Compare taxes and see how much you save moving from Estonia to Lithuania
Estonia and Lithuania are both Baltic tech success stories with different tax approaches. Estonia maintains its famous 22% flat rate with e-Residency program and 0% corporate tax on retained earnings. Lithuania implemented a 2026 reform adding a middle bracket: 20% (up to €81K), 25% (€81K-€116K), 32% (above €116K). For mid-income earners at €50,000: Estonia charges ~€15,400 (31%), Lithuania charges ~€14,500 (29%). Lithuania wins slightly at this level. But Estonia's corporate advantages (0% on retained earnings) make it better for entrepreneurs. Lithuania has the larger economy and Vilnius is gaining reputation as a fintech hub (Revolut, Vinted). Choose Estonia if: you want e-Residency benefits, startup ecosystem, or plan to retain profits in company. Choose Lithuania if: you're an employee earning under €80K, prefer larger city life, or work in fintech.
Flat Rate
22% flat + e-Residency + 0% corporate retained
Progressive
20/25/32% progressive (2026 reform)
At €50,000 income:
That is €75/month back in your pocket!
| Income | EE Tax | LT Tax | Savings | 10-Year |
|---|---|---|---|---|
| €30,000 | €7,700 (25.7%) | €7,200 (24%) | Lithuania saves €500 | €5,000 |
| €50,000 | €15,400 (30.8%) | €14,500 (29%) | Lithuania saves €900 | €9,000 |
| €100,000 | €33,100 (33.1%) | €33,500 (33.5%) | Estonia saves €400 | €4,000 |
| €150,000 | €50,100 (33.4%) | €53,000 (35.3%) | Estonia saves €2,900 | €29,000 |
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Wise was born in Estonia and powers banking for thousands of Baltic tech workers. Hold EUR, send money globally at real rates.
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Global payroll for Baltic employment. Compliant contracts and tax handling in both countries.
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Hire in Estonia or Lithuania →Estonia: ~€15,400 total (22% flat after €8,400 exemption, plus ~9% social). Lithuania: ~€14,500 total (20% rate up to €81K, plus social contributions). Lithuania saves €900/year at this income level. The gap narrows at higher incomes and reverses above €100K.
Lithuania added a middle tax bracket: 20% (up to €81,000), 25% (€81,000-€116,000), 32% (above €116,000). Previously it was 20%/32% with a lower threshold. The reform smooths progression and benefits those earning €60-100K while slightly increasing burden on top earners.
Estonia for solo entrepreneurs using e-Residency—0% corporate tax on retained earnings is unmatched. Lithuania for those building larger teams—bigger talent pool, more fintech expertise, Vilnius has become a major tech hub. Many entrepreneurs use Estonian company + Lithuanian team.
Tallinn: €1,200-1,800/month, €500-800 rent. Vilnius: €1,100-1,600/month, €450-700 rent. Very similar, with Vilnius slightly cheaper (5-10%). Both are significantly more affordable than Western Europe. Kaunas (Lithuania's second city) is 20% cheaper than Vilnius.
Estonia: Smaller but denser. Produced Skype, Wise (TransferWise), Bolt, Pipedrive. Strong government support, tech-first culture. Lithuania: Larger and growing fast. Home to Revolut's EU base, Vinted. Strong in fintech specifically. Both have excellent ecosystems by European standards.