EY
Aukstaiciu 7
LT-11341 Vilnius Lithuania
Executive and immigration contacts
Kestutis Lisauskas +370 (5) 274-2252
Email: kestutis.lisauskas@lt.ey.com
Simona Poceviciute +370 (5) 274-2263 Email: simona.poceviciute@lt.ey.com
A. Income tax
Who is liable. Residents are subject to income tax on their worldwide income. Nonresidents are subject to income tax on income earned through a fixed base in Lithuania and other income derived in Lithuania, including the following:
• Interest, except for interest from securities of the Government of Lithuania
• Income from distributed profits
• Rent received for real estate located in Lithuania
• Income on sales of immovable property and movable property subject to mandatory registration in Lithuania
• Employment income
• Income of sportspersons and performers
• Royalties, including copyright and auxiliary rights
• Compensation for violations of copyrights or related rights
Income is recognized when it is received.
An individual is considered to be a resident of Lithuania for tax purposes if he or she meets any of the following conditions:
• He or she has a habitual abode in Lithuania.
• His or her center of vital interests is in Lithuania.
• He or she is present in Lithuania continuously or with interrup tions for 183 or more days in the calendar year.
• He or she is present in Lithuania continuously or with interrup tions for 280 or more days in two consecutive calendar years and is present in Lithuania continuously or with interruptions for 90 or more days during one of these tax years.
• He or she is a citizen of Lithuania employed by the Government of Lithuania or whose costs of living are covered by the Government of Lithuania.
If an individual who is considered a Lithuanian resident for three tax years leaves Lithuania during the fourth year, and if he or she spends less than 183 days in Lithuania during the fourth year, he or she is treated as a Lithuanian resident during the fourth year until his or her last day in Lithuania.
Overview of income tax rates. Starting from 1 January 2020, the following income tax rates apply:
• A 5% rate applies to income from the sale or other disposal of waste.
• A 15% rate applies to illness, maternity or paternity allowanc es.
• A 15% tax rate applies to dividends.
• Progressive income tax rates up to 15% apply to selfemployment income.
• A 20% or 32% tax rate applies to employment income. Annual employment income up to 60 average monthly salaries (AMS) is taxed at a 20% rate. Annual employment income exceeding 60 AMS is taxed at a 32% rate. AMS represents the average monthly salary of Lithuania calculated based on a specific formula, and it is set by Lithuanian legislation. The AMS applicable for calculating income tax and social security contributions for 2021 equals EUR1,352.70.
• A 15% or 20% rate applies to certain types of income other than employment income, such as interest income, royalties, capital gains and other types of income. For 2020, annual income other than employment income up to 120 AMS is taxed at a 15% rate, and such income exceeding that threshold is taxed at a 20% rate.
For further details regarding income tax rates, see the subsections of Income subject to tax below.
Income subject to tax. The taxation of various types of income is described below.
Employment income. Residents employed by Lithuanian compa nies are subject to income tax on income earned from employment in Lithuania and abroad. Nonresidents employed by Lithuanian companies are subject to income tax on income earned from employment in Lithuania. Residents of Lithuania employed by foreign companies and nonresidents employed by foreign compa nies to work in Lithuania are subject to income tax on their employment income.
Taxable employment income is all income in cash and in kind, including wages and salaries, bonuses, fringe benefits including free lodging, and other incentive payments.
Directors’ fees. An annual management bonus received from a Lithuanian company by a board member that is not payable under the individual’s employment contract is treated the same as miscel laneous income and is taxed at the same rates as employment income (a rate of 20% or 32%).
Self-employment and business income. Income from selfemployment is taxed the following rates:
• Income not exceeding EUR20,000 is subject to a 5% income tax rate.
• Income from EUR20,000 to EUR35,000 is taxed by applying the income tax credit formula and taxed at a progressively increasing rate (until reaching the income tax rate of 15%).
• Income exceeding EUR35,000 is subject to a 15% income tax rate.
A self-employed person that obtains a business certificate pays a fixed income tax depending on municipality. Municipalities are allowed (if certain conditions are met) to reduce the fixed income tax on income received from self-employment. Income derived from self-employment exceeding EUR45,000 during a tax period is taxed at progressive rates up to 15%.
