Costs and Taxation
When it comes to providing a great quality to cost ratio for your business growth, you can count on Vilnius. With less red tape for taxes, and overheads that run far lower than other EU capitals, you’ll have more time for your business and less cost cutting into your bottom line.
Faster bureaucratic processes = more time for business:
- Lithuania ranks 18 out of 190 countries in the ease of paying taxes ranking; 6th in the EU.
- Lithuania is among the 5 countries in the EU for the least amount of time it takes to pay taxes.
Source: Paying taxes ranking, 2019
Overhead costs
Real estate - high quality at affordable prices. At the end of 2020, the office vacancy rate in Vilnius reached 6.7%, as compared to 3.4% the last year prior. Half of vacant premises are Class A offices.
Source: Newsec Vilnius office outlook, 2020 Q4
Corporate profit tax: 15%*
VAT: 21%
Dividends (withholding tax): 0/15%
Personal income tax: 20%
Social security tax:
- 6.98% paid by the employee
- 1.77% paid by the employer
Real estate tax:
- General rate: 1%
- Reduced rate of 0.7% applied to buildings with a recreational and educational purpose (recreational, cultural, sport and education buildings, hotels, buildings for food services).
More information available here.
Land tax:
- 4% for unexploited land
- 0.12% for legal persons
- 0.08% for natural persons
- Exceptions applicable, click here for more information.
More information about Vilnius city taxes is available at the municipality's website.
Among the lowest prime rents in the EU:
- Vilnius: 192 €/m2/year
- Tallinn: 210 €/m2/year
- Warsaw: 288 €/m2/year
- Budapest: 300 €/m2/year
- Helsinki: 420 €/m2/year
- Dublin: 670 €/m2/year
Source: BNP Paribas European office market report, 2020.
Monthly office space rental prices (€/m2):
- A-Class: 14.0-16.7
- B-Class: 9.0-13.5
Source: Ober-Haus, Real estate market report, 2020.
Monthly warehouse space rental prices (€/m2):
- Newly built: 4.3-5.3
- New construction (up to 15 years): 3.9-5.3
- Old construction: 1.9-3.6
Source: Ober-Haus, Real estate market report, 2020.
More Information
