Taxes And Costs
Plant your capital in Lithuania – the country which provides the possibility to do business in EU at lower costs. The unique combination of highly educated people and low salaries together with highly competitive utility and real estate costs is worth to explore.
Small Tax Burden
Lithuania pursues business-friendly tax policy. Lithuania's corporate tax is 15%, individual taxation (21%) is in line with similar countries, and the overall tax burden is one of the smallest among the EU countries.
Enterprises registered in Lithuania must pay taxes in Lithuania on profits and capital gains earned both in Lithuania and abroad. Withholding taxes paid abroad and not exceeding the tax payable in Lithuania on foreign income may be credited. Moreover, tax relief may be applied according to applicable international treaties.
Major Corporate Taxes
|
Tax |
% |
|
Personal income tax |
15 (+6% health insurance contribution) |
|
Corporate profit tax |
15 |
|
Tax on dividends |
0* to 15 |
|
Social security tax for employer (employee's social security contributionsis 3% + health insurance contributions 6%) |
31 (+ 3% health insurance contributions) |
|
VAT |
21 |
|
Real estate tax |
0.3-1 |
| Land tax | 1.5 |
* Dividends paid or received are not taxed when an investor controls at least 10% of voting shares in the enterprise for the period of at least 12 months.
Salaries
The wage level in Lithuania is very competitive compared to other European markets. Since January 1, 2008, the minimum monthly wage is EUR 231, and the minimum hourly wage is EUR 1.4. In 2008 the average monthly wage was EUR 672.
Average monthly gross salaries in economy sectors, EUR, 2008
|
Sector |
Salary EUR
|
|
Manufacturing |
640 |
|
Electricity, gas and water supply |
820 |
|
Construction |
740 |
|
Wholesale and retail trade |
620 |
|
Hotels and restaurants |
406 |
|
Transport and storage |
677 |
|
Post and telecommunications |
710 |
|
Financial intermediation |
1215 |
|
Whole economy |
672 |
|
Real estate, renting and other business activities |
742 |
Source: Lithuanian Department of Statistics, www.stat.gov.lt
Utility Costs
|
Utilities for companies |
Measurement |
Average rates, EUR |
|
Electricity |
1 kWh |
0.09 - 0.11 |
|
Natural gas |
1 m3 |
0.45 - 0.61 |
|
Cold drinking water |
1 m3 |
1.17 - 2.06 |
|
Cold water for technical urposes |
1 m3 |
1.17 - 2.06 |
|
Hot water |
1 m3 |
4.34 - 5.80 |
Source: public company AB Lithuanian Energy www.lpc.lt , private company UAB Vilniaus Energija www.vilniaus-energija.lt , public company AB Lithuanian Gas www.dujos.lt, Lithuanian water supply companies, Vilnius Municipality www.vilnius.lt, private company UAB Vilniaus Vandenys www.vv.lt
Rent Rates
Rental prices of office/warehousing space vary depending on the location and the quality of the building. Newly constructed warehouse rent prices in Lithuania are one of the lowest in Europe.
|
Monthly rental of office space (EUR m2) |
A-Class |
B-Class |
|
Vilnius |
14 - 17 |
10 - 13 |
|
Kaunas |
10 - 13 |
6 - 8 |
|
Klaipeda |
10 - 13 |
6 - 8 |
|
Siauliai |
- |
6 -7 |
|
Panevezys |
- |
6 -7 |
|
Monthly rental of retail space (EUR m2) |
High street |
Shopping centres* |
|
Vilnius |
25 - 55 |
15 - 30 |
|
Kaunas |
25 - 30 |
12 - 20 |
|
Klaipeda |
25 - 30 |
12 - 20 |
|
Siauliai |
25 |
10 - 18 |
|
Panevezys |
20 |
10 - 18 |
|
Monthly rental of new-construction warehouse space (EUR m2) |
||
|
Vilnius |
4 - 6 |
|
|
Kaunas |
4 - 6 |
|
|
Klaipeda |
4 - 5 |
|
* Average retail units of 200 m2
Source: Re&Solution, an independent financial and real estate consultancy company, www.resolution.lt.
Land Costs
The price of land varies substantially depending on the location planning level as well as type of potential type of development.
|
Places |
Land sales price (EUR m2) |
|
Vilnius |
300 – 1,200 (central areas) |
|
|
60 – 250 (outskirts) |
|
Kaunas |
140 – 600 (central areas) |
|
|
40 – 150 (outskirts) |
|
Klaipėda |
160 – 500 (central areas) |
|
|
40 – 150 (outskirts) |
Note: the prices indicated reflect only an approximate value.
Source: Re&Solution, an independent financial and real estate consultancy company, www.resolution.lt.
Cost of Doing Business & Living in the CapitalCity
|
Starting a company |
up to EUR 600 |
|
Translator services/h |
EUR 52 |
|
Car rental for weekend* |
EUR 43 - 58 |
|
Taxi ride/km |
EUR 0.5 |
|
Monthly apartment rent (a typical furnished 2-bedroom apartment in the city centre) |
EUR 800-1,000 |
|
Hotel accommodation (4-star)/one weekend night |
EUR 43-99 |
*Rates include 24-hour rental period, VAT tax included
Sources: Re&Solution, an independent financial and real estate consultancy company, www.resolution.lt, Lithuanian Development Agency, www.lda.lt
