We're sorry for the inconvenience...

Lithuania, formally the Republic of Lithuania (Lithuanian: Lietuvos Respublika), is a European nation located in the Baltic area. It is one of three Baltic nations and is located on the Baltic Sea's eastern coast. Lithuania is bordered to the north by Latvia, to the east and south by Belarus, to the south by Poland, and to the southwest by Russia's Kaliningrad Oblast. It has a maritime boundary with Sweden on the Baltic Sea to the west. Lithuania has a population of 2.8 million people and an area of 65,300 km2 (25,200 sq mi). Vilnius is the capital and biggest city; other notable cities include Kaunas and Klaipeda. Lithuanians are part of the Balt ethnolinguistic group and speak Lithuanian, one of just a few extant Baltic languages.
For millennia, several Baltic tribes occupied the Baltic Sea's southeastern coastlines. Mindaugas consolidated Lithuanian regions in the 1230s before becoming king and establishing the Kingdom of Lithuania on July 6, 1253. The Grand Duchy of Lithuania was the biggest nation in Europe in the 14th century, including modern-day Lithuania, Belarus, Ukraine, and portions of Poland and Russia. With the marriage of the Polish queen Hedwig and Lithuania's Grand Duke Jogaila in 1386, the Crown of the Kingdom of Poland and the Grand Duchy of Lithuania were in a de facto personal union, and Wadysaw II Jagieo of Poland was anointed King jure uxoris. The Union of Lublin founded the Commonwealth of Poland and Lithuania in July 1569. The Commonwealth lasted more than two centuries until it was destroyed by neighboring nations in 1772–1795, with the Russian Empire annexing the majority of Lithuania's territory. On the eve of World War I's conclusion, Lithuania's Act of Independence was signed on February 16, 1918, establishing the modern Republic of Lithuania. During WWII, Lithuania was controlled by both the Soviet Union and Nazi Germany. When the Germans were withdrawing at the conclusion of the war in 1944, the Soviet Union reoccupied Lithuania. Armed resistance to Soviet occupation in Lithuania persisted until the early 1950s. Lithuania approved the Act of the Re-Establishment of the State of Lithuania on March 11, 1990, a year before the official fall of the Soviet Union, becoming the first Soviet country to declare its independence.
Lithuania is a developed nation with a high-income advanced economy that ranks well on the Human Development Index. It has high marks for civil rights, press freedom, internet freedom, democratic government, and peace. Lithuania is a member of the European Union, the Council of Europe, the eurozone, the Nordic Investment Bank, the Schengen Agreement, NATO, and the Organization for Economic Cooperation and Development. It is a member of the Nordic-Baltic Eight (NB8) regional cooperation arrangement and a Nordic Council permanent observer.
Employees are given 20 days of paid vacation per year.
There are 11 national holidays in the Lithuania. Service hours are shortened by one hour the day before the national holiday (paid, just one hour shorter is indicated in the timesheet). Public holidays are days off from work that are paid.
The boss pays 100 percent of the gross wage for the first two days. Employees earn 62.06 percent of their salaries from SODRA after the third sick day (employer does not incur costs). SODRA pays 65.94 percent if the employee is unable to function due to the patient's treatment.
Employees who are eligible take 18 weeks (126 days) of paid maternity leave depending on a gross monthly pay for the 12 months preceding the start of maternity leave. Complications in labor and multiple births are given an extra two weeks. The maternity income is equal to 77.58 percent of the compensatory earnings of the recipient. This number is based on the person's covered salary for the 12 consecutive calendar months preceding the month in which maternity compensation eligibility occurred. The maternity benefit cannot be less than 228 EUR a month.
Paternity leave is granted to new fathers for four weeks. The pay estimate is the same as in the segment on maternity leave.
100% paid maternity leave for up to one year. If the adult chooses to accept the benefit before the child turns two, the parent will receive 70% of the benefit before the child turns one and 40% thereafter. The salary calculation is the same as in the segment titled "Maternity Leave."