Investment income. Dividends received from Lithuanian and for eign companies (with certain exceptions) are taxed at a rate of 15%.
Annual interest income not exceeding 120 AMS is taxed at a rate of 15%. The amount exceeding the 120 AMS threshold is subject to a 20% income tax rate. However, the following types of inter est are exempt from taxation:
• Interest income from non-equity government and company bonds, interest from deposits held in banks and other credit institutions, provided that the total amount of interest does not exceed EUR500 during a calendar year and that the bonds were acquired or the deposit agreement was concluded on or after 1 January 2014
• Interest from government securities issued by European Economic Area (EEA) countries that were acquired before 31 December 2013
• Interest from non-equity bonds that were acquired before 31 December 2013 and that the issuer started to redeem not earlier than 366 days from the date of issuance (additional cri teria apply)
• Interest from banks and other types of credit institutions of EEA countries under contracts concluded before 31 December 2013
• Interest from consumer credits granted via peer-to-peer lending platforms or funds loaned via crowdfunding platforms in Lithuania or in another EEA country, provided that the total amount of interest does not exceed EUR500 during a calendar year
The above exemptions for interest income do not apply to interest received from tax havens.
Royalties paid to resident and nonresident authors and inventors are taxed at a rate of 15% on the amount up to 120 AMS and 20% on the amount exceeding 120 AMS.
Exempt income. The following amounts are excluded from tax able income:
• Death allowances to the spouse, children (including adopted children) and parents (including foster parents)
• Allowances paid from state and municipal budgets
• Life insurance payments (in certain cases)
• The difference between annual proceeds received from the sale of property not requiring legal registration and its acquisition price, not exceeding EUR2,500
• Income received from the sale of movable property legally registered in Lithuania or immovable property located in Lithuania (in certain cases)
• Income from the sale of securities, provided that the amount of total capital gains received from sale of securities (difference between the sales price and the acquisition price of all securi ties) during the tax year does not exceed EUR500 (additional criteria apply)
• Shares received under stock option plans (provided that the agreement is concluded after 1 February 2020) if the right to the shares is exercised not earlier than after three years from the grant date
• Certain other income listed in the Law on Personal Income Tax
Capital gains. Capital gains are generally taxable at a rate of 15% on the amount up to 120 AMS or 20% on the amount exceeding 120 AMS. Exceptions are mentioned in Exempt income.
Deductions
Personal deductions and allowances. Residents and nonresidents may deduct the general nontaxable minimum amount, which depends on the income received. The annual nontaxable minimum amount for 2021 may not be greater than EUR4,800 if annual income does not exceed 12 monthly minimum wages in force on 1 January of the current calendar year. If annual income is greater than 12 monthly minimum wages, the nontaxable minimum amount is calculated according to a formula provided in the Law on Personal Income Tax. For specified groups of resi dents, including disabled persons, the nontaxable minimum amount is greater.
Nonresidents may deduct the general nontaxable minimum amount from Lithuanian-source income at the end of the tax year.
Deductible expenses. The following deductions from a resident’s personal taxable income are allowed:
• Cumulative life insurance premiums (these are premiums paid under a life insurance agreement providing that the insurance payments may be received not only in the event of accidents, but also after the expiration of the agreement) paid on the indi vidual’s own behalf and on behalf of his or her spouse and minor children.
• Pension contributions to pension funds on the individual’s own behalf and on behalf of his or her spouse and minor children.
• Pension contributions to pension funds in EEA or in other Organisation for Economic Co-operation and Development (OECD) countries (additional criteria apply).
• Expenses relating to vocational training or studies (if higher education or qualification is obtained on graduation). This includes tuition paid for the spouse and children. If a loan is obtained to pay tuition, only the amount of loan repaid during a tax year may be deducted.
• Expenses incurred for the individual and his or her spouse’s benefit for works of finishing and repair of buildings and other structures (excluding renovation [modernization] of multiapartment buildings), car repair services, and childcare services for children up to 18 years, if the service provider is or should be registered as a Lithuanian taxpayer. These provisions are temporary and apply for the 2019, 2020 and 2021 calendar years.
