Do business, work and travel in Lithuania and European Union
There are several easy ways to acquire a residence permit in Lithuania and be able to live and travel in the European Union (Schengen). Among most common are by establishing a company or by being employed. The residence permits are renewable and permanent residence is issued after 5 years. In most cases family members are also allowed to reside in Lithuania along with the applicant.
Residence by establishment of a company
Basically, the higher the equity capital of the company, the shorter is the timeframe for issuance of a residence permit.
The applicant for residence must be a chief executive or have at least 1/3 of shares in the company, of which 14,000 Euros of its own assets (may be in kind) out of 28,000 Euros or more, must provide evidence of min. subsistence (e.g. labour agreement for gross of above 555 Eur\month), have a place of residence (e.g. own, lease or have permission of stay from any legal person with real estate), non-conviction transcript (from place of last place of longer residence over past 2 years), indicate places of residence (for past 10 years according to specialized list) and health insurance (state or private, but labour agreement covers the requirement). The newly established company must be active for 6 months prior application, but it is possible to apply for a National Visa (D) in due course. A business plan has to be provided thereof and proof that the company has employees, whose aggregate salary is not less than gross 2391,85 Eur, premises.
A “start-up” company does not need to meet equity capital requirements, if it is recognized as engaged in implementation of new technology or other innovations that are significant to the social and economic development of Lithuania and that the applicant has the necessary qualifications, funding and business plan for the implementation of this activity and physical presence is required.
Attractiveness of doing business in Lithuania
Besides free movement of goods and services without customs in the EU, Lithuania is known for highly educated workforce and moderate wages, ample office space, fast internet coverage and easy access to provision of fintech services (EMI, specialised banking, brokerage and investment, etc.), with the lowest threshold for equity capital and shortest license issuance procedures (from 3 months). The income taxes in Lithuania range from 0 to 5 and 15 percent, dividends are taxed at 15 percent or exempt.
Residence by employment
The most basic means is by meeting the needs of the labour market and getting a permit from the Labour Exchange Service, but there are instances where such a permit is not required, e.g. having a profession, which listed as highly desirable in sectors of construction and logistics or having a higher education diploma and being hired in such field. Still, such as one-year work experience in a qualification-related occupation, proof of qualification, subsistence or labour agreement (min. gross salary requirement varies depending on average salary of other such employees in the company, but it should be noted that present monthly average gross salary is 970.30 Eur), non-conviction transcript, place of stay and health insurance are also applicable, as mentioned in the section on “Residence by establishment of a company”. It takes 2 or 4 months for issuance of a residence permit, which valid for 1 to 2 years and renewable.
An EU Blue Card is a residence permit is most suited for highly-qualified foreigners. In order to qualify EU Blue Card you must have a university diploma (recommended) or vocational experience of at least 5 years, which equals higher education qualifications, and have been offered employment for a gross monthly salary of 1455.45 Eur. It takes 2 or 4 month for issuance of a residence permit, which is valid for 3 years and renewable. If such a person is hired for work under the list of highly skilled profession that are in demand and offered the same wage, than a permit from the Labour Exchange Service is not required and issuance period or the residence permit is up to 1 month. While being hired for a gross monthly salary of 2910.90 EUR, your occupation need not be included into the aforementioned list of high skilled professions and the a permit from the Labour Exchange Service is not required as well. In all these cases work experience is not essential. Other requirement are as above, except that instead of the non-conviction transcript, a mere declaration is enough.
Gencs Valters Law Firm can assist you with all aspects of opening a company in Lithuania, applying for National Visa (D) or residence, opening a SEPA bank account and obtain financial licenses from the central bank. Such services are also provided for setting-up in Latvia or Estonia.
For consultation, please contact our lawyers by e-mailing email@example.com.