Running your business

An overview of taxes and overheads in Lithuania

Business tax

Corporate profit tax

15%

VAT

21%

Dividends (witholding tax)

0/15%

Personal income tax

15%

Social security tax

39.5% paid by the employee
1.79% paid by the employer

Real estate tax

0.3-3%

Other favourable tax conditions available to foreign companies

Free Economic Zones

Tax incentives at Free Economic Zones in Lithuania

Investment project incentive

Entities involved in an investment project are able to reduce their taxable profits by up to 50% of the actually incurred acquisition costs of long-term assets meeting certain requirements.

R&D incentive

  • Expenses incurred for R&D purposes can be deducted three times in the tax period when they are incurred.
  • Reduced 5% corporate income tax rate can be applied for the profit deriving from the commercial exploitation of patented inventions.

Advanced Pricing Agreements (APAs) and Binding Rulings

available as from 1 January 2012

Overhead costs

To give you an idea of your potential savings, here are few major cost brackets for your general overhead:

Monthly rental of office space (EUR m2)

A-Class
B-Class
Vilnius
14.0-16.7
9.0-13.5
Kaunas
11.5-13.5
7.0-11.0
Klaipėda
10.5-13.0
6.5-10.0
Source: Oberhaus, 2020

Monthly rental of warehouse space (EUR m2)

Newly built
Old construction
Vilnius
3.9 - 5.3
2.0 - 3.6
Kaunas
3.8 - 5.0
1.8 - 3.3
Klaipėda
3.7 - 4.9
1.8 - 3.5
Source: Oberhaus, 2020 Q3

Utility Costs (EUR, excl. VAT)

Electricity price

0.074 - 0.156 EUR / 1kWh

Electricity price

Gas price

19.0 - 23.0 EUR / MWh

Gas price

1.4 EUR / m3

Cold drinking water price

4.03 EUR / m3

Hot drinking water price

Also see

Economic overview

A brief overview of the economy of Lithuania.

Start your business

A brief overview on opening a business in Lithuania and the most common types of entities on offer for foreign investors.

Coming to Lithuania

A brief overview of the visas available and the process of coming to Lithuania to live and work.

We are here for you!

If you have any questions or would like to arrange a meeting with one of our advisors, we are always ready to help

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