How To Become A Resident Of Lithuania

Lithuania is a charming destination in Eastern Europe that many may overlook for more popular options like Hungary, Estonia, or Croatia. One interesting stand-out feature of Lithuania is that it offers non-EU citizens residency for only a minimal investment if they are willing to play an active role in managing a company in Lithuania.

This program offers applicants access to the EU after receiving a temporary residence permit. Successful applicants also have the same benefits that citizens in Lithuania enjoy. Another major benefit is that you can bring your family with you even while you are a temporary resident. This program is an excellent fit for most international entrepreneurs interested in residency in the EU. The only major downfall is that it is difficult to become a citizen after becoming a permanent resident.

LITHUANIA’S Residency by Investment

Lithuania has an established program for entrepreneurs who want to create a company in Lithuania and hire local employees. To be eligible for this program, you first need to set up a company in Lithuania and play an active role in the company’s operations. Unlike other programs, you are only eligible through making a business investment and can’t qualify based on purchasing real estate. Moreover, you must hire at least one local employee and retain them during your residency in Lithuania. If you already have an established company, you can also choose to set up a new branch in Lithuania instead of registering a new company.

One of the benefits of this program is that the investment requirements for this program are low, as you only need to invest €50,000 ($49,307 USD). This amount is much lower than required for other European programs that allow investors to gain residency by passively investing in real estate.

This program is ideal for applicants interested in Lithuania and the European Union. Another major perk of this program is that your family can accompany you after successfully applying. You are also entitled to some of the same benefits as citizens, including medical care, unemployment, and other social privileges. However, it is hard to become a citizen after applying for this program, so you should only apply for this visa if you are solely interested in residency.

Related article: The Basics Of How To Get A Second Passport Or A Second Residency.

Two sisters in Vilnius, the capital of Lithuania

Why Lithuania?

Establishing residency in Lithuania can be very beneficial, especially if you are interested in the European Union. Some of the Benefits of living in Lithuania include the following:

Access to the EU: You can travel freely through the EU on this permit, even when you only have a temporary residence permit.

Ease of doing business: Lithuania has a desirable “Ease of Doing Business” ranking, which surpasses other regional peers such as Hungary, Croatia, and Estonia. In fact, Lithuania’s Ranking of 11 is comparatively favourable to countries such as Canada, Australia, Spain, Ireland, and Israel.

Low Corporate Tax: Lithuania also has a very favourable corporate tax rate. The standard corporate tax rate is 15%, but smaller companies and agricultural companies pay a reduced tax rate of 0-5%.

Labour productivity: Lithuania's labour productivity is very favourable, and wages are also very low relative to other European countries. This factor is beneficial because you must hire local employees to qualify for this visa.

Lifestyle: Lithuania's living cost is very low, as the minimum wage is only around €600 ($591 USD). It should be very affordable to bring your family and enroll your kids in international schools. Lithuania has many popular tourist destinations, including Old Town Vilnius, Trakai Lake Resort, churches and museums, and some of the country’s national parks. There are thousands of expats in Vilnius, so connecting with other expats and local entrepreneurs will be easy.

Lithuania on Map

Application Requirements

To be eligible for this program, you will need to meet the following criteria and provide supporting documentation:

• You will need to invest €50,000 ($49,307 USD) and demonstrate how this investment is necessary for the company's success.
• You will also need to prove that you have sufficient funds.
• You will need health insurance that covers you during your stay in Lithuania.
• You will need to complete a criminal background check.
• You are required to complete a business plan for the company and should also be prepared to cover this during your interview.
• You must provide company registration information and demonstrate that you will serve as the company’s director.
• You are also required to employ at least one person in Lithuania.

It takes around one month to process the visa once you apply. Once you have successfully applied, you'll receive a residence permit valid for five years. Once the five years are up, you're eligible for permanent residency. You can still enjoy many benefits on a temporary residence permit, so the five-year wait period is not a major concern.

You will also need to complete an interview if your company is a start-up company. You must be able to present your business plan and show how you will use the funds. It is best to clearly display how the €50,000 ($49,307 USD) or more investment is crucial for the company’s operations. You will need to be active in the company, serving as the director and hiring local employees in Lithuania.

Kuanas, Lithuania

Gaining Citizenship is Difficult

This program is best for those looking for long-term residency, as the track to citizenship is not very straightforward. You will only be eligible to apply for citizenship after you have been a resident of Lithuania for ten years. Many global programs offer you the opportunity to apply for citizenship after five years or less, so this is not competitive globally. The clearest track to citizenship in Lithuania is citizenship by descent. You are eligible for this option if your grandparents were born in Lithuania between 1918-1940.

Klaipėda, Lithuania

Takeaway

Residency in Lithuania is an often overlooked option for those who want to establish residency in the EU and bring family members. If you are willing to hire local employees and serve as a company director in Lithuania, then this visa program is an excellent fit. If you want to acquire residency or citizenship through passive investments, there are plenty of other options in the region, including Greece, Malta, and Turkey. The €50,000 ($49,307 USD) investment amount is low by regional standards, and you can immediately enjoy rights and benefits as soon as you become a temporary resident.