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
Favorable tax conditions available to foreign investors:
- Investment project incentive: entities involved in an investment project are able to reduce their taxable profits by up to 50% of the costs actually incurred through the acquisition of long-term assets (subject to certain requirements).
- R&D incentive: expenses incurred for R&D purposes can be deducted three times in the tax period when they are incurred.
- Reduced 5% corporate income tax rate can be applied for profits derived from the commercial exploitation of patented inventions.
For more information, click here.
Overhead costs
Real estate - high quality at affordable prices. The majority of offices to be developed between 2019-2020 are A class offices.
Source: Newsec Vilnius office outlook, 2019 Q2
Corporate profit tax: 15%*
VAT: 21%
Dividends (withholding tax): 0/15%
Personal income tax: 15%
*3rd lowest corporate profit tax in CEE (Source: KPMG, 2019)
Social security tax:
- 39.5% paid by the employee
- 1.79% 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: 270 €/m2/year
- Helsinki: 456 €/m2/year
- Budapest: 288 €/m2/year
- Dublin: 670 €/m2/year
Source: BNP Paribas European office market report, 2019.
Monthly office space rental prices (€/m2):
- A-Class: 14.0-16.5
- B-Class: 8.0-13.5
Source: Ober-Haus, Real estate market report. Baltic States capitals Vilnius, Riga, Tallinn, 2019.
Monthly warehouse space rental prices (€/m2):
- Newly built: 4.3 - 5.3
- New construction (up to 15 years): 3.9 - 4.8
- Old construction: 1.8 - 3.5
Source: Ober-Haus, Real estate market report. Baltic States capitals Vilnius, Riga, Tallinn, 2019.
More Information
