Individual activity tax in Lithuania 2026

This guide is for Lithuanian tax residents unless a section says otherwise. If you are not sure whether you are resident, read the residency section first.

How the 2026 tax works

Individual activity (individuali veikla) means working for yourself as a private person. You register with VMI, the State Tax Inspectorate, and receive a certificate called FR0468 (pažyma). You do not set up a company.

You pay three things, all on your profit. Profit means your income minus your allowable expenses.

• GPM, personal income tax, paid to VMI.
• VSD, state social insurance, paid to Sodra, the State Social Insurance Fund.
• PSD, compulsory health insurance, also paid to Sodra.

Income tax (GPM)

The rate is 20%, reduced by a tax credit while your taxable profit is up to €42,500. Up to €20,000 the credit is 15% of the profit, so you pay 5%. Between €20,000 and €42,500 the credit gets smaller as profit grows. VMI's own example: on a taxable profit of €30,000 the credit is €2,500 and the tax is €3,500.

Above €42,500 there is no credit. The whole profit is taxed in bands of 20%, 25% and 32%, with the thresholds set at 36 and 60 times VDU, the average monthly wage. If you also have a salary or other income, those bands can shift.

Expenses: actual costs or a flat 30%

You choose one of two ways to work out profit.

• Actual expenses. You deduct the costs you can document. They may include the 12.52% VSD and the PSD you pay for the year, so those contributions also lower your taxable profit.
• A flat 30%. You deduct 30% of your income instead, without receipts. The contributions are then not deducted a second time. Check that the law allows this for your type of activity.

Sodra contributions (VSD and PSD)

Sodra does not charge on your whole profit. The base is 90% of your profit, before the contributions themselves are deducted, and it is capped at 43 times VDU: €99,422.45 in 2026.

• VSD, social insurance, is 12.52% of that base. If you also pay an extra 3% into a pension accumulation fund, it is 15.52%. Only the 12.52% can be deducted as an expense. At the cap, VSD is €12,447.69.
• PSD, health insurance, is 6.98% of the same base.
• If no job or other source already covers your health insurance, PSD is at least €80.48 for each month of activity. That is 6.98% of MMA, the minimum monthly wage.

Worked example

These figures come from the same calculation as the individual activity tax calculator. They assume a Lithuanian tax resident with 12 months of activity in 2026, no extra 3% pension contribution, no other health insurance and no other income.

€30,000.00 profit, actual expenses

Line	Amount
Profit before VSD and PSD	€30,000.00
Sodra base (90%)	€27,000.00
VSD (12.52%)	€3,380.40
PSD (6.98%)	€1,884.60
Taxable profit after VSD and PSD	€24,735.00
GPM credit	€2,929.45
GPM	€2,017.55
Total	€7,282.55

€30,000.00 income, flat 30%

The flat 30% leaves €21,000.00 of profit. VSD and PSD are not deducted again, so GPM is charged on the full €21,000.00: GPM €1,190.00, VSD €2,366.28, PSD €1,319.22. Total €4,875.50.

10, 30 and 60 thousand

Here “profit” is income minus expenses. In the 30% rows, the 30% has already been deducted.

Profit	Expenses	GPM	VSD	PSD	Total
€10,000.00	Actual	€395.37	€1,126.80	€965.75	€2,487.92
€10,000.00	Flat 30%	€500.00	€1,126.80	€965.75	€2,592.55
€30,000.00	Actual	€2,017.55	€3,380.40	€1,884.60	€7,282.55
€30,000.00	Flat 30%	€3,500.00	€3,380.40	€1,884.60	€8,765.00
€60,000.00	Actual	€9,894.00	€6,760.80	€3,769.20	€20,424.00
€60,000.00	Flat 30%	€12,000.00	€6,760.80	€3,769.20	€22,530.00

At €60,000 the credit no longer applies, which is why GPM jumps.

Are you a Lithuanian tax resident?

Residence for tax is not the same as a residence permit. Under article 4 of the Law on Personal Income Tax, you are a non-resident for a calendar year only if all of these are true:

• your only permanent home is abroad;
• you have more personal, social and economic interests abroad than in Lithuania;
• you spend fewer than 183 days in Lithuania in that year, in one stay or several;
• you spend fewer than 280 days in Lithuania over two consecutive calendar years.

So if you spend 183 days here in a year, or 280 days over two consecutive years with at least 90 days in one of them, you are generally resident.

There is one exception that matters for the self-employed. If you are a foreign citizen and you reach those day counts but meet no other residence test, you stay non-resident if the only thing you do in Lithuania is individual activity through a fixed base. The same applies if you work in Lithuania but are paid from a foreign state budget, or work at a foreign embassy, consulate or international organisation in Lithuania.