The total amount of all the deductions mentioned above may not exceed 25% of taxable income (taking into account deductions). In addition, the total amount of deductible expenses regarding life insurance premiums and pension contributions to pension funds may not exceed EUR1,500, while total amount of deductible expenses regarding building finishing and repair, car repair, and childcare services may not exceed EUR2,000.
Rates. For information regarding tax rates, see Overview of income tax rates and the subsections of Income subject to tax.
B. Other taxes
Land tax and state land lease tax. Land tax is imposed on landowners, both individuals and legal entities, at rates ranging from 0.01% to 4% of the estimated value of the land. State land lease tax is imposed on users, both individuals and legal entities, of state land at rates ranging from 0.1% to 4% of the estimated value of the state land.
Inheritance tax. Inheritance tax is applied to both residents and nonresidents, unless international treaties provide otherwise. The tax base for a Lithuanian permanent resident is inherited property, such as movable property, immovable property, securities and cash. The tax base for a nonresident is inherited movable property requiring legal registration in Lithuania (for example, vehicles) or immovable property located in Lithuania. The rate of inheritance tax applied to inheritors is 5% if the taxable value is less than EUR150,000 and 10% if the taxable value EUR150,000 or more. Close relatives, such as children, parents, spouses and certain other individuals, may be exempt from this tax. Inherited prop erty with taxable value of less than EUR3,000 is also exempt from this tax.
Real estate tax. Real estate owned by individuals that is used for business activities (with several exceptions) or given for use to legal persons for a period longer than one month or indefinitely is subject to 0.5% to 3% real estate tax (RET) based on the taxable value of the real estate. Real estate owned by individuals that is not used for the purposes described in the preceding sentence is taxed at the following rates:
• The part of the property value that exceeds EUR150,000 but does not exceed EUR300,000 is subject to a tax at a rate of 0.5%.
• The part of the property value that exceeds EUR300,000, but does not exceed EUR500,000, is subject to a tax at a rate of 1%.
• The part of the property value that exceeds EUR500,000 is subject to at a rate of 2%.
An exception applies to real estate owned by individuals that is used for business activities (with certain exceptions) or given for use to legal persons for a period of longer than one month or indefinitely, which is taxable on the full taxable value.
A concept of the “mass assessment” of real estate is presented in the Law on Real Estate Tax. “Mass assessment” of real estate is a process of assessing similar real estate when the common meth odology and technology of the data analysis and assessment are used. On the completion of a mass assessment, only a common assessment report is presented. In certain cases, a taxpayer can apply for an individual assessment. If the value of the individu ally assessed real asset differs from the value determined in the course of mass assessment by more than 20%, the taxpayer is allowed to use the individually determined value as the RET base.
Legal entities, as opposed to individuals, must pay advance installments on a quarterly basis. The legal entities should pro vide an annual RET return to the State Tax Inspectorate by 15 February of the following year. Individuals should provide an
annual RET return to the State Tax Inspectorate by the following dates:
• By 15 February of the following year for real estate of com mercial purpose
• By 15 December of the current year for other real estate, if the taxable value of the immovable property owned exceeds EUR150,000
C. Social security
Social security contributions. As of 1 January 2021, the employer withholds 12.52% (14.92% to 15.52% if an individual partici pates in a pension accumulation scheme) from the employee’s gross salary as the social insurance contribution paid by the em ployee. Social insurance contributions are not deducted in com puting the employee’s income tax or his or her health insurance contribution, which are deducted from the gross salary. In the case of a regular employment contract, employers must pay social insurance contributions equal to 1.45% of the gross salary; in the case of a fixed-term employment contract, the rate is 2.17%. However, depending on the number of accidents, the rate of the social insurance contributions might be increased to 3.43%. In addition, the employer must pay 0.16% contributions to the Guarantee Fund and 0.16% contributions to the Long-term Employee Benefit Fund. The ceiling for social security contribu tions applies for annual gross salary amount exceeding 60 AMS per year for 2021 and subsequent periods, excluding employee’s health insurance contributions, employer’s part of social insur ance contributions, contributions to the Guarantee Fund and contributions to the Long-term Employee Benefit Fund.
