Business Services for Foreign Investors in Lithuania

AT A GLANCE

Lithuania welcomes foreign investment with no restrictions on foreign ownership — a non-EU national or foreign company can own 100% of a Lithuanian UAB with no local partners required.
A Lithuanian entity gives foreign investors full EU legal standing: EU VAT registration, access to SEPA payment infrastructure, eligibility for EU funding programmes, and the ability to contract under EU law.
We provide three service areas for foreign investors and entrepreneurs: accounting, legal services, and immigration — covering the setup, ongoing operations, and personal relocation needs of international investors entering the Lithuanian and EU market.
Lithuania’s participation dividend exemption and extensive double taxation treaty network make it a tax-efficient holding and operating jurisdiction for structured international investment.
Non-EU entrepreneurs who wish to live and work in Lithuania have dedicated immigration pathways — the EU Blue Card, national work permits, and the Startup Visa programme for qualifying innovators.

Foreign investors entering Lithuania need three things: accounting and tax compliance structured for international operations (group accounting, transfer pricing, dividend reporting); legal support for the investment structure itself (holding company design, corporate governance, cross-border contracts); and — where the investor or their team intends to be physically present in Lithuania — immigration assistance for work and residence permits. We cover all three service areas under one engagement, in English, coordinating the accounting, legal, and immigration workstreams so they advance simultaneously rather than sequentially.

Why Foreign Investors Choose Lithuania

Lithuania’s appeal to foreign investors is built on a combination of practical factors that distinguish it from most other EU member states — not marketing claims, but specific legal, tax, and operational conditions that experienced investors notice when they compare options.

No foreign ownership restrictions

Lithuania places no restrictions on foreign ownership of Lithuanian companies. A non-EU individual or a company registered in any country can own 100% of a Lithuanian UAB. There is no requirement for Lithuanian co-shareholders, local directors in most sectors, or minimum local investment. This full ownership model gives foreign investors direct control of their Lithuanian entity without the dilution or governance complications that local partnership requirements create in other jurisdictions.

EU market access from a single entity

A Lithuanian UAB is a full EU legal entity. It can operate across the EU single market, sign EU-standard commercial contracts, access SEPA payment infrastructure, apply for EU funding, and passport regulated services under EU directives. For investors based outside the EU — in the UK, UAE, Israel, the US, Singapore, or Georgia — a Lithuanian entity provides genuine EU market access without requiring the investor to establish multiple entities in different member states. Lithuania’s position as a small, accessible EU jurisdiction with a straightforward regulatory environment makes it a practical entry point for non-EU investors building an EU presence.

Competitive tax environment

Lithuania offers a 15% standard corporate income tax rate, reduced to 5% for qualifying small companies (up to 10 employees and revenue below €300,000). The participation dividend exemption allows dividends received by a Lithuanian holding company from qualifying EU subsidiaries to be exempt from Lithuanian CIT under specific conditions — making Lithuania a viable intermediate holding jurisdiction for multi-entity EU structures. Lithuania has concluded double taxation treaties with more than 55 countries, providing mechanisms to avoid double taxation on income flowing through the Lithuanian entity.

Holding structure possibilities

For international investors building multi-entity EU structures, a Lithuanian holding company can sit between a non-EU parent and EU operating subsidiaries. The holding company receives dividends from operating subsidiaries under the participation exemption, manages intercompany loans, holds intellectual property, and provides an EU-domiciled legal entity for group governance purposes. We design holding structures for foreign investors as part of our legal advisory service, assessing the correct jurisdiction, entity type, and intercompany arrangements for each specific investment scenario.

Ease of registration and operations

A Lithuanian UAB can be registered in 1–3 business days, with a minimum share capital of €1,000 and a state registration fee of €51. Company registration, VAT registration, and most government filings are handled electronically. English is widely spoken in the professional services environment. For foreign investors who want to establish an EU presence efficiently — without the months-long processes common in Germany, France, or the Netherlands — Lithuania offers a balance of credibility and administrative practicality that few other EU jurisdictions match.

