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

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

Tax incentives at Free Economic Zones in Lithuania
Investment project incentive

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

R&D incentive

Expenses incurred for R&D purposes can be deducted three times in the tax period when they are incurred.

Advanced pricing agreements

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
13.5-16.6
8.0-13.0
Kaunas
10.5-13.5
6.0-10.0
Klaipeda
9.0-12.5
6.0-9.0

Monthly rental of warehouse space (EUR m2)

Class A&B / Existing Vacant
Built to Suit Projects
Lower Quality
Vilnius
4.3 - 5.2
4.6 - 5.5
1.5 - 3.0
Kaunas
3.6 - 5.2
4.6 - 5.0
1.4 - 2.9
Klaipėda
3.4 - 4.8
4.6 - 5.0
1.4 - 2.9

Utility Costs (EUR, excl. VAT)

Measurement
Average rates
Electricity
1 kWh
0.062 - 0.084 Eur*
Natural Gas
1 MWh
18.5 - 27.3 Eur**
Cold drinking water
1 cubic meter
1.29***
Hot drinking water
1 cubic meter
4.17 Eur****

* Eurostat, 2016 H2. Price for industrial consumers (price includes distribution costs)
** Source: Eurostat, 2016 H2. Price for industrial consumers.
*** Average tariff of 3 largest cities for industrial consumers, 2017
****Average tariff of 3 largest cities, 2017

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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