Lithuania
| 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. |
Will Lithuania tax what you earn?
YES, A LOT. Lithuania taxes personal income heavily (top marginal rate 32%), and its definition of tax residence is wide: prolonged stay, economic centre of gravity, the net closes. The classic combo of high rate and broad catchment. Leaving is rarely as simple as buying a plane ticket.
Will Lithuania tax what you own?
YES, FAIRLY. Capital gains in Lithuania are taxed at 20%, and there's also an annual wealth tax above a threshold (top rate 2%). Held wealth is hit twice: once while it sits, once when it moves.
| Heir | Top rate | Allowance |
|---|---|---|
| Spouse | EXEMPT | — |
| Children | EXEMPT | — |
| Siblings | EXEMPT | — |
| Other relatives | 10% | EUR 3,000 |
| Non-relatives | 10% | EUR 3,000 |
Is it easy to run a company in Lithuania?
YES, BUT TAXED. Corporate tax in Lithuania lands at a moderate 17% with no IP-box softening. Standard accounting, VAT at 21, standard administrative weight. Nothing exotic in either direction.
Is Lithuania good for your holding company?
YES. Lithuania is built for holding. An extensive treaty network (56 signed agreements) cuts withholding on cross-border dividend, interest and royalty flows, and a full participation-exemption regime (100% on qualifying dividends and gains) lets value flow through without a domestic layer. The classic elite-tier setup: a holding structured here travels well across borders.
| Country | Status | Dividends | Interest | Royalties |
|---|---|---|---|---|
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| ∅ // no treaties match | ||||
What does it cost to come and go from Lithuania?
SOME. Lithuania taxes worldwide income while you're resident, but there's no exit tax on the way out. The cost of leaving is mostly paperwork: unrealised gains follow you to the next jurisdiction untouched.
Will Lithuania protect your privacy?
NOT AT ALL. Lithuania has signed every exchange framework that matters and operates a public corporate registry. Whatever you do here (earn, hold, structure) is reportable, accessible, or both. Privacy is not the strategy in this jurisdiction.
Is Lithuania itself a liability?
NO. Lithuania carries no entries on any major blacklist, though it sits outside FATF membership. Counterparties may apply light extra due diligence, but no formal stigma attaches to dealing with it.
Will you feel free in Lithuania?
PARTLY. Lithuania is an EU member, which puts it on the trajectory of the digital euro: a programmable, traceable CBDC designed to run on the same rails as the currency itself. Under MiCA, crypto is regulated rather than banned, but the direction of travel for financial expression in the bloc is state-controlled rails by default. Press freedom may sit high (RSF rank #14); financial freedom is on a clear ratchet.
| Program | Status | Cross-border | Sources |
|---|---|---|---|
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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 → |
|
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 → |
Other jurisdictions worth comparing
Picked by similarity of strategic profile to Lithuania. No editorial ranking — neighbours in the same scoring space.