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Dividend tax in Lithuania 2026
Dividends kept their privileged spot in the 2026 reform: a flat 15% withheld at source, outside the progressive pooling that now catches other passive income.
Partnership profit shares and other distributions count as dividends and follow the same 15%.
At a glance
- top rate
- 15% flat
- entry band
- 15% from the first euro
- tax year basis
- Withheld on payment; foreign dividends self-assessed
- filing deadline
- 1 May for self-declared foreign dividends
- residency basis
- Residents: worldwide dividends at 15%
- regime flag
- Dividends cannot flow through the investment account
Rates
How investment income is taxed (2026)
| Rate | Base | Applies to |
|---|---|---|
| 15% | Gross | Dividends and profit distributions — flat, withheld, outside the progressive scale |
| 15% / scale | Gross | Interest — 15% up to the 12-average-wage line (EUR 27,745.80 of combined non-employment income), then the 20/25/32% scale; the first EUR 500 a year from European Economic Area deposits and bonds stays exempt |
| 0% | — | Interest up to EUR 500 a year on European Economic Area (EEA) bank deposits, bonds and government securities (and peer-to-peer/crowdfunding interest within the same limit) |
| 15% / scale | Gross less costs | Royalties not from your employer — same 12-average-wage gate |
Thresholds & allowances
- Interest exemptionEUR 500 a year
For EEA deposit, bond and government-security interest; pre-2014 deposits and securities are exempt without limit
Residency
Residency trigger
Lithuanian payers withhold the 15%; interest received through an investment account loses the EUR 500 exemption but gains full deferral instead.
Non-resident treatment
Non-residents face the same flat 15% withholding on Lithuanian dividends and the same rates on interest and royalties, with treaty relief available.
Notes
- The dividend rate has survived every reform since 2017 — 15% flat while labour income moved to three brackets.
- Foreign partnership income is treated as foreign dividends for Lithuanian tax.
- Dividends from tax-haven entities lose exemptions and reliefs across the board.
FAQ
How are dividends taxed in Lithuania?
A flat 15% withheld at source — they stay outside the new 20/25/32% progressive scale regardless of size.
Is bank interest taxed?
The first EUR 500 a year from European Economic Area deposits, bonds and government securities is exempt; beyond that, interest is taxed at 15% up to the 12-average-wage line (EUR 27,745.80 combined), with the excess at the 20/25/32% scale.
Figures: tax year 2026, compiled from public sources. Not tax advice.