Employees are entitled to 26 days of paid vacation each year. In addition, those workers are entitled to extra time off:
Persons who are disabled who have been injured at work are entitled to an additional six days of leave.
Employees in the mining industry are entitled to an additional three days of vacation.
An employee or apprentice who has not had a consistent rest time of 44 hours per week, plus one extra day for every 8 weeks the employee has not had continuous rest.
Employers must provide the required notice in order to terminate an employee properly. Notice is calculated based on the length of continuous employment.
The standard period of notice is one month. The notice period is two weeks for employees with less than one year of service. The notice periods mentioned previously are increased threefold for employees who are raising a child (also adopted) under the age of 14, employees who are raising a disabled child under the age of 18, disabled employees, and employees who will be eligible for retirement in two years. For employees who will be eligible for a retirement pension in five years, notice periods are doubled.
Probation periods are not required but are common. They typically last 3 months.
Severance payments are calculated on the basis of one month's average wage for employees who have worked for the company for less than 12 months. Employees with more than 240 months of service receive up to six months' average wage.
The standard workweek consists of forty hours spread over five days. Flexible working hours are becoming more prevalent in Lithuania, and some employees may work part of their shifts.
Overtime hours are limited to eight per week (which can be increased to twelve with the employee's consent) and 180 per year. Overtime is compensated at 150 percent of the employee's standard hourly rate, and 200 percent for work performed on a holiday or a day the employee was not originally scheduled to work. Employees who work more than three hours between 10:00 p.m. and 6:00 a.m. or who work more than 25% of total hours during this time period are compensated at 150 percent of the standard hourly rate for night hours.
Employees who work overtime between the hours of 10 p.m. and 6 a.m. or on a day they were not originally scheduled to work earn 200 percent of the standard hourly rate, while employees who work overtime on a holiday earn 250 percent of the standard hourly rate.
Employees in Lithuania must earn at least 642 EUR per month by January 2021 in order to comply with Lithuanian compensation laws. Bonuses are not required, but many employees expect them to be included in their employment contract. Workers with in-demand skills can expect to be paid more for their time as well as receive annual raises.
Lithuania has a national healthcare system. Employees pay 6.98 percent of their gross income for health insurance. There are also private clinics, although few Lithuanians have private health insurance.
All permanent residents of Lithuania are required to obtain health insurance, and workers must register with the health insurance fund of their employer. The majority of services are paid for by the government. The state money does not cover dental treatment.
Supplemental health insurance, a vehicle allowance, a phone allowance, and a fitness allowance are all common perks.
Corporate income tax (Lithuanian: Pelno mokestis, meaning profit tax) is imposed on Lithuanian businesses, companies with a permanent presence in Lithuania, and non-resident companies. According to international treaties, Lithuanian businesses are taxed on their global revenue, with a deduction for income produced via permanent operations in other countries. Companies that have a permanent establishment in Lithuania are taxed on the profit attributable to such permanent establishment. Non-resident corporations are taxed on some revenue that is deemed to have originated in Lithuania, such as dividends, interest, and royalties, but there are exceptions.
The majority of businesses are taxed at a rate of 15%. Small businesses and agricultural operations are subject to a 5% tax rate, as specified by law. For the first fiscal year, startups get a rate of 0%. (if income does not exceed 300 000 EUR). The interest and royalties revenue given to non-resident businesses is taxed at a rate of 10%. Non-profit organizations, social enterprises, shipping companies, and other businesses may be taxed differently. Participation exemption relates to dividends paid/received by tightly held businesses as specified by law, as well as capital gains from shares of closely owned companies.
Residents and some non-residents are subject to personal income tax (Lithuanian: Gyventoj pajam mokestis or GPM). Residents are taxed on their total income, which includes earnings from work, self-employment, investment earnings, and capital gains. Non-residents may be taxed on certain kinds of income considered to be derived from Lithuania, such as employment income, interest, income from dispersed profit, and income derived from real estate or other property. In certain instances, relief from double taxes is possible.
