Lithuania Temporary Residence Permit

The Temporary Residence Permit program for digital nomads in Lithuania was launched in June 2021. It is specifically designed to cater to remote workers and digital entrepreneurs from non-EU/EEA countries who can perform their work duties remotely and wish to reside in Lithuania. To be eligible for this program, applicants should provide evidence of their status as digital nomads, such as contracts or other documents proving their work with companies which are not registered in Lithuania. They must also meet financial requirements, showing they have stable, sufficient income to support themselves during their stay. This income threshold is set at a monthly amount that is at least double the average salary in Lithuania. The Temporary Residence Permit is issued for a period of up to one year with the possibility of renewal. A key advantage of the program is that recipients can also benefit from Lithuania's infrastructure, legal framework, and access to the Schengen Area, which allows for travel across many European countries without the need for additional visas. Applicants should complete the required documentation, including an application form, proof of health insurance, and evidence of their accommodation in Lithuania, and submit them to the Migration Department or Lithuanian embassy or consulate in their home country or country of residence. After obtaining the permit, digital nomads are expected to register their place of residence in Lithuania and follow local laws and regulations.

Who can be eligible for the Lithuania Temporary Residence Permit programm for digital nomads?

• Remote workers: Individuals who are employed by a company or are self-employed in a country other than Lithuania and perform their work duties remotely.
• Business owners: Entrepreneurs who own a business outside of Lithuania, allowing them to manage their business and complete tasks from anywhere with internet access.
• Start-up founders: Founders of innovative start-up companies who can continue to operate their business while living in Lithuania, provided that their start-up does not have to be registered in Lithuania.
• Freelancers: Professionals who provide services to clients globally without being tied to a single employer or location.
• Professionals in high-demand sectors: Specialists in IT, marketing, design, finance, education, and other areas where remote work is feasible and in high demand.

Benefits of Working as a Digital Nomad in Lithuania

• Access to High-Speed Internet: Lithuania boasts one of the fastest internet speeds in the world, ensuring that digital nomads can work efficiently and stay connected with clients and colleagues without any hassle.
• Affordable Cost of Living: Compared to many Western European countries, Lithuania offers a lower cost of living, including affordable housing, food, and transportation, allowing digital nomads to better manage their finances.
• Vibrant Expat Community: Lithuania, particularly its capital Vilnius, has a growing community of expats and digital nomads, which can be a valuable resource for networking, collaboration, and socializing.
• Cultural and Historical Richness: The country is home to an abundance of cultural and historical sites, giving digital nomads an opportunity to explore and be inspired during their downtime.
• Geographic Location: Situated in the Baltic region of Europe, Lithuania provides a strategic location for digital nomads who want to travel to other European countries easily and affordably.
• Entrepreneur-Friendly: Lithuania offers a supportive environment for entrepreneurs, with various initiatives aimed at fostering innovation and business, which may benefit digital nomads looking to start their own ventures.
• Work-Life Balance: Lithuanians value work-life balance, which influences the ambience of co-working spaces and public places, ensuring a relaxed but productive atmosphere for working.
• Quality Healthcare: The country offers high-quality healthcare services, which is reassuring for digital nomads in case of health-related issues.
• Seasonal Variety: Lithuania experiences a full four-season climate, providing a diverse living experience throughout the year, from warm summers to snowy winters.
• English Proficiency: Many Lithuanians, especially the younger generation, speak English, reducing the language barrier for international digital nomads.

How much does the Lithuania Digital Nomad Visa Cost?

The visa application fee is 280 EUR. Visa fee is non-refundable.

Processing time for the Digital Nomad Visa in Lithuania - Temporary Residence Permit

The processing time for a Temporary Residence Permit (TRP) in Lithuania can vary based on various factors, such as the type of permit applied for, the applicant's nationality, the completeness of the application, and the current workload of the migration offices. Generally, the standard processing time for a Temporary Residence Permit in Lithuania may be up to a few months from the date of submitting the complete application. For example, it may take approximately 1-4 months, but this is a general estimate, and the actual time can be shorter or longer. Keep in mind that the processing times are subject to change due to policy modifications, seasonal application volume, or other factors. It is advisable to check with the Migration Department of Lithuania or the official website for the most up-to-date information on processing times before applying for a Temporary Residence Permit.

How long can I stay in Lithuania as a Digital Nomad?

Visa on Temporary Residence Permit is valid for 365 days.

