Becoming individuali veikla in Lithuania: VMI registration, the €45,000 VAT threshold, and Sodra contributions
A Lithuanian freelancer registers individual activity through the Mano VMI portal, watches the €45,000 VAT threshold, and pays Sodra contributions of about 19.5%. Individual-activity income tax tapers from roughly 5% up to about 15%.
This article is general information, not tax advice. Regulations change — verify the current rules with the official sources below before acting.
Lithuania's freelance route — individual activity (individuali veikla) — is well suited to solo professionals, but the VAT threshold is in flux and worth confirming before you plan around it.
Registration through Mano VMI
You register individual activity through the Mano VMI portal of the State Tax Inspectorate (VMI). For freelancers, the "by certificate" (pagal pažymą) form is the usual fit — it covers ongoing personal services and is simpler than the business-certificate route. Registration sets up your income and contribution declarations.
The €45,000 VAT threshold
You must register for VAT when turnover exceeds €45,000 over a rolling 12 months; the standard rate is 21%. Important: a 2026 increase to €60,000 has been reported or proposed, but it should be confirmed on vmi.lt before you rely on it — do not treat it as settled fact. Until any change is enacted, plan around €45,000.
Income tax and Sodra
Individual activity carries an effective income tax rate of about 5% at low income, tapering up to about 15% as a tax credit phases out. Separately, from 1 January 2026 the general personal income tax scale becomes three-tier (20% / 25% / 32%). For contributions, Sodra takes about 19.5% (including a 6.98% health component), applied on 90% of your individual-activity income. Setting aside a fixed share of each invoice keeps both the tax and the Sodra bill manageable.
General information about individual activity in Lithuania, current as of the review date above, and not tax advice. Thresholds and rates change — confirm current figures with the VMI, Sodra, or a qualified accountant.
Frequently asked questions
When must a Lithuanian freelancer register for VAT?
When turnover exceeds €45,000 over a rolling 12-month period. The standard VAT rate is 21%. A 2026 increase to €60,000 has been reported or proposed, but you should confirm the current figure on vmi.lt before relying on it — treat €45,000 as current until the change is enacted.
How much are Sodra contributions for individual activity?
Sodra social and health contributions run about 19.5% in total, including a 6.98% health component. They are applied on 90% of your individual-activity income rather than the full amount, which softens the effective burden. Contributions are declared and settled through Sodra.