Why Lithuania is a smart choice for starting and scaling your business in the EULithuania stands out in the Baltic region as the ideal destination for entrepreneurs looking to expand their business ventures, especially those seeking a residence permit or citizenship in one of the most stable and environmentally-friendly countries in Europe.
Why Lithuania is a Top Business destination in Europe
Over the years, Lithuania has rapidly transitioned to a stable market economy, thanks to its government’s active support of business and investment.
Lithuania ranks 15th globally for economic freedom, with its ease of starting a business placed at 11th, and it takes 2nd position in Europe on the investment attractiveness index. This reflects the country’s commitment to foreign investment, with the Lithuanian government focusing on job creation and boosting local talent.
As a result, the country offers several advantages for business owners, including low staff costs, well-developed infrastructure, and a 15% corporate tax rate (with a reduced rate of 5% for small businesses with up to 10 employees and a turnover of €300,000). Lithuania also allows for VAT returns, further supporting business operations.
Lithuanian is the country’s official language, but Russian, English, and Polish are also widely spoken, making it easier for international entrepreneurs to do business here. The country boasts minimal tax inspections, fast internet, and a reputation for having the fastest public Wi-Fi in the world, making it ideal for tech-savvy entrepreneurs. With advanced IT infrastructure in every sector, Lithuania ranks first in Europe for online government services, with 99% of entrepreneurs using these services in their daily operations.
Residence permit and citizenship in Lithuania
For those interested in relocating to the EU and starting a business, Lithuania offers a favorable environment. Business immigration is the most common route to obtaining a residence permit in Lithuania. A residence permit grants access to numerous benefits, including the ability to travel within the Schengen Area, purchase property, run a business, and study in any EU country.
To obtain a residence permit, entrepreneurs must meet certain requirements. The company where they plan to work must have been operating for at least six months before applying. Additionally, the company must have a minimum capital of €28,000, of which €14,000 must be personally invested by the applicant. The applicant must also own at least one-third of the company’s shares and hire at least three employees who are Lithuanian citizens or permanent residents. If a foreign company is setting up a representative office or branch in Lithuania, its director or a specialist may apply for a residence permit, provided they meet specific employment and professional experience criteria.
A temporary residence permit is initially granted for two years. Family members of non-residents can also apply for a permit. After five years of temporary residency, individuals can apply for permanent residency and, eventually, citizenship, provided they meet language proficiency, health insurance, financial stability, and other conditions.