Paying taxes as a Digital Nomad in Lithuania

In Lithuania, the tax system for digital nomads generally aligns with the tax regulations that apply to all residents and non-residents earning income within the country. As a digital nomad, the taxes you are subject to will depend on whether you are classified as a tax resident or a non-tax resident, and this classification is typically determined by the number of days you spend in the country and your overall ties to Lithuania. Tax Residents

• If you are a tax resident in Lithuania (usually if you spend more than 183 days in Lithuania during the tax year or your center of vital interests is in Lithuania), your worldwide income is subject to Lithuanian personal income tax.
• The general personal income tax rate is 20% for income up to a certain threshold, and 32% for the amount exceeding this threshold.
• You may be subject to mandatory state social insurance contributions, which can be roughly around 19.5% of your gross income. This provides you access to the Lithuanian social security system, covering health insurance, pension, and other social benefits.
• You are also required to pay compulsory health insurance contributions if you are not otherwise covered (for example, if you do not have a European Health Insurance Card).
• Value-added tax (VAT) may also be applicable if you provide services and your turnover exceeds the threshold set by Lithuanian law. The standard VAT rate is 21%.

Non-Tax Residents

• As a non-tax resident, you are only taxed on Lithuanian-sourced income.
• The personal income tax rate for non-tax residents is generally 20%.
• If you perform work in Lithuania for a Lithuanian company or a foreign company operating in Lithuania, you may be subject to withholding tax on your employment income at the non-resident tax rate.
• Social security contributions may be due on income earned in Lithuania, but this can be subject to exemptions or relief under a social security treaty.
• VAT obligations may still apply if you are providing services within Lithuania above the registration threshold.

Other Considerations

• There is the possibility of double taxation if you are a tax resident in another country that does not have a double tax treaty with Lithuania. However, many countries have such treaties to prevent double taxation.
• Income tax declarations in Lithuania are generally due by May 1st of the following year.
• It is advisable to keep detailed records of your income and expenses for tax purposes.
• Always check for updates on tax regulations and consult with a tax professional for personalized tax advice.

As tax laws and rates can change, it’s important for digital nomads to stay informed of the latest Lithuanian tax laws and regulations and seek advice from a tax professional to ensure compliance with all tax obligations.

Is it possible to apply the Digital Nomad Visa in Lithuania for themselves as well as for dependents?

Yes, it is possible to apply for the Temporary Residence Permit (TRP) in Lithuania not only for individuals but also for their dependents. However, please consult with the migration office or legal experts for the most recent and detailed requirements. As a general guideline, here are the steps and necessary criteria for applying for TRPs for a main applicant and their dependents: **Main Applicant:** [UL] [*] Determine eligibility: Ensure you meet one of the criteria for TRP, such as employment, business, studies, or family reunification. [*] Collect required documents: This typically includes a valid passport, proof of sufficient funds, a confirmed place of residence, health insurance, and specific documents related to your purpose of stay (e.g., employment contract, incorporation documents). [*] Complete the application form: Fill out the TRP application form accurately. [*] Pay the application fee: There is usually a non-refundable fee for processing the TRP application. [*] Submit your application: Lodge your application with the Migration Department of the Republic of Lithuania either in person or through a legal representative. [*] Wait for the decision: The processing time can vary, during which the Migration Department evaluates your application. [/UL] **Dependents:** Dependents commonly include the spouse or partner, minor children, and sometimes other family members who are dependent on the main applicant. [UL] [*] Determine eligibility for dependents: Verify that your dependents qualify for TRP under family reunification or any other applicable category. [*] Collect required documents: Dependents will need to provide their passports, proof of relationship to the main applicant (like marriage certificates or birth certificates), and may also need health insurance and evidence of sufficient funds. [*] Complete the application form for each dependent: Fill out the TRP forms with the details of each dependent. [*] Pay the application fee: Similar to the main applicant, there is a fee for each individual dependent's TRP application. [*] Submit their applications: You can generally submit applications for dependents at the same time as the main applicant's application. [*] Attend an interview or biometrics appointment if required: In some cases, the dependents may be asked to appear in person for an interview or provide biometric data. [*] Wait for the decision: Each dependent's application will be reviewed, and a decision will be issued. [/UL] Keep in mind that the exact process and requirements might change over time, so it is essential to seek up-to-date information from official sources or a legal professional before starting your application. Ensure that all the applications for the main applicant and dependents are as complete and accurate as possible to avoid delays or rejections.