LITHUANIA - ONE OF THE BEST COUNTRIES TO START BUSINESS

Have a great startup idea? Looking for the best country to start business? Or, maybe you already run a successful company and looking for a most attractive jurisdiction for investment or site to set-up a branch ir even move your HQ? Lithuania is one of the most attractive countries in EU to start business. 

TAXES AND COSTS

Costs for running a business, such as taxes, company formation and maintenance, infrastructure, and expected salary level for your employees in Lithuania are very reasonable. Read more...

TALENT AND INFRASTRUCTURE

Lithuania has a broad range of talent, from engineering and tech skills to self-starters. E-infrastructure is EU-leading and one of the best worldwide. Read more...

LIFE QUALITY

Quality-of-life factors are breaking into the top considerations when choosing where to sep up business. Would it be enough to mention that Vilnius, Lithuania ranks 25% higher in quality of life index than such cities as London? Read more...

TAXES

Companies must register as VAT payers if their income from economic activities over a period of 12 months exceeds 45k EUR. There is no threshold for voluntary registration.  0% VAT rate is applicable to goods exported to the EU as well as transport and other services directly related to the export of these goods. VAT exemptions and reduced rates are applicable in some cases. Lithuania has jumped two positions in the 2017 Paying Taxes report thanks to low administrative burden and quick VAT refund procedure.

The standard rate for corporate income tax (called profit tax in Lithuania) is 15%. An enterprise with gross income below 300k EUR during a tax year and with the average number of employees not exceeding 10 has the right to apply a 5% rate. Scientific research and experimental development costs, except for depreciation or amortization costs of fixed assets, could be deducted three times from income for the tax period if the research will generate income or economic benefit. Reduced rates for companies registered in free economic zones are also available.

For Lithuanian tax resident any income from any country is taxed in Lithuania. The object of income tax of a tax non-resident is income earned through his/her permanent
establishment and other income originating in Lithuania: interest, dividend and payments to board members, rent of real estate located in Lithuania, sale of property located
in Lithuania, employment income, income of sportspersons
and performers, royalties. Standard rate is 15% for most types of income, however, a 5% rate is applied to the
income received from certain individual business activity.

The total amount of social security contributions in most cases are 39.98% (this includes 3% health insurance contributions for employers, 6% health insurance contributions for employees and 3% social security/solidarity contributions). The employee may be exempt from social security contributions in case he works and has social insurance in another EU country (A1 form is required from his/her residence country's authorities).

Land tax rate ranges from 0.01% to 4% depending on local municipalities. Pollution tax  rates vary depending on the type and toxicity of the pollutant in question. Real estate tax rate ranges from 0.3% to 3% depending on local municipalities. CONTACT US for free detailed review of your case.

Lithuania was ranked 16 of 190 countries in Doing Business 2018 report (by World Bank). In Paying Taxes category, it is 1st in all Europe and Central Asia.

Lithuanian and foreign taxable entities registered in Lithuania must pay taxes in Lithuania on profits and capital gains earned both in Lithuania and abroad. Withholding taxes paid abroad and not exceeding the tax payable in Lithuania on foreign income may be credited. 

CONTACT US for free detailed review of your case.

COSTS

Company formation in Lithuania is quick, easy and relatively inexpensive process. Most of accounting procedures are processed online. Audit is mandatory for all public and
private companies meeting two of the three criteria: (1) Revenues from sales exceeded 3,500k EUR over the past year, (2) Over the accounting year, the average number of employees was at least 50, (3) Assets on the balance sheet exceeded 1,800k EUR

Despite rising significantly during recent years, salary levels in Lithuania remain lower than in many other EU countries. In 2017, average monthly salary was ~840 EUR. However, salaries of qualified employees are much higher. For example, a mid-career developer could expect to earn ~2000 EUR, but again, that is more than 1/3 lower than the salary level he would expect in London.

Lithuania is situated at the heart of Europe, thus making it easy and convenient to access other European cities. Modern technologies (4G mobile communications infrastructure, mobile WiMAX 4G Internet), the fastest public Wi-Fi in Europe and the greatest fiber-optic (FFTH) Internet network penetration in Europe – all these factors make Lithuania especially attractive. Office rent prices are way lower than large European megapolises.

There's more to a business than furnishings and office rental. There are a few generic costs that are common to all business types, such as research expenses, insurance, license and permit fees, equipment and supplies, advertising and promotion, borrowing costs or technological expenses.
CONTACT US for free detailed review of your case and advise on costs of  running a business in Lithuania you may expect.

Careful research of the industry and consumer makeup must be conducted before starting up a business. In most cases, costs of starting and running a business in Lithuania are significantly lower than other EU countries. 

CONTACT US for free detailed review of your case and advise on costs of running a business in Lithuania you may expect.

TALENT AND INFRASTRUCTURE

More than 80% of young people in Lithuania speak English. Moreover, people also speak Russian (70%), Polish (14%), German (8%) and other languages. 

Lithuania has the highest tertiary educational attainment
rate in the EU. In fact, Lithuania is one of the leaders in the EU for mathematics, science and technology graduates per capita. A lot of young people choose studying Engineering, Manufacturing and Construction.

More than 2/3 of population aged 18-35 would like to work for an international company. A new 2017 Labour Code, allowing more flexible labour relations, is one more step forward to balance the rights of employers and employees.

Lithuania is among the leaders in the world by fiber-optic infrastructure, public WiFi speed and mobile internet speed. Additionally, broadband internet here is cheap: almost 3 times less expensive than in Britain, France or Germany (source: Numbeo).

Being located at the crossroads among Western Europe, Northern Europe, Russia and the rest of Asia, Lithuania offers fast and high quality logistic solutions to investors. Ratings for the quality of transport infrastructure are above the EU average as regards road and rail infrastructure.

Lithuania offers a unique combination of modern infrastructure, highly educated and skilled talent, openness to innovation, and connections to the rest of Europe. 

READ ABOUT hiring procedures in Lithuania

CONTACT US for more information concerning your specific business needs.

LIFE QUALITY

You can afford yourself much more in Lithuania: according to Numbeo, you would need around 2200 EUR monthly in Vilnius to maintain the same standard of life that you can have with 5000 EUR in London, 3200 EUR in Berlin, 4500 in Copenhagen or 3900 EUR in Helsinki.

Lithuania is safe country to settle in. General safety index of here higher than such countries as Germany, Poland, Spain or even Netherlands. Lithuania is sheltered from natural disasters. Crime rate in Lithuania is low. No people have ever been killed or injured in any kind of terrorist attacks.

Lithuania is clean-air, efficient and basically traffic jam free country. You should expect wasting much less time for your daily commute than in London or Paris. Smart public transport solutions, bike and car sharing will make your transportation even easier.

Lithuania has been called Europe's best-kept secret. It is a country that has been shaped by its rich ancient history and deep-seeded roots. Visitors are often surprised by the colorful landscape and natural treasures found there. Experience the beautiful countryside while taking in fine art and witnessing historical landmarks that paint eerie stories of days past. Or, dive into cobbled labyrinth of parks, squares, bars, cafes and restaurants in Vilnius, Kaunas or Klaipėda.

In some industries, quality-of-life factors are breaking into the top-five considerations when choosing a site. Why? Because in technology firms and industries dependent on highly specialized workers, quality of life directly affects the quality and cost of labor.

CONTACT US for free information about specific topics you are interested in.