In recent years more expatriates have been drawn to Lithuania by its low taxes and growing economy, more international schools are opening throughout the country.
Nowadays to immigrate to Lithuania became very popular due to non-expensive, easy and fast way to have benefits to travel across the European Union. The most popular and reliable way to immigrate to European Union is to get residence permit by opeening or buying ready-made company.
Temporary residence permit in Lithuania is the document granting an alian the right to reside in Lithuania temporarly. It is issued to people, who are not citizens of 28 Members states of the European Union. It is usually issued for one year (extandable foe another year, three or 5 years). For persons of Lithuanian origin and foreign citizens, who retained the right to citizenship of the Republic of Lithuania temporary residence permit is issued for 5 years.
Lithuania has a free, compulsory education system for children between the ages of 6 and 16. The first 5 years are for Primary School, and the final 5 in ‘Basic Education. Lithuania also has a number of well-regarded universities.
The public healthcare system in Lithuania is funded by a mandatory health insurance scheme. As an expatriate living in Lithuania you will have access to the free system, providing that you are a long term foreign resident and are paying your health insurance contributions.
The availability and quality of public transport varies between cities, but most major urban areas have at least a bus network.
For long distance travel, you can use the Lithuanian train network, which runs 1749 km across the country and has direct links to nearby Russia, Latvia, Poland, and Belarus. You may also take a boat from any of Lithuania’s ports on the Baltic Sea at Klaipėda, Šventoji, and Būtingė.
With a total GDP rate per capita, Lithuania has the largest economy of the Baltic States. Its economy is split into three main sectors: services (68% of total GDP), industry (28%), and agriculture (4%). Lithuania has been making the transition from an industrial to a knowledge-based economy, focused on high added-value products and services, and is now one of the leading European nations for biotechnology, communications, mechatronics, and information technology.
Expatriates working in Lithuania tend to work in highly skilled positions for technology, communications, or food processing companies, or as English teachers.
Whether or not you need a permit to work in Lithuania depends on your nationality. As it is a member of the European Union, EU nationals working in Lithuania do not need a permit in order to do so. However, they will need a residency permit in order to stay in Lithuania for over 90 days.
Expatriates living and working in Lithuania are required to pay income tax on their earnings. Unlike many European countries, Lithuania has a flat rate for income tax. This means that however much you earn whilst working in Lithuania, you will only have to pay 15% income tax.
However, expatriates should be aware that there is also a 6% health insurance contribution and a 3% social security contribution added to this 15% rate, bringing the total taxes on income up to 24%.
Valued Added Tax is set at 21%, and Corporate Tax at 15%, with a lower rate of 5% for small businesses. The flat tax on income and other low tax rates mean that tax revenue in Lithuania is one of the lowest in Europe.
In order to get residence permit in Lithuania, the registered company has to conduct at least the minimum activity, and pay all the necessary taxes without any requirement for annual turnover and profits of a company.
Advantages of doing Business in Lithuania:
- Developed market;
- Access to European market based on principle of free movement of goods, services, people and capital, that automatically eliminates customs formalities, quotas, tariffs and fees in the EU;
- Stable legislation;
- Fixed tax rates in Lithuania on income of individuals and entities;
- Legitimate ways to reduce tax burden;
- Harmonization of indirect taxation in the European Union allows choosing the country to pay Value Added Tax (VAT);
- Low corruption level.
- Free economic zones in the cities of Klaipeda and Kaunas;
- Bank credit percentage starts from 11%;
- No profit tax during the first 6 years, 50 % discount on tax rate during the next 10 years
- Opportunities to get support from the European Union on your business development.
- Organized system of company registration in Lithuania, low prices;
- The low level of state interference in company’s business;
- Protection of business by the stable legislation;
- Many high qualified specialists and most population has higher education;
- Opportunity to buy a car in any European country and use it outside the EU without customs clearance;
- Right to get a loan on business development for innovative, energy-efficient technologies;
- Right to get a loan under the minimum interest rate;
- Low price to rent or buy office, residential premises;
- Cheap flights to any country of the EU
To immigrate to Lithuania via business does not require huge investments, compared with other EU countries. Besides, consumer prices are relatively low, while the tax system is more liberal than in other EU countries. Also, a residence permit allows moving freely across countries of Schengen Zone. Moreover, setting business in Lithuania opens the whole market of the European Union.
Advantages of Lithuanian residence permit:
— Good economic location. Lithuania borders on post-Soviet countries, and Nordic countries. Furthermore the European Union allows its citizens or a residence permit holders to enjoy benefits of entire European market: opened borders for travelling, getting education, relizing of projects, cultural exchanges etc.
- Residence permit in Lithuania greatly simplifies getting a visa to the United States, Canada and United Kingdom.
- High tolerance to different cultures, languages and religions; which provides the opportunity to lead usual life-style.
- There are pre-schools, schools, special and higher education institutions where education is provided English.
- Health centers with skilled professionals with experience in the U.S., Israel, Germany, the UK, at relatively low costs for medical services.
- Wonderful nature with access to the sea and friendly environment.