Social insurance contributions for part-time employees is calculated based on the minimum monthly salary with some excep tions. The minimum monthly salary is EUR642 for 2021.
Special rules apply to the following persons:
• Sportspersons
• Artists
• Individuals working under authorship agreements
• Self-employed persons (attorneys at law, assistant attorneys at law, notaries, bailiffs and other individuals engaged in individ ual activities)
• Farmers and their partners
• Owners of individual enterprises
• Members of micro companies
• Partners of partnerships
The rate of social security contributions for self-employed persons is 12.52% (14.92% to 15.52% if an individual participates in a pension accumulation scheme), levied on 90% of the income sub ject to personal income tax, but not exceeding the amount of 43 AMS per year.
Certain types of employment-related income are exempt from social security contributions, including the following:
• Benefits related to an employee’s death paid by an employer to the employee’s spouse, children and parents, or paid in the event of a natural disaster or fire, up to the amount of five minimum monthly salary payments
• Reimbursement of business travel expenses in the amount specified under the laws or government resolutions
• Payments for the training and requalification of employees
• Interest on the late payment of employment income
• Allowances for illness compensated by the Lithuanian employ er for the first two days of illness
• Shares received under share option plans if the rights to the shares are granted to employees not earlier than three years after vesting
• Benefit received by an employee, when an employer covers the costs for rail or road public transport tickets covering employ ee’s travel to or from work
• Value-added tax calculated for goods supplied and services provided
• Other similar income
Totalization agreements. Foreign citizens, who arrive in Lithuania for work purposes from non-European Union (EU) states or states that are not parties to international treaties and who are employed by a Lithuanian employer are subject to the same rules as Lithuanian citizens. Lithuania is subject to EU regulations providing social security principles for persons migrating between member states.
Foreign employers not registered in Lithuania but having employ ees working according to employment agreements in Lithuania, who are subject to social insurance in Lithuania, must register as insurers in Lithuania and pay the same social insurance contribu tions as Lithuanian employers. In addition, Lithuania has entered into bilateral social insurance agreements with Belarus, Canada, Moldova, the Russian Federation, Ukraine and the United States, which contain special provisions regarding social security and welfare.
Health insurance. The employee’s gross salary is subject to man datory health insurance contributions of 6.98%. The employer must withhold this tax. The annual mandatory health insurance contribution of income received by resident authors, sportspersons and artists who do not receive any employment-related income is calculated on 50% of the amount of income received up to the amount of 43 AMS. Individuals engaged in individual business activities pay mandatory health insurance contributions of 6.98% based on the minimum monthly salary. Annual manda tory health insurance contribution on their income is calculated based on 90% of income received, but the tax base cannot exceed 43 AMS per year.
Mandatory health insurance contributions at a rate of 6.98% of the amount that is subject to social insurance contributions is paid by the individual enterprise for the owner, by the micro company for the member and by the partnership for the partner.
Farmers and their partners must pay mandatory health insurance contributions depending on the area (size) of their farm. The fol lowing are the rates:
• If the area of the farm does not exceed 2 European area units, farmers and their partners must pay mandatory health insurance contributions of 2.33% based on the minimum monthly salary per month.
• If the area of the farm exceeds 2 European area units, farmers and their partners must pay mandatory health insurance contributions of 6.98% based on the minimum monthly salary per month.
D. Tax filing and payment procedures
A Lithuanian tax resident that receives income during a tax year must file an annual income tax return by 1 May of the following year. A Lithuanian tax resident must pay the difference in income tax between the amount specified in his or her annual income tax return and the amount paid (withheld) during the tax year by 1 May of the following year.
A Lithuanian tax resident may elect not to file the annual income tax return if any of the following apply:
• The individual will not exercise his or her right to deduct the annual nontaxable income amount.
• The individual will not exercise his or her right to deduct cer tain expenses incurred from income.
