Lithuania

Worldwide income received by a Lithuanian tax resident is subject to PIT. However, only the following income sourced in Lithuania by a non-resident is subject to PIT:

• Employment-related income or income arising from substantially similar relations.
• Income from distributed profits and payments to the members of the Board or Supervisory Board.
• Interest income, except for interest received on government non-equity securities.
• Royalties.
• Income from sports activities, including income directly or indirectly related to those activities irrespective of whether the payment is made directly to the sportsman concerned or a third party acting on behalf of and for that sportsman.
• Income from performing activities, including income directly or indirectly related to those activities irrespective of whether the payment is made directly to the performing artist concerned or a third party acting on behalf of and for that performing artist.
• Income from the lease of immovable property located in Lithuania.
• Income from the sale or transfer of movable property if that object is subject to legal registration in accordance with the local regulations and such object is (or must be) registered in Lithuania, as well as income from the sale of immovable property located in Lithuania.
• Income derived from individual activities carried out through a fixed base, as well as income earned abroad that is attributed to that fixed base in Lithuania, where the said income is related to the activities of a non-resident through the fixed base in Lithuania.
• Compensation for copyright infringement.

Personal income tax rates

Starting from 1 January 2026, most categories of taxable income received by individuals are subject to progressive PIT rates and are aggregated for annual PIT purposes.  The aggregated annual PIT base generally includes employment income, income from individual activities, remuneration received under copyright agreements from an employer, royalties, and certain other categories of income. Depending on the total amount of income, the following PIT rates will apply: 

• 20% for annual income up to 36 average wages (AW) (up to EUR 83,237 in 2026);  
• 25% for income from 36 to 60 AW (from EUR 83,237 to EUR 138,729 in 2026);
• 32% for the portion of income exceeding 60 AW (from EUR 138,729 in 2026).

However, there are exceptions to income aggregation. Certain types of income are not subject to progressive PIT rates and are instead taxed at a reduced 15% PIT rate, such as:

• income from distributed profits (dividends);
• the portion of pension benefits received from a pension fund equal to the contributions paid;
• income from the sale of shares acquired outside an investment account and held for at least 5 years;
• funds withdrawn from an investment account that exceed the contributed amount; and others. 

A 15% PIT rate also applies to income from the sale of shares acquired under stock option agreements, provided the shares are sold no earlier than 3 years after the right to acquire the shares was granted. 

Local, state, or provincial PIT rates

There are no local, state, or provincial PIT rates applicable in Lithuania.