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Foreigners working in Lithuania can legally refund part of their income tax which they paid, on average 715 Eur. Check it out.

7th Apr 2021

You maybe heard that you can receive part of your taxes that you have paid while working in Lithuania. What is the magic behind this?

Simply said, every employee, who works legally on contract, pays income tax. Even you, while you worked in Lithuania, have some part of your income paid to the Lithuanian Tax Office by your employer. In Lithuania, the flat tax rate is 20 % for both residents and foreigners working there.

What is a tax refund?

Your employer deducted some money from your income every month - we call it a tax “advance”. Talking about “advance” means that it is finally & precisely calculated at the end of the year. If your total tax payment is higher than the actual tax level, you will receive back the overpayment. It is very likely, that as a foreigner working abroad, you will be able to receive part (and sometimes the entire amount) of your tax back. By filing your tax return, you are actually asking the tax office to pay this money back to you.

What do you need to do to get your money back?

Firstly, you should have your earning document called “PAŽYMA” from your employer. It is a summary report of your annual earnings and tax withheld and your employer should send it to you by the end of January each year. If you cannot find it, our tax department will help you to obtain a copy of it and then calculate your tax. It is a legal procedure and it does not affect your future pension at all, as you might have heard.

How much can you get back?

Our clients who typically worked in Lithuania even for a few months, get on average 715 Eur. This, of course, depends on your monthly income and the number of months you have worked in the country. We will pre-calculate your taxes for free, so that you will know how much your refund can be, before we file your tax return.

What is the process like?

It's easier than you think:

  • You can use our PreCalc app to get a refund estimate.
  • To file a tex return use our simple tax return app.
  • After you're done, send us your yearly earning document called “PAŽYMA” and information about your income in your home country. We prepare your tax estimation.
  • To actually prepare your tax return and file it to the tax office in Lithuania, we may also need other documents. We make sure to help you with them step-by-step.
  • The tax office has 30 days to inspect your tax return - if the tax officer will have any claims or questions, this is when we hear back from them. Then another 30 days are needed to actually process your tax return and send back the tax refund.

Any deadline?

The deadline for filing your tax return is May 1st. More importantly, it is possible to file your tax return 5 years backward, so in case you have any tax overpayment from the previous year, you can get it back as well and there is no late filing penalty. However, there is a late filing interest of 0.03 % per day if you have a debt and pay it after the deadline.

When do you pay for the service?

We understand that you might worry about paying money in advance. Therefore, we prepared our service in a way, where you don't have to pay anything upfront, like you would be doing, if you hire an accountant to prepare your tax return. We will deduct this fee from the tax refund - only after your money is received. No risk to lose money or be afraid of a fraud!

I want my refund