Ending your tax residency in Lithuania might seem like a daunting task, but with the right guidance, you can navigate the process smoothly. This guide provides you with a clear, step-by-step roadmap to cease your tax residency in Lithuania.
Determine Eligibility
First, ascertain whether you meet the criteria to cease your tax residency. According to Lithuanian tax law, you are considered a tax resident if you have a permanent place of residence in Lithuania, spend more than 183 days in a tax year in Lithuania, or have close personal or economic relations in Lithuania. Ensure that you do not meet these criteria to proceed with the cessation process.
Prepare Necessary Documentation
Gather all required documents to support your claim that you are no longer a tax resident. This typically includes proof of residence in another country, evidence of employment or business activities abroad, and any other relevant documents that demonstrate your center of vital interests has shifted outside of Lithuania.
Submit a Notification to the State Tax Inspectorate
You must notify the State Tax Inspectorate (STI) of your intention to cease tax residency. This is done by submitting a formal notification, usually through a specific form provided by the STI. Ensure that all sections of the form are completed accurately and all supporting documents are attached.
Await Confirmation
After submitting your notification, the STI will review your application and the accompanying documents. This process may take some time, so be prepared to wait for confirmation. The STI may also request additional information or clarification during their review.
Receive Confirmation and Update Records
Once the STI has reviewed your application and is satisfied with the provided information, you will receive a confirmation that your tax residency has been ceased. Ensure that you update all relevant records, such as your address and tax status, with other governmental and financial institutions.
Legal References
- Law on Personal Income Tax of the Republic of Lithuania (Article 4)
- Rules on Determining Tax Residency of Individuals (Approved by Order No. VA-82 of the Head of the State Tax Inspectorate)
Useful Links
- State Tax Inspectorate under the Ministry of Finance of the Republic of Lithuania
- Ministry of Finance of the Republic of Lithuania
