Lithuania tax
Tax residence: At least 183 days in tax period. Foreign-source income of residents: Worldwide, treaty exception. Special regime for new residents: Business certificate and 20% rate.
Checked against official sources on Change log
Tax residence
- At least 183 days in tax period · Present in Lithuania, continuously or with breaks, 183 days or more in the tax period makes the person a permanent resident.
- At least 280 days in two successive tax periods · Present 280 days or more over successive tax periods, with at least 90 days in one of them.
- A person is also resident if the permanent place of residence, or the place of personal, social or economic interests, is in Lithuania. Rate bands are multiples of the average wage used for state social insurance contributions; other rates apply to specified income: 15% on distributed profit and on non-employment income up to 12 average wages, and 5% on income from selling waste up to 12 average wages.
Special regimes for new residents
Special regime
Individual activity: business certificate and 20% rate for small individual-activity income
20% tax
Details
- Limit: €50k/yr ≈ $56k
Individual-activity income up to EUR50,000 (≈ $55,900) a tax period can be taxed by a fixed income tax bought with a business certificate (amount set by the municipality); individual-activity income up to EUR42,500 (≈ $47,500) a year otherwise carries a 20% rate. 1
Taxed on
Income from individual activity (self-employment) of residents; fixed-size tax for the business certificate.
Who it applies to
- Individual activity income up to EUR50,000 (≈ $55,900) per tax period (summed across activities) may be taxed by the fixed income tax paid when acquiring the business certificate.
- Individual-activity income above EUR50,000 (≈ $55,900) is added to the annual income and taxed at the 20/25/32% bands.
- Individual-activity income, other than the fixed-tax income, up to EUR42,500 (≈ $47,500) a year is taxed at 20%.
Exclusions
- Agricultural-activity income has separate rates: 15% up to 60 average wages and 20% above.
Limits
- EUR 50,000 a year (≈ $55,900) · Maximum individual-activity income that can be taxed by the fixed business-certificate tax per tax period.
- EUR 42,500 a year (≈ $47,500) · Individual-activity income up to this amount a year is taxed at 20%.
Tax residence
Applies to permanent residents; non-residents are taxed on individual activity carried out through a permanent base in Lithuania.
Visas
Independent of the residence permit.
Checked against official sources on Change log
Standard rules and foreign-source income
Standard rules
Ordinary taxation of permanent residents on worldwide income
Worldwide, treaty exception
Details
- On: Worldwide income of permanent Lithuanian residents (Art. 5(2))
- Who: Permanent resident (Art. 4): permanent place of residence in Lithuania
Permanent residents of Lithuania are taxed on income from Lithuanian and foreign sources: 20% up to 36 average wages, 25% from 36 to 60 average wages and 32% above 60 average wages (average wage as set for state social insurance contributions). 1
Taxed on
Worldwide income of permanent Lithuanian residents (Art. 5(2)), including foreign-source income; Lithuanian-source income only for non-residents and for the treaty-resident foreigners described below.
Who it applies to
- Permanent resident (Art. 4): permanent place of residence in Lithuania; or place of personal, social or economic interests more in Lithuania than abroad; or present 183 days or more in the tax period; or 280 days or more over successive tax periods with at least 90 days in one of them.
- Exception (Art. 5(3)): a non-citizen who is resident only by the 183-day or 280/90-day tests and is also resident of a treaty partner state for the same period, and whose home state competent authority informs the Lithuanian tax administrator, is taxed on Lithuanian-source income only.
- Treaty relief (Art. 37): income received in a treaty state, other than interest, dividends and royalties, is exempt in Lithuania if income tax was paid there; tax paid on interest, dividends and royalties there is credited.
Exclusions
- Citizens of Lithuania who work abroad under an employment contract or whose living costs abroad are paid from the state or municipal budget remain residents (Art. 4(1)(5)).
Days in the country
- At least 183 days in tax period · Present in Lithuania, continuously or with breaks, 183 days or more in the tax period makes the person a permanent resident.
- At least 280 days in two successive tax periods · Present 280 days or more over successive tax periods, with at least 90 days in one of them.
Tax residence
A person is also resident if the permanent place of residence, or the place of personal, social or economic interests, is in Lithuania. Rate bands are multiples of the average wage used for state social insurance contributions; other rates apply to specified income: 15% on distributed profit and on non-employment income up to 12 average wages, and 5% on income from selling waste up to 12 average wages.
Visas
Independent of the residence permit.
Checked against official sources on Change log
Questions people ask
When do you become a tax resident in Lithuania?
At least 183 days in tax period (Present in Lithuania, continuously or with breaks, 183 days or more in the tax period makes the person a permanent resident); At least 280 days in two successive tax periods (Present 280 days or more over successive tax periods, with at least 90 days in one of them). A person is also resident if the permanent place of residence, or the place of personal, social or economic interests, is in Lithuania.
Is foreign-source income taxed in Lithuania?
Worldwide, treaty exception. Permanent residents of Lithuania are taxed on income from Lithuanian and foreign sources: 20% up to 36 average wages, 25% from 36 to 60 average wages and 32% above 60 average wages (average wage as set for state social insurance contributions).
Who qualifies for Business certificate and 20% rate?
Individual activity income up to EUR50,000 (≈ $55,900) per tax period (summed across activities) may be taxed by the fixed income tax paid when acquiring the business certificate. Independent of the residence permit.
≈ USD figures are approximate: daily reference rates from ExchangeRate-API, dated 12 Oct 2026, refreshed when the site is updated.
Sources (1)
Official sources
- Law on Personal Income Tax No IX-1007, consolidated text valid 2026-06-11 to 2026-12-31 (Lithuanian) · Seimas of the Republic of Lithuania (e-seimas) · checked 2026-10-11 · published 2026-06-11