Expat Taxes in Lithuania

[!TIP] Lithuania has some of the lowest corporate tax rates in the EU, but high social taxes.

Corporate Taxation

Lithuania is very attractive for incorporating a business.

• Standard Rate: The corporate income tax (CIT) is a flat 15%.
• Small Business Exemption: For micro-companies (fewer than 10 employees and less than €300,000 in annual revenue), the corporate tax rate is slashed to just 5%.
• Free Economic Zones (FEZs): If you set up in one of the designated FEZs and invest a minimum amount of capital, you can pay 0% corporate tax for 10 years, followed by 7.5% for the next 6 years.

Individual Taxation

If you become a tax resident (living there for >183 days):

• Income Tax: A flat 20% on employment income (rising to 32% for very high earners above a certain threshold).
• The Social Security Burden (Sodra): The real cost is social security (Sodra) and compulsory health insurance (PSD). When combining the employee and employer portions, social taxes consume over 21% of the gross salary.