• During the tax period, the individual received only A class income related to employment and no additional tax is payable.
Tax residents who hold specified positions in certain Lithuanian institutions must file annual tax returns and special asset tax returns.
A person who is engaged in individual activity under a business certificate or who has registered his or her individual activity must submit his or her annual income tax return even if he or she did not earn any income from the individual business activity.
Nonresidents who receive B class income (all income not includ ed in A class) must file a nonresident’s income tax return and pay tax due within 25 days after the receipt of income. In addition, nonresidents must file an annual nonresident’s income tax return and pay tax due not later than 1 May of the following year, if the annual Lithuanian-source income amount exceeds the foreseen thresholds for progressive taxation. In addition, nonresidents who receive income from self-employment through a permanent base during the tax period must file an annual income tax return and pay the tax due not later than 1 May of the following year.
E. Double tax relief and tax treaties
The following rules apply to the taxation of foreign-source income received by permanent Lithuanian residents:
• Income (except dividends, interest and royalties) received by a permanent Lithuanian resident and taxed in another EU mem ber state or another state with which Lithuania entered into a double tax treaty is exempt from tax in Lithuania.
• A permanent Lithuanian resident may reduce the Lithuanian income tax applicable to dividends, interest and royalties by the amount of income tax paid in the country where the income was sourced if the source country was an EU member state or a state with which Lithuania has entered into a double tax treaty.
• A permanent Lithuanian resident may reduce the Lithuanian income tax applicable to all types of income by the amount of income tax paid on such income in other states, except for income received from tax havens.
On 11 September 2018, Lithuania deposited its instrument of ratification, acceptance or approval of the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI) with the OECD. The MLI entered into force as of 1 January 2019. Accordingly, Lithuania submitted the definite list of 55 tax treaties (all of Lithuania’s double tax treaties that are in force and its double tax treaty with Morocco, which is signed but has not yet entered into force) that Lithuania would like to designate as Covered Tax Agreements.
Lithuania has entered into double tax treaties with the following jurisdictions.
Armenia Iceland Poland Austria India Portugal
Azerbaijan Ireland Romania
Belarus Israel Russian Federation Belgium Italy Serbia Bulgaria Japan Singapore Canada Kazakhstan Slovak Republic
China Mainland Korea (South) Slovenia Croatia Kuwait Spain Cyprus Kyrgyzstan Sweden
Czech Republic Latvia Switzerland Denmark Lichtenstein Turkey Estonia Luxembourg Turkmenistan Finland Malta Ukraine France Mexico United Arab Georgia Moldova Emirates Germany Netherlands United Kingdom Greece North Macedonia United States Hungary Norway Uzbekistan
F. Entry visas
The Law on the Legal Status of Foreigners, which entered into force on 30 April 2004, is designed to harmonize the Lithuanian law regulating the legal status of foreigners in Lithuania with the requirements of the EU with respect to visas, migration, asylum and free movement of persons.
In general, to enter Lithuania, a foreign national must have a visa stamped in his or her valid travel document. Under Lithuanian free travel agreements, resolutions and treaties, citizens of the EU and the following jurisdictions may enter Lithuania freely.
Albania (a)(b) India (b)
St. Kitts and Andorra Israel Nevis Antigua and Barbuda Japan
St. Lucia Argentina Jordan (b) St. Vincent Armenia (b) Kazakhstan (b) and the Australia Kiribati Grenadines Azerbaijan (b) Korea (South) Samoa Bahamas Liechtenstein San Marino
Barbados Macau (c) Serbia (a)(b) Bosnia and Malaysia Seychelles Herzegovina (a)(b) Marshall Islands Singapore Brazil Mauritius Switzerland
Brunei Darussalam Mexico Taiwan (d) Canada Micronesia Timor-Leste
Cape Verde (b) Morocco (b) Tonga
Chile Nauru Trinidad and China Mainland (b) New Zealand Tobago
Colombia Nicaragua Turkey (b) Costa Rica North Macedonia (a)(b) Tuvalu
Dominica Norway Ukraine (a) El Salvador Oman (b) United Arab Georgia (b) Palau Emirates
Grenada Panama United States Guatemala Paraguay Uruguay Honduras Peru Vanuatu
Hong Kong (c) Philippines (b) Vatican City Montenegro (a)(b) Russian Federation (b) Venezuela
(a) For holders of biometrical passports.
