Lithuania: individual tax residence

Home and personal or economic interests

Residence can arise from a permanent home in Lithuania or from personal, social or economic interests located predominantly there. Certain Lithuanian citizens working or living abroad at Lithuanian state or municipal budget expense also remain within the residence rules.

Alternative day-count tests

The day tests are at least 183 days in a calendar tax year, or at least 280 days over two successive calendar tax years with at least 90 days in one of them. The latter test can establish residence for both years; statutory exceptions and prescribed counting rules still apply.

Exceptions and permanent departure

Defined noncitizen diplomatic, foreign-government employment and fixed-base-only cohorts can be excluded from the day-based rules. For someone resident for at least three successive tax years who permanently leaves and spends fewer than 183 days in the departure year, residence normally runs to departure; special continuation rules can apply to moves to listed target territories.

Resident and nonresident income scope

Residents normally fall within tax on Lithuanian and foreign income. A narrowly defined foreign citizen resident only through specified day-count or departure rules can instead have Lithuanian-source-only scope when treaty residence abroad and official notification conditions are met. Nonresidents are taxed on Lithuanian fixed-base income, including attributable foreign income, and listed Lithuanian-source income.

Foreign-tax relief is conditional

Article 37 provides exemption for qualifying treaty-country income taxed abroad, but handles interest, dividends and royalties through credit rules. Other foreign-income credits have conditions, documentary requirements and Lithuanian-tax caps; listed target territories are excluded from the ordinary non-treaty credit provision.