Banks & Finances Lithuania

Several banks in Lithuania provide services to foreign citizens. However, the conditions and procedures for opening accounts may vary.

Swedbank – one of the largest banks in Lithuania, offering a wide range of services.

For EU citizens: Account opening is free with a valid passport or ID card of an EU country, including Norway, Iceland, Liechtenstein, the United Kingdom, and Switzerland.

For citizens of other countries: An application must be submitted and a fee of 200 euros is required for document review. If rejected, the amount is non-refundable. Upon account approval, fees are charged for transfers and monthly maintenance (1.5 euros per month for those over 26 years).

 

SEB Bank – a leading financial group, SEB provides services in Lithuania.

For EU citizens: Account opening is free with a valid passport or ID card of an EU country.

For citizens of other countries: The application fee is 250 euros. If rejected, the amount is non-refundable.

 

Šiaulių Bankas – one of the largest banks with Lithuanian capital.

For EU citizens: Account opening is free with a valid passport or ID card of an EU country.

For citizens of other countries: Document verification costs 200 euros. The amount is non-refundable in case of rejection.

 

Online banks: Revolut and Paysera

Online banks such as Revolut and Paysera offer simplified account opening procedures for foreigners. They provide the opportunity to open an account online without visiting a branch, making them attractive to non-residents.

Please note that conditions and requirements may change. It is advisable to contact the selected bank directly for up-to-date information.

Opening a bank account in Lithuania for foreigners can be a complex process, but by following specific steps and preparing the necessary documents, you can successfully open an account:

Selecting a bank: Several banks operate in Lithuania, such as Swedbank, SEB, Luminor, Šiaulių bankas, Citadele, and Medicinos bankas. Online banks like Paysera and Revolut are also available, offering simplified account opening procedures.

Gather the necessary documents

Identity proof: passport or ID card.

Residence permit: temporary or permanent residence in Lithuania.

Proof of the necessity for a bank account: employment contract, study certificate, or other documents confirming ties with Lithuania.

 

Filling out an application: Banks may require you to complete an application form with personal data, address, employer, Lithuanian connections, average monthly income, etc.

 

Submitting the application: Depending on the bank, the application can be submitted in person at a branch or online. Some banks require a physical presence, while others allow remote account opening.

Waiting for a decision: The bank will review the provided documents and make a decision on account opening. This process may take from several hours to several days.

Features for non-residents:

Account opening fee: Some banks charge a fee for reviewing non-resident documents, which can be up to 400 euros. This amount is usually non-refundable in case of rejection.

Online banks: Services such as Paysera and Revolut offer the possibility of opening an account online without visiting a bank branch. This can be a convenient option for non-residents.

Recommendations

Contact the selected bank in advance: Clarify their requirements and procedures for opening an account for foreign citizens.

Prepare all necessary documents: Ensure you have all required documents, translated into Lithuanian and certified if necessary.

Consider alternative options: Online banks may offer simpler and faster account opening procedures.

Note that procedures and requirements may vary depending on the bank and your status in Lithuania. It is advisable to contact the selected bank directly for up-to-date information.

Using ATMs

ATMs of major banks: In Lithuania, ATMs of banks such as Swedbank, SEB, and Luminor are widely available. Most of them accept cards from international payment systems, such as Visa and MasterCard. However, cash withdrawal conditions may vary. For example, in SEB ATMs in Lithuania, cash withdrawals are free only for SEB customers, and a commission may be charged for other users.

ATMs in Retail Chains: Some retail chains, such as "Maxima," offer the option to withdraw cash when paying for purchases. However, this service may only be available for local cards.

Fees and Restrictions

Your Bank's Fees: Many banks charge a fee for cash withdrawals abroad. It is recommended to find out your bank's terms in advance to avoid unexpected expenses.

ATM Owner's Fees: Some ATMs may charge an additional fee for using a foreign card. Information about this is usually displayed on the ATM screen before the transaction is confirmed.

Withdrawal Limits: ATMs may have restrictions on the maximum amount you can withdraw in a single transaction. If you need to withdraw a large amount, you may need to make several transactions, which can lead to additional fees.

