Mokesčiai Lietuvoje

Corporate income taxes

From 1 January 2026, the standard Lithuanian Corporate Income Tax (CIT) rate is 17% of taxable profits. Qualifying companies with annual revenue not exceeding EUR 300,000 may apply a reduced 7% rate, subject to statutory conditions and restrictions concerning related entities. Eligible newly established companies may apply a 0% rate during their first two tax periods. The previous general limit of 10 employees no longer applies to the reduced-rate regime from 2026. Corporate Income Tax is calculated on taxable profits, not on total sales revenue.

There is a standard CPN rate of 15%. The CPN rate can be reduced to 0% or 5% for small businesses and agricultural businesses, however. The 20% CPN rate applies to credit institutions’ taxable profits exceeding 2 million euros for the period beginning on 1 January 2020 and ending in 2025. Calculating taxable profits is subject to special rules.
Lithuanian tax residents are generally subject to the CPN on their local and international taxable income. In calculating taxable income, deductible expenditures and non-taxable income are subtracted from the total income for a tax period.
In Lithuania, resident tax companies are not taxed on their income if their income is derived from activities conducted through permanent establishments (PEs) in foreign countries that are part of the European Economic Area or have double taxation agreements (DTTs) with Lithuania.
Further, if a foreign country has a DTT with Lithuania and income from foreign sources not derived through CP is taxed at source (WHT) in that country, the CPN may be reduced or even not applied.
In Lithuania, income received by non-resident companies is taxed through their local permanent establishments and reduced by deductible expenses.
Non-profit organizations that profit from the activities of businesses must pay corporate income tax as well.

For small businesses, CPN rates have been reduced

From the 2026 tax period, eligible newly established Lithuanian companies may qualify for a 0% Corporate Income Tax rate during their first two tax periods. Qualifying companies with annual revenue not exceeding EUR 300,000 may subsequently apply the reduced 7% rate, subject to statutory conditions. The standard rate is 17%. Eligibility for preferential treatment depends on the company’s ownership structure, related-party restrictions and other applicable legal requirements.

Dividend tax

• Dividends paid to non-resident individuals are generally subject to 15% Lithuanian Personal Income Tax, subject to applicable double taxation treaty relief.
• Dividends paid to foreign corporate shareholders are generally subject to 17% Lithuanian Corporate Income Tax withholding in 2026, unless a statutory participation exemption or applicable double taxation treaty provides relief.
• A 0% withholding tax rate does not automatically apply merely because the recipient resides in the EU or in a country that has a double taxation treaty with Lithuania. Eligibility depends on the recipient’s legal status and the relevant exemption or treaty conditions.
• Over 55 double taxation agreements have been concluded with Lithuania, including with EU countries, India, Georgia, and Ukraine.

A physical person is subject to a 15% dividend tax. Exceptionally, 0% applies to recipients of funds residing in the EU or member states of tax conventions. Over 55 double taxation agreements have been concluded by Lithuania, including those with EU countries, India, Georgia, and Ukraine.
Residents paying dividends to residents are subject to 15 percent corporate tax, unless the parent company owns at least 10 percent of the shares of the subsidiary for at least 12 months, then dividends are tax-free. An EEA member state’s corporate income tax or equivalent is also not applicable to dividends received by foreign legal entities registered in the state.

Income tax on the population

From 1 January 2026, Lithuania’s statutory minimum monthly wage is EUR 1,153 gross. The monthly non-taxable income allowance (NPD) depends on the employee’s income and applicable statutory conditions and is not a universal fixed EUR 300 amount. Employment income under the general progressive Personal Income Tax regime is subject to rates of 20%, 25% and 32%, depending on the applicable annual income thresholds. Payroll tax calculations must also take into account employee social insurance contributions, compulsory health insurance and any applicable pension accumulation contributions. The outdated examples based on a EUR 555 minimum wage should be replaced with calculations using the rates and allowances applicable to 2026.

• Salary 555 euros

1. EUR 555 Wage – EUR 555 Minimum Wage = EUR 0
2. 0.15*EUR0=EUR0
3. EUR 300 standard non-chargeable amount – EUR 0 = EUR 300 of non-chargeable income

• Salary 1,000 euros

1. EUR 1000 Wage – EUR 555 Minimum Wage = EUR 445
2. 0.15 * 445 EURO = 66.75 EURO
3. Standard EUR 300 – EUR 66.75 = EUR 233.25 of unencumbered income

Property tax

From 1 January 2026, Lithuania applies revised real estate taxation rules. For an individual’s principal residence, the taxable value is generally exempt up to at least EUR 450,000, with the municipality permitted to establish a higher exemption threshold. The portion exceeding the applicable threshold is subject to municipal rates ranging from 0.1% to 1%. Other qualifying residential and specified non-commercial properties owned by individuals are subject to progressive tax rates ranging from 0% to 1%, depending on their aggregate taxable value. Different rules and rates apply to commercial property and property owned by legal entities.

Land tax

Tax payments on land constitute the land tax in Lithuania, and the provisions on how this tax is calculated and paid are determined by the local councils. Land taxes are imposed on privately owned land, and the rate ranges from 0.01 to 4 percent of the land’s value (forests are not subject to the land tax).

