Lithuania

Social security contributions

The following income is subject to social security and health insurance contributions (only the main types of income are commented):

• Income derived under employment agreements: Social security contributions at rates ranging from 1.77% to 3.03% (or from 2.49% to 3.75% for fixed-term employment agreements), depending on the employer's risk category, are payable by employers. The employer rates include contributions to the Guarantee Fund and the Long-term Employment Fund at 0.16% each, where applicable. Employee social security contributions are withheld at a rate of 19.5% (including health insurance contributions at 6.98%). Both employer and employee social security contributions are payable only up to 60 average wages (AW) (EUR 138,729 in 2026). Income exceeding this threshold is subject only to compulsory health insurance contributions at a rate of 6.98%.  
• Income from distributed profits and other remuneration received by the members of the Board or Supervisory Board: Individuals are subject to social security contributions at 15.7% (including health insurance contributions at 6.98%) up to 60 AW (EUR 138,729 in 2026). Income exceeding this threshold is subject only to compulsory health insurance contributions at 6.98%.   
• Income received from individual activities, except for income derived under business certificates: Social security contributions at 19.5% (including health insurance contributions at 6.98%) are applied to individuals. The contributions are calculated on 90% of taxable individual activity income (i.e. income after allowable deductions), rather than on gross revenue. The annual contribution base is capped at 43 AW (EUR 99,422 in 2026). 
• Income received from individual activities derived under business certificates: Social security contributions at 15.7% (including 6.98% of health insurance contribution) are paid by individual per month on the amount of official minimum monthly salary amount in force. 
• Income derived from sports activities, performers’ activities, and under copyright agreements (when it is received from the company that is also the employer of such individual): Income is subject to the same rates and thresholds for the company and individual as stated above for employment agreements (the contributions to the Guarantee Fund and Long-term Employment Fund are not applicable).
• Income derived from sports activities, performers’ activities, and under copyright agreements (when it is received from the company that is not the employer of such individual): Social security contributions at 19.5% (including health insurance contributions at 6.98%) are applied to individuals. The contribution base is 90% of the remuneration received and is capped at 43 AW (EUR 99,422 in 2026).   

Individuals may voluntarily participate in the second-tier pension accumulation system. Participants contribute 3% of income subject to social security contributions, while the state contributes an additional amount equal to 1.5% of the average national wage as determined under applicable legislation. As of 1 January 2026, participation is voluntary. 

There is also an option to pay higher contributions (above 3%) either by individuals themselves or their employers. Such expenses are PIT deductible for individuals and corporate income tax (CIT) deductible for employers. 

Social security returns should be submitted by employers on a monthly basis by the 15th day of the following month, and the contributions should be paid on a monthly basis by the 15th day of the following month. The social security returns must be submitted electronically.

International social security

The Lithuanian legislation on social security has been harmonised with the European Union (EU) regulations. Foreign employees seconded to Lithuania from an EEA country or Switzerland and their employers are not required to pay social security contributions in Lithuania if an A1 certificate is obtained.

Lithuania also has a number of bilateral social security agreements with non-EU countries. However, the scope of these agreements differs by country and should be reviewed on a case-by-case basis. 

Employees temporarily seconded to Lithuania from third countries, with which Lithuania has no reciprocal social security agreements, are not required to pay the Lithuanian social security contributions as well, unless their permanent place of employment becomes Lithuania or the secondment exceeds one year.

Consumption taxes

Value-added tax (VAT)

The standard VAT rate is 21%. Reduced rates are 12% and 5% 

See the Other taxes section in the Corporate tax summary for more information.

Net wealth/worth taxes

There are no net wealth/worth taxes in Lithuania.

Inheritance tax

Property for inheritance tax purposes is defined as real estate and movable property as well as securities and cash. Foreigners pay this tax in the same manner as citizens of Lithuania, however, only inherited real estate and movable property subject to registration in Lithuania is subject to taxation.

Inheritance tax is not imposed if:

• Property is inherited by the remaining spouse following the death of one's spouse.
• Property is inherited by a child (adopted child), a parent (foster parent), a custodian, a child in custody, a grandparent, a grandchild, a brother, or a sister.
• The taxable value of inherited property does not exceed EUR 3,000.

Otherwise, the tax rates for inherited property are 5% (if the taxable value is up to EUR 150,000) and 10% (if the taxable value exceeds EUR 150,000).

Gift tax

There is no gift tax applicable in Lithuania.

Real estate tax (RET)

As of 1 January 2026, Lithuanian real estate tax rules distinguish between the primary residence and additional real estate.

Primary residence (i.e., residential premises where the property owner – a natural person – has declared their place of residence) is taxable from:

• EUR 450,000 – if there is one owner;
• EUR 900,000 – if there are two co-owners.
• Real estate tax rates range from 0.1% to 1%, as determined by municipalities.

Second and subsequent properties are taxable from EUR 50,000:

• 0.2% (EUR 50,000–EUR 200,000);
• 0.4% (EUR 200,000–EUR 400,000);
• 0.6% (EUR 400,000–EUR 600,000);
• 0.8% (EUR 600,000–EUR 1,000,000);
• 1.0% (above EUR 1,000,000).

Special real estate tax rates, set by municipalities, apply to:

• Abandoned property: 1%–5%;
• Commercial property: 0.5%–3%.

From 2026, a supplementary 0.2% tax applies to taxable value of all real estate, except for main residential properties and other residential real estate owned by individuals, which are subject to progressive tax rates.   

Luxury tax

There is no luxury tax applicable in Lithuania.