Estonia vs Lithuania: where to incorporate?
The closest call on this site. Both are EU, both are digital, both welcome non-residents. Lithuania taxes profit as it is earned but gives new companies two years at 0%; Estonia never taxes profit you keep. Figures verified August 2026.
Estonia vs Lithuania: where to incorporate?
The closest call on this site. Both are EU, both are digital, both welcome non-residents. Lithuania taxes profit as it is earned but gives new companies two years at 0%; Estonia never taxes profit you keep. Figures verified August 2026.
Estonia vs Lithuania: where to incorporate?
The closest call on this site. Both are EU, both are digital, both welcome non-residents. Lithuania taxes profit as it is earned but gives new companies two years at 0%; Estonia never taxes profit you keep. Figures verified August 2026.
The short answer
The short answer
The short answer
Choose Estonia if
Choose Estonia if
Choose Estonia if
You reinvest most of what you earn, you sell into the EU and need an EU VAT number, or you want accounting, invoicing and contracts in one subscription.
Choose Lithuania if
Choose Lithuania if
Choose Lithuania if
You are launching a fintech or payment business, you are new and want two years at 0%, or you want the leanest fixed cost with no mandatory contact person.
The number that decides it
Lithuania gives a new small company 0% for two years, then 17% on everything. Estonia gives 0% on retained profit forever, and charges only when money leaves.
Lithuania gives a new small company 0% for two years, then 17% on everything. Estonia gives 0% on retained profit forever, and charges only when money leaves.
Estonia and Lithuania at a glance
Estonia and Lithuania at a glance
Estonia and Lithuania at a glance
🇪🇪 Estonia
🇪🇪 Estonia
🇪🇪 Estonia
🇱🇹
🇱🇹
Lithuania
Lithuania
Lithuania
Entity type
Osaühing (OÜ)
Osaühing (OÜ)
Uždaroji akcinė bendrovė (UAB)
Uždaroji akcinė bendrovė (UAB)
Minimum capital
€0.01, and you can defer paying it
€0.01, and you can defer paying it
€1,000, with €250 paid in before registration
€1,000, with €250 paid in before registration
State fee
€290 to register online — the €265 state fee plus the €25 registry API fee
€290 to register online — the €265 state fee plus the €25 registry API fee
About €58 to register electronically, plus about €22 to reserve the name
About €58 to register electronically, plus about €22 to reserve the name
Time to register
15 minutes to an hour — but the e-Residency card takes weeks
15 minutes to an hour — but the e-Residency card takes weeks
A few days once the capital account is funded
A few days once the capital account is funded
Can you do it remotely
Yes, fully — you collect the e-Residency card in person once
Yes, fully — you collect the e-Residency card in person once
Yes, with a qualified EU e-signature — otherwise a notary or power of attorney
Yes, with a qualified EU e-signature — otherwise a notary or power of attorney
Mandatory local roles
Legal address and contact person, both FIU-licensed
Legal address and contact person, both FIU-licensed
None, but you need a registered office address in Lithuania
None, but you need a registered office address in Lithuania
Tax on profit you keep
0%, for as long as you keep it
0%, for as long as you keep it
17% — charged whether you distribute or not, with 0% for a new small company’s first two years
17% — charged whether you distribute or not, with 0% for a new small company’s first two years
Tax on profit you take out
22/78 of the payout — 22% of the pre-tax pot, 28.21% on the net
22/78 of the payout — 22% of the pre-tax pot, 28.21% on the net
15% withholding on dividends, reduced or removed by EU rules and treaties
15% withholding on dividends, reduced or removed by EU rules and treaties
VAT and threshold
24%, register above €40,000
24%, register above €40,000
21%, register above €45,000
21%, register above €45,000
Mandatory audit
Not at founder scale
Not at founder scale
Not at founder scale
Not at founder scale
Annual filings
One annual report to the Business Register; monthly returns with payroll or VAT
One annual report to the Business Register; monthly returns with payroll or VAT
Annual financial statements to the Register of Legal Entities, plus monthly tax returns
Annual financial statements to the Register of Legal Entities, plus monthly tax returns
Banking as a non-resident
EU IBAN through Estonian banks, or Wise and Revolut
EU IBAN through Estonian banks, or Wise and Revolut
Strong fintech options — Revolut is licensed there — but traditional banks are cautious
Strong fintech options — Revolut is licensed there — but traditional banks are cautious
Market access
EU single market, an EU VAT number, OSS and IOSS
EU single market, an EU VAT number, OSS and IOSS
EU single market, an EU VAT number, OSS and IOSS
EU single market, an EU VAT number, OSS and IOSS
Year-2 running cost
From €124 for the mandatory address and contact person, plus accounting
From €124 for the mandatory address and contact person, plus accounting
Just accounting and the registered office — no mandatory contact person
Just accounting and the registered office — no mandatory contact person
What each one is
What each one is
What each one is
🇪🇪 Osaühing (OÜ)
🇪🇪 Osaühing (OÜ)
🇪🇪 Osaühing (OÜ)
The Estonian private limited company. Registered fully online through e-Residency, taxed only when profit leaves the company, and inside the EU single market with an EU VAT number.