Lithuania for foreign investors — key facts

No foreign ownership restrictions — 100% foreign-owned companies permitted in all standard sectors · 15% CIT standard rate / 5% for qualifying small companies · 55+ double taxation treaty network · Participation dividend exemption — available for qualifying holdings · Full EU market access and SEPA payment infrastructure · 1–3 business days company registration · No minimum local director requirement for standard activities

Our Services for Foreign Investors and Entrepreneurs

We provide three service areas specifically structured for foreign investors entering the Lithuanian and EU market — addressing the accounting, legal, and personal immigration needs that arise simultaneously when establishing an international investment structure.

Accounting Services for Foreign Investors

Accounting for a foreign-owned Lithuanian entity is more complex than for a domestically owned company — group accounting, intercompany transactions, transfer pricing documentation, and dividend reporting all require specialist treatment. For investors who hold Lithuanian entities within a broader international group structure, the Lithuanian accounting must interface correctly with the group's consolidated accounts. We provide accounting on a fixed monthly retainer, calibrated to the international ownership context.

Monthly bookkeeping under Lithuanian accounting standards — for operating companies and holding entities
Group accounting coordination — producing Lithuanian entity accounts in a format compatible with parent company consolidation
Transfer pricing documentation — for intercompany transactions between the Lithuanian entity and related parties
Dividend distribution accounting — Lithuanian withholding tax calculation; participation exemption analysis
Holding company accounting — tracking intercompany loans, equity investments, and dividend income
Annual financial statements and CIT return — with international ownership disclosures
Double taxation treaty application — advising on the treaty position for specific income flows
Monthly management report in English — for foreign owners who need clear visibility of the Lithuanian entity's performance

Legal Services for Foreign Investors

Legal work for foreign investors in Lithuania spans corporate structure design, intercompany agreements, cross-border commercial contracts, and the ongoing corporate maintenance of the Lithuanian entity. For investors building EU structures, the legal framework must account for both Lithuanian law and the interaction with the laws of other relevant jurisdictions. We provide legal services for foreign investors that are specific to the international investment context — not general commercial legal work applied to a foreign-owned company.

Investment structure design — entity type, ownership chain, holding versus operating structures, and governance framework
Shareholders' agreements for international co-investment — cross-border ownership structures with multiple nationalities
Intercompany agreements — loan agreements, management services agreements, IP licences, and distribution agreements
Transfer pricing documentation — legal framework and arm's-length pricing documentation for intercompany transactions
Cross-border commercial contracts — contracts governed by Lithuanian law with non-Lithuanian counterparties
Corporate governance documents — board resolutions, shareholder decisions, and JAR filings for foreign-owned entities
Exit and restructuring — share sales, mergers, demergers, and cross-border restructuring of Lithuanian entities
Investment agreement review — for investors making direct investments into Lithuanian companies as minority shareholders

Immigration Services for Foreign Entrepreneurs

Foreign entrepreneurs and investors who want to live and work in Lithuania — rather than simply owning a Lithuanian company remotely — need a legal right to reside and work. EU citizens have freedom of movement and do not require permits. Non-EU nationals — from the UK, UAE, Israel, the US, India, Georgia, Kazakhstan, and elsewhere — require a work permit and/or residence permit before taking up employment or self-employment in Lithuania. We manage the complete immigration process: permit selection, document preparation, application submission, and liaison with Lithuanian Migration Department.

Work permit applications — national work permit for non-EU nationals employed by Lithuanian companies
EU Blue Card — for highly qualified non-EU workers meeting salary and qualification thresholds
Residence permit applications — temporary and permanent residence permits for foreign entrepreneurs
Startup Visa — for non-EU entrepreneurs with qualifying innovative business concepts; coordinated through Startup Lithuania
Family reunification permits — for spouses and dependents of permit holders relocating to Lithuania
Lithuania business visa and long-stay D visa — for investors pending work or residence permit approval
Permit renewal and extension — managing renewals before expiry to maintain continuous legal status
Immigration compliance advisory — employer obligations for non-EU staff; notification requirements

Common Investment Structures for Foreign Investors

The structure through which a foreign investor holds a Lithuanian entity has significant legal, tax, and operational implications. The right structure depends on the investor’s home jurisdiction, the number of entities involved, the intended activities of the Lithuanian entity, and the exit horizon. Below are the most common structures we advise on.

