Lithuania Tax Rates
Lithuania operates a dual income tax system with rates of 20% and 32% for employment income, while capital income is taxed at a flat 15%. The country features a 15% corporate tax rate (one of the lowest standard rates in the EU), a 21% VAT, and a growing reputation as a fintech hub. Lithuania offers favorable conditions for small businesses and startups.
Top Income Tax Rate
32%
Corporate Tax Rate
17%
VAT / Sales Tax
21%
Capital Gains Tax
15%
Detailed Tax Information
Income Tax Brackets
Lithuania applies progressive income tax on employment income: 20% on income up to €101,094 and 32% on income above. A non-taxable income amount (NPD) of up to €625/month applies for lower earners, phased out for higher income. Capital and investment income is taxed at a flat 15% (20% for amounts exceeding 120 average salaries). Self-employment income is taxed at 15% for individual activity income.
| Income Range | Tax Rate |
|---|---|
| €0 – €21K | 0% |
| €21K – €101K | 20% |
| €101K+ | 32% |
Corporate Tax
Lithuania levies corporate income tax at 17% (increased from 15% in 2026). Small companies (annual income under €300,000 and fewer than 10 employees) in their first two years of operation pay 0%. The reduced rate for qualifying small companies increased from 6% to 7% in 2026. Banking and insurance sectors pay an additional solidarity contribution.
Standard Rate
17%
Small Business Rate
7%
Capital Gains Tax
Capital gains are generally taxed at 15% (20% for high amounts). Real estate gains from property held for less than 10 years are taxable; principal residences owned for 2+ years are exempt. Securities gains are taxed at 15%.
Rate
15%
VAT / Sales Tax
Lithuania applies a standard VAT (PVM - pridėtinės vertės mokestis) rate of 21%, with reduced rates of 9% and 5%. The system follows EU VAT directives.
Standard Rate
21%
Cryptocurrency Tax
Cryptocurrency gains in Lithuania are taxed at 15% as capital income for occasional traders. Professional trading is taxed as individual activity income at 15% (or progressive employment rates if classified as employment). Mining income is taxed as individual activity income.
Tax Treaties
Lithuania has approximately 55 double taxation treaties in force. As a Baltic EU member and growing fintech hub, Lithuania's treaty network supports expanding international economic ties.
Treaty Network
55
Double taxation agreements
Major treaty partners:
Key Details
Relocate to Lithuania
See how much you could save by moving here from your current country.
$-10,957
Tax in United States
$24K
24.4% effective
Tax in Lithuania
$35K
35.3% effective
Additional Cost
45%
more tax annually
US Citizens: Important Note
US citizens are taxed on worldwide income regardless of residence. You'll still need to file US taxes, though the Foreign Earned Income Exclusion and Foreign Tax Credit may reduce your liability.
