Kokius mokesčius reikia mokėti, jei valdybos narys yra užsienietis Lietuvoje?
Foreign nationals appointed as directors or management board members of Lithuanian companies must determine their tax and social insurance obligations according to their tax residence, the nature of their duties and the legal basis of their remuneration. Appointment to a management position does not automatically require a work permit, although non-EU nationals intending to reside and work in Lithuania must comply with the applicable immigration and employment requirements. The Lithuanian Employment Service (Užimtumo tarnyba), which replaced the former Lithuanian Labour Exchange, administers relevant labour market and employment authorisation procedures. This article will cover the main information pertinent to mandatory taxation in Lithuania, which will place you on the right path to the efficient management of your tax contributions.
Lithuanian Personal Income Tax legislation distinguishes between tax residents and non-residents according to several statutory criteria, including permanent residence, the centre of personal and economic interests, and physical presence in Lithuania. An individual may qualify as a Lithuanian tax resident even without spending 183 days in the country. Lithuanian tax residents are generally taxed on their worldwide taxable income, while non-residents are subject to Lithuanian tax on specified categories of Lithuanian-source income. Applicable double taxation agreements may affect the final determination of tax residence and taxing rights.
A foreign director or management board member is not automatically classified as a Lithuanian tax non-resident merely because they spend fewer than 183 days in Lithuania. Under Lithuanian Personal Income Tax legislation, an individual may qualify as a tax resident if they have a permanent place of residence in Lithuania, maintain stronger personal, social or economic interests in Lithuania than abroad, spend at least 183 days in Lithuania during a tax year, or spend at least 280 days in Lithuania over two consecutive tax years while being present for at least 90 days in one of those years. Additional statutory exceptions and applicable double taxation agreements must also be considered.
Lithuanian tax residence is determined under the Law on Personal Income Tax and is legally distinct from immigration residence status. Meeting the statutory tax residence criteria does not automatically require an individual to obtain a permanent residence permit or register permanent residence with the Migration Department. Tax registration and declarations are administered by the State Tax Inspectorate (VMI), while immigration matters are handled separately by the Migration Department. A work permit is not a universal prerequisite for determining tax residence or applying for a residence permit, and the applicable requirements depend on the foreign national’s circumstances and legal grounds for residence.
The taxation and social insurance obligations of foreign directors and board members must be assessed separately. Under EU social security coordination rules, a valid A1 certificate may confirm that an individual remains subject to another EU, EEA or Swiss social security system, provided that the applicable conditions are satisfied. From 1 January 2026, Lithuanian employment income and qualifying directors’ remuneration may be subject to progressive Personal Income Tax rates of 20%, 25% and 32%, depending on the applicable annual income thresholds. However, the treatment of remuneration depends on whether it is paid under an employment contract, as management board remuneration or under another legally recognised arrangement. Employment income is not automatically exempt from Lithuanian taxation merely because it is paid by a foreign company or transferred from a foreign bank account. The place where duties are performed and the applicable double taxation agreement must also be considered.
The Lithuanian tax treatment of income received by a non-resident director or management board member depends on the legal nature and source of each payment. Employment remuneration for duties performed in Lithuania may be subject to Lithuanian Personal Income Tax, subject to applicable double taxation agreements. Remuneration paid for membership of a company’s management or supervisory board, including annual bonuses (tantjemos), may be subject to separate rules concerning Lithuanian-source income and treaty allocation of taxing rights. Dividends paid by Lithuanian companies to individual shareholders are generally subject to 15% Personal Income Tax. Interest and other investment income are taxed according to their specific statutory classification and applicable exemptions. A person’s appointment as a director or board member does not make all of their worldwide income taxable in Lithuania.
Lithuanian tax non-residents may be subject to Personal Income Tax on certain Lithuanian-source income, including gains from the disposal of immovable property located in Lithuania and income from qualifying sports or artistic performances carried out in the country. However, not every disposal of movable property located in Lithuania automatically creates a Lithuanian Personal Income Tax obligation. The applicable tax treatment depends on the nature of the property, the transaction, the statutory definition of Lithuanian-source income and any relevant double taxation agreement. Certain exemptions and deductions may also apply.
Income tax declarations should be submitted to the State Tax Inspectorate either electronically or by filing a hard copy of the declaration form at one of the departments of the State Tax Inspectorate.
Company in Lithuania UAB offers comprehensive personal accounting support to non-permanent residents who intend to declare their income in Lithuania, including advice on possible relief from double taxation. Kontaktas our experienced specialists now to receive the best personalised offer.
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