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Taxation Basics in Lithuania<\/h2>\n\t\t\t\t\t<\/div>[vc_column_text]<\/p>\n
We have outlined the key non-binding corporate taxation points in Lithuania. For personalized tax consultation related to your situation, please contact us to schedule a meeting with our Lithuania-based tax specialist.<\/p>\n
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Lithuania taxes corporate profits on an accrual basis. The standard corporate income tax rate is 17% as of 2026. A reduced rate of 7% may apply to qualifying small entities subject to statutory conditions. In general, this reduced rate is available to small companies that meet size and ownership criteria, for example, companies with annual turnover not exceeding EUR 300 000, an average number of employees not exceeding 10 and where shareholders are primarily individuals.<\/p>\n
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Lithuania generally levies a 17% tax on dividends paid to shareholders. This tax is applied by the distributing company and is treated under Lithuanian law as a corporate income tax on distributed profits rather than a classic withholding tax. The rate may be reduced or eliminated under an applicable double tax treaty. In addition, under the EU Parent-Subsidiary Directive, dividends may be exempt from tax if the participation exemption conditions are met.<\/p>\n
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The standard VAT rate in Lithuania (prid\u0117tin\u0117s vert\u0117s mokestis, PVM<\/em>) is 21% and applies to most supplies of goods and services. Reduced VAT rates of 9% and 5% apply to specific goods and services, including accommodation services, passenger transportation on regular routes, and certain books, newspapers, periodicals, and informational publications. The 0% VAT rate applies to exports and certain other transactions. VAT registration is required if annual taxable turnover exceeds EUR 45,000.<\/p>\n[\/vc_column_text][\/vc_tta_section][vc_tta_section i_type=”openiconic” i_icon_openiconic=”vc-oi vc-oi-layers” add_icon=”true” title=”Social” tab_id=”1502124993050-d9641d33-8ffecce1-3167e3c9-1e25″][vc_column_text]<\/p>\n
Employers in Lithuania must pay social security contributions on employment income. Employer social security contributions amount to approximately 1.8\u20132.5% of gross salary, while employee contributions amount to approximately 19.5%, depending on the type of income and applicable insurance coverage. The statutory minimum gross monthly salary in Lithuania is EUR 1153 as of 2026.<\/p>\n
[\/vc_column_text][\/vc_tta_section][\/vc_tta_tabs][\/vc_column][vc_column width=”1\/3″ rt_col_paddings=”true” rt_wrp_col_paddings=”false” rt_column_shadow=”” rt_border_top=”” rt_border_bottom=”” rt_border_left=”” rt_border_right=”” rt_border_top_mobile=”” rt_border_bottom_mobile=”” rt_border_left_mobile=”” rt_border_right_mobile=”” rt_bg_image_repeat=”repeat” rt_bg_size=”auto auto” rt_bg_position=”right top” rt_bg_attachment=”scroll” rt_bg_color=”” rt_bg_overlay_color=””]
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<\/span>Frequently Asked Questions<\/h3>\n\t\t\t\t\t<\/div>[vc_column_text css=”.vc_custom_1735293485581{margin-bottom: 35px !important;}”]<\/p>\nBelow we have included the frequently asked questions for company formation and corporate services in Lithuania and the appropriate answers.<\/p>\n
[\/vc_column_text][vc_toggle title=”What documentation is needed?”]In order to register and process your order we ask for your passport scan, residential address (with utility bill) and contact details.[\/vc_toggle][vc_toggle title=”How long does it take?”]It usually takes 5-10 business days for the Commercial Registry to process the company setup.[\/vc_toggle][vc_toggle title=”Do I have to come to Lithuania?”]The company setup procedures can be processed fully remotely with travel to Lithuania not required.[\/vc_toggle][vc_toggle title=”Why prefer the shelf company?”]The most cost and time efficient alternative to forming a new company from scratch is to acquire a shelf company, which is very common in Lithuania. The advantage of the shelf company is that the business can start functioning at once and that the company already has a registration number. Further, we have already pre-registered the share capital payment, hence no separate transfers are needed at the setup phase.