(b) For holders of diplomatic and official passports. Nationals of the Philippines may stay up to 21 days.
(c) For Hong Kong and Macau passport holders only.
(d) For holders of a passport with a personal identification number provided.
In general, Lithuania allows such citizens to stay in Lithuania for up to three months in a six-month period without obtaining any specific stay document.
An ordinary visa allows an individual to enter and stay in Lithuania for up to three months during a six-month period, which is calculated from the date of arrival in Lithuania or any other Schengen country.
Individuals with a United Nations certificate may stay in Lithuania for up to three months during a six-month period.
G. Work permits
Usually, a Lithuanian-registered enterprise may employ the following foreigners:
• A foreigner who has a valid work permit issued by the Central Employment Services of Lithuania
• A foreigner who has retained the right to Lithuanian citizenship
• A foreigner who is of Lithuanian origin
• A foreigner who marries in Lithuania
Work permits are not required for citizens of the EU or for for eigners holding a permit for permanent residence issued by Lithuania. A permanent residence permit may be issued after five years of legal stay in Lithuania or after five years in an EU mem ber state with at least two years without termination in Lithuania.
A company that intends to employ a foreigner must submit a request to the local Employment Services for a work permit. A company must register a free working place (an available employment position in the company) five days before submitting a request for a work permit.
When the local Employment Services issues a positive decision, the required documents are submitted to the Central Employment Services, which issues a final decision and issues a work permit to the foreigner. The consideration of a request for a work permit may take up to two weeks. A foreigner is issued a work permit valid for up to two years. Based on the work permit,
an individual may be eligible for a temporary residence in Lithuania.
In general, a work permit is required for a non-EU citizen before the beginning of work in Lithuania, unless he or she is exempt from the requirement of obtaining a residence permit. The fol lowing are a few of the possible exemptions:
• A non-EU citizen who intends to take a job requiring high pro fession qualification (additional requirements apply)
• An employee who is transferred from a foreign company as a manager, specialist or intern in a group structural unit estab lished in Lithuania (additional requirements apply) (intercompany transfer [ICT])
• An individual who has a permanent residence permit obtained in another EU country
• An employee who arrives in Lithuania for no more than three months during a year to take care of a matter related to the negotiation, conclusion or execution of an agreement, person nel training or installation of equipment
• An individual who is in a profession that is listed among the professions that are in need in Lithuania
Other exemptions are also available.
A foreign employer who temporarily posts its employee for work in Lithuania for more than 30 days must inform the Territorial Division of the State Labour Inspectorate about the employment conditions of the posted employee not later than 1 day before the start date of the posting. The required form must be completed and submitted by the foreign employer to the Territorial Division of the State Labour Inspectorate.
H. Residence permits
To legally enter and stay in Lithuania, in general, a non-EU citi zen must have a residence permit and/or a certain visa, unless a visa-free regime is applicable. A visa allows an individual to enter and stay in Lithuania for up to 90 days in a 180-day period. The same length of stay applies to non-EU citizens who fall under the visa-free regime. However, a visa does not allow a foreigner to legally work in Lithuania.
An EU citizen who spends fewer than three months per half-year in Lithuania does not need to have a temporary residence permit.
Temporary residence permits usually are issued to persons who spend more than three months per half-year in Lithuania, most often for business or educational purposes. A foreigner applying for a residence permit for the first time must contact the Lithuanian diplomatic or consular mission abroad. However, citizens of EU member states and foreigners not subject to the visa regime are not subject to this condition. Citizens of EU member states may apply to the Migration Department in Lithuania for an EU certificate, which allows them to temporar ily reside in Lithuania. Citizens of EU member states may obtain the EU certificate for a maximum period of five years depending on the purpose of stay. On the expiration of the temporary residence permit, the person must request a new temporary residence permit.
