Key takeaways
- You are a Lithuanian tax resident if your permanent place of residence or centre of vital interests is in Lithuania, or if you are present for 183 days or more in a tax year, or 280 days or more over successive tax periods (with at least 90 days in one of them).
- From 1 January 2026, most income is aggregated and taxed at progressive rates of 20%, 25% and 32% (thresholds EUR 83,237 and EUR 138,729), while dividends and certain long-held investments are taxed at 15%.
- A certificate of tax residence is issued by the State Tax Inspectorate (VMI) on request, usually online through the My VMI portal.
Last reviewed: October 2026
Lithuania – especially Vilnius – has become a hub for fintech, startups and remote professionals, helped by e-residency-style digital services and the startup visa. In 2026 its personal tax system changed significantly with the move to progressive, aggregated taxation. This guide explains residence, the new rates and how to get a residence certificate.
Lithuanian tax residency – key figures (2026)
| Item | Rule |
|---|---|
| Residence tests (any one) | Permanent place of residence; centre of vital interests; ≥ 183 days in the tax year; ≥ 280 days over successive tax periods with ≥ 90 days in one |
| Tax year | Calendar year |
| Progressive PIT (2026) | 20% up to EUR 83,237; 25% up to EUR 138,729; 32% above |
| Reduced 15% rate | Dividends; shares sold after 5+ years (outside investment account); certain pension and stock-option income |
| Certificate of residence | Issued by the VMI |
| Social security & health insurance | Employee about 19.5% (social insurance 12.52% + health 6.98%), employer about 1.77% |
Who is a Lithuanian tax resident?
The Law on Personal Income Tax treats you as resident if any of these applies:
- your permanent place of residence during the tax period is in Lithuania;
- your centre of vital interests – personal, social or economic ties – is in Lithuania rather than abroad;
- you are present in Lithuania 183 days or more in the tax period, continuously or not;
- you are present 280 days or more over successive tax periods, with at least 90 days in one of them;
- you are a Lithuanian citizen paid under an employment contract whose living costs abroad are covered by Lithuanian public budgets.
The 280/90 test often surprises remote workers: two years of roughly 140 days each can make you resident even though neither year reaches 183 days.
The 2026 tax rates
From 2026, most taxable income is aggregated annually and taxed progressively: 20% up to 36 average wages (EUR 83,237), 25% up to 60 average wages (EUR 138,729) and 32% above. Dividends and certain investment income are taxed at 15%.
Example: A resident software engineer earns EUR 100,000 in 2026: EUR 83,237 is taxed at 20% and EUR 16,763 at 25%, before social contributions. Dividends of EUR 20,000 from her own UAB are taxed separately at 15%.
How to become resident in Lithuania
- EU/EEA citizens: register residence within three months of arrival with the Migration Department and declare your address.
- Non-EU nationals: apply for a temporary residence permit – work (including the EU Blue Card), business, startup visa, family or study.
- Declare your place of residence, obtain a personal code and register with the VMI for tax purposes; self-employed workers register an individual activity.
How to get a Lithuanian certificate of tax residence
- Log in to My VMI (Mano VMI) with your Lithuanian e-identity or bank login.
- Submit a request for a certificate of residence (in Lithuanian or English), stating the year and the treaty country; or have the VMI confirm a foreign authority's form.
- Provide supporting evidence if asked (address declaration, lease, employment contract, days of presence).
- Download the issued certificate and send it to the foreign payer or tax authority.
Points for location-independent professionals
- Remote employees of foreign companies are taxable on their salary in Lithuania once resident; the employer may need Lithuanian payroll registration or an EOR.
- Freelancers: individual activity income is taxed under specific rules (with reduced effective rates for lower incomes).
- Founders: Lithuania's UAB is a common startup vehicle; dividends to residents are taxed at 15%.
Frequently asked questions
How do I become a tax resident in Lithuania?
Make Lithuania your permanent place of residence or centre of vital interests, or spend 183 days in a calendar year (or 280 days over successive years with at least 90 in one). Register your residence and address and register with the VMI.
What are the income tax rates in Lithuania in 2026?
From 2026 most income is taxed progressively at 20% up to EUR 83,237, 25% up to EUR 138,729 and 32% above. Dividends and certain long-held investment gains are taxed at 15%.
How do I get a tax residency certificate in Lithuania?
Request it from the State Tax Inspectorate (VMI), typically through the My VMI portal, stating the year and the treaty country, and provide supporting evidence if requested.
What is the 280-day rule in Lithuania?
You are resident if you spend 280 days or more in Lithuania over successive tax periods, with at least 90 days in one of them, even if you never reach 183 days in a single year.
Related guides
- Capital gains tax in Lithuania
- How to obtain tax residency in Latvia
- How to obtain tax residency in Estonia
Sources
- PwC Worldwide Tax Summaries – Lithuania: Residence
- PwC Worldwide Tax Summaries – Lithuania: Taxes on personal income
- State Tax Inspectorate (vmi.lt); Migration Department (migracija.lt)
This guide is general information, not personalised tax advice.
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