In the first half of the year, landowners who acquire land are required to pay a full-year tax. Taxes must be paid from the following year if the land is acquired during the second half of the year. It is not necessary to pay the tax if the land is sold during the first half of the year, but it must be paid for the whole year if it is sold during the second half.

Excises

The following products are collected by excise, which is intended to correct the consumption of goods sold in the country:

Excise duties in Lithuania apply to specified categories of goods under the Lithuanian Law on Excise Duties, including alcoholic beverages, tobacco products, electronic cigarette liquids, certain other nicotine-related products, energy products and electricity. Coffee, chocolate, jewellery, luxury cars and publications are not subject to a general Lithuanian excise duty merely because they belong to these product categories. Other taxes or registration charges may apply to particular goods under separate legislation.

Excise is free of alcohol and its raw materials imported by State-owned enterprises licensed to produce alcohol and on exported goods.

Value added tax (VAT)

Rate 21 per cent

VAT registration obligations in Lithuania depend on the nature and value of the company’s transactions. Since 1 May 2025, the domestic VAT registration threshold of EUR 45,000 is assessed using qualifying turnover in the current or preceding calendar year, rather than a rolling 12-month period. Intra-Community acquisitions of goods may trigger VAT obligations when the applicable EUR 14,000 threshold is exceeded. VAT registration or other VAT compliance obligations may also arise below these thresholds for certain cross-border services and other transactions. Applicable small business scheme exemptions must be assessed separately.

If the shareholder has more than 50% of shares in other companies, the criteria are summed up for all companies.

Lithuania’s standard VAT rate is 21%. From 1 January 2026, reduced rates of 12% and 5% apply to qualifying categories of goods and services.

• 12% VAT – qualifying accommodation services, scheduled passenger transport and admission to certain cultural and artistic events.
• 5% VAT – qualifying publications, medicines, medical products and other goods and services expressly covered by the applicable legislation.
• 21% VAT – the standard rate, including residential heating and hot water supplies that no longer benefit from the previous reduced rate.

Eligibility for a reduced rate depends on the exact goods or services and the relevant statutory conditions.

Lithuania has a standard VAT rate of 21% with a reduced rate of 9% and 5%. A VAT of 9 per cent applies to books, information publications, periodicals, accommodation and passenger transport on regular routes, while a reduced rate of 5 per cent applies to equipment for disabled persons, Persons entitled to compensation under the Health Insurance Act. Since 1 May 2025, the EUR 45,000 Lithuanian domestic VAT registration threshold is calculated by reference to qualifying turnover in the current and preceding calendar years. VAT obligations may also arise below this threshold in connection with qualifying cross-border transactions. Businesses must assess their registration and reporting obligations under the current Lithuanian Law on VAT, including any applicable small business scheme provisions.

Registration of VAT payer in Lithuania

 The obligation to be registered is imposed when the turnover of a company in a financial year exceeds 45,000 euros; the procedure can be done in person at the local tax authorities or online by filling in the necessary forms – in this case, form FR 0388.

Social tax

In 2026, standard employee social insurance contributions in Lithuania generally amount to 19.5% of gross employment income, including compulsory health insurance contributions. An additional 3% pension accumulation contribution may apply where the employee participates in the relevant pension scheme. For a standard indefinite-term employment contract, employer-side contributions generally start at 1.77% of gross salary, subject to the employer’s occupational risk category and other statutory conditions. Personal Income Tax is calculated separately under the applicable progressive rates.

Taxation of representatives

Lithuanian legislation regulates representative offices and any other organizations registered in the country.

Legal entities have representations, which are subdivisions with their own registered offices and are entitled to perform the following operations. When a legal person is represented, a legal person’s interests are protected, contracts are concluded and other transactions are conducted on their behalf, and imports and exports are conducted exclusively by foreign legal entities and other entities with subsidiaries, institutions or organizations, or other subsidiary companies. There is no legal person called a legal representation.

Legal persons and organizations must inform the Register of Legal Persons upon registration of a representation if there is any change in the documents and data of a legal person, or if a legal person changes its legal status. It is the responsibility of the Administrator of the Register of Civil Law to verify the correctness of all information contained in an application for registration of foreign legal persons, to ensure that the statute is consistent with legislative requirements, and to ensure that: That foreign legal persons can be registered as representatives.

Company in Lithuania UAB listed the key issues of corporate taxation in Lithuania. For more specific tax-related questions, kontaktai for consultation with the accountant.

Company in Lithuania UAB padės jums užregistruokite savo įmonę Lietuvoje. Taip pat džiaugiamės galėdami pasiūlyti savo klientams apskaitos paslaugos and assistance in the process of VAT registration by the payer.

Company in Lithuania UAB teikia teisinę ir reguliavimo pagalbą įmonėms, siekiančioms gauti kriptovaliutų turto paslaugų teikėjų (CASP) leidimą Lietuvoje pagal Reglamentą (ES) 2023/1114 (MiCA). Nuo 2026 m. sausio 1 d. buvusi Lietuvos nacionalinė VASP registracijos tvarka nebesuteikia leidimų teikti reguliuojamas kriptovaliutų turto paslaugas. Įmonės, ketinančios teikti paslaugas, patenkančias į MiCA taikymo sritį, paprastai turi gauti CASP leidimą iš Lietuvos banko arba atitikti taikomų išimčių reikalavimus.

Taxation in Lithuania 2025