A temporary residence permit for foreigners from third countries is issued for a maximum period of three years.
In addition, new immigration alternatives for foreign employees entered into force as of 1 January and 15 June 2021. A temporary resident permit may be issued to a foreigner who either is or was an employee of an investor or an investor’s group of companies that meet the investor’s requirements set in the Law on Investments of the Republic of Lithuania. In this case, a temporary residence permit can be issued for up to three years upon providing a justifying document confirming that a foreigner meets the required conditions. Meeting the criteria of qualification for work experience and the labor market test are not required.
I. Electronic resident
A foreigner who wishes to use the administrative, public or com mercial services provided electronically (remotely) in Lithuania may submit an application for granting the status of an electronic resident (e-resident) of Lithuania.
A foreigner may start using the opportunities provided by the status of an e-resident when they have been granted the status of an e-resident in accordance with the procedure established by the Law on the Legal Status of Foreigners of the Republic of Lithuania and has been issued an electronic identification and electronic signature means.
A foreigner of at least 18 years old must fill in an application for granting the status of an electronic resident of Lithuania through the Lithuanian Migration Information System and submit it to the Migration Department.
After examining the foreigner’s application for granting the sta tus of an e-resident and in the absence of grounds for not granting the status of an e-resident, a foreigner is granted the status of an e-resident for three years.
J. Family and personal considerations
Marital property regime. Marital property relations are regulated by the Civil Code of Lithuania.
Under the law, spouses or future spouses may enter into a nota rized marital agreement regulating the legal status of the spouses’ property that is registered under an established procedure. If a marital agreement is not entered into, property acquired by spous es during their marriage is considered jointly owned property. Each of the spouses has equal rights to use and dispose of jointly owned property. At any stage of marital life, couples may divide their jointly owned property by a notarized marital agreement.
The jointly owned property regime applies to all officially mar ried couples who have a permanent residence in Lithuania, unless a marital agreement establishing another governing law is con cluded. If the spouses reside in different countries, the jointly owned property regime applies only if both spouses are citizens of Lithuania. In other situations, the jointly owned property regime applies only if the couples solemnize their marriages in Lithuania. The law recognizes a concept of family property that may be used for family requirements only, including matrimonial domicile and right to use a matrimonial domicile.
The law applicable to an agreement between the spouses regard ing matrimonial property is determined by the law of the state chosen by the spouses in the agreement. The spouses may choose the law of the state in which they are both domiciled or will be domiciled in the future, or the law of the state in which the marriage was solemnized, or the law of the state of which one of the spouses is a citizen. The agreement of the spouses on the applicable law is valid if it is in compliance with the requirements of the law of the selected state or the law of the state in which the agreement is made. The applicable law chosen in the agreement of the spouses may be used in resolving disputes related to real rights in immovable property only if the requirements of public registration of this property and of the real rights therein, as determined by the law of the state where the property is located, were complied with.
Forced heirship. Under the Civil Code of Lithuania, certain heirs and descendants have a right to a legal share of their relatives’ estate. Children (including adopted children) of the deceased, as well as a spouse and parents requiring care, are entitled to half of their intestate share, regardless of the provisions of any will, unless the bequeathed share is larger.
The form of the will is determined by the laws of the country where the will is concluded. However, a will, as well as its amend ment or revocation, is valid if the form of these items is in com pliance with the requirements of any of the following:
• The law of the state of the testator’s domicile
• The law of the state of which the testator was a citizen when the relevant acts were performed
• The law of the state of the testator’s residence when the relevant acts were performed or at the time of his or her death Land, buildings and other immovable property located in Lithuania are inherited in accordance with the laws of Lithuania.
Driver’s permits. A driver’s permit issued to a resident of a foreign country is valid in Lithuania if the person possesses an interna tional driver’s license that meets the requirements of the 1968 Vienna Convention or a driver’s license issued by an EU member state or a driver’s license that Lithuania must recognize under international agreements. A driver’s license issued by a non-EU country to a foreigner residing in Lithuania may be changed to a Lithuanian driver’s license if certain conditions are met.