC-Report.FINAL_.v.1.02.pdf "Announcement")

 programs 3

## Connected to the world?

Long story short: EXCELLENT.
**Lithuania** is wired straight into the global money grid: **9/11** of the services we track work here.

*Stripe* onboards you, so you can charge cards from a laptop the day you land. Wise, Revolut, PayPal: pick your rails, they all run. One footnote for your comfort, not your business: *Amazon* doesn't deliver here, so plan on local e-commerce for the doorstep part of life.

**Accept payments — 5/6 available**

| Item | Status | Detail |
| --- | --- | --- |
| Stripe | Available | card payments |
| PayPal | Available | wallet payments |
| Adyen | Available | enterprise psp |
| Mollie | Available | eu payments |
| GoCardless | Not available | direct debit |
| Paddle | Available | merchant of record |

**Bank and move money — 3/3 available**

| Item | Status | Detail |
| --- | --- | --- |
| Wise | Available | multi-currency |
| Revolut | Available | personal banking |
| Revolut Business | Available | business banking |

**Buy and sell on Amazon — 1/2 available**

| Item | Status | Detail |
| --- | --- | --- |
| Amazon | Not available | consumer delivery |
| Amazon Seller | Available | marketplace selling |

  SEE ALSO## Other jurisdictions worth comparing

Picked by similarity of strategic profile to Lithuania. No editorial ranking — neighbours in the same scoring space.

  PROFILE-ADJACENT Same shape, comparable overall friction.

 [   Austria AT  → ](https://stateless.sx/en/country/at) [   Estonia EE  → ](https://stateless.sx/en/country/ee) [   Sweden SE  → ](https://stateless.sx/en/country/se)

  NOTABLY MORE FAVORABLE Same family of strategies, higher total score.

 [   Luxembourg LU  → ](https://stateless.sx/en/country/lu) [   Hungary HU  → ](https://stateless.sx/en/country/hu) [   Romania RO  → ](https://stateless.sx/en/country/ro)

  NOTABLY LESS FAVORABLE Same family of strategies, lower total score.

 [   Denmark DK  → ](https://stateless.sx/en/country/dk) [   Italy IT  → ](https://stateless.sx/en/country/it) [   Australia AU  → ](https://stateless.sx/en/country/au)