# Lithuania: taxes, residence and cost of living

Source: https://domicile.wiki/places/lithuania/ (domicile.wiki, researched 2026-10-16). Data licence CC BY-SA 4.0. Research, not tax or legal advice.

## At a glance

For an EU-citizen family of five living off a EUR 30M portfolio (the guide's default reader).

- Score for a wealthy family: 77 / 100
- Tax on a €30M portfolio: €76,500 a year
- Wealth tax: none
- Children inherit: tax-free
- After 60 years: €205,537,000 of €30,000,000 (with no tax at all: €286,928,000)
- Living costs, family of five: €211,344 a year
- EU member: yes
- Currency: EUR
- Capital: Vilnius

## Tax on investments, inheritance and wealth

2026 reform: most income progressive 20/25/32%, but dividends and gains on shares held over 5 years stay at a flat 15%; real estate gains exempt after 5 years. Children fully exempt from inheritance tax; no gift tax; no wealth tax, but a new progressive tax on residential real estate above thresholds.

- **Ordinary tax residence**: Ordinary Lithuanian tax residence; no special regime for new wealthy arrivals.

## Income tax

From 1 Jan 2026 most income is aggregated: 20% up to 36 average wages (EUR 83,237.40), 25% to 60 average wages (EUR 138,729), 32% above; some income is taxed at a flat 15%. NPD (non-taxable allowance): maximum EUR 747 a month at pay up to the EUR 1,153 minimum wage, reduced by 0.49 x (income - minimum wage), ending at EUR 2,677.49 a month; not modelled (personal_allowance 0). Employee social security 19.5% including 6.98% health, withheld; above 60 average wages (EUR 138,729) only the 6.98% health applies (recorded cap EUR 138,729 for the capped part).

## Inheritance law and trusts

Children, the spouse and dependent parents are guaranteed half of their intestate share. A foreign resident can choose the law of their nationality (EU Succession Regulation art. 22). Lithuania has no common-law trust; whether foundations can hold family wealth was not confirmed.

## Daily life (0-100, higher is better)

- Safety and personal security: 64
- Political and institutional stability: 73
- Corruption and government integrity: 67
- Legal system and property rights: 76
- Healthcare quality and access: 69
- Education quality: 58
- Human development and quality of life: 79
- Infrastructure and connectivity: 79
- Cost of living and housing: 79
- Business opportunities and economy: 79
- Cultural fit and lifestyle: 40

## Research notes

### Lithuania — family-office tax dossier

Last reviewed: 2026-10-16
Tax year: 2026
Reviewer: research agent (Claude), unreviewed by a tax adviser

#### Summary
2026 reform: most income progressive 20/25/32%, but dividends and gains on shares held over 5 years stay at a flat 15%; real estate gains exempt after 5 years. Children fully exempt from inheritance tax; no gift tax; no wealth tax, but a new progressive tax on residential real estate above thresholds.

#### Residence and eligibility
- Tax residence: Resident if: permanent place of residence in Lithuania; centre of personal, social or economic interests in Lithuania; present 183+ days in the tax period; or 280+ days over consecutive tax periods with at least 90 in one; or certain state-paid citizens abroad.
- EU/EEA free movement (EU): Register residence as EU citizen.
- Temporary residence permit (non-EU) (US, OTHER): Permit on grounds such as business/investment or employment under the Law on the Legal Status of Aliens; investment thresholds not verified in this research.

#### Capital gains
- Rule in force: From 2026, gains on securities held 5 years or less are added to total income and taxed at 20/25/32% (32% above about EUR 138,700). Gains on shares/units held more than 5 years and acquired outside an investment account are taxed separately at a flat 15%. Real estate held 5 years or more is exempt (was 10 years).
- Exemptions/thresholds: Gains on financial instruments up to EUR 500/yr exempt; other capital gains up to EUR 2,500/yr. Main home in the EEA exempt after 2 years' declared residence (or reinvestment within 1 year).
- Conditions: 15% flat rate (PIT Law art. 6(6)(3)): income from selling shares, parts or units (akcijos, dalys, pajai) that were acquired outside an investment account more than 5 years before the sale is taxed at 15% and not added to annual income. A reorganisation or restructuring of the issuer does not restart the 5-year period (VMI clarification reported by KPMG, March 2026). Bonds and other financial instruments are not covered and are taxed at the progressive rates. Investment account (since 2025): withdrawals above contributions taxed at 15%; reinvested returns not taxed. Accounts in EEA/OECD/treaty countries; individual (not joint) only.
- Holding periods: Shares/units/interests: more than 5 years -> 15% flat. Real estate: 5 years -> exempt (10 years before 2026).
- Foreign assets: Worldwide gains taxed; relief for foreign tax under treaties, capped at Lithuanian tax.
- Trader risk: Individual-activity (self-employed) income has its own regime (effective 5-20% up to EUR 42,500, then progressive); frequent trading recharacterisation not researched.
- Exceptions, reforms, announced changes: 2026 reform (adopted 2025, in force 1 Jan 2026): most income is aggregated and taxed at 20% up to 36 average wages (EUR 83,237), 25% up to 60 AW (EUR 138,729) and 32% above; previously 15%/20% for capital gains. Dividends, gains on shares held more than 5 years (outside an investment account) and investment-account withdrawals stay at a separate flat 15%.
- Confidence: high, partially verified.
- JSON: headline 32%; listed domestic 15%, listed foreign 15%, private business 15%, local real estate 0%, foreign real estate 0%. Basis: Assumes holding beyond the 5-year period: shares 15% flat; real estate exempt after 5 years. Short-term gains (<=5 years) on a large amount: 32% marginal. Headline 32% = top aggregated rate.