🇱🇹
🇱🇹
Uždaroji akcinė bendrovė (UAB)
Uždaroji akcinė bendrovė (UAB)
Uždaroji akcinė bendrovė (UAB)
The Lithuanian private limited company. An EU company like an Estonian OÜ, with the same single-market access, but taxed as profit is earned rather than when it is distributed.
Setting the company up
Setting the company up
Setting the company up
How incorporation works
Estonia
Fully remote through e-Residency: the company is filed in the e-Business Register in 15 minutes to an hour. The one physical step is collecting the e-Residency card at an embassy, which takes weeks.
Lithuania
Filed with the Register of Legal Entities, and it takes days. The blocking step comes first: the share capital has to sit in a Lithuanian accumulative account before the company exists, which means opening an account before you have a company.
How incorporation works
Estonia
Fully remote through e-Residency: the company is filed in the e-Business Register in 15 minutes to an hour. The one physical step is collecting the e-Residency card at an embassy, which takes weeks.
Lithuania
Filed with the Register of Legal Entities, and it takes days. The blocking step comes first: the share capital has to sit in a Lithuanian accumulative account before the company exists, which means opening an account before you have a company.
Setup cost and timeline
Estonia
€290 state fee online and €0.01 of share capital that can be deferred. With Enty, €350 including the state fee, and the company is usually registered the same day.
Lithuania
About €58 to register electronically plus roughly €22 for the name, so the state cost is small. The real friction is the €250 of capital that must be paid in before registration, out of €1,000 subscribed.
Setup cost and timeline
Estonia
€290 state fee online and €0.01 of share capital that can be deferred. With Enty, €350 including the state fee, and the company is usually registered the same day.
Lithuania
About €58 to register electronically plus roughly €22 for the name, so the state cost is small. The real friction is the €250 of capital that must be paid in before registration, out of €1,000 subscribed.
Local roles you must appoint
Estonia
No local director needed, but two licensed services are mandatory: a legal address and a contact person. From €124 a year, included in Enty’s paid plans.
Lithuania
No local director and no contact person — a genuine simplification over Estonia. You do need a registered office address in Lithuania.
Local roles you must appoint
Estonia
No local director needed, but two licensed services are mandatory: a legal address and a contact person. From €124 a year, included in Enty’s paid plans.
Lithuania
No local director and no contact person — a genuine simplification over Estonia. You do need a registered office address in Lithuania.
Business types and ownership
Estonia
Single and multi-shareholder OÜs with no nationality limits, including e-commerce and crypto models that many providers refuse.
Lithuania
Single and multi-shareholder UABs, no nationality limits. Fintech and e-money licensing is unusually accessible, which is why so many payment companies sit there.
Business types and ownership
Estonia
Single and multi-shareholder OÜs with no nationality limits, including e-commerce and crypto models that many providers refuse.
Lithuania
Single and multi-shareholder UABs, no nationality limits. Fintech and e-money licensing is unusually accessible, which is why so many payment companies sit there.
Money, tax and filings
Money, tax and filings
Money, tax and filings
Tax on profit you keep
Estonia
0%. Retained profit is not taxed at all, for as long as it stays inside the company — that is the whole mechanism.
Lithuania
17% from 1 January 2026, up from 16%, charged in the year profit is earned. Micro companies — under ten staff and under €300,000 of revenue — pay 7%, and a new small company pays 0% for its first two years.