Direct ownership — foreign individual as sole shareholder

The simplest structure: the foreign individual registers a Lithuanian UAB in their own name as the sole shareholder. The investor controls the company directly, appoints themselves or a third party as director, and manages the entity as the single decision-maker. Dividends flow directly from the Lithuanian entity to the individual, subject to Lithuanian withholding tax (typically 15%, reduced under applicable double taxation treaties) and personal income tax in the investor’s country of residence. This structure is appropriate for individual investors entering Lithuania with a single operating company and no group structure requirements.

Corporate ownership — foreign company as shareholder

The foreign investor’s existing company owns the Lithuanian UAB. Dividends flow from the Lithuanian entity to the parent company, subject to Lithuanian withholding tax (with potential treaty reduction or participation exemption). The parent company then manages dividend distributions to the individual according to its own jurisdiction’s rules. This structure is common for investors who already operate through a corporate structure in their home country and want to maintain that structure for the Lithuanian entity. Transfer pricing rules apply to any transactions between the Lithuanian UAB and the parent company.

Lithuanian holding company with operating subsidiaries

A Lithuanian holding company (HoldCo) owns one or more operating companies — either Lithuanian or in other EU jurisdictions. The HoldCo receives dividends from the operating subsidiaries, potentially under the participation dividend exemption. This structure is used when the investor plans to build multiple EU operating entities under a common Lithuanian parent, when the investor wants IP held separately from operating risk, or when the Lithuanian HoldCo provides a more tax-efficient intermediate between a non-EU parent and EU operations than a direct ownership structure. This is a more complex structure requiring specialist tax advice across multiple jurisdictions.

Subsidiary of a foreign parent

A foreign company registers a Lithuanian subsidiary — a new Lithuanian UAB that is wholly owned by the parent. The subsidiary operates as the EU-facing entity while the parent continues operating in its home jurisdiction. Intercompany transactions between parent and subsidiary must be at arm’s length under transfer pricing rules. This is the most common structure for non-EU companies entering the EU market through Lithuania — particularly for fintech, SaaS, and e-commerce businesses that want an EU legal entity without establishing their primary operations in a high-cost Western European jurisdiction.

Structure	Best For	Key Considerations
Foreign individual — direct UAB ownership	Individual investors; single operating entity; simple governance	Dividend withholding tax applies to individual; treaty reduction may be available
Foreign company — corporate shareholder	Investors with existing corporate structure; multi-entity operations	Transfer pricing rules on intercompany transactions; parent jurisdiction tax treatment of dividends
Lithuanian HoldCo with subsidiaries	Multi-entity EU structures; IP holding; group governance	Participation exemption conditions; consolidation complexity; transfer pricing
Subsidiary of foreign parent	Non-EU companies entering EU market through Lithuania	Transfer pricing documentation essential; parent liability limited to subsidiary equity

Key Tax Considerations for Foreign Investors

Foreign investors owning Lithuanian entities face a set of tax considerations that do not apply to domestic investors — withholding tax on outbound payments, transfer pricing obligations for related party transactions, and the interaction between Lithuanian tax and the investor’s home country tax rules. Understanding these before establishing the structure prevents surprises at the first dividend payment or annual filing.

Withholding tax on dividends

Lithuania levies withholding tax on dividends paid to non-resident shareholders — the standard rate is 15%. Under Lithuania’s double taxation treaties, reduced rates are often available: for example, 5% for corporate shareholders holding at least 10–25% of the paying company’s share capital (the exact threshold varies by treaty) and 10% for individual shareholders. The participation exemption may eliminate withholding tax entirely where the Lithuanian entity pays dividends to an EU-resident parent company that meets the Parent-Subsidiary Directive conditions. We calculate the applicable withholding rate for each investor’s specific situation before the first dividend is declared.

Transfer pricing

Any transaction between the Lithuanian entity and a related party — a parent company, a shareholder, a subsidiary, or a company with common ownership — must be priced at arm’s length under Lithuanian and OECD transfer pricing rules. Common intercompany transactions include: management fees paid to the parent, interest on intercompany loans, royalties for IP licences, and payment for goods or services between group companies. VMI has the authority to adjust the Lithuanian entity’s taxable income if it determines that intercompany pricing was not at arm’s length. We prepare transfer pricing documentation for foreign-owned Lithuanian entities as part of our accounting and legal service.

