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.

Small Tax Burnden

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

Corporate profit tax

 20

Tax on dividends

0 to 20*

Social security tax for employer (employee's contribution is 3%)

31

VAT

19

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