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 one of the most business-friendly tax policies in the EU. Lithuania's corporate tax is among the lowest in EU, individual taxation is in line with similar countries, and the overall tax burden is one of the smallest among the EU countries.
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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 (after non taxable allowance of EUR 93 on monthly salaries) |
24 |
|
Corporate profit tax |
15 |
|
Tax on dividents |
0 to 15* |
|
Social security tax for employer (employee's contribution is 3%) |
31 |
|
VAT |
18 |
|
Real estate tax |
1 |
|
Land tax |
1.5 |
*0% tax on dividends applies when an investor controls at least 10% of voting shares in the enterprise for the period of at least 12 months.
Salaries
Since January 1, 2008, the minimum monthly salary is 800 LTL (EUR 231), the minimum hourly salary is 4,85 LTL (EUR 1,40). The average gross monthly wage in the 3rd quarter of 2007 was 1,950 LTL (EUR 565).
Average monthly gross salaries by economic activity, 2007 3Q
|
Sector |
Salary EUR |
|
Manufacturing |
549 |
|
Manufacture of food products, beverages and tobacco |
520 |
|
Manufacture of textiles and textile products |
407 |
|
Manufacture of wood and wood products |
443 |
|
Manufacture of chemicals |
928 |
|
Manufacture of rubber and plastics products |
617 |
|
Manufacture of machinery and equipment |
702 |
|
Manufacture of electrical and optical equipment |
562 |
|
Manufacture of furniture |
506 |
|
Electricity, gas and water supply |
690 |
|
Construction |
667 |
|
Wholesale and retail trade |
545 |
|
Hotels and restaurants |
341 |
|
Transport and communications |
566 |
|
Post and telecommunications |
642 |
|
Financial intermediation |
1071 |
|
Insurance and pension funding |
1008 |
|
Education |
459 |
|
Real estate, renting and other business activities |
591 |
Source: Lithuanian Department of Statistics, www.stat.gov.lt
Utility Costs
|
Utilities for companies |
Measurement |
Average rates € |
|
Electricity |
1 kWh |
0.05 - 0.11 |
|
Natural gas |
1 m3 |
0.22 - 2.06 |
|
Cold drinking water |
1 m3 |
1.11 - 2.06 |
|
Cold water for technical purposes |
1 m3 |
1.11 - 2.06 |
|
Hot water |
1 m3 |
2.62 - 3.59 |
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 |
16 - 22 |
11 - 16 |
|
Kaunas |
10 - 13 |
6 - 8 |
|
Klaipeda |
10 - 13 |
6 - 8 |
|
Siauliai |
- |
6 |
|
Panevezys |
- |
6.5 |
|
Monthly rental of retail space (EUR m2) |
High street |
Shopping centres* |
|
Vilnius |
25 - 60 |
15 - 30 |
|
Kaunas |
30 - 35 |
12 - 20 |
|
Klaipeda |
30 - 35 |
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 |
700 – 1,500 (central areas) |
|
100 – 350 (outskirts) |
|
| Kaunas | 300 – 600 (central areas) |
| 70 – 150 (outskirts) |
|
|
Klaipėda |
300 – 1,000 (central areas) |
| 70 – 200 (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 1,500 |
|
Translator services/h |
EUR 52 |
|
Mid-size car rent/24h |
EUR 43 - 58 |
|
Taxi ride/km |
EUR 0.6 |
|
Monthly apartment rent (a typical furnished 2-bedroom apartment in downtown) |
EUR 800-1,000 |
|
Hotel accommodation (4-star)/one mid-week night |
EUR 100-150 |
Sources: Re&Solution, an independent financial and real estate consultancy company, www.resolution.lt, Lithuanian Development Agency, www.lda.lt
