Running your business

An overview of taxes and overheads in Lithuania

Business tax

Corporate profit tax




Dividends (witholding tax)


Personal income tax


Social security tax

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

Real estate tax


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)


Monthly rental of warehouse space (EUR m2)

Newly built
New construction (up to 15 years)
Old construction
4.3 - 5.3
3.9 - 4.8
1.8 - 3.5
4.2 - 5.3
3.8 - 4.7
1.7 - 3.5
4.2 - 5.0
3.8 - 4.6
1.7 - 3.3

Source: Ober-Haus, 2018

Utility Costs (EUR, excl. VAT)

Average rates
1 kWh
0.065 - 0.115 Eur*
Natural Gas
1 MWh
29.8 - 40.6 Eur**
Cold drinking water
1 cubic meter
Hot drinking water
1 cubic meter
3.7 Eur****

* Eurostat, 2017 H2. Price for industrial consumers (depends on power consumption efficiency)
** Source: Eurostat, 2017 H2. Price for industrial consumers.
*** Average tariff of 3 largest cities for industrial consumers, 2018
****Average tariff of 3 largest cities, 2018

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.

Financial incentives

A brief overview of the range of financial incentive options available to 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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