The Lithuanian parliament passed amendments to the law on the legal status of aliens on July 16. The amendments will allow foreigners to obtain e-residency in order to enable company registration as well as use banking services and pay taxes using online services only, without setting foot in the Baltic state.
Lithuania hopes that e-residency will attract investors and create a “more favourable business environment” in the country, according to the Lithuanian home affairs ministry. The new law will take effect from January 1, 2021.
Nearby Estonia has operated an e-residency system since 2014, which currently boasts nearly 54,500 e-residency permits and over 6,000 companies operated remotely from 136 countries around the world. E-residents brought in over €15mn in tax revenue for Estonia, according to information available on the e-residency’s programme website.
In order to receive an e-residency permit in Lithuania, foreigners will need to apply via the Lithuanian government’s migration department in the interior ministry in a fashion similar to obtaining a visa.
Lithuania taxes companies a flat rate of 15% in most cases. The standard VAT rate is 21%.