Running your business
Business tax
Corporate profit tax
15%
VAT
21%
Dividends (witholding tax)
0/15%
Personal income tax
15%
Social security tax
9% paid by employee 30.98% paid by employer
Real estate tax
0.3-3%
Other favourable tax conditions available to foreign companies
Free Economic Zones
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)
Source: Ober-Haus, 2018
Utility Costs (EUR, excl. VAT)
* 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
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