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Lithuanian Double Taxation Avoidance Agreements

The double tax treaties signed by Lithuania are following the OECD and UN model agreements. There are not many countries which has signed these types of agreements with Lithuania but many drafts are waiting for the ratification. So far, there are avoidance agreements signed with Armenia, Austria, Azerbaijan, Belarus, Belgium, Bulgaria, Canada, Croatia, China, Czech Republic, Denmark, Estonia, Finland, France, Georgia, Germany, Greece, Hungary, Iceland, Ireland, Israel, Italy, Kazakhstan, Kirghizstan, Korea, Latvia, Luxembourg, Macedonia, Malta, Moldova, Netherlands, Norway, Poland, Portugal, Romania, Russia, Serbia, Singapore, Slovakia, Slovenia, Spain, Sweden, Switzerland, Turkey, Ukraine, United Kingdom, United States of America and Uzbekistan.

Advantages of DTTs signed by Lithuania

These treaties are very advantageous when it comes to withholding taxes on dividends, interests and royalties paid to non-resident entities. For example, the usual withholding tax on dividends paid to non-residents is 15% while the interests and royalties are subject to a withholding tax of 10%. These taxes can be reduced by the provisions of these double tax treaties or even exempt. Other provision is that for companies where the foreign participants invested more than 10% of the share capital for more than 12 months the dividends is not taxed at all.

We offer you support in obtaining residency in Lithuania. Our lawyers are specialized in this field and can help you with the preparation of the necessary documents. Until this point, you need to have health insurance, to provide proof of personal income and domicile in Lithuania. Where appropriate, we can help you obtain a startup visa, with investments of at least EUR 50,000 to gain residency in this country.

Lithuania corporate tax

The corporate tax in Lithuania is 15% and can be subject of the exemption, meaning that the profit is not charged at all in Lithuania or can be credited, meaning is charged in Lithuania but a credit is offered for that amount in the country of origin.

In order to avoid tax frauds, Lithuania is part of the EU agreements covering exchange of information between its members. According to these agreements the Lithuanian tax authorities must provide all the necessary information related to its tax payers to the relevant foreign tax authorities.

Usually the rest of the countries are signing tax exchange information, action that is not necessary in Lithuania because of its membership to the EU.

Immigration to Lithuania is a relatively simple process that can be supervised by one of our Lithuanian lawyers. They can take care of all the paperwork involved and also the formalities. You will need a valid passport, health insurance, proof of income, and domicile, among others. Our team can also help you with obtaining a residence permit, and where applicable, with applying for citizenship. Therefore, discuss all aspects with one of our local lawyers.

In order to beneficiate from the many provisions provided by the double tax treaties, the investors must provide an evidence of their status of tax payers in the partner country. Usually this proof is a certificate of tax payer issued by the foreign tax authority.

We recommend the services of our lawyers if you want to apply for citizenship in Lithuania. The formalities can seem quite complex for foreigners, especially since they have to give up their current citizenship. In the case of a marriage with a Lithuanian citizen, this status can be obtained after 7 years of living in Lithuania. Therefore, contact us if you have any questions in this regard.

Please contact our law firm in Lithuania and find out the legal services we offer in tax matters.