Tax on profit you keep
Estonia
0%. Retained profit is not taxed at all, for as long as it stays inside the company — that is the whole mechanism.
Lithuania
17% from 1 January 2026, up from 16%, charged in the year profit is earned. Micro companies — under ten staff and under €300,000 of revenue — pay 7%, and a new small company pays 0% for its first two years.
Tax on profit you take out
Estonia
22/78 of the payout: 22% of the pre-tax pot, or 28.21% expressed against the net sum you receive. Charged inside the company before the money reaches you.
Lithuania
15% withholding tax on dividends as a rule, reduced or eliminated by the EU parent-subsidiary rules and by treaty. Estonia charges 22/78 inside the company instead.
Tax on profit you take out
Estonia
22/78 of the payout: 22% of the pre-tax pot, or 28.21% expressed against the net sum you receive. Charged inside the company before the money reaches you.
Lithuania
15% withholding tax on dividends as a rule, reduced or eliminated by the EU parent-subsidiary rules and by treaty. Estonia charges 22/78 inside the company instead.
VAT and thresholds
Estonia
24% since 1 July 2025, registration from €40,000 — a lower ceiling than most, but it comes with an EU VAT number plus OSS and IOSS.
Lithuania
21%, the highest here, with registration above €45,000 — a slightly higher ceiling than Estonia’s €40,000.
VAT and thresholds
Estonia
24% since 1 July 2025, registration from €40,000 — a lower ceiling than most, but it comes with an EU VAT number plus OSS and IOSS.
Lithuania
21%, the highest here, with registration above €45,000 — a slightly higher ceiling than Estonia’s €40,000.
Banking as a non-resident
Estonia
Estonian banks onboard founders with a real connection to the country; everyone else runs on Wise or Revolut with an EU IBAN.
Lithuania
Lithuania is a fintech hub and Revolut is licensed there, so payment accounts are easy. Traditional banks such as Swedbank and SEB are as cautious with non-residents as anywhere else.
Banking as a non-resident
Estonia
Estonian banks onboard founders with a real connection to the country; everyone else runs on Wise or Revolut with an EU IBAN.
Lithuania
Lithuania is a fintech hub and Revolut is licensed there, so payment accounts are easy. Traditional banks such as Swedbank and SEB are as cautious with non-residents as anywhere else.
Annual filings
Estonia
One annual report to the Business Register, plus monthly returns once there is payroll or a VAT number. Audit does not apply at founder scale.
Lithuania
Annual financial statements to the Register of Legal Entities and monthly tax returns. No mandatory contact person, so the recurring cost is lower than Estonia’s.
Annual filings
Estonia
One annual report to the Business Register, plus monthly returns once there is payroll or a VAT number. Audit does not apply at founder scale.
Lithuania
Annual financial statements to the Register of Legal Entities and monthly tax returns. No mandatory contact person, so the recurring cost is lower than Estonia’s.
Which one fits your business
Which one fits your business
Which one fits your business
🇪🇪 Estonia fits if
🇪🇪 Estonia fits if
🇪🇪 Estonia fits if
You reinvest instead of paying yourself
You reinvest instead of paying yourself
Profit left in the company is not taxed at all, so every year you do not distribute is a year you do not pay.
You sell into the EU
You sell into the EU
An EU VAT number plus OSS and IOSS access is something a non-EU company cannot give you.
You want one bill for the back office
You want one bill for the back office
Accounting, invoicing, contracts and e-signing in one subscription instead of four suppliers.
🇱🇹
🇱🇹
Lithuania
Lithuania
Lithuania
You are launching a fintech or payment business
You are launching a fintech or payment business
Lithuanian e-money and payment licences are the reason a large share of European fintech is registered there.
You are new and want the tax holiday
You are new and want the tax holiday
Two years at 0% is real money if you expect profit early and plan to distribute it.
You want the leanest possible fixed cost
You want the leanest possible fixed cost
No contact person to pay for — just accounting and an address.
Where Estonia loses
Where Estonia loses
Where Estonia loses
Three places where the other country is simply better. If they matter more to you than untaxed retained profit and the EU single market, go there.
Three places where the other country is simply better. If they matter more to you than untaxed retained profit and the EU single market, go there.
