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When doing business in Lithuania, companies benefit from a stable and innovation-focused economy supported by strong industries such as manufacturing, IT, biotechnology, finance, shared services and logistics. Lithuania also actively promotes investment in high-growth fields like fintech, renewable energy, advanced manufacturing and logistics solutions, making it a competitive hub for regional and international expansion.
The regulatory environment is designed for clarity and accessibility, with defined procedures for company formation, taxation and VAT obligations supported by digital public registers. Employment regulations allow for a wide range of contract types and clear pathways for both EU and non-EU nationals, while businesses and individuals operate within a structured personal tax and social security framework that supports diverse forms of economic activity.
Together, these elements position Lithuania as an attractive destination for organisations seeking opportunities in the Baltics. This infographic summarises the key points to consider when entering or expanding in the Lithuanian market.
Our free eBook on international expansion was created in cooperation with our global business community, Accace Circle, providing basic yet valuable information from 17 countries. Breeze through the specifics of doing business across different markets and compare key data that may be crucial for your ambitions of international expansion.
Most common industries:
Industries favoured by investment incentives:
Most common legal form of business: Private Limited Liability Company
Required no. of shareholders: at least 1
Required no. of directors: at least 1
Official company registers: www.registrucentras.lt
* Small companies may apply 6% or 0% under certain conditions. The rates will increase by 1% in 2026
Who are tax residents: companies incorporated in Lithuania, have a place of effective management located in the country
Tax period: calendar year, however companies may choose a different financial year
Due date for CIT return: by the 15th day of the 6th month following the end of the tax year (usually June 15)
VAT registration for residents: mandatory if:
VAT registration for non-residents: mandatory if they carry out taxable supplies of goods or services in Lithuania (including distance sales, intra-EU acquisitions exceeding EUR14,000, or services subject to reverse charge where the supplier is required to register), regardless of turnover threshold.
Other applicable taxes:
In Lithuania, there is no wealth tax, property tax or regional income tax.
Who is entitled to work in Lithuania:
Types of employment contract:
* 20% on annual income up to €126,533 and 32% on annual income exceeding €126,533
Who are tax residents: Individuals who have a permanent residence in Lithuania, stay more than 183 days in Lithuania in a tax year or maintain their centre of vital interests in Lithuania
Tax period: calendar year
Due date for PIT return: company must submit the annual PIT declaration for employees by February 15 of the year following the reported calendar year; individuals must file their annual PIT return by May 1 of the following year, reporting all income received during the previous year
Taxable incomes in Lithuania: employment income, business/professional income, dividends, capital gains, rental income, and other worldwide income of residents
* Plus 0.16% to Guarantee Fund
Health insurance contribution is included in the 19.5% employee rate. Self-employed persons pay social security at different rates (approx. 12.52% pension + 6.98% health insurance on 90% of taxable income, with minimum thresholds).
Doing business in Lithuania can be a smooth experience when you have the right partners guiding you. The Lithuanian market offers both promising opportunities and certain challenges. With support from knowledgeable professionals, you can understand the local business environment and move forward with assurance. Whether you are starting a new venture or planning to expand your existing company, our team of Lithuanian specialists is ready to develop business solutions that fit your unique needs.
We deliver a full range of advisory and BPO services in Lithuania designed to keep your tax, legal and corporate affairs, as well as accounting, reporting, payroll and HR activities, accurate, efficient and always in line with Lithuanian laws and standards.
Market entry support | Tax advisory and compliance | Legal advisory | Accounting and reporting | Accounting portal | Payroll outsourcing | Payroll portal | Attendance portal | HR administration | Transaction advisory | Transfer pricing | Company registration | Corporate and secretarial services | ESG reporting | Online consulting | Fixed service packages
About Accace
Accace is a proactive consultancy and outsourcing partner who bridges the gap between needs and solutions. Combining smart and streamlined technology with a holistic approach, we provide an all-round care to clients and consider their matters as our own. With over 800 experts and approximately 2,000 customers, we have vast experience with facilitating the smooth operation and growth of small to large-scale, global businesses.
About Accace Circle
Accace operates internationally as Accace Circle, a co-created business community of like-minded BPO providers and advisors who deliver outstanding services with elevated customer experience and erase the borders of service delivery. Covering over 60 jurisdictions with more than 7,000 professionals, we support over 80,000 customers, mostly mid-size and international Fortune 500 companies from various sectors, and process at least 800,000 pay slips globally.
