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Withholding tax in Lithuania 2026
Lithuania withholds 15% on dividends to non-residents and applies the residents' rates (15% then progressive) to interest, royalties, board fees and Lithuanian rents.
The standout gap: non-residents' gains on shares in Lithuanian companies are simply not taxable in Lithuania.
At a glance
- top rate
- 32% (employment and large flows, via the scale)
- entry band
- 15% on dividends
- tax year basis
- Withheld when paid (Class A income)
- filing deadline
- Class B income self-declared — business income by 1 May, other within 25 days
- residency basis
- Lithuanian-source payments to non-residents
- regime flag
- Share disposals by non-residents: 0%
Rates
Withholding and non-resident taxation (2026)
| Rate | Base | Applies to |
|---|---|---|
| 15% | Gross | Dividends — final, treaty rates prevail |
| 15% / scale | Gross | Interest and royalties — same passive-income gate as residents |
| 20% – 32% scale | Gross less allowance | Employment in Lithuania, directors' fees and board bonuses |
| 15% / scale | Gross (net on request) | Sales of Lithuanian real estate and registrable movables — withheld by the buyer, reassessable on net gain |
| 0% | — | Gains on shares in Lithuanian companies |
| 15% / scale | Gross | Sports and entertainment performances in Lithuania |
Thresholds & allowances
- Allowance accessEmployment income only
Non-residents claim the basic allowance solely against Lithuanian employment income, via a year-end refund return
Residency
Residency trigger
Class A payers withhold at source with monthly filings; non-residents self-declare Class B income — 1 May for fixed-base business income, 25 days for the rest.
Non-resident treatment
Treaty law prevails over domestic rules unless the domestic result is better; fixed-base businesses deduct expenses like residents, including qualifying foreign costs.
Notes
- Mariners' exemption extends to non-resident crew on European Economic Area (EEA)-registered vessels.
- Departing long-term residents must file a special return and settle tax before leaving.
- European Union rules for faster withholding-tax refunds — Faster and Safer Relief of Excess Withholding Taxes (FASTER) — apply from 2030; Lithuania has not yet transposed them.
FAQ
What does Lithuania withhold on payments abroad?
15% on dividends, and residents' rates (15% then the 20–32% scale) on interest, royalties and rents — with gains on Lithuanian company shares exempt for non-residents.
How is a non-resident's Lithuanian property sale taxed?
The buyer withholds at the standard rates (15% and up) on the price, but the seller can request reassessment on the actual net gain after acquisition costs — and only real estate and registrable movables are caught.
Figures: tax year 2026, compiled from public sources. Not tax advice.