Lithuanian Residency In A Nutshell

If you are interested in relocating to an EU country, you should consider Lithuanian residency. The Republic of Lithuania is located on the eastern shore of the Baltic Sea. Its capital, Vilnius, has one of the best preserved old towns in Europe, and it is full of beautiful baroque buildings. The country has good healthcare and education systems, and a very low cost of living compared to other European countries.

Lithuania is a great place to do business. 2020’s Doing Business report ranked it 11th out of 190 world economies in terms of optimal business conditions. Lithuania has a strong workforce, with over 50% of workers between the ages of 25 and 34. The country boasts one of the lowest corporate tax rates in the EU – only 5-15%. Additionally, Lithuania has established two free trade zones (FTZ), and businesses that incorporate there are exempt from corporate taxation for the first six years.

Lithuania has a golden visa/residence by investment program that allows applicants to get a one-year residence permit in 2–4 months. Lithuanian residents enjoy unrestricted travel throughout the Schengen Zone. Please note, with this residency option, you are required to physically reside in Lithuania for at least six months a year. You will be forced to provide proof of residence, and the house or apartment must meet certain hygienic requirements.

As with most residency applications, you will need a valid passport, a clear criminal background check, and health insurance. You will also need bank statements or some other proof of funds to confirm you can support yourself for at least a year. You will need to show monthly income equal to the minimum wage in Lithuania (approximately €840).

After the first year, you can renew your temporary residence permit, and receive a 2-year one. You can continue to renew that 2-year temporary permit. You can apply for permanent residency after living in the country for 5 years. After 10 years as a permanent resident, you can apply for citizenship (so long as you can pass a Lithuanian language exam). Lithuania permits dual citizenship.  

Ways To Obtain Lithuanian Residency:

You can get a temporary residence permit by setting up a new business in Lithuania. You will need to prove that you are a shareholder/director of the company and actively involved in its business activities. A reasonable business plan is also required. You will need to open a bank account to hold the minimum share capital deposit and any funds needed for future business activities.

Under this scheme, up to four people can form one company and apply for residence permits.

The company has to have at least €28,000 share capital. However, each foreigner must invest at least €14,000. So, if you form the company with three others, each of you will have to invest €14,000 – for a total share capital of €56,000.

Additionally, your company must hire at least three Lithuanian workers and pay their social security contributions. The average monthly social security contribution is €160 per employee. There is also a salary requirement. Your company must pay the equivalent of two average Lithuanian salaries. The average monthly salary in Lithuania is €890, so the TOTAL salary amount of all your Lithuanian workers together would need to be at least €1,780.

Registering a company in Lithuania is quite easy. Most foreigners form a limited liability company called a UAB, which is the Lithuanian equivalent of an American LLC. Its Articles of Association will contain information about you and any other shareholders (including your country of origin), the company’s activities, voting rights, business rules, and more. 

Filing the incorporation documents with the Public Institution Register Center and registering to pay taxes typically takes less than three weeks. 

Please note, your Lithuanian company must be operating for at least six months before you can apply for your temporary residence permit. Many foreigners decide to purchase  ready-made “shelf companies” to speed up the process. 

*The above are the requirements to obtain a one-year temporary residence permit. However, if you invest more than €260,000 in your new Lithuanian company and employ at least five Lithuanians, you can get a three-year temporary residence permit.

You can purchase the entire company or at least a third of an already operating Lithuanian business. The company should already have income to cover its running costs, and in most cases will even pay dividends to its shareholders. You will need to provide documents regarding the company’s premises, employees, turnover, etc. when you apply for residency. 

As with the new business option, up to four foreigners can use the company to apply for residence permits. 

If you are the director of a foreign capital company, you can obtain residency in Lithuania by registering a branch of your home-country business. You will need to provide your company’s incorporation documents (translated into Lithuanian) and show at least one year of market activity. 

You are not required to employ Lithuanian citizens. In fact, you can transfer existing employees from your home company. Workers sent to the Lithuanian branch office must have worked for the parent company for at least one year. Your foreign employees are eligible for Lithuanian residence permits, but must leave Lithuania after three years and return to work at the parent company.

If you are a business person who enjoys spending time in Europe, Lithuania may be a great residency option for you. If you want more specific details about the country’s residency program, we recommend visiting its official immigration website.

For more residency options, check out our articles Do You Want To Reside in Armenia? and Should You Become A Resident Of Latvia?