Info personal income in Lithuania.

Hello Everyone,
Apologies if I write in English but my Lithuanian is not good enough.

I am working abroad but would love to move to Lithuania with my family which are from Lithuania.


I have a few questions:

- if I receive income from abroad (say freelance job) is that taxed at 15% ? Is that easy to report or do I need an accountant ? if it's easy can it be done directly online ? Do I need to pay for health insurance in this scenario ?

- If I am freelancing do I need a special TAX ID for this ? or the same TAX ID I would get as employee/resident in Lithuania ?

- If I have any investment income (selling ETF or dividend from ETFs) is that taxed at 15% too ? Easy to report or do I need an accountant ?

- What would you consider a bad/good/high monthly salary in Lithuania ? (before tax)




Thanks in advance for any help you can give me and happy new year to you all!

Hi,

Links to tax issues you care about :
www.vmi.lt/evmi/mokesciu-zinynas?lang=en

ligoniukasa.lrv.lt/en/

https://europa.eu/youreurope/citizens/work/taxes/income-taxes-abroad/faq/index_en.htm

Thanks Luka but is there anyone here that could answer those questions on the forum ? I'm a bit lost on those websites...

1.1 Income taxation percentage depends on income amount: started from 5%, max -15%.
1.2 It depends on kinds of income: freelance, rents, dividends, income from trades of stocks/shares. I suggest to have an accountant for the first year.
1.3 Yes, it is not very difficult.
1.4 Yes, you have to pay social, health taxes.
2.1 Yes, you must registred your activities in Tax inspectorate. Registration isn’t difficult (on-line).
2.2 No, you will receive a different code for activities as self-employed person.
3.1 It depends on your resident status in LTU–for residents 500 EUR profit from ETF, shares is non-taxable revenue.
3.2 We don’t know about your income sources and number of trade transaction of ETF or stocks (maybe you are daytrader with 20-40 trades per day).
4.It depends on city.

I hope it helps.

Thank you!

Is this accurate ? www.sodra.lt/en/calculators/selfemployment_...

Is there other taxes to pay if going self employed ?

Ok thanks. That calculator is giving me different results compared to Sodra..... which one is right ? Anything I put in in that calculator seems to result in 50% taxes. e.g. 20000 gross becomes around 108000 net on that one. Instead on Sodra the net is around 16800... which one is correct ?


May I add another quick question here: I read that over 45000 annually you must register as VAT payer. What does that mean ?

If I conduct freelance work electronically I don't have to put VAT in my invoices right ? (as I don't deal with goods).

I just wanted to know if someone goes over 45000 if there's some other taxes to consider not mentioned in the calculators.

Hi,

Both spreadsheets count correctly.

Tax year - 2022
Tax period - A full year
Income received, Eur -20000
Pay SSD, Eur (contribution codes) -1577.52
Pay PSD, Eur (contribution codes) - 879.48
Contributions to STI +Pay GPM, Eur (payment codes) -700.00
Results of the activity
Total amount of taxes, Eur - 3157.00
Tax burden (from income received),% - 15.78
Net profit, Eur - 10843.00

When calculating the total remuneration threshold of EUR 45 000 (up to LTL 155 000 – 31-12-2014) for the last 12 months, a person shall take into account the remuneration received and/or receivable in cash or in any other form for goods and/or services supplied within the territory of the country during the last 12 calendar months.
The amount of EUR 45 000 (until 31.12.2014 – LTL 155 000) shall be included for goods and/or services supplied in the territory of the country during the previous 12 months:
- the consideration already received for the goods and/or services supplied;
-the remuneration calculated but not yet received in the records of the goods and/or services supplied;
- the consideration received is not in cash, but in other goods or services.

The following shall not be included in the amount of EUR 45 000 (until 31.12.2014 – LTL 155 000):
- the consideration received for the supply of goods and/or services outside the territory of the country;
- the consideration received for the supply of goods and/or services exempt from VAT;
- advances received from the buyer of the goods or services;
- the consideration received for the sale of capital goods used in economic activities;
- the consideration received for the supply of immovable property and the provision of financial services, provided that these transactions are incidental and that the person does not normally engage in such activities.

Where a person carries out several economic activities,
The amount of the remuneration of EUR 45 000 (until 31-12-2014 - LTL 155 000) must be aggregated by the received (receivable) remuneration from all economic activities carried out by him.

Example:

In 2017, a natural person calculated the remuneration from an individual activity (trade) carried out under a business certificate and also a royalty for the professional activity carried out. Accordingly, for the purposes of calculating the threshold of EUR 45 000 of the (receivable) remuneration received in the previous 12 months, the calculated remuneration from trading in the territory of the country and the calculated royalty must be added together.
More :
www.vmi.lt/evmi/pridetines-vertes-mokestis?lang=en

If I conduct freelance work electronically I don't have to put VAT in my invoices right ? (as I don't deal with goods).

No.

Ok almost there. Both calculators show the same amount of taxes yes.

Total amount of taxes, Eur 3157.

But shouldn't be the net 20000 - 3157 = 16843 Eur net ? That's how I understand it.

Yes, but the calculator has still estimated your costs (30 percent of € 20,000) to € 6,000, so the net profit on those costs is reduced. If you earn 20,000 without incurring any costs then the net profit will be € 16843.

Can I ask three more questions:

- If I am married and my wife starts an individual activity as well, does that change anything in terms of taxes thresholds or having to register as VAT payer ?

- Can I invoice in other currencies or just EUR ?

- Is there any online accountant you would recommend ? from accounting advice to platforms in Lithuania to deal with invoicing ?

- If I am married and my wife starts an individual activity as well, does that change anything in terms of taxes thresholds or having to register as VAT payer ?

No.

- Can I invoice in other currencies or just EUR ?

The accounts shall be kept and the accounting documents shall be drawn up in euro and, where appropriate, in euro and in foreign currency.

- Is there any online accountant you would recommend ? from accounting advice to platforms in Lithuania to deal with invoicing ?

Virtual Accountant I. APS
www.vmi.lt/evmi/virtualus-buhalteris-i.aps?lang=en