What determines whether you will have to declare income and pay the income tax in Lithuania?

Persons are required to declare income received abroad and pay income tax on it in Lithuania depending on the following circumstances:

• residency status (whether a person is  resident or a non-resident of Lithuania);
• type of income received (wage income, income from the sale/rent of property, dividends, income from self-employment or other income);
• country where the income was received: 

-    country with which Lithuania applies a treaty for the avoidance of double taxation;

-    country or zone listed under Target Territories; 

-    country where a treaty for the avoidance of double taxation does not apply and which is not listed under Target Territories. 

Double taxation of income received abroad may be eliminated for residents of Lithuania who already paid income tax in the respective foreign country on the income received (i.e. there is no obligation to pay income tax a second time in Lithuania, or the income tax paid abroad is offset, and the shortfall must be paid in Lithuania).

Non-residents of Lithuania are not required to pay income tax in Lithuania on income received abroad, regardless of the country where the income was received, and regardless of the type of the income received.