Recommendations

Check Partner Banks: Before traveling, find out if your bank has partnerships with Lithuanian banks. This can allow you to withdraw cash without a fee or with a reduced fee.

Avoid DCC (Dynamic Currency Conversion): When withdrawing cash, the ATM may offer currency conversion at its own rate. This is usually less favorable than conversion at your bank's rate. It is recommended to choose the option to withdraw in the local currency (euro) without conversion.

Use ATMs at Banks: ATMs located directly at banks usually offer better conditions compared to those in tourist areas, airports, or hotels.

Alternative Ways to Get Cash:

Online Banks: Services like Paysera provide the option of withdrawing cash through their ATMs or partner networks. However, you need to have an account with such a service for this.

Cashback at Point of Sale: In some Lithuanian shops, you can withdraw cash additionally when paying with a card. However, this service may not be available for all cards and not in all stores.

Important: Before traveling to Lithuania, it is recommended to contact your bank to find out about possible fees and restrictions when using the card abroad. Also, ensure your card is activated for international operations.

Note that the information may change, so it's better to check the current data directly with your bank and servicing ATMs.

Bank Transfers

Lithuanian banks, such as Swedbank and SEB, offer international transfer services.

Procedure: You need to know the recipient's details: account number in IBAN format, bank SWIFT code, and full name of the recipient. The payment can be made through online banking or by visiting a branch.

Timeframes and Fees: Timeframes depend on the type of transfer: standard (up to 2 working days), urgent, or express. Fees vary depending on the bank and type of transfer. For example, in SEB, the fee for a standard international payment ranges from 11.50 to 14.50 euros.

Online Money Transfer Services

There are specialized platforms offering fast and favorable transfers.

Wise: Provides transfers at real exchange rates with transparent fees. Supports more than 50 currencies.

TransferGo: A Lithuanian company offering transfers to bank accounts with competitive rates and quick delivery times.

Paysend: Specializes in card-to-card transfers to nearly 100 countries, with a fixed fee and instant crediting.

International Money Transfer Systems

Companies like Western Union and MoneyGram allow sending money in cash or to a bank account.

Procedure: You can send money online via their website or by visiting a service point. The recipient can receive the funds in cash or on a bank account.

Timeframes and Fees: Transfers can be available within a few minutes. Fees depend on the amount, destination country, and method of receipt. 

Mobile Applications

Some apps allow sending money directly from a mobile device.

KoronaPay: Allows sending money from Lithuania to dozens of countries with the option of cash reception or crediting to a card.

The choice of the optimal way to send money depends on your needs, urgency of the transfer, and the recipient's preferences. Always check the current conditions and fees before making a transfer.

Foreign citizens can obtain a loan or mortgage in Lithuania; however, the conditions depend on their residency status, income, and credit history.

Mortgage loans for foreigners:

Residency permit: To obtain a mortgage, a permanent residence permit in Lithuania is required. A temporary residence permit usually does not allow for a mortgage loan.

Income and employment contract: Banks consider the stability and amount of income. Usually, an employment contract in Lithuania valid for at least 6-12 months is required.

Down payment: The minimum down payment is 15% of the property value. Some banks may require a larger down payment for foreign citizens.

Consumer loans for foreigners:

Residency status: Possessing a permanent residence permit increases the chances of obtaining a consumer loan.

Credit history: Banks analyze the applicant's credit history and solvency.

Recommendations:

Consultation with banks: Contact several Lithuanian banks to get information about their requirements and offers.

Document preparation: Provide your passport, residence permit, proof of income, and information about the property being purchased.

Credit intermediaries: Consider reaching out to credit intermediaries for consultations and assistance in getting a loan.

Please note that loan terms may vary depending on the bank and individual circumstances. It is recommended to contact the chosen financial institutions directly for current information.

Cash payment restrictions:

5,000 euro limit: Since November 1, 2022, a maximum limit for cash payments of 5,000 euros has been established in Lithuania. This limit applies to both businesses and individuals. Transactions over this amount must be conducted in a non-cash manner.

