Nonresident individuals are taxed on their Lithuanian-sourced income.

Income in Lithuania is generally subject to a flat rate of 15%. This includes employment income, business income, non-commercial income, and rental income. Income from individual business activities is taxed at a reduced rate of 5%.

Married couples are required to file their taxes separately. The tax year aligns with the calendar year, and income is taxed in the year it is received.

Income Tax Rates (Individual)

Corporate Tax

Corporate entities are taxed at a flat rate of 15% on rental income and capital gains. Deductions for income-generating expenses are permitted. Rental income and real estate sales by foreign entities may incur a 15% withholding tax.

VAT

The letting and leasing of residential property are generally exempt from VAT, except under certain conditions such as short-term accommodations or when involving equipment installation. The sale of new buildings is subject to a VAT rate of 21% for up to 24 months post-completion.

Capital Gains Tax

In Lithuania, there are no specific capital gains taxes; instead, capital gains are treated as ordinary taxable income and taxed at the standard income tax rate of 15%. However, gains from the sale of property owned for at least ten years are exempt from tax.

Property Buying and Selling Taxes/Costs

Property Taxes

Land Tax

Nonresidents owning land in Lithuania are subject to land tax, which varies from 0.01% to 4% of the land's taxable value as determined by government rules.

Real Estate Tax

Real estate is taxed at rates ranging from 0.01% to 4.00%, depending on the property's value and location.