Lithuania
Northern Europe • UTC+3 • Europe/VilniusLithuanian Personal Income Tax
Lithuania's tax system is progressive, with personal income tax rates ranging from 20% to 32%. Corporate tax is set at a competitive 15%, and the standard VAT rate is 21%.
Income Tax
20%–32%
Progressive rates
Corporate Tax
15%
Standard corporate tax rate
VAT / GST
21%
Standard VAT rate
Nomad Visa
Available
Digital Nomad Visa
Tax System Overview
Lithuania employs a progressive tax system with personal income tax rates ranging from 20% to 32%. Corporate tax is competitive at 15%, and the VAT rate is 21%.
System Type
Progressive personal income tax
Resident Taxation
Residents are taxed on worldwide income.
Non-Resident Taxation
Non-residents are taxed only on Lithuanian-source income.
Tax Year
January 1 – December 31
Income Tax Bands
Lithuania's progressive income tax bands based on annual taxable income in EUR (2025).
Tax Treaty
Double Taxation Agreements reduce withholding taxes and avoid double taxation on income from foreign sources.
Germany
Treaty ActiveLithuania and Germany have a double taxation treaty that prevents individuals and businesses from being taxed twice on the same income, reduces withholding taxes on dividends, interest, and royalties, and clarifies tax residency rules.
Key Benefits
Prevents double taxation on income earned in both countries.- Reduced withholding tax on dividends, interest, and royalties.
- Clarifies tax residency to determine where taxes should be paid.
Totalization Agreement
These agreements coordinate social security systems, ensuring workers pay into only one system at a time.
Germany
Agreement ActiveLithuania and Germany have a social security totalization agreement that prevents workers from paying social security in both countries simultaneously.
Coverage Areas
Facts
- Prevents double taxation of social security contributions for Lithuania–Germany workers.
- Allows workers who split careers between the two countries to combine contribution periods.
Other Countries with Agreements
Business & Freelancing
Corporate Tax Rate
15% standard rate with possible reductions for small businesses
VAT Registration
Mandatory if annual turnover exceeds €45,000.
Freelancer Rules
Freelancers are subject to personal income tax and must register for VAT if turnover exceeds the threshold.
Crypto Policy
Cryptocurrency gains are taxed as personal income at applicable rates.
Frequently Asked Questions
Digital Nomad & Benefits
Visa Details
Tax Perks
- No wealth tax on global assets.
- Competitive corporate tax rate for businesses.
Filing Roadmap
Obtain a Tax Identification Number
Register for a tax identification number at the local tax office.
Gather Income Documents
Collect all necessary income statements and documentation.
File Your Tax Return
Submit your tax return online or at the tax office by the deadline.
Pay Any Tax Due
Ensure any taxes owed are paid by the filing deadline.