For foreign founders · Taxes 2026
Taxes in Lithuania for foreigners 2026: the rates that matter
If you own a Lithuanian company, a handful of 2026 rates drive most of your tax. Here they are, confirmed against VMI, so you can plan — and get your exact numbers in writing when you need certainty.
Updated: 2026-07-11
The rates that matter in 2026
| Tax | 2026 rate |
|---|---|
| Corporate income tax (standard) | 17 % |
| Corporate income tax (small companies) | 7 % — or 0 % for the first two periods |
| Dividend tax (GPM) | 15 % |
| Standard VAT | 21 % |
| Mandatory VAT registration threshold | 45 000 € / year |
| Personal income tax (progressive) | 20 % / 25 % / 32 % |
New small companies pay 0 % corporate tax for their first two periods if income stays under 300 000 € and all owners are natural persons. Source: VMI.
How the company is taxed
Company profit is taxed with corporate income tax (17 % or 7 %). When you take profit out as dividends, a further 15 % GPM applies. So your total burden is the combination — profit left in the business is only taxed once, profit taken out is taxed twice.
Personal income (salary) is taxed on the progressive 20/25/32 % scale, with the higher rates only applying to income above roughly 83 000 € and 139 000 € per year.
Get your exact 2026 numbers in writing
Book a free review, or get a written tax verdict tailored to your company — sourced from VMI.
Book a free reviewFAQ
17 % standard, 7 % reduced for small companies, and 0 % for the first two periods for qualifying new small companies (income under 300 000 €, natural-person owners).
Dividends are taxed at 15 % personal income tax (GPM). This is on top of the corporate income tax already paid on the profit.
When taxable turnover in Lithuania exceeds 45 000 € in the current or previous calendar year (voluntary registration is also possible).
Related: Accounting in Lithuania (EN) · Foreign-owned companies · Accounting for e-residents