Lithuania
15% standard (5% for small companies)
Corporate Tax
3–5 business days
Setup Time
€2,500
Min. Capital
100%
Foreign Ownership
#11
Ease of Business
Lithuania has emerged as one of Europe's most attractive jurisdictions for fintech, payments, and small digital businesses. The headline draw is the 5% corporate tax rate available to small companies (under €300,000 revenue, fewer than 10 employees) — one of the lowest effective rates in the EU for businesses at that scale. Beyond tax, Lithuania is the undisputed EU leader in fintech licensing: the Bank of Lithuania has issued more EMI and payment institution licences than any other EU regulator, and the regulatory environment is purposefully founder-friendly. The UAB (private limited company) is the standard structure — it provides limited liability, Eurozone-native EUR banking, and full EU market access. Formation is straightforward and takes 3–5 business days. For founders building in payments, lending, crypto, or any regulated financial service, Lithuania offers a rare combination of regulatory willingness, low costs, and EU passporting rights.
- Fintech founders seeking EMI, payment institution, or e-money licences in the EU
- Small companies that qualify for the 5% reduced corporate tax rate
- Tech startups wanting a Eurozone base with access to the EU single market
- Non-EU entrepreneurs looking for an efficient path to an EU company with strong banking access
- Payment service providers and crypto businesses needing EU regulatory licensing
- Freelancers and small agencies with revenue under €300,000 seeking tax-efficient EU incorporation
The 5% reduced corporate tax rate is not automatic — it applies only to companies with fewer than 10 employees and annual revenue under €300,000, and the company's shareholders must be natural persons. If you exceed these thresholds, the standard 15% rate applies immediately. Additionally, while Lithuania is excellent for fintech licensing, obtaining and maintaining an EMI or payment institution licence involves significant compliance costs (€50,000–€350,000 in capital requirements alone, plus ongoing regulatory reporting). Do not confuse the ease of company formation with the ease of obtaining a financial licence — they are separate processes with very different requirements.
At a Glance
Available Business Structures
Cost Snapshot
Tax Overview
Banking Reality Check
Timeline: 1–5 business days (EMI or fintech bank); 1–3 weeks (traditional bank)
Lithuania is Europe's fintech capital, hosting more than 140 licensed EMIs and payment institutions — more than any other EU country. This makes banking access significantly easier than in most European jurisdictions. Companies can open accounts with Revolut Business, Paysera, Kevin, or dozens of other Lithuanian-licensed EMIs. Traditional banks (SEB, Swedbank, Luminor, Šiaulių bankas) are also available but may require more documentation for non-resident companies. All accounts operate natively in EUR with full SEPA access.
Visa & Immigration
Lithuania offers a Startup Visa for non-EU founders of innovative startups, granting a temporary residence permit for up to 1 year (renewable for 2 more years). Applicants must receive a positive evaluation from the Lithuanian startup ecosystem committee. Standard work visas and EU Blue Cards are available for employed roles. EU/EEA nationals can live and work freely. Lithuania is a full Schengen member, so residence permits grant travel across the Schengen area.
Free Zones & SEZs
2 free zones available
Common Mistakes
Assuming the 5% corporate tax rate applies automatically to all small companies
Fix: Verify that your company meets all criteria: fewer than 10 employees, annual revenue under €300,000, and all shareholders are natural persons (not other companies). If a legal entity holds even one share, the reduced rate is not available. Review eligibility each year, as exceeding the thresholds triggers the standard 15% rate.
Underestimating the compliance burden of a Lithuanian fintech licence
Fix: An EMI licence requires a minimum initial capital of €350,000, a robust AML/KYC framework, a local compliance officer, and ongoing regulatory reporting to the Bank of Lithuania. Budget 6–12 months and €50,000–€150,000 in professional fees for the application process alone. Consider starting with a lighter-touch licence (e.g., payment institution) if your business model allows it.
Not paying the full €2,500 share capital before registration
Fix: Unlike Estonia, Lithuania does not allow capital deferral. The full €2,500 must be deposited in a bank accumulation account before you can file for registration. Plan your banking arrangements in advance, especially if you are a non-resident — opening even a temporary account may require documentation.
Neglecting the requirement for a Lithuanian registered address with real substance
Fix: Lithuanian authorities and banks increasingly scrutinise whether the registered address reflects genuine economic activity. A virtual address is legally sufficient for registration, but banks and the Tax Inspectorate may request evidence of actual operations. If your business has no Lithuanian employees or activity, be prepared to explain the company's connection to Lithuania.
Frequently Asked Questions
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This content is educational and does not constitute legal or tax advice. Always consult a qualified professional for your specific situation. Data last verified March 2026.