Tax, Residency & Living in Lithuania: A Practical Guide After Gaining Citizenship

For many who’ve just secured Lithuanian citizenship, the moment is deeply personal – a reconnection to heritage, a path to new opportunities, and a practical step toward living freely across Europe.

But after the joy of receiving that maroon Lithuanian passport, a new question often arises: “What happens next – especially when it comes to taxes, residency, and everyday life in Lithuania?” We’ve guided hundreds of clients through the full journey – from applying for Lithuanian citizenship by descent to understanding what life looks like once you’re officially a citizen. Here’s a clear, practical overview of what you should know about living, working, and managing your obligations as a Lithuanian (and EU) citizen.

 

Becoming a Lithuanian (and EU) Citizen: What It Really Means

When you gain Lithuanian citizenship, you don’t just join Lithuania – you join the entire European Union. This means:

– You have the right to live, work, and study in any EU or EEA country.

– You gain social and healthcare access in Lithuania and across Europe under EU coordination rules.

– You can travel visa-free to more than 180 countries worldwide with your Lithuanian passport.

 

What’s equally important, though, is understanding your residency and tax status – especially if you plan to live part-time in Lithuania, maintain ties abroad, or manage assets across countries.

 

Understanding Lithuanian Residency

Lithuania distinguishes between citizenship and residency. Even if you hold Lithuanian citizenship, you’re only considered a tax resident if you actually live or work in the country long enough.

 

You are considered a tax resident if:

– Lithuania is your main place of residence, or

– You spend more than 183 days in Lithuania during a calendar year, or

– You earn income from employment in Lithuania, or

– You are sent abroad by a Lithuanian employer for a temporary assignment.

 

If you live abroad most of the year, you remain a Lithuanian citizen but are usually treated as a non-resident for tax purposes – meaning you are taxed only on income sourced in Lithuania.

 

Taxes in Lithuania: What Citizens Should Know

Lithuania’s tax system is relatively straightforward and competitive compared to other EU countries. Here’s a simplified breakdown:

 

Personal Income Tax (PIT)

– Standard rate: 20% on employment income up to a certain annual threshold, and 32% on higher earnings.

– Dividends and investment income are taxed at 15%.

– There are exemptions and deductions for dependents, mortgage interest, and certain work-related costs.

 

Corporate Tax

– Standard corporate income tax: 15%.

– Small companies (with fewer than 10 employees and limited turnover) may qualify for a 5% rate.

 

Social Security & Health Contributions

If you live and work in Lithuania, both you and your employer contribute to the national insurance system – covering pensions, healthcare, and unemployment benefits.

However, if you live in another EU country, EU coordination rules ensure you pay these contributions only once – in your country of residence or main employment.

 

Double Taxation Treaties

Lithuania has double taxation treaties with more than 50 countries, including the U.S., Canada, Australia, the U.K., and most EU members.

This means you don’t pay tax twice on the same income – your taxes paid in one country are generally credited in the other.

At IN JURE Law Firm, we help clients evaluate their dual-citizenship or cross-border tax obligations – especially when they’ve gained Lithuanian citizenship by descent but still live abroad. A clear tax residency plan prevents issues with both Lithuanian and foreign tax authorities.

 

Registering Residency in Lithuania

If you decide to move to Lithuania – whether part-time or permanently – there are a few administrative steps to complete:

1. Declare your place of residence with the local municipality (you can do this online or in person).

2. Register for health insurance with the National Health Insurance Fund (NHIF).

3. Open a Lithuanian bank account – this simplifies tax payments, salary deposits, and everyday expenses.

4. Apply for a personal identification number if you don’t already have one.

 

The process is simple and can often be handled within a week. Our team regularly assists clients in coordinating these steps remotely or upon arrival.

 

Cost of Living and Lifestyle in Lithuania

Lithuania offers an appealing balance between quality of life and affordability. Compared to Western Europe:

– Housing costs are typically 40–60% lower.

– Healthcare is high-quality and accessible, with both public and private options.

– Internet and infrastructure are excellent – Lithuania ranks among Europe’s most connected nations.

– English is widely spoken, especially in major cities like Vilnius and Kaunas.

For many of our clients – especially those who’ve reclaimed Lithuanian citizenship by descent – returning or relocating to Lithuania offers the chance to reconnect with family roots while maintaining a modern, European lifestyle.

 

When You Live Abroad

If you hold a Lithuanian passport but live permanently outside Lithuania, you’re still entitled to all consular protections and rights of citizenship. However, remember to:

– Renew your passport every 10 years at a Lithuanian embassy or consulate.

– Keep your address updated with the Lithuanian Migration Department (for voting and correspondence).

– Check your tax residency status annually, especially if you own property or earn income in Lithuania.

You do not need to pay taxes on foreign income if you are a non-resident — but it’s important to maintain proper documentation proving your residency abroad.

 

How IN JURE Law Firm Can Help

At IN JURE, our work doesn’t end once your Lithuanian citizenship is approved. We help clients plan the next steps – whether it’s registering residency, understanding dual tax obligations, or relocating smoothly to Lithuania.

Our team provides:

– Personalized tax residency guidance for dual citizens.

– Assistance with address registration, healthcare, and banking setup.

– Legal support for business registration or property acquisition.

Each case is unique — and our role is to make sure your transition to life as a Lithuanian (and European) citizen is seamless, compliant, and empowering.

 

A Fresh Start in Europe

Restoring your Lithuanian citizenship is more than reclaiming your heritage – it’s unlocking a life with fewer borders and greater freedom. Whether you’re moving back, investing, or simply reconnecting with your roots, Lithuania offers stability, opportunity, and belonging.

→ Contact IN JURE Law Firm today to find out if you qualify for Lithuanian citizenship. Let’s help you live, work, and roam freely – the way remote life should be.

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