The income tax threshold (Lithuanian: Neapmokestinamasis pajam dydis or NPD) exists. The basic tax rate on employment income is 20%, while the higher rate is 32%. Dividend income is taxed at a 15 percent rate. Other kinds of income are taxed at different rates. Thresholds are changed on a yearly basis depending on the national average salary, and total rates may also be affected by particular circumstances (number of children, disability reliefs, etc).
The value added tax (Lithuanian: Pridtins verts mokestis or PVM) is imposed by law on products and services that are subject to VAT. Lithuania's VAT is a component of the European Union's value-added tax system.
In Lithuania, the usual VAT rate is 21%. Certain products and services are subject to lower VAT rates of 9% (e.g., most books, magazines, and passenger transportation services), 5% (e.g., medications, medical equipment, handicapped equipment, etc.), and 0%. (e.g., international transportation). VAT is not levied on some products and services (e.g., financial services).
Employers of foreign nationals in Lithuania have various alternatives under the country's immigration system. Lithuania is a member of the European Union (EU) as well as the Schengen Zone. The requirements, processing dates, work eligibility, and perks for accompanying family members differ depending on the kind of permission.
Unless they are visa-exempt due to their nationality, business travellers to Lithuania normally utilize a local version of the Schengen C Visa. The duration of a Schengen Visa stay is restricted to 90 days over a period of 180 days, calculated cumulatively over the whole Schengen Area.
The major work authorization types are the EU Intra-Company Transferee (ICT) Permit, which is excellent for transfers of managers, experts, and trainees and is valid for up to three years, and the EU Blue Card, which is valid for up to three years and is perfect for highly trained local recruits.
The employer’s full name and registered office address
The place where the employee’s work will be performed
The type of employment contract (indefinite, fixed term, or other type)
A job description and, where applicable, information about the rank of the position within the company and/or the level of qualification or complexity
The date employment will commence (and the end date, if applicable)
Information about the annual leave to which the employee is entitled
The notice period(s) required to terminate the contract
Salary information, including the components of the employee’s salary and the terms and procedures for paying it
The employee’s working hours
Information about any collective agreements that apply
In Lithuania, there are nine different forms of work contracts. Full-time workers have a contract that is either indefinite or fixed-term. A fixed-term contract has a maximum period of two years. Multiple, successive fixed-term contracts for the same job function may not be for more than two years in total. If a sequence of successive fixed-term contracts for one job function surpasses the two-year limit, the contract is automatically changed to an indefinite contract. If the total length of many consecutive fixed-term contracts for distinct job tasks exceeds five years, they are converted to indefinite-term contracts. Fixed-term contracts may be used by no more than 20% of workers working for the same firm.
Lithuanian Litas
Depending on your region and company, learning how to establish up a Lithuania subsidiary will be different. Before beginning the subsidiary establishment procedure, it's a good idea to collaborate with your other business leaders to describe elements such as your firm's objectives, preferred trading location, and more.
Different regions may function as states, with their own Lithuania secondary laws. Before selecting an office space in Lithuania, you should always do research on the place where you intend to integrate. Companies in Lithuania may also incorporate as a limited liability company (LLC), a public limited company, a branch office, or a representative office. Because of the advantages to both parent firms and subsidiaries, many companies intending to establish a Lithuania subsidiary prefer to organize as an LLC.
The following are the stages to forming an LLC:
1. Establishing a bank account
2. Depositing funds with the Company Register, the State Tax Inspectorate, and the State Insurance Fund Board
3. Obtaining a VAT number, tax identification number, registration document, and unique registration number
4. Obtaining the subsidiary's official seal
The subsidiary laws of Lithuania vary depending on the subsidiary structure chosen. Although LLCs are the most common, you must still grasp the rules that apply to your business. One director, who must be a natural person, and one shareholder are required for an LLC. To go through the incorporation procedure, you'll also require 2,500 EUR in share capital.
To remain compliant and deposit your share capital, you must open a Lithuanian bank account. In addition, your firm must register with the Lithuanian Revenue Authority and file all accounts and declarations for tax reasons. Once formed, your LLC is responsible for paying corporate taxes in Lithuania as a Lithuanian corporation.