E-Residency in Lithuania: All You Need To Know
You might be wondering how you can open up a European company if you’re not a European citizen. You probably think it’s difficult but we’ve got good news: It’s not. Thanks to e-residency programs, it’s now easier to be an e-resident in Europe and do your business all around the world.
Estonia is the pioneer of e-residency programs. After its success, many countries have decided to launch their e-residency programs. Lithuania is one of those countries that has followed the steps of Estonia. It’s relatively new, but we believe it’s going to be useful to know the basics of the program. Let’s begin!
What is Lithuanian E-Residency
Introduced in January 2021, the Lithuanian e-residency program grants you access to administrative, public, and commercial services, all online. As it’s a new program, it’s not as extensive as Estonia’s e-residency, but it’s promising. At this moment, you can only log in to the Lithuanian Migration Information System, and sign documents with your e-signature. Opening a European company with your Lithuanian e-residency status isn’t currently possible. It’s probably going to be available in 2022.
What Lithuanian e-Residency is Not
Note that Lithuanian e-residency isn't a residence permit or a visa. If you're not from an EU country and planning to travel within Europe or live there, you'll need a visa/residence permit. Also, the Lithuanian e-residency doesn't grant any tax favors for your worldwide income.
Who Is Lithuanian E-Residency For?
As the program is in its early stages, the applicant profile isn’t very clear. But we can assume that it will aim at digital nomads, solopreneurs, and anyone who wants to start a company in Europe, similar to the Estonia e-residency program. If you’re looking to start a company in Europe, make sure you follow all the updates on this new program.
Also, note that Lithuania is famous for its fintech companies that offer Lithuanian (LT) IBAN. So it seems that Lithuanian e-residency might be a better solution if you run a fintech business.
Benefits Of E-Residency
As mentioned, many expected benefits can come with making use of an e-residency program. This at the moment isn’t that true for Lithuania. But it’ll be the case as their program grows. So, what are just some of the benefits of taking up an e-residency? Here are some listed:
- Lithuania is a member of the European Union. This allows for potentially a lot of links between other European countries. Especially in business terms when the option to start up your own company becomes available via the program.
- Being an e-resident creates a lifestyle of zen. Being able to manage your business from anywhere in the globe is an extremely understated benefit.
- Being able to run your business from across the globe has other remote benefits. This is in terms of being able to legally sign important documents digitally. Once again, this is a feature that Lithuania’s e-residency program will surely implement soon.
- Being able to declare your national taxes online and with full help. This is a feature that is usually offered at a higher price in other e-residency programs. It will most likely be offered when setting up a business through the Lithuanian e-residency program, too.
- Send vital documents securely and privately that are related to your eventual business.
- It’s expected, much like most e-residency programs, that Lithuania will offer a marketplace of sorts. This will provide options such as legal consultancy and other benefits.
- Lithuania’s corporate tax is 15 percent which makes it very profitable to open a company there.
These are benefits that are not available at the moment, once again due to Lithuania’s e-residency program having only begun. Yet, it is expected that like most e-residency programs, these benefits will eventually become common and available to you as a customer.
How To Apply For E-Residency In Lithuania
You can apply for an e-residency in Lithuania by filling out the application form provided online by the Migration Department of Lithuania. Then, you’ll need to travel to Lithuania and present yourself to the department for identification and the collection of other vital data that the department needs. Once again, this is expected to be expanded to countries abroad in 2022, as most options when applying for their e-residency program at present are extremely restricted and difficult to organize physically.
The Lithuanian e-residency costs €90 and is valid for three years.
In conclusion, Lithuania’s e-residency program is in the early stages It doesn’t offer much as of now. However that is certainly expected to change soon, that being in 2022 in particular. We hope this article has briefly explained what Lithuanian e-residency is, what it isn’t and how it’s going to expand. For more e-residency programs, check out our E-Residency Programs All Around the World article.
Are you familiar with e-residency programs? Are you an e-resident of any country? Share your experience with us…