Lithuania

Lithuania is a eurozone EU Member State and Schengen country, offering a stable European base with access to the EU single market and free movement rules for EU/EEA citizens.

From 1 January 2026, Lithuania applies progressive personal income tax rates of 20%, 25% and 32% to most annual income, while dividends remain taxed at 15% without being pulled into the progressive rate bands. Lithuania taxes residents on worldwide income, has no net wealth tax, and levies inheritance tax at 5% or 10% for non-exempt heirs (close relatives are generally exempt). A narrow patent-box style incentive can reduce corporate tax on qualifying net IP profits.

EU/EEA/Swiss citizens can generally relocate under EU free-movement rules. Non-EU nationals typically need a residence permit (for work, business, study, family reunification, etc.) and interact with the Migration Department under the Ministry of the Interior for applications and status management.

In practice, Lithuania is most compelling for operators who want EU access with a relatively simple dividend tax and an R&D-linked IP incentive. The trade-off is that the IP benefit is narrowly scoped (patents and qualifying software only) and recent tax reforms have made rate structures more complex, so structuring should be modelled before relying on headline rates.