[\/vc_toggle][vc_toggle title=”What if I am not from the EU?”]The Lithuanian commercial code does not set forward any restrictions to non-EU participants.[\/vc_toggle][vc_toggle title=”How much does it cost?”]Our pricing for both new company formation and new shelf companies in Lithuania starts from 1480 EUR. The final cost of the project will depend on further services required such as local registered office address, registered agent service or similar. Also the annual costs will depend on the list of required services. We would be glad to provide a detailed quote specific to your project.[\/vc_toggle][vc_toggle title=”Do I need registered office address?”]Having a local registered office address is mandatory for every Lithuanian company. The legal address will be shown in the commercial registry and the official letters addressed to the company will be sent to this address. We provide a virtual registered office address as a service and forward the postage received as scanned copies to your e-mail.[\/vc_toggle][vc_toggle title=”Can I choose the company name?”]Yes, you can choose the company business name. It is subject to registry availability. Additional registry fees apply for changing the name.[\/vc_toggle][vc_toggle title=”How do I open the bank account?”]There is no shortage of international and local banks in Lithuania and banking systems are highly advanced, however opening a bank account can be challenging and take time. It is not possible to open the bank account by proxy or by Power of Attorney, a face to face meeting is required at the bank. However, as a solution for a quick start it is also possible to open with a fintech bank in the European Union which can be done online with no visit needed and then proceed to opening with a local traditional bank in Lithuania in later steps.[\/vc_toggle][vc_toggle title=”What about reporting requirements?”]Irrespective of size, the Lithuanian limited company has to file annual accounts with the commercial registry once a year. Small companies are exempted from the requirement of appointing an auditor. VAT returns and social tax declarations have to be submitted monthly. Our accounting department can take care of all reporting requirements on your behalf.[\/vc_toggle][vc_toggle title=”How to register for VAT?”]We support in preparation and submission for VAT registration and all other necessary tax registries on your behalf.[\/vc_toggle][vc_toggle title=”How do I get started?”]In the first step please let us know of your objectives for setting up a company in Lithuania. In the second step we propose the best solution with a step-by-step overview and a detailed price quote for company formation in Lithuania. In the third step we take care of all legal documentation and applications.[\/vc_toggle][\/vc_column][\/vc_row][vc_row rt_row_background_width=”default” rt_row_style=”default-style” rt_row_height=”” rt_column_gaps=”” rt_row_shadows=”” id=”contact” rt_row_paddings=”true” rt_row_borders=”” rt_bg_effect=”classic” rt_transparent_bg=”false” rt_bg_image_repeat=”repeat” rt_bg_size=”cover” rt_bg_position=”right top” rt_bg_attachment=”scroll” rt_bg_layer=”” rt_bg_video_format=”self-hosted” rt_padding_top=”0″][vc_column width=”2\/3″ rt_col_paddings=”true” rt_wrp_col_paddings=”false” rt_column_shadow=”” rt_border_top=”” rt_border_bottom=”” rt_border_left=”” rt_border_right=”true” rt_border_top_mobile=”” rt_border_bottom_mobile=”” rt_border_left_mobile=”” rt_border_right_mobile=”” rt_bg_image_repeat=”repeat” rt_bg_size=”auto auto” rt_bg_position=”right top” rt_bg_attachment=”scroll” rt_bg_color=”” rt_bg_overlay_color=””]
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Questions? Our Legal Team would be Glad to Assist!<\/h2>\n\t\t\t\t\t<\/div>[vc_column_text]For any questions regarding company formation in Lithuania, please reach out through the contact form below.<\/strong> To receive an overview of the procedures and pricing, kindly provide preliminary details, such as the number of participants in your company structure and their country of residency. Our country manager can then respond with a tailored indication including information on the procedures, timelines, and a pricing breakdown.[\/vc_column_text]\n