Two years at zero
Two years at zero
A new small company pays 0% corporate tax for its first two years. Estonia has no such holiday — it simply never taxes retained profit.
No mandatory contact person
No mandatory contact person
Lithuania needs only a registered office. Estonia requires a licensed contact person, from €124 a year.
A licence-friendly home for fintech
A licence-friendly home for fintech
E-money and payment licensing is genuinely more accessible in Vilnius than in Tallinn.
How incorporation with Enty works
How incorporation with Enty works
How incorporation with Enty works
Open with e-Residency
Open with e-Residency
1-3 days
€60
+ €290 state fee
1
5-minute application on Enty
2
We file directly with the Estonian registry
3
Company registered!
1-3 days
Plan to get an e-Residency card? Buy incorporation now and get €150 off
We lead you through the whole process
No e-Residency yet
No e-Residency yet
14 days
Fastest formation with a notary on the market
€1,000
+ €290 state fee
1
10-minute application on Enty
2
20–30 min video call — identity check and notarisation, fully online
3
We file directly with the Estonian registry
4
Company registered!
14 days
Several shareholders, crypto or e-commerce? We take the complicated cases too.
Several shareholders, crypto or e-commerce? We take the complicated cases too.
Several shareholders, crypto or e-commerce? We take the complicated cases too.
Methodology and sources
Methodology and sources
Methodology and sources
Lithuanian registration fees and the capital rule — €1,000 subscribed with at least €250 paid before registration — from the Register of Legal Entities and the Law on Companies. The 17% rate from 1 January 2026, the 7% micro rate and the 0% first-two-years relief from the State Tax Inspectorate. VAT threshold of €45,000 from the same source.
Estonian state fee of €290 — the €265 registry fee plus a €25 API fee. Cost comparisons are computed in our own cost model, not quoted from third parties.
Figures verified 21 August 2026.
Figures verified
Frequently asked questions
Frequently asked questions
Frequently asked questions
Which is cheaper to run, an Estonian OÜ or a Lithuanian UAB?
Lithuania, on fixed costs: there is no mandatory contact person, so you pay for accounting and a registered office and nothing else. Estonia’s floor is from €124 a year.
On tax it reverses: Lithuania charges 17% as profit is earned, Estonia charges nothing until you distribute.
Which is cheaper to run, an Estonian OÜ or a Lithuanian UAB?
Lithuania, on fixed costs: there is no mandatory contact person, so you pay for accounting and a registered office and nothing else. Estonia’s floor is from €124 a year.
On tax it reverses: Lithuania charges 17% as profit is earned, Estonia charges nothing until you distribute.
Which is cheaper to run, an Estonian OÜ or a Lithuanian UAB?
Lithuania, on fixed costs: there is no mandatory contact person, so you pay for accounting and a registered office and nothing else. Estonia’s floor is from €124 a year.
On tax it reverses: Lithuania charges 17% as profit is earned, Estonia charges nothing until you distribute.
Do I really have to pay in capital before registering in Lithuania?
Yes. Of the €1,000 subscribed, at least €250 must be paid into a Lithuanian accumulative account before the company is registered, with the rest due within twelve months.
Estonia’s minimum is €0.01 and can be deferred entirely.
Do I really have to pay in capital before registering in Lithuania?
Yes. Of the €1,000 subscribed, at least €250 must be paid into a Lithuanian accumulative account before the company is registered, with the rest due within twelve months.
Estonia’s minimum is €0.01 and can be deferred entirely.
Do I really have to pay in capital before registering in Lithuania?
Yes. Of the €1,000 subscribed, at least €250 must be paid into a Lithuanian accumulative account before the company is registered, with the rest due within twelve months.
Estonia’s minimum is €0.01 and can be deferred entirely.
Can I register a Lithuanian company remotely?
Yes, if you hold a qualified EU electronic signature — a Lithuanian, Estonian or other EU eID will do.
Without one you need a notary or a power of attorney, and in practice a provider.
Can I register a Lithuanian company remotely?
Yes, if you hold a qualified EU electronic signature — a Lithuanian, Estonian or other EU eID will do.
Without one you need a notary or a power of attorney, and in practice a provider.
Can I register a Lithuanian company remotely?
Yes, if you hold a qualified EU electronic signature — a Lithuanian, Estonian or other EU eID will do.