Real estate: By law, real estate sale transactions must be conducted exclusively via non-cash payments, regardless of the transaction amount.

Cars: For the purchase of M1 category (passenger cars) and N1 category (cargo vehicles with a full mass of less than 3.5 tons) vehicles with cash is allowed if the transaction amount does not exceed 1,500 euros. Transactions for larger amounts must be non-cash.

Recommended payment methods for large purchases

Bank transfer

Procedure: Transferring funds from your bank account to the seller's account. You will need the recipient's details: account number (IBAN) and bank identification code (BIC/SWIFT).

Timeframes: Domestic transfers in Lithuania are usually completed within one business day.

Fees: Depend on the bank and type of transfer; domestic transfers are often free or have a minimal fee.

Payment by bank card

Procedure: Using a debit or credit card for payment. Many sellers accept cards from payment systems like Visa and MasterCard.

Limits: Some banks set daily transaction limits on cards. It is recommended to verify and, if necessary, arrange for an increase in the limit beforehand.

Fees: May apply depending on your bank's and the seller's terms.

Electronic payment systems

Examples: Services like Paysera allow for non-cash payments, but not all sellers accept such payments; check in advance for usage possibilities.

Recommendations:

Observe the law: Non-compliance with established cash payment restrictions may result in penalties.

Savings accounts and term deposits

Savings accounts: Designed for accumulating funds with the possibility of further contributions and partial withdrawals. Interest rates are usually low, but the money remains accessible at any time.

Term deposits: Involves placing funds for a fixed term at a specified interest rate. Interest rates are higher than on savings accounts, but early withdrawal may lead to a loss of accrued interest.

Investment funds

Investment funds allow the pooling of funds from many investors for investing in various financial instruments such as stocks, bonds, and other assets. The funds are managed by professional managers, reducing risks for individual investors.

Stocks and Bonds

Stocks: Acquiring a share in a company with the possibility of receiving dividends and profit from the increase in stock value. Investing in stocks is associated with increased risk, but can yield high returns.

Bonds: Debt securities issued by the state or companies, with a fixed income. Bonds are considered less risky compared to stocks, but their yields are usually lower.

Pension Savings

Lithuania has a three-tier pension system:

First Level: State pension, financed from social contributions.

Second Level: Mandatory funded pension funds, which receive a portion of social contributions.

Third Level: Voluntary funded pension funds, allowing for the accumulation of additional pension funds independently.

Investing in third-level pension funds provides tax benefits and helps ensure a comfortable life in retirement.

Life Annuity Insurance

Combines insurance protection and fund accumulation. Part of the contributions is directed towards life insurance, while the other part is invested, ensuring capital accumulation by a certain term.

Recommendations

Consult with professionals: Before making investment decisions, it is recommended to consult financial advisors for qualified assistance.

In Lithuania, the tax obligations of foreign citizens depend on their tax status — resident or non-resident, and the source of their income.

Determining Tax Residency

A person is considered a tax resident of Lithuania if:

- Their permanent place of residence is in Lithuania.

- Personal, social, or economic interests are predominantly connected to Lithuania.

- They stay in Lithuania for 183 days or more during the tax year.

- They stay in Lithuania for 280 days or more over two consecutive tax years, with a minimum of 90 days in one year.

Tax residents of Lithuania are required to declare and pay taxes on income earned both in Lithuania and abroad. Non-residents pay taxes only on income sourced from Lithuania.

Income Tax

Residents:

Subject to tax on all income at a rate of 15%.

For certain types of income, such as dividends, a rate of 15% applies.

Income exceeding a certain threshold may be taxed at a progressive rate.

 

Non-residents:

Taxed on income received from Lithuanian sources at a rate of 15%.

Such income includes:

Salaries for work in Lithuania.

Income from renting real estate located in Lithuania.

Dividends from Lithuanian companies.

Income from the sale of property registered in Lithuania.

Social Contributions

Foreign citizens working in Lithuania under an employment contract are obligated to pay contributions for social insurance and mandatory health insurance. Contribution rates depend on the type of activity and the worker's status.

