Thanks to its excellent investment conditions, stable currency and astounding economic growth over the past few years, Lithuania has taken a leading position in the Baltic region. Accession to the EU, as well as a large number of bilateral agreements signed with many states of Europe and America, lead to an ever-increasing attractiveness of Lithuania for foreign investors.
What are the advantages of starting a company in Lithuania?
Opening a company in Lithuania for a non-resident seems to be very profitable, since in this country there are practically no restrictions on the registration of companies by foreigners. The standard of living in Lithuania is growing rapidly, the economic situation is improving, the state is promoting the development of private business.
Companies registered in Lithuania have all the same opportunities as German or French, but they are easier and cheaper to register.
Russian entrepreneurs see for themselves another very important advantage in opening a company in Lithuania - in large Lithuanian cities the Russian language is quite common, therefore, when doing business, you do not have to overcome the language barrier.
Setting up a business in Lithuania is a good decision. The country has a developed economy that is integrated into the European one. In addition, Lithuania is geographically close to Russia and Belarus, which allows doing business in these two countries in parallel.
Lithuania has an attractive tax system with low fixed taxes. Tax rates directly depend on the chosen form of business. The main taxes that businesses pay include:
Personal income tax - 15%. A preferential rate of 5% applies to certain types of activities of individual entrepreneurs.
Corporate tax (for companies, private companies, partnerships, etc.) - 15% A preferential rate of 5% applies to small businesses whose income does not exceed LTL 1 million (approximately EUR 289,500), number of employees - up to 10 people.
Value added tax (VAT) is levied on all enterprises registered as a VAT payer - 21%. The threshold for registration as a payer is LTL 155,000 (approximately EUR 45,000). A preferential rate of 9% applies to books, periodicals and non-periodicals, scheduled passenger services, hotel accommodation and other special accommodation services. A reduced rate of 5% applies to technical aids for people with disabilities.
Real estate tax is paid by enterprises that own registered property - 0.3-1%
Social security tax for an employee - 9%
Social Security Tax for Employers - 30.98-31.7%
Dividend tax - 15%
There are seven free economic zones (FEZ) in the economically important regions of the country. In the SEZ, prepared industrial sites with material and legal infrastructure, support services and tax incentives are provided for entrepreneurs. In the first 6 years, a zero profit tax rate is established, then - 7.5% for the next 10 years. Also, there is no dividend tax and real estate tax for companies established in the FEZ.
We will help you buy a company in Lithuania as soon as possible. If you are not interested in a ready-made business, we can help you register a company in Lithuania especially for you.