Lithuania Capital Gains Tax Guide 2026

Overview — CGT Regime

Capital gains in Lithuania are generally treated as ordinary income for individuals and are subject to personal income tax (IIT). The standard rate is 15%, which is a flat rate distinct from the progressive IIT rates (20–32%) for employment income. Corporate capital gains are included in taxable profit and subject to the standard CIT rate of 15% (or reduced rates where applicable). Lithuanian tax residents are taxed on worldwide capital gains; non-residents are taxed only on gains from Lithuanian-situs assets.

Standard CGT Rate — 15%

The standard capital gains tax rate for individuals is 15%. This applies to gains from the sale of:

• Real estate (excluding the primary residence exemption)
• Shares, stocks, and other securities held for less than 3 years
• Cryptocurrencies and virtual assets
• Personal property exceeding certain thresholds
• Business assets (for individual entrepreneurs)

The gain is calculated as the difference between the sale proceeds and the acquisition cost, adjusted for allowable expenses such as brokerage fees and transaction costs.

Zero Percent — Shares Held Over 3 Years

A significant feature of the Lithuanian CGT regime is the full exemption for gains on the disposal of shares and other securities held for more than 3 years. This applies to:

• Shares listed on regulated stock exchanges (including foreign exchanges)
• Shares in private companies
• Units in investment funds and ETFs
• Other transferable securities

The 3-year holding period is calculated from the date of acquisition to the date of disposal. This exemption applies to both residents and non-residents. There is no cap on the amount of gain that can be exempted, making Lithuania a highly attractive jurisdiction for long-term investors.

Primary Residence Exemption

Gains from the sale of a taxpayer's primary residence are exempt from capital gains tax. To qualify, the property must have been declared as the taxpayer's declared place of residence for at least 2 years prior to the sale. The exemption applies to one property per taxpayer. Secondary residences, investment properties, and holiday homes are not covered by this exemption and are subject to the standard 15% CGT rate.

Capital Losses

Capital losses can be offset against capital gains in the same tax year. If losses exceed gains in a given year, the excess loss can be carried forward to future tax years. The carry-forward period is 5 years for most assets. Losses from the disposal of securities can only be offset against gains from securities (same-class restriction). Losses incurred under the 3-year holding period exemption are not deductible.

Corporate CGT Treatment

For companies, capital gains are included in taxable income and subject to the standard CIT rate (15% or 5% for small companies). However, the participation exemption applies: gains from the disposal of shares in qualifying subsidiaries (held for at least 3 years) are exempt from CIT. This makes Lithuania an attractive jurisdiction for corporate holding structures.

FAQs

Are foreign capital gains taxable in Lithuania?

Residents are taxed on worldwide capital gains. Foreign tax credits may be available under Lithuania's extensive DTT network. Non-residents are only taxed on gains from Lithuanian-situs assets.

How is the 3-year holding period calculated?

The period runs from the date of acquisition to the date of disposal. For inherited shares, the acquisition date is the date of death of the original owner.

Is cryptocurrency subject to CGT?

Yes, cryptocurrency gains are subject to the 15% CGT rate. The same 3-year exemption applies to crypto assets held for over 3 years.

Disclaimer

This guide provides general information about Lithuanian capital gains tax for the 2026 tax year. Tax laws and rates may change. Always consult with a qualified Lithuanian tax advisor or VMI directly for advice specific to your situation. InvestmentKit does not provide tax advice.