Who can register

• If you are an EU or EFTA citizen, or a family member of one, VMI does not ask for a residence permit.
• Everyone else must show a valid temporary or permanent residence permit, or the registration document issued under the Law on the Legal Status of Aliens.
• If you are not a Lithuanian tax resident, you can register individual activity only if you carry it out through a fixed base (nuolatinė bazė) in Lithuania.

Tax registration is only one part. Check yourself whether other laws require a company, a licence or a permit for what you do.

This guide does not cover whether the basis on which your residence permit was granted (for example, studies) allows self-employment. Ask the Migration Department before you register.

How to register

1. Log in to My VMI (Mano VMI), VMI's online service. See logging in below.
2. Go to Paslaugos → Individuali veikla pagal pažymą → užsakymas, keitimas. The menu is in Lithuanian.
3. Submit the request. If you are not an EU or EFTA citizen or a family member of one, include your residence permit.

VMI must issue your FR0468 certificate within 10 working days. Through My VMI it usually takes about 5 working days.

Logging in: Smart-ID

With a Lithuanian residence permit card you can register a full Smart-ID account, the same as a citizen.

Without a Lithuanian personal number you can apply for Smart-ID Basic, which has limited access, at an Urbo Bank or Artea bankas office with your passport or ID card. Other banks may set you up once for their own online banking. We have not checked whether Smart-ID Basic lets you log in to My VMI or Sodra.

Lithuania also has e-residency, run by the Migration Department. We have not checked its fee or what it lets you do; see the Migration Department page.

Filing your return

Residents declare individual activity on the annual income return GPM311, generally by 1 May of the following year. The exact date for 2026 income is in our income return guide (in Lithuanian). For residents, the tax-free amount (NPD) applies only to employment income.

Non-residents who earn income from individual activity through a fixed base file return FR0531 and pay by 1 May of the following year. If you had no such income, you do not file it. You can hand FR0531 to VMI, send it electronically through VMI's EDS system, or post it. Someone else can file for you with a notarised power of attorney.

Double tax treaties

If you also have income or a home in another country, a double tax treaty may decide where you pay. The Ministry of Finance says Lithuania applies treaties with 58 states. VMI keeps the list of treaties in force.

The treaties with Russia and Belarus were terminated and no longer apply from 2026⁠-⁠01⁠-⁠01.

If you are a US citizen, the United States has its own filing rules. We give no US advice; start with the IRS page for international taxpayers.

Working in several EU countries: the A1 certificate

An A1 certificate shows that you are covered by state social insurance in only one country for the period on it. If Sodra issues it, you pay social insurance only in Lithuania, including on the work you do abroad. You usually need one if you are employed or self-employed in more than one EU country, or employed in one and self-employed in another. The EU rules are in Regulation (EC) No 883/2004.

• You apply yourself, through your personal Sodra account, with documents that show your activity in Lithuania and abroad. If you are not a Lithuanian citizen, add a certified copy of your ID.
• Sodra's Vilnius branch (Laisvės pr. 28, LT-04340 Vilnius) issues A1 certificates and decides within 20 working days of receiving all documents.
• Tell Sodra about any change within 5 working days.

If you leave Lithuania

If you leave for more than 6 months, declare your departure so that PSD stops being calculated. You can do this at the eldership or municipality where your residence is declared, or at a Lithuanian embassy or consulate. It takes effect no earlier than the day you submit it.

If you leave without declaring and stop paying PSD, your health insurance stops, Sodra counts a debt, and after you return you cannot get free treatment until it is paid. You can be health-insured in only one EU country. Sodra can recalculate the debt if you give it an A1, another certificate from the competent institution showing social insurance in an EU or EEA state, Switzerland or the UK, or a P45 or P60 (UK and Ireland). Other documents do not remove the PSD obligation.

Help in English

• VMI: call +370 5 260 5060 and press 9 for consultations in English. Monday to Thursday 8:00⁠–⁠17:00, Friday 8:00⁠–⁠15:45; on the second Friday of the month until 12:00.
• International House: VMI specialists also consult at International House in Vilnius and Klaipėda.
• Sodra: the Sodra website is mostly in Lithuanian, and we found no English phone line.

What this guide does not cover

• Whether the basis of your residence permit allows self-employment. Ask the Migration Department.
• How the credit and bands apply to non-residents with a fixed base. Ask VMI.
• The business certificate (verslo liudijimas), farming, and any first-year VSD relief.
• When you must register for VAT (PVM). See our VAT threshold guide (in Lithuanian).