Living in Lithuania: 183-day residency requirement, income tax from 20 to 32 % depending on income, and dividends tax of 15 %

According to the Lithuanian Personal Income Tax Law, in its consolidated version of 2026 published by the Lithuanian Tax Administration (VMI), a resident is defined as someone whose permanent residence or center of personal, social, or economic interests is in Lithuania, or who is present there for 183 days or more during the tax year. Residents are taxed on their income from both Lithuanian and foreign sources. In 2026, the tax brackets are 20 % up to €83,237.40 of annual income, 25 % up to €138,729, and 32 % thereafter. Dividends are taxed at 15 %. The sale of real estate acquired more than five years prior to the sale is exempt, according to the VMI.

This page reports on publications from the VMI and the texts of the Franco-Lithuanian convention. It does not deal with visas or residence permits.

Tax resident: four criteria based on duration or interest

Article 4, paragraph 1, of the law on personal income tax (version from 01/01/2026 to 31/12/2026) defines any natural person as a resident:

1. whose permanent place of residence during the tax period is in Lithuania;
2. whose place of personal, social or economic interests during the tax period is in Lithuania;
3. present in Lithuania, continuously or not, for 183 days or more;
4. present in Lithuania for 280 days or more over successive tax periods.

A fifth category concerns Lithuanian citizens who do not meet the previous criteria; the text read does not elaborate on this. Article 2 defines permanent residence as any place where a person has the possibility of residing. Article 5 specifies that a resident's taxable income includes income from both Lithuanian and foreign sources.

For dual residence between France and Lithuania, Article 4 of the convention applies the permanent home, then the center of vital interests, the habitual residence, the nationality, then the agreement of the competent authorities, according to the bill submitted to the Senate.

Income tax 2026: 20 %, 25 % and 32 %

The VMI document "Mokesčių įstatymų pakeitimai nuo 2026-01-01" (updated on 15/01/2026) gives the progressive scale for 2026, expressed as multiples of the average monthly salary (VDU), which is €2,312.15 in 2026:

The same document indicates that, for certain non-salaried income, the first 12 VDUs (€27,745.80) are taxed at 15 % and that only the excess is subject to the progressive tax scale. The law sets the same thresholds of 36 and 60 average salaries (Article 6).

For 2025 income, the tax return (form GPM311) could be filed until May 4, 2026, and until June 1, 2026, for an investment account, according to the VMI. The page does not provide a payment date. For 2026, the CLEISS indicates contributions of 19.50 % for the employee and 1.77 % for the employer in the general case.

Dividends and capital gains on securities: 15 %

The VMI indicates that, for 2026, dividends are taxed at a fixed rate of 15 % regardless of their amount, and that they are not added to annual income for the application of the 20 %, 25 % and 32 % brackets. Article 6 of the law refers to income from "distributed profits".

The proceeds from the sale of shares held for more than 5 years, not acquired through an investment account, are taxed at 15%. The same applies to shares granted by the employer and sold at least 3 years after the right to acquire them arose. The document reviewed does not address other securities sales or deposit interest; these points are not detailed here.

Real estate: sales and property tax

The VMI page on the sale of real estate provides the following formula: tax = (sale price minus purchase price minus mandatory expenses) × 15 %. If the annual taxable income excluding salaried employment exceeds 12 VDU, the excess is taxed at the rates of 20 %, 25 %, and 32 % mentioned above. This page does not detail any exemptions.

The VMI document on the 2026 changes indicates that real estate acquired more than five years before the sale is exempt, using the example of a garage purchased in 2021 and sold in January 2026. Article 17 of the law, point 28, stipulates the same five-year holding period for property located in a country within the European Economic Area. Any additional conditions, such as those related to residency, are not detailed here.

For property tax for individuals, the VMI document of 02/12/2025 relates to the 2025 financial year: the 2026 rates are not detailed here.

The rate applies to the portion above each threshold. The KIT715 declaration and payment are due by December 15th of the tax year.

Succession: 5 % or 10 % out of 70 % of the value

The Lithuanian law on inheritance tax (Paveldimo turto mokesčio įstatymas) and the VMI website state:

• Taxpayers are residents; a permanent resident is taxed on inherited assets in Lithuania or abroad;
• the taxable value is 70 % of the value of the property;
• the rate is 5 % if the taxable value does not exceed €150,000, and 10 % above that;
• The following are exempt: spouse, children (including adopted children), parents, guardians and wards, grandparents, grandchildren, brothers and sisters, as well as a taxable value of €3,000 or less;
• For assets located in Lithuania, the tax is paid before the issuance of the certificate of inheritance.

The VMI website specifies that for a permanent resident who inherits abroad, the declaration (form FR0585) and payment are due by March 1st of the following year. The pages consulted do not describe gift tax. This point is not detailed here.

Coordination with the Franco-Lithuanian convention

The convention was signed in Paris on July 7, 1997 and entered into force on May 1, 2001; according to the BOFiP, it applies to withholding taxes on income paid from January 1, 1997. Points 8 and 9 of the protocol contain a most-favored-nation clause, implemented after the convention between Lithuania and Japan, applicable since August 31, 2018.

The BOFiP (French Official Tax Bulletin) mentions an amicable agreement from January 2023: royalties paid to a resident of another state who is not the beneficial owner are also taxable in the state of source, with Article 23 remaining applicable. Our dedicated page details the agreement.

What this page does not cover

It does not cover visas and residence permits, property acquisition by a foreigner, gift tax, 2026 property tax rates, or any special regime for new residents: the pages reviewed do not mention any of these. Balmont Conseil is neither a law firm nor a local tax advisor: local tax matters should be reviewed with a professional based in Lithuania. French tax issues, such as departure declarations, account declarations, and exit tax, are addressed in our pages on tax residency.

What changes depending on your situation

• Your place of residence, the center of your interests and your days of presence in Lithuania.
• The nature of your income: salaries, dividends, capital gains, rents, sale of assets.
• The length of time you have held your shares and real estate before the sale.
• Your relationship to the deceased, for an inherited asset.

The rule depends on your situation. No results are guaranteed.