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EU fintech hub with competitive corporate tax rate
Region
EASTERN EUROPE
Corporate Tax
17%
Setup Time
1 weeks
Currency
EUR
Lithuania, the southernmost Baltic state, has emerged as a fintech hub with cost advantages. The country's efficient company registration and open approach to financial services support business setup for European operations.
With a population of 2.8 million, Lithuania offers compact European living. Lithuanian is the official language, with English common among younger professionals. Vilnius provides historical charm with tech-sector growth.
Healthcare is available through mandatory insurance, with improving quality. Safety is good. The cost of living is low for the Eurozone.
The baroque architecture, nature, and emerging tech scene create growing appeal.
Corporate tax rate stands at 15%, reduced to 5% for small companies. Personal income tax is progressive to 32%. VAT applies at 21% standard rate.
Lithuania uses the Euro. The country actively promoted fintech licensing, becoming a major EMI (electronic money institution) hub within the EU. The tech sector has grown significantly.
Company registration through the Center of Registers is efficient and digital. The UAB (limited liability company) is the standard vehicle. Foreign ownership faces no EU restrictions.
Company formation takes approximately 1 week. Minimum capital is EUR 2,500 for UAB. At least one director is required. Annual compliance includes financial statement filing.
The Bank of Lithuania registers virtual asset service providers. Lithuania was aggressive in attracting crypto businesses, though recent regulatory attention has increased compliance requirements. The approach implements EU frameworks.
The Gaming Control Authority regulates gambling. The gambling license framework covers online operations with established requirements. Lithuania has licensed various international operators.
The small domestic market requires export or EU-wide focus. Emigration has affected workforce availability. The fintech licensing regime has seen increased scrutiny.
Banking access is available through Lithuanian and EU banks. Professional services are developing rapidly.
Lithuania suits fintech operations, payment services, and EU market entry with cost advantages for their business setup.
Local: UAB
Local: AB
Local: Branch
| Corporate Tax Rate | 17% |
| Personal Income Tax Rate | 32% |
| VAT / Sales Tax | 21% |
| Capital Gains Tax | 15% |
| Withholding Tax | 15% |
| Reduced Corporate Tax Available | Yes |
| Non-Resident Withholding Exempt | No |
| Tax Treaty Network | Yes |
| Banking Access | HIGH |
| Financial Privacy | LOW |
| Currency Controls | NONE |
| Local Bank Account Required | No |
| Non-Resident Bank Account Allowed | Yes |
| Physical Presence for Banking | Yes |
| Banks Restrictive (High Risk) | No |
| AML Officer Required | No |
| MLRO Required | No |
| Compliance Officer Required | No |
| Data Protection Officer Required | No |
| Bookkeeping Frequency | Annual |
| Local Bookkeeping Required | Yes |
| Mandatory Audit | No |
| License Required | Yes |
| Local Director Required | No |
| Local AML Director Required | Yes |
| Local Legal Address Required | Yes |
| Local Physical Office Required | No |
| Required Share Capital | $125,000 |
| Capital Maintained in Account | Yes |
| Compliance Program Required | Yes |
| Travel Rule Compliance | EU Travel Rule / FATF compliant |
| Business Plan Required | Comprehensive 3-year business plan required demonstrating financial viability and compliance capabilities |
| Personnel Required | CEO, AML Officer, Compliance Officer, IT Security Officer |
| Insurance Required | No |
| Remote Incorporation Possible | Yes |
| 100% Foreign Ownership | Yes |
| Min. Shareholders | 1 |
| Min. Directors | 1 |
| Shareholder/Director Same Person | Yes |
| Registry Public | Yes |
| Registry Access | Bank of Lithuania maintains public register of licensed CASPs |
| Renewal Period | Annual |
| Accounting Filing Required | Yes |
| Accounting Filing Frequency | Annual |
| Financial Statement Required | Yes |
| Financial Statement Frequency | Annual |
| Accounting Audit Mandatory | No |
| Compliance Audit Mandatory | Yes |
| Technical Audit Mandatory | No |
| Corporate Income Tax Applicable | Yes |
| Dividend Tax Applicable | Yes |
| Capital Gains Tax Applicable | Yes |
| Territorial Tax Regime | No |
| VAT Applicable | Yes |
| Regulators | Bank of Lithuania (Lietuvos bankas) |
| Licensing Fee | $1,463 |
| Licensing Fee Details | CASP license application fee €1,463; additional supervisory fees apply annually |