Participation dividend exemption

The participation exemption allows a Lithuanian company to receive dividends from a subsidiary without paying Lithuanian CIT on those dividends, provided certain conditions are met: the Lithuanian company must hold at least 10% of the subsidiary’s share capital for at least 12 months; the subsidiary must not be a controlled foreign corporation in a low-tax jurisdiction; and the dividend must not be deducted from taxable income in the subsidiary’s jurisdiction. For a Lithuanian HoldCo receiving dividends from EU operating subsidiaries, the participation exemption is one of the primary tax planning tools.

Permanent establishment risk

A foreign company that conducts business activities in Lithuania through a fixed place of business — a management office, a representative, or a server that constitutes a business presence — may create a permanent establishment (PE) in Lithuania, subjecting it to Lithuanian CIT on the profits attributable to the PE. For foreign investors who manage their Lithuanian entity actively from another country, the PE risk is generally low. However, when key management decisions for the foreign parent are habitually made in Lithuania by a Lithuanian-based employee or director, PE exposure increases. We assess PE risk as part of the initial structure advisory.

Immigration Pathways for Foreign Entrepreneurs

Lithuania offers several immigration routes for non-EU entrepreneurs and investors who want to live and work in the country. The right route depends on the investor’s nationality, the nature of their business activity, and whether they are employed by the Lithuanian entity or operating as a self-employed entrepreneur.

EU Blue Card

The EU Blue Card is the primary route for highly qualified non-EU workers employed by a Lithuanian company. To qualify, the applicant must have a valid employment contract or binding job offer with a Lithuanian employer, hold a higher education qualification (or at least 5 years of professional experience in the relevant field), and receive a gross salary of at least 1.5 times the Lithuanian average gross salary. The Blue Card is initially issued for the duration of the employment contract plus three months, and entitles the holder to bring family members to Lithuania. It can be converted to a permanent residence permit after 5 years of cumulative Blue Card residence in EU member states.

National work permit

The national work permit is the standard route for non-EU nationals employed by Lithuanian companies who do not meet the Blue Card qualification or salary thresholds. The employer must obtain a work permit from the Lithuanian Labour Exchange before the employee can begin work. The permit is tied to the specific employer and role. A non-EU national working in Lithuania on a national work permit must also obtain a temporary residence permit from the Migration Department. We manage both the work permit and residence permit applications in parallel to minimise the time to legal working status.

Startup Visa

Lithuania’s Startup Visa programme is designed for non-EU entrepreneurs who want to establish or develop an innovative startup in Lithuania. The programme is administered in partnership with Startup Lithuania. Applicants must submit a business concept to Startup Lithuania for assessment — concepts that are evaluated as genuinely innovative receive a letter of recommendation that supports the visa application. The Startup Visa gives the entrepreneur the right to reside and develop their business in Lithuania for up to two years, with the possibility of extension. It is one of the most accessible innovation-focused immigration routes in the EU.

Residence permit for investors

A non-EU national who makes a qualifying investment in Lithuania may apply for a temporary residence permit on the basis of the investment. Qualifying investments include: investing at least €14,000 in a Lithuanian company that employs at least three people and whose activities are beneficial to the Lithuanian economy; purchasing real estate with a value of at least €250,000 in major cities (€100,000 in smaller regions); or making a deposit of at least €1,000,000 in a Lithuanian bank. The investor residence permit does not require employment by a Lithuanian entity and is appropriate for investors whose primary activity is managing their investment.

