Lithuania offers “Golden Visa Program,” which is a residency plan allowing foreign nationals to invest in the country, paving their way to citizenship. There are two main ways of obtaining a residency permit for Lithuania;

-Through Opening a Branch

-Through Business

All of these options are available to an applicant who intends to do business in the country, and they want to have their own business or they have an established business in their country and would wish to open a new branch in Lithuania.

Lithuania is part of the Baltic countries and has become an attractive destination to foreign investors. This is because it has some key business advantages, such as low corporate tax rates, convenient geographical location, low labor costs, a highly educated population, and highly developed logistics.

To improve the business environment in Lithuania, the government adopted some changes recently relating to the immigration law.

The amendments are aimed at restricting foreign investors from incorporating fictitious companies and planning to gain a resident permit without carrying out business activities in the country. This amendment was enforced from November 1st, 2014.

Now, even though Lithuania does not have a formal Citizenship-by-Investment program, the legislation provides immigration for foreigners willing to establish their company or engage in business in the country.

According to the Legal Status of Aliens Act, for one to obtain a temporary resident permit through business, they must fulfil the following;

-Share capital in the agency, company, or organization must be approx. LTL 50,000 (around $19,000)

-A foreign investor should be present in Lithuania and

-The foreign investment company should conduct genuine business activities and must stay to pay taxes no less than one year after the registration is complete.

-The foreign investor is supposed to be a director or a shareholder in the company.

-The company’s total capital should be at least 50,000 EUR.

-The company should prepare a business plan

-The investor’s presence must be necessary for the company to run smoothly.

-The company should have been in operation for around six months before applying for a temporary resident permit.

-They must have more than two employees who are Lithuanians and paying their taxes.

Advantages of Lithuanian Residency

There are many advantages for enrolling in the residency program, and these include the following;

-You will gain permanent residency using the program, and eventually, you will be qualified for citizenship.

-Even the temporary residence will give you access to all the EU Schengen zone and countries without restrictions.

-You can work in Lithuania with no restrictions.

-Your family members are covered in this program.

-Lithuania is currently ripe for business opportunities, and it is the right place to start your EU investments.

-When you receive the residency permit, you receive all of the same privileges typically offered to Lithuanian citizens, including medical care, maternity benefits, social privileges, and unemployment benefits.

Conditions for a Residence Permit for Investing

As per the current Immigration laws in Lithuania, non-EU citizens can get residency in exchange for their investment, but they must meet the following requirements;

-You must have been running a Lithuanian Company over the last six months before applying for the permit.

-The company should be paying social security for at least three employees who are residents of Lithuania. The average monthly social security in Lithuania is around 160 EUR for each person.

-You must invest a share capital of around 28,000 EUR in the company.

-Ensure that the owner has invested at least 14,000 EUR of the share capital.

-You must be having a position in the company.

-You must prove your place of residence, such as a house or an apartment in Lithuania, and this should meet the hygienic requirements of 7 m2 per person living in the house.

Buying a Shelf Company

To minimize the burden of establishing a new company, the foreign investor could buy a shelf company.

This is a company that is already formed legally in Lithuania. A shelf company in Lithuania can be transferred to the investor according to the Lithuanian Property rights, which can be done at any time.

The shelf companies are prepared to transfer completely if they have 3 Lithuanian residents employed and have paid the equity capital in full and all other taxes. An investor who buys a shelf company is liable to tax payments after submitting their residency documents to the Lithuanian Migration Department.

Fees for buying the shelf company vary depending on the shareholders in the company. Here are the fees;

-A company with one shareholder normally costs approx. 7,500 EUR.

-A company that has two shareholders will cost approx. 6500 EUR for each shareholder.

-A company that has got three shareholders will cost approx. 5500 EUR for each shareholder.

Additionally, the applicant is required to meet all of the other immigration requirements established by the European Union. This includes all entry conditions provided at the Schengen borders, possessing an adequate subsistence means, having a valid health insurance cover, and owning or renting a house or apartment in Lithuania.

As per the Legal Status for Aliens Act, all foreigners who have established their companies in Lithuania should obtain an annual and renewable one-year residence temporary permit.

This temporary permit enables them to travel to and from Lithuania and reside in the country. This includes travel in the Schengen areas as well.

The permanent residence permit is issued five years after the temporary residence for an investor that has continued to live in Lithuania at this time. The temporary required period of residency may be reduced for a foreigner that passes the Lithuanian Language examination.

The initial applicants are made at the consular office abroad or the Lithuanian diplomatic mission. These applicants are ready to reside lawfully in Lithuania, and they may apply to the immigration authority. However, it does not entitle them to remain in Lithuania as the application is in process.

After ten years as a resident in Lithuania, which includes periods of temporary and permanent residency, the investor is allowed to apply for citizenship if they meet the requirements that the Citizenships Act of the Country has defined.

Knowledge of the Lithuanian Language and constitution is a legal source of revocation and financial support of their original citizenship.

Lithuanian Citizenship is a permanent and legal relationship between the foreign investor and The Republic of Lithuania.

This is based on mutual obligations and rights.

How to Attain Lithuanian Citizenship

This can only be acquired in three main ways;

-By Birth or Naturalization

-By citizenship, Restoration and 

-Through being granted Lithuanian Citizenship

Naturalization

For the purpose of Foreign Investors, we will look at citizenship through naturalization.

A person can be granted citizenship in Lithuania if they;

-Have been residing in the country for at least ten years.

-Have the right to reside habitually in the Lithuanian territory

-Have passed the language examination

-Have passed the basic provisions of the Constitution of the Republic of Lithuania Exam.

-Have a legal source of income

-Are they stateless, or have they notified the government of Lithuania in writing that they are willing to renounce their citizenship of other countries they hold?

-They meet the requirements that are laid out by the Laws of Citizenship in Lithuania.

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