Without one you need a notary or a power of attorney, and in practice a provider.
Is Lithuania’s 0% for new companies better than Estonia’s 0% on retained profit?
They solve different problems. Lithuania’s holiday is generous but expires after two years and only applies to small companies; after that 17% is charged whether you distribute or not.
Estonia’s 0% has no expiry, but only lasts as long as the money stays in the company.
Is Lithuania’s 0% for new companies better than Estonia’s 0% on retained profit?
They solve different problems. Lithuania’s holiday is generous but expires after two years and only applies to small companies; after that 17% is charged whether you distribute or not.
Estonia’s 0% has no expiry, but only lasts as long as the money stays in the company.
Is Lithuania’s 0% for new companies better than Estonia’s 0% on retained profit?
They solve different problems. Lithuania’s holiday is generous but expires after two years and only applies to small companies; after that 17% is charged whether you distribute or not.
Estonia’s 0% has no expiry, but only lasts as long as the money stays in the company.
Both are in the EU — does the choice matter for VAT?
Not much. Both give you an EU VAT number with OSS and IOSS access.
The rates and thresholds differ — Lithuania 21% above €45,000, Estonia 24% above €40,000 — but the mechanics are the same.
Both are in the EU — does the choice matter for VAT?
Not much. Both give you an EU VAT number with OSS and IOSS access.
The rates and thresholds differ — Lithuania 21% above €45,000, Estonia 24% above €40,000 — but the mechanics are the same.
Both are in the EU — does the choice matter for VAT?
Not much. Both give you an EU VAT number with OSS and IOSS access.
The rates and thresholds differ — Lithuania 21% above €45,000, Estonia 24% above €40,000 — but the mechanics are the same.
Can a non-resident own an Estonian company outright?
There is no residency or nationality requirement for shareholders or board members of an OÜ.
Can a non-resident own an Estonian company outright?
There is no residency or nationality requirement for shareholders or board members of an OÜ.
Can a non-resident own an Estonian company outright?
There is no residency or nationality requirement for shareholders or board members of an OÜ.
Do I have to travel to Estonia?
No. With an e-Residency card everything is online; without one, a 20–30 minute video identity call replaces the trip.
Do I have to travel to Estonia?
No. With an e-Residency card everything is online; without one, a 20–30 minute video identity call replaces the trip.
Do I have to travel to Estonia?
No. With an e-Residency card everything is online; without one, a 20–30 minute video identity call replaces the trip.
Is an Estonian OÜ tax resident in Estonia?
The company is. You are not — your own tax residency is decided by where you live, and Estonia does not change it.
Is an Estonian OÜ tax resident in Estonia?
The company is. You are not — your own tax residency is decided by where you live, and Estonia does not change it.
Is an Estonian OÜ tax resident in Estonia?
The company is. You are not — your own tax residency is decided by where you live, and Estonia does not change it.
When do I have to pay in the share capital?
Not at registration. It can be deferred, and the minimum is €0.01.
When do I have to pay in the share capital?
Not at registration. It can be deferred, and the minimum is €0.01.
When do I have to pay in the share capital?
Not at registration. It can be deferred, and the minimum is €0.01.
Which bank will my company use?
We help you open an account with one of our EU banking or payment partners, including Wise and Revolut, at no extra fee from us.
Which bank will my company use?
We help you open an account with one of our EU banking or payment partners, including Wise and Revolut, at no extra fee from us.
Which bank will my company use?
We help you open an account with one of our EU banking or payment partners, including Wise and Revolut, at no extra fee from us.
What does Enty actually do?
Registration, the mandatory legal address and contact person, accounting, invoicing, contracts and e-signing, in one subscription from €33 a month.
What does Enty actually do?
Registration, the mandatory legal address and contact person, accounting, invoicing, contracts and e-signing, in one subscription from €33 a month.
What does Enty actually do?
Registration, the mandatory legal address and contact person, accounting, invoicing, contracts and e-signing, in one subscription from €33 a month.
Start today in Estonia. Running in 1 to 14 days
No credit card to start
No e-Residency required
Complex cases supported
Start today in Estonia. Running in 1 to 14 days
No credit card to start
No e-Residency required
Complex cases supported
Start today in Estonia. Running in 1 to 14 days
No credit card to start
No e-Residency required
Complex cases supported