Route	For Whom	Key Requirement	Duration
EU Blue Card	Highly qualified employees of Lithuanian companies	Salary ≥ 1.5× average; degree or 5 yrs experience	Employment contract + 3 months
National work permit	Non-EU employees not meeting Blue Card thresholds	Lithuanian employer; job offer; Labour Exchange permit	1–2 years (renewable)
Startup Visa	Non-EU entrepreneurs with innovative business concepts	Startup Lithuania recommendation; business plan	Up to 2 years (extendable)
Investor residence permit	Non-EU investors making qualifying investment	€14,000 company investment or €250,000 real estate	1–2 years (renewable)
Family reunification	Spouses and dependents of permit holders	Main applicant holds valid permit; family relationship	Same as primary permit holder

Frequently Asked Questions

Yes, without restriction. Lithuanian company law places no limits on foreign ownership of Lithuanian UABs. A non-EU individual or a company registered anywhere in the world can own 100% of a Lithuanian UAB. There is no requirement for Lithuanian co-shareholders, local directors, or minimum local investment in most sectors. Regulated sectors — banking, insurance, defence — have specific licensing requirements that apply regardless of ownership nationality, but these are licensing conditions, not ownership restrictions. We register fully foreign-owned Lithuanian companies for clients from 40+ countries.

The standard Lithuanian withholding tax rate on dividends paid to non-resident shareholders is 15%. Reduced rates are available under Lithuania’s double taxation treaties with 55+ countries — typically 5% for corporate shareholders holding a qualifying percentage of the paying company and 10% for individual shareholders. The exact reduced rate and qualifying conditions depend on the specific treaty with the investor’s country of residence. The participation exemption may eliminate withholding tax entirely for EU-resident corporate shareholders meeting the Parent-Subsidiary Directive conditions. We calculate the applicable rate for each investor’s specific situation before the first dividend is declared.

No. Company registration by power of attorney is fully available — the investor signs a notarised and apostilled PoA in their home country, which authorises us to register the company in Lithuania on their behalf. The resulting company is legally identical to one registered in person. Most foreign investors choose this route. For investors who want to visit for registration — particularly if they also want to open a bank account in person, which is faster — we manage the full visit itinerary and appointment scheduling.

Transfer pricing rules require that transactions between related parties — your Lithuanian company and any company or individual with common ownership — are priced as if they were between unrelated parties at arm’s length. This applies to: management fees paid by the Lithuanian entity to a parent or related company; loans between group entities; royalties for IP licences; and any purchase of goods or services from a related party. If the Lithuanian entity’s transactions with related parties are not at arm’s length, VMI can adjust the taxable income. Documentation of transfer pricing policies is required for Lithuanian entities that exceed the statutory thresholds. We prepare transfer pricing documentation as part of our accounting and legal service for foreign-owned companies.

The participation exemption allows a Lithuanian company to receive dividends from a subsidiary company without paying Lithuanian CIT on those dividends. The conditions are: the Lithuanian company must hold at least 10% of the subsidiary’s shares for a continuous period of at least 12 months; the subsidiary must not be registered in a low-tax jurisdiction (a jurisdiction where the CIT rate is less than 75% of the Lithuanian rate); and the dividend must not have been tax-deductible in the subsidiary’s jurisdiction. When these conditions are met, dividends flow from the subsidiary to the Lithuanian holding company without additional Lithuanian tax, making the holding company structure tax-efficient for multi-entity EU investors.

Yes. A non-EU national who invests at least €14,000 in a Lithuanian company that employs at least three people and whose activities are considered beneficial to Lithuania’s economic interests can apply for a temporary residence permit on the basis of that investment. The permit is initially issued for one to two years and can be renewed. This route is appropriate for investors who want to live in Lithuania and manage their business personally, rather than operating the Lithuanian entity remotely. We advise on the qualifying investment criteria and manage the residence permit application alongside the company registration.

These are two separate but related documents. A work permit authorises a non-EU national to work for a specific employer in Lithuania — it is obtained by the employer from the Lithuanian Labour Exchange before the employee begins work. A residence permit authorises the non-EU national to reside in Lithuania for the permit period — it is obtained by the individual from the Migration Department. Most non-EU workers in Lithuania need both: a work permit to be lawfully employed, and a residence permit to be lawfully present. We manage both applications simultaneously to avoid gaps in legal status.

Ready to establish your Lithuanian investment structure?

Contact us to discuss your home country, the intended structure for the Lithuanian entity, and whether you plan to be physically present in Lithuania. We will provide a complete setup plan covering company registration, accounting, legal structure, and immigration where applicable — and can begin within 24 hours of your instruction.