Value Added Tax (VAT)

The standard VAT rate in Lithuania is 21%. Foreign entities engaged in economic activities in Lithuania may be required to register as VAT payers and remit this tax.

Avoidance of Double Taxation

Lithuania has agreements on the avoidance of double taxation with several countries. This allows foreign citizens to avoid double taxation of the same income in Lithuania and their country of residence. Applying the provisions of such agreements may require confirmation of tax residency.

Recommendations:

Consult with tax authorities: For up-to-date information and clarifications, contact the Lithuanian State Tax Inspectorate.

Note that tax legislation may change. It is recommended to regularly check current information on the official websites of Lithuanian tax authorities.

In Lithuania, the tax obligations of foreign citizens depend on their status — resident or non-resident, and the source of their income. The process of income declaration for foreigners involves several key aspects:

Definition of Tax Status

Tax residency determines which income is subject to taxation in Lithuania:

Residents: Must declare all income received both in Lithuania and abroad.

Non-residents: Declare only income sourced from Lithuania.

Tax Declaration Deadlines

Individuals residing in Lithuania are required to declare their received income and paid taxes for the previous year annually by May 1st. For example, by May 2nd, 2024, income for the year 2023 must be declared.

Declaration Submission Process

Electronic Declaration System (EDS): The most convenient way to submit a declaration is through the EDS, available on the State Tax Inspectorate’s website. Access is possible using an electronic signature, bank identifiers, or other authentication means.

Filling out the declaration: Pre-filled forms containing information about income provided by employers and other sources are available in the EDS. It is necessary to check this data and add additional information if necessary.

Submitting the declaration: After filling out and verifying the data, the declaration should be sent through the EDS.

Tax Payment

After submitting the declaration, the system will calculate the amount of tax payable or refundable. Payment of taxes should be made by May 1st. Payment details are provided in the EDS.

Tax Refund

If the taxes paid during the year exceed the calculated amount, there is a right to a refund of the overpayment. Refund is made to the bank account indicated in the declaration.

Consultations and Support

The Lithuanian State Tax Inspectorate provides consultations in Lithuanian, English, and Russian. Guides on filling out declarations are available in several languages.

Recommendations

Timely submission of the declaration: Adhere to the established deadlines to avoid penalties.

Consultations: In case of questions, contact the VMI or tax consultants.

In Lithuania, self-employed individuals and freelancers are required to comply with certain tax regulations and may benefit from several advantages.

Tax Obligations

Income tax: Self-employed individuals are required to pay income tax on their earnings. The tax rate is 15% for most types of income. However, for certain categories of income, such as dividends, a rate of 15% applies. A progressive tax scale may apply when certain income thresholds are exceeded.

Social contributions: Self-employed individuals are required to pay contributions for social security and compulsory health insurance. Contribution rates depend on the type of activity and income. For example, for self-employed individuals, the social insurance contribution is 12.52%, and health insurance is 6.98% of the taxable income.

Activity Registration

Self-employed individuals are required to register their activity with the State Tax Inspectorate and, if necessary, with the State Social Insurance Fund (Sodra). Registration can be done online through the "Mano VMI" system.

Tax Deductions and Allowances

Standard deductions: Self-employed individuals are entitled to standard tax deductions, such as a non-taxable minimum income, which depends on the total income.

Additional deductions: Deductions for expenses related to professional activities are possible, provided they are documented.

Accounting and Reporting

Self-employed individuals are required to keep records of their income and expenses and to submit an annual tax declaration by May 1st for the previous tax year. The report can be submitted through the electronic declaration system (EDS) on the VMI website.

Additional Benefits and Support

In Lithuania, support programs for small and medium-sized businesses, including self-employed individuals, are in place. These may include grants, preferential loans, and free training programs. Information on available support measures is published on the websites of the Ministry of Economy and Innovation of Lithuania and the "Versli Lietuva" agency.

Recommendations

Consultation with tax authorities: To obtain up-to-date information and clarifications, it is recommended to contact the State Tax Inspectorate and the State Social Insurance Fund (Sodra).

Professional assistance: If necessary, consult professional accountants or tax advisors to ensure accurate record-keeping and compliance with tax obligations.