Tax residency in Lithuania

Tax residency in Lithuania

There are several possibilities how to become tax resident in Lithuania.

Criteria for individuals to be considered a tax resident in Lithuania

An individual (natural person) is treated as a tax resident if at least one of the following conditions is satisfied:

1. Natural person’s  permanent place of residence is in Lithuania during the tax period;
2. Natural person’s  place of personal, social or economic interests is in Lithuania rather than in a foreign country during the tax period;
3. Natural person is present in Lithuania for a period or periods in the aggregate of 183 days or more during the tax period;
4. Natural person is present in Lithuania for a period or periods in the aggregate of 280 days or more during two tax periods and who stayed in Lithuania for a period or periods in the aggregate of 90 days or more in any of such tax periods;
5. Natural person who is a citizen of Lithuania but does not meet the above mentioned criteria, and who receives remuneration under an employment contract or a contract in its essence corresponding to an employment contract or whose costs of living in another country are covered from the state budget or municipal budgets of Lithuania.

Exceptions when a natural person complies with the above mentioned provisions, shall not be deemed to be a tax resident of Lithuania if he is:

1. A diplomatic agent of a foreign state, member of the administrative and technical staff or service staff of the diplomatic mission, consular post or international organization, who is not a citizen of Lithuania (except for stateless persons whose permanent place of residence or place of personal, social or economic interests is in Lithuania during the tax period;
2. Not a citizen of Lithuania who receives only such income which is incidental to employment relations or relations in their essence corresponding to employment relations for performing work in Lithuania from a foreign country, its political or territorial administrative unit or its local authorities;
3. Not a citizen of Lithuania who only carries on individual activities in Lithuania from a fixed base, which is the sole purpose of his arrival in Lithuania.

Personal taxation basis in Lithuania

Lithuanian tax residents are subject to tax on their worldwide income. Non-residents are subject to tax only on income sourced in Lithuania and on income derived from activities through a fixed base in Lithuania, including foreign-source income attributed to that fixed base.

To find out more about Tax residency in Lithuania, please contact our English speaking lawyers at info@gencs.eu

T: +370 52 61 1000

F: +370 52 61 1100

www.gencs.eu

www.lavvocato.eu

www.baltic-lawfirm.eu