Conditions for the 15% rate re-checked 2026-10-15 (KPMG Lithuania, March 2026, summarising VMI on art. 6(6)(3)): shares/parts/units acquired outside an investment account more than 5 years before sale; 15%, not aggregated; reorganisation does not restart the clock. Bonds excluded. Confidence raised to high.

#### Dividends
- Rule in force: Dividends, Lithuanian and foreign, are taxed at a flat 15% PIT, separately from other income (not aggregated). Foreign WHT is credited up to the Lithuanian tax and the treaty rate.
- Exceptions, reforms, announced changes: 2026 reform (adopted 2025, in force 1 Jan 2026): most income is aggregated and taxed at 20% up to 36 average wages (EUR 83,237), 25% up to 60 AW (EUR 138,729) and 32% above; previously 15%/20% for capital gains. Dividends, gains on shares held more than 5 years (outside an investment account) and investment-account withdrawals stay at a separate flat 15%.
- Confidence: high, verified.
- JSON: headline 15%, domestic 15%, foreign gross 15%, relief method 'credit'. Basis: Flat 15% on gross dividend; a 15% US treaty WHT would be fully credited, leaving little or no Lithuanian tax.
- Outbound withholding: Dividends to non-resident companies: 17% WHT from 2026 (was 15%), 0% under the 10%/12-month participation exemption, reduced by treaty. Dividends to individuals carry 15% PIT withholding.
- Treaties: Broad network across EU/OECD and the US; treaties with Russia and Belarus cease to apply from 1 Jan 2026 (PwC). Exact count not verified.
- Holding companies: Lithuania taxes company profits annually (17% from 2026), not on distribution; participation exemption for qualifying dividends and share gains.

#### Inheritance and gifts to children
- Rule in force: Inheritance tax exists (5% up to EUR 150,000, 10% above, EUR 3,000 threshold) but children, spouse, parents, grandchildren, grandparents and siblings are fully exempt. There is no gift tax; gifts are a PIT matter and gifts from close family are exempt.
- Exemptions/thresholds: Children (incl. adopted) fully exempt from inheritance tax.
- Foreign assets: Residents' worldwide inheritances are in scope for non-exempt heirs; foreigners only on Lithuanian-registered property.
- Confidence: high, partially verified.
- Gifts: No gift tax (PwC). Gifts are income for PIT purposes, but gifts from close family members are exempt (general rule; not re-verified).
- Business relief: Not needed for children.
- Domicile/scope: Liability depends on heir's residence; irrelevant for children (exempt).
- JSON: basis 'beneficiary', children 'fully_exempt', exemption 0 EUR, brackets none, other transfer cost 0%.
- Surviving spouse: exempt from inheritance tax regardless of value.

#### Wealth tax
- Rule in force: No net wealth tax and no recurring levy on financial assets. From 2026 real estate tax became progressive on residential property (see property note), which is a property tax, not a wealth tax.
- Confidence: high, verified.
- Property taxes (not a wealth tax): From 2026: primary residence taxed only above EUR 450,000 per owner (EUR 900,000 for two co-owners) at 0.1-1% set by the municipality; other residential property taxed progressively 0.2%-1.0% above EUR 50,000 (1.0% above EUR 1,000,000); commercial 0.5-3% plus a 0.2% defence component.
- JSON: type 'none'.

#### Special regimes
None. No special tax regime for newly arriving wealthy individuals was found; only ordinary residence (JSON regime 'standard').

#### Company taxation (kept separate from personal tax)
- Headline CIT 17%. Standard CIT rose from 16% to 17% from 2026 (reduced rate 7%; 0% for the first two years for small new companies). Annual profit taxation. Participation exemption for dividends (10%/12 months). New loss-utilisation limits on reorganisations.

#### Cost of living notes

City: Vilnius.
- Prime family-home rent (monthly): EUR 2,400 (2026). Median of the 8 priced houses for rent in and around Vilnius in Baltic Sotheby's International Realty's rental list on 15 Oct 2026 (EUR 1,700-4,700; Antakalnis new-build 226 m² 4 bedrooms EUR 4,700, Antakalnis 140 m² EUR 3,900, golf-course villas in Vilnius district 125-345 m² EUR 1,700-2,600, several already let). The four homes with 4-5 bedrooms also have a median of EUR 2,400. Thin sample: the main portals (Aruodas, Domoplius, Skelbiu) blocked automated access. Checked 2026-10-15 against the upper-middle-class standard. Source: Find a property - for rent (houses), https://lt.balticsothebysrealty.com/en/find-a-property/?action=rent&type=house
- International school (annual, per child): EUR 26,847 (2026). American International School of Vilnius, Grades 11-12, 2026-2027: tuition EUR 24,349 plus annual capital fee EUR 2,498. New students pay a one-time EUR 2,707 admission fee and a EUR 428 application fee. Source: Tuition fees and payment policy, https://www.aisv.lt/tuition-fees-and-payment-policy/

Prime purchase price per m², family health insurance and housekeeper cost were not sourced in this round and are omitted rather than guessed. Rent is low-confidence (8 listings from one agency).