| Permitted Business Models | Exchange, Custody, Trading platform, Transfer services, Portfolio management, Advisory |
| Permitted Activities | Crypto-to-fiat exchange, Crypto-to-crypto exchange, Custody services, Order execution, Portfolio management, Advisory services |
| Restricted Activities | Security tokens without additional investment firm license |
| Cross-Border Service Allowed | Yes |
| Physical Inspection Required | No |
| Derivatives Allowed | No |
| RWA Tokenization Allowed | Yes |
| App Store Listing Allowed | Yes |
| Crypto Custody Allowed | Yes |
| License Required | Yes |
| Local Director Required | No |
| Local AML Director Required | Yes |
| Local Legal Address Required | Yes |
| Local Physical Office Required | No |
| Required Share Capital | $1,158,000 |
| Capital Maintained in Account | Yes |
| Compliance Program Required | Yes |
| Travel Rule Compliance | N/A |
| Business Plan Required | Detailed business plan with financial projections and operational procedures required |
| Personnel Required | CEO, AML Officer, Responsible Gambling Officer |
| Insurance Required | No |
| Remote Incorporation Possible | Yes |
| 100% Foreign Ownership | Yes |
| Min. Shareholders | 1 |
| Min. Directors | 1 |
| Shareholder/Director Same Person | Yes |
| Registry Public | Yes |
| Registry Access | Gaming Control Authority maintains public register |
| Renewal Period | Indefinite |
| Accounting Filing Required | Yes |
| Accounting Filing Frequency | Annual |
| Financial Statement Required | Yes |
| Financial Statement Frequency | Annual |
| Accounting Audit Mandatory | Yes |
| Compliance Audit Mandatory | Yes |
| Technical Audit Mandatory | Yes |
| Corporate Income Tax Applicable | Yes |
| Dividend Tax Applicable | Yes |
| Capital Gains Tax Applicable | Yes |
| Territorial Tax Regime | No |
| VAT Applicable | No |
| Regulators | Gaming Control Authority under the Ministry of Finance (Lošimų priežiūros tarnyba) |
| Licensing Fee | $500,000 |
| Licensing Fee Details | Remote gambling license: €500,000; All activities (land-based + online): €1,000,000; Table games/Category A machines: €300,000; Betting: €100,000 |
| Permitted Business Models | B2C Online gambling, Land-based casinos, Betting shops |
| Permitted Activities | Table games, Category A and B gaming machines, Bingo, Totalisator, Sports betting, Remote gambling |
| Restricted Activities | Operators on blacklist prohibited; minimum age 21 for players |
| Cross-Border Service Allowed | No |
| Physical Inspection Required | Yes |
| Player Fund Segregation | Yes |
| B2B/B2C Separate Requirements | No |
| License Required | Yes |
| Local Director Required | No |
| Local AML Director Required | Yes |
| Local Legal Address Required | Yes |
| Local Physical Office Required | Yes |
| Required Share Capital | $350,000 |
| Capital Maintained in Account | Yes |
| Compliance Program Required | Yes |
| Travel Rule Compliance | FATF / EU PSD2 compliant |
| Business Plan Required | 3-year business plan with financial forecasts, risk management framework, and compliance procedures |
| Personnel Required | CEO, CFO, AML Officer, Compliance Officer, IT Security Officer, minimum 3-member Board |
| Insurance Required | Yes |
| Insurance Details | Professional indemnity insurance required for AISP/PISP services |
| Remote Incorporation Possible | No |
| 100% Foreign Ownership | Yes |
| Min. Shareholders | 1 |
| Min. Directors | 3 |
| Shareholder/Director Same Person | Yes |
| Registry Public | Yes |
| Registry Access | Bank of Lithuania public register of financial institutions |
| Renewal Period | Annual |
| Accounting Filing Required | Yes |
| Accounting Filing Frequency | Annual |
| Financial Statement Required | Yes |
| Financial Statement Frequency | Annual |
| Accounting Audit Mandatory | Yes |
| Compliance Audit Mandatory | Yes |
| Technical Audit Mandatory | No |
| Corporate Income Tax Applicable | Yes |
| Dividend Tax Applicable | Yes |
| Capital Gains Tax Applicable | Yes |
| Territorial Tax Regime | No |
| VAT Applicable | Yes |
| Regulators | Bank of Lithuania (Lietuvos bankas) |
| Licensing Fee | $1,463 |
| Licensing Fee Details | EMI license: €1,463 application fee; PI license: €898 (€693 for AISP only); Small EMI: €1,235; Small PI: €682 |
| Permitted Business Models | EMI, PI, Small EMI, Small PI, AISP, PISP |
| Permitted Activities | Electronic money issuance, Payment services, Money transfers, Payment initiation, Account information services, Card issuing |
| Restricted Activities | Banking activities require separate credit institution license |
| Cross-Border Service Allowed | Yes |
| Physical Inspection Required | Yes |