Lithuania - Other taxes and levies

Lithuania - Other taxes and levies

Taxation of international executives

Related content

Social security tax

Are there social security/social insurance taxes in your country? If so, what are the rates for employers and employees?

Social security and mandatory health insurance contributions are payable in respect of gross employment income by the employer and employee. There is no income cap for social security contributions on earnings from an employment relationship. Specific rules are established for persons performing individual activities with a cap for contributions applied.

It should be noted, that it is likely that most international assignees would not be liable for Lithuanian social security. This could be caused by the fact that assignees remain in their home countries’ social security system under the European Union or European Economic Area (including Switzerland) rules or they remain in their home countries’ social security system under a totalization agreement with Lithuania.

The standard rate of social security contributions are 39.98%, from which 30.98% is employer part and 9% is employee part. Additionally 2% is withheld from the gross employment income of an employee participating in certain pension accumulation plans.

As of 1 January 2016, a new tax relief for stock options was introduced. Based on the new legislation, the value of shares exercised under stock options not earlier than after 3 years of grant is not subject to social security contributions in Lithuania. Please be aware that the new rules apply to stock options only (i.e. where after 3 years an employee has an option to acquire shares).

Type of insurance Paid by employer Paid by employee Total
Social security and mandatory health insurance contributions 30.98% 9% 39.98%
Optional additional contributions for pension accumulation plan 0% 2% 2%
Total 30.98% 11% 41.98%

Pension Plan

No separate payment – included in the general social security contributions.

Employment insurance

No separate payment – included in the general social security contributions.

Gift, wealth, estate, and/or inheritance tax

Are there any gift, wealth, estate, and/or inheritance taxes in your country?

Inheritance tax

Taxable property includes movable assets that have to be legally registered and immovable assets located in the Republic of Lithuania, shares and money.

Tax is not levied on the property inherited from close relatives or when the value of the inherited property does not exceed EUR 3,000.

The rates of inheritance tax are as follows:

  • 5% on inherited property, if the taxable value does not exceed EUR 150,000,
  • 10% on inherited property, if the taxable value exceeds EUR 150,000.


Gifts from close relatives, gifts not exceeding the value of EUR 2,500 are non- taxable. Gifts exceeding the aforementioned value are taxed at a standard 15% (flat) personal income tax rate.


There is no weath tax in Lithuania.

Real estate tax

Are there real estate taxes in your country?

As of 2015 Lithuanian and foreign individuals owning real estate in Lithuania have to pay 0.5% real estate tax on the taxable value exceeding EUR 220,000 of the whole real estate owned (an individual non-taxable value
) which is included in the list of taxable purposes of real estate (e.g. residential premises, gardens, garages, homesteads, science, places of worships). The non-taxable real estate value is increased by 30% for families raising 3 or more children and families raising disabled children.of EUR 220,000 should be applied for each family member who owns (acquires)
immovable property as well as for spouses who own property under joint
ownership right

Commercial property (for purposes other than those subject to the above taxation) owned by individuals is taxed in the same way as real estated owned by legal entities.

Sales/VAT tax

Are there sales and/or value-added taxes in your country?

The standard value-added tax (VAT) rate is 21%. There is also a reduced rate of 9% and 5%. There are several transactions which are subject to VAT at a rate of 0% or are VAT exempt.

Unemployment tax

Are there unemployment taxes in your country?

There are no separate unemployment taxes in Lithuania since such payments form a part of social security contributions.

Other taxes

Are there additional taxes in your country that may be relevant to the general assignee? For example, customs tax, excise tax, stamp tax, and so on.

Custom/ excise tax might be applied on certain imported goods/belongings.

Taxation of International Executives

A global survey of income tax, social security tax rates and tax legislation impacting expatriate employees.

Read more

© 2016 "KPMG Baltics", UAB, a Lithuanian limited liability company and a member firm of the KPMG network of independent members firms affiliated with KPMG International Cooperative ("KPMG International") a Swiss entity. All rights reserved.

Connect with us


Request for proposal



KPMG's new digital platform

KPMG's new digital platform