Starting a business in
🇱🇹Lithuania
Checked November 4, 2026 · How we score
Corporate tax
17%
Top income tax
32%
Setup from
$700
all-in, first year
Time to form
3 days
can be done remotely
Taxes in Lithuania
| Corporate income tax | 17% 17% from 2026 (16% in 2025). Small companies (revenue up to EUR 300,000, up to 10 employees) pay 7%, and newly registered small companies may pay 0% for their first two tax periods. Patent box 5% and 300% R&D super-deduction. |
|---|---|
| Personal income tax (top) | 32% Three bands from 2026: 20%, 25% and 32% (thresholds linked to average wages; 32% above roughly 60x the average monthly wage). Dividends: 15% PIT. Sole proprietors may use a business certificate with a flat income-tax rate. |
| Tax system | Worldwide income |
| Capital gains tax | 15%15% on investment gains; a portion of gains may be included in total income under the 2026 reform (rates up to 20%). |
| Dividend withholding (non-residents) | 15% |
| VAT / GST | 21% |
| Social security | Employee about 19.5% (pension and health), employer about 1.77%. Dividend WHT 15% for non-residents (0% for EU parents); health contributions may apply on dividends in some cases. |
Forming a company in Lithuania
| Usual entity | UAB (private limited company) |
|---|---|
| Minimum capital | $1,150 |
| Setup cost (all-in) | $700–$2,000 |
| Annual running cost | $1,200–$3,200 |
| Time to incorporate | 3 days |
| Form remotely as a foreigner | Yes |
| Local director required | No |
| Local address required | Yes |
| Owners on public register | Yes |
| Statutory audit for small companies | No |
| Business banking for non-residents | Moderate |
Residency and visas
No digital nomad visa. Non-EU founders use the Startup Visa (for startups approved by Lithuanian Startup Visa Committee) or a temporary residence permit based on company ownership and employment. EU citizens simply register.
| Digital nomad visa | No |
|---|---|
| Golden visa | No |
| Ease of residency for founders | 3/5 (1 = easiest) |
Special tax regimes
Small company (MB) 0%/7% CIT
Small companies pay 7% on profit; newly registered small companies may pay 0% in their first period(s).
Patent box and R&D super-deduction
5% tax on qualifying IP income and a 300% deduction on R&D costs.
Startup Visa
Residence permit for founders of innovative startups approved by the Lithuanian authorities.
Pros and cons
Why founders pick Lithuania
- 7% (or 0%) CIT for small companies
- Fintech licensing and EMI banking ecosystem
- Fast online registration and digital government
- Low costs and EU access
Watch out for
- 17% standard CIT and 15% dividend tax
- Rates and thresholds changed in 2025–2026
- Local address and notarised steps for non-residents
- Traditional banks are slow for non-residents
- Small-company rules have employee and ownership limits
Best for: Fintech and payments startups · Founders using the small-company rate · SaaS with EU customers
Lithuania: common questions
Can a foreigner open a company in Lithuania?
Yes. A non-resident can register a UAB online with a qualified electronic signature or via a notary with a power of attorney. Registration takes 1–5 days; the minimum capital is EUR 1,000 and you need a Lithuanian registered office.
What is the corporate tax rate in Lithuania in 2026?
17% standard, 7% for small companies with revenue up to EUR 300,000 and up to 10 employees, and 0% for newly registered small companies in their first periods.
How are dividends taxed in Lithuania?
Companies pay CIT on profit, and dividends to individuals face 15% PIT (and 15% WHT for non-residents, 0% to EU parents).
Is Lithuania good for fintech?
Yes. The Bank of Lithuania issues EU e-money and payment licences and hosts many EMIs (Revolut Bank, Paysera), though licensing has tightened since 2023.
Does Lithuania have a startup visa?
Yes. Founders with an innovative business plan approved by the Lithuanian Startup Visa Committee can receive a residence permit. Other non-EU founders need a business-based temporary residence permit.
Sources
- State Tax Inspectorate (VMI)
- Centre of Registers (Registrų centras)
- PwC Worldwide Tax Summaries – Lithuania
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Not tax or legal advice. Rates and rules change; we check official sources and update every page, but verify with a licensed adviser in the country before acting. Spotted something out of date? Use the correction form below.