#### Open questions

- Whether ETF units of foreign (e.g. Irish UCITS) funds count as 'units' (pajai) for the 5-year 15% rule is assumed (yes), not confirmed in a VMI text.
- Average-wage thresholds are preliminary (KPMG gives EUR 82,962/138,270; PwC EUR 83,237/138,729).
- PIT exemption for gifts from close relatives not confirmed in a source opened during this research.
- Notary fees for the certificate of inheritance not verified (assumed small).

- Holding structures (2026-10-16): a Lithuanian UAB holding company was considered and not added as a regime. Its profit is taxed every year at 17%, not on distribution; gains on shares are exempt only for a stake above 10% held at least two years (PwC), so a diversified portfolio's gains and non-EEA dividends would be taxed at 17% inside the company, then dividends again at 15% on payout. It is never better than direct holding, and no source shows advisers recommending it for a listed portfolio. A private foundation or trust was not researched.
- Health insurance (PSD, 6.98%) on dividends and gains of an individual was searched for and not found in any source read; the file assumes none applies to these items.
- Needs an engine change (see data/recipes/LTU.json): the investment account (withdrawals above contributions taxed at 15%).

#### Sources
- [Lithuania - Individual - Income determination](https://taxsummaries.pwc.com/lithuania/individual/income-determination)
- [Lithuania - Individual - Taxes on personal income](https://taxsummaries.pwc.com/lithuania/individual/taxes-on-personal-income)
- [Lithuania: Tax changes starting 2026 (KPMG TaxNewsFlash, 4 Dec 2025)](https://kpmg.com/kpmg-us/content/dam/kpmg/taxnewsflash/pdf/2025/12/tnf-lithuania-dec-4-2025.pdf)
- [Mokesčių naujienos 2026 (tax news 2026, EN)](https://motieka.com/wp-content/uploads/2026/03/mokesciu_naujienos_2026_EN.pdf)
- [Lithuania - Individual - Foreign tax relief and tax treaties](https://taxsummaries.pwc.com/lithuania/individual/foreign-tax-relief-and-tax-treaties)
- [Lithuania - Individual - Other taxes](https://taxsummaries.pwc.com/lithuania/individual/other-taxes)
- [Successions in Europe - Lithuania](https://www.notariesofeurope.eu/en/faq3/successions-in-europe/lithuania/)
- [Lithuania - Individual - Residence](https://taxsummaries.pwc.com/lithuania/individual/residence)
- [Lithuania - Corporate - Withholding taxes](https://taxsummaries.pwc.com/lithuania/corporate/withholding-taxes)
- Mokesčių ir teisės naujienlaiškis, 2026 kovas (VMI clarification on GPMĮ art. 6(6)(3)): https://kpmg.com/lt/lt/izvalgos/mokesciu-ir-teises-naujienlaiskiai/2026-kovas.html
- Find a property - for rent (houses): https://lt.balticsothebysrealty.com/en/find-a-property/?action=rent&type=house
- Tuition fees and payment policy: https://www.aisv.lt/tuition-fees-and-payment-policy/

#### Change log
- 2026-10-15: initial research.
- 2026-10-15: confirmed conditions of the 15% rate on shares held over 5 years (KPMG LT / VMI, March 2026); added Vilnius cost of living (Baltic Sotheby's rent sample, AISV 2026-27 fees).
- 2026-10-15: family rent re-checked against the upper-middle-class standard: kept.
- 2026-10-16: added surviving-spouse treatment.
- 2026-10-16: no change to rates; recorded why a UAB holding company is not modelled, the unchecked PSD question, and the investment account engine gap; wrote the projection recipe `data/recipes/LTU.json`.


## Residence and succession sources

- [European e-Justice: Succession, Lithuania](https://e-justice.europa.eu/166/EN/succession?LITHUANIA&member=1) — European e-Justice Portal
- [Regulation (EU) No 650/2012 on succession](https://eur-lex.europa.eu/eli/reg/2012/650/oj) — European Union
- [HCCH status table: Convention of 1 July 1985 on the Law Applicable to Trusts and on their Recognition](https://www.hcch.net/en/instruments/conventions/status-table/?cid=59) — Hague Conference on Private International Law
- [Philea: Legal Environment for Philanthropy in Europe, Lithuania](https://philea.eu/wp-content/uploads/2025/11/Lithuania-Philea-2020-Legal-Environment-for-Philanthropy-in-Europe.pdf) — Philea