Climate: Lithuania has a temperate broad-leaved forest climate. The average daytime temperature in summer is 23 °C, the average night temperature is 11 °C, the average temperature in coastal areas in winter is -2 to 3 °C, and the average temperature in non-coastal areas is -6 to 7 °C.
Capital: Vilnius
Population: about 2.9 million
Area: 66,000 km²
Currency: Euro
Official language: Lithuanian
International status: MEMBER OF THE EUROPEAN UNION, SCHENGEN, EUROZONE, NATO MEMBER
Holidays
Lithuania operates a 5-day work week, with Saturdays and Sundays closed. Other statutory holidays such as
under:
New Year: January 1;
Independence Day: February 16;
Independence Restoration Day: 11 March;
Easter: Sunday in mid-April and Mondays thereafter;
Labor Day: May 1;
Mother's Day: first Sunday in May;
Midsummer: June 24;
Coronation day of the King of Lithuania: 6 July;
Festival of Nurini (Day of the Assumption of the Virgin): 15 August;
Halloween: November 1;
Christmas: 25 and 26 December.
Price level
Lithuanian prices are at a low to medium level among EU countries.
In December 2021, the price of basic necessities for life in Lithuania is about:
Rice 1.05 €/kg, semolina 0.78€/kg, flour 0.70€/kg, potatoes 0.32€/kg, onions 0.29€/kg, carrots 0.36€/kg, cabbage 0.23€/kg, tomatoes 1.57€/kg, vegetable oil 2.21€/l, milk 0.72€/l, eggs 1.56€/10, pork tenderloin 5.51€/kg, beef 6.61€/kg, Broiler 2.31 euro / kg.
Forex management
Lithuania has been in force since 1 August 1993 with the Foreign Exchange Act, which stipulates that foreign citizens and legal persons have the right to open foreign exchange accounts and conduct foreign exchange transactions in domestic commercial banks licensed by the Central Bank of Lithuania. According to the Investment Law of Lithuania and the Basic Law of the Free Economic Zone, enterprises have the right to remit capital in accordance with the law, remit the principal, profits and dividends of the investment.
After paying the tax payable in accordance with the law, the enterprise can remit the legal income and profits. According to Lithuanian law, the corporate income tax rate is 0-15%. The specific procedures for remittance vary slightly from commercial bank to commercial bank, and the remittance rate is also different. Taking AB Šiaulių bankas bankas as an example, the cost of a normal transfer in US dollars to a foreign bank account (ordinary remittance, arriving after 2 working days, OUR payment) is 14.48 euros.
According to the Lithuanian Law on Anti-Money Laundering and The Financing of Terrorist Activities, financial institutions in Lithuania are responsible for screening and reporting to the Financial Crime Investigation Bureau of the Ministry of the Interior of Lithuania for the operation of funds in a lump sum of more than 15,000 euros or the equivalent in other foreign currencies or several related operations, foreign exchange in the amount of more than 6,000 euros or the equivalent in other foreign currencies, domestic and international postal remittances in excess of 600 euros or the equivalent in other foreign currencies, etc.; Lithuanian Customs, on the other hand, inspects Lithuanian 37 cash (banknotes or coins) and/or bearer negotiable instruments (cheques, promissory notes, bills of exchange, etc.) carrying more than 10,000 euros or the equivalent in other foreign currency, and those who exceed the prescribed limit must declare them.
Working
From 1 January 2020, the minimum monthly wage in Lithuania is 607 euros. In 2019, the per capita monthly salary before tax for Lithuanian residents was 1358.6 euros, and the monthly salary after tax was 857.9 euros. The tax rate for social insurance benefits is 31.18% for employers and 9% for individuals.
Land and house prices
According to data released by the Lithuanian branch of Ober-Haus Real Estate Advisors, as of the end of 2021, in the ordinary residential area of Vilnius, the monthly rent of a 2-bedroom old-style apartment (excluding house maintenance costs, the same below) is about 200-300 euros, while the monthly rent of new apartments is about 300-400 euros. In the city centre and prime location, fully furnished 2 bedrooms range from €260 to €600 per month and from €320 to €800 for 3 bedrooms.
In the heart of Vilnius, the land price for real estate development is around 400-1500 euros / m2, for apartment building developments in ordinary residential areas for 60-200 euros / m2, and for private villas on the outskirts of the city for 20-80 euros / m2.
Main taxes and tax rates
Lithuania taxes its own enterprises and nationals, as well as foreign enterprises operating in Lithuania and foreign citizens who receive income.
【Enterprise Income Tax】Relevant provisions:
(1) The enterprise income tax rate is generally 15%. For small businesses (employing less than 10 people and operating income of less than 300,000 euros) the corporate income tax rate is 5%.
(2) The tax rate for dividends earned by foreign companies is 15%. Dividends received by a foreign company are exempt from income tax if they own more than 10% of the voting shares of Lithuanian companies and have held them continuously (including the time for distributing dividends) for more than 12 months. Dividend income from enterprises registered in the Lithuanian Free Economic Zone is exempt from income tax.
【Individual income tax】Relevant provisions:
(1) The Lithuanian personal income tax rate is adjusted to 15%.
(2) Individual income is exempt from income tax in the following cases: insurance compensation, interest income, charitable income, income from agricultural activities, income from seafarers, etc. in accordance with the provisions of the law.
【VAT】
Lithuania levies VAT on the value-added part of goods produced in the production process, the services provided and the import of goods at a rate of 21%.