Destinations Catalog

The Republic of Lithuania

Lithuania
Population:
2 850 030
Capital:
Vilnius
UTC:
+02:00
Ease of Doing Business Index:
16
Currency:
EUR ($1 = EUR 0.89)
Unemployment Ratio:
9%
Income Tax:
15%
Corporate Income Tax:
-------
Social Tax:
3%
Notice Period:
5 - 120 days
Dismissal Period:
2+ weeks
Turnover Ratio:
$180611 million
Office Rent:
7-20/m2
IT Headcount:
31 500
IT Graduates:
2 000
Average Salary
Junior
Middle
Senior
Lead
$ 1 500
$ 2 100
$ 3 100
$ 4 000
English Level
High Proficiency
Main IT Outsorcing Destinations
Cities
IT Headcount
Main IT Outsorcing Destinations
Cities
IT Headcount
Lithuania
Country Description

Lithuania is one more Baltic country with fast-growing economy. The population of the country reaches almost 3 mln people. The unemployment rate among the working population is relatively low, about 7%. Level of GDP has grown last year and continues to grow in this year. Since 2015, Lithuania has become a new popular destination for IT business. In order to attract new companies, the government of the state builds new offices, establishes initiatives that promote the country on the global arena.

Population
2 850 030
Capital
Vilnius
UTC
+02:00
Currency
EUR ($1 = EUR 0.89)
Ease of Doing Business Index
16
Unemployment Ratio
9%
Income Tax
15%
Corporate Income Tax
-------
Social Tax
3%
Notice Period
5 - 120 days
Dismissal Period
2+ weeks
Turnover Ratio
$180611 million
Office Rent
7-20/m2
IT Headcount:
31 500
IT Graduates:
2 000
Average Salary
Junior
Middle
Senior
Lead
$ 1 500
$ 2 100
$ 3 100
$ 4 000
English Level
-------

*If you noticed an error or considered some information to be outdated, please, contact us at team@outsourcingreview.org

Country Description

Lithuania is one more Baltic country with fast-growing economy. The population of the country reaches almost 3 mln people. The unemployment rate among the working population is relatively low, about 7%. Level of GDP has grown last year and continues to grow in this year. Since 2015, Lithuania has become a new popular destination for IT business. In order to attract new companies, the government of the state builds new offices, establishes initiatives that promote the country on the global arena.

Income Tax

Personal Income is imposed with the flat tax rate of 15% to both residents and non-residents of the country.

Corporate Income Tax (CIT), in accordance with the Lithuanian legislation, amounts to 15%, however, there are some exemptions that may be applied towards the taxation of a corporate income. These may be

  • 0% is applied towards small companies which meet certain regulations (e.g. first year of operations)
  • 15% is applied towards small companies which meet certain regulations as well as companies involved in agricultural activities which meet certain regulations

Social Тax

Social Security payments are made by both individuals and employers and comprise of both Social Security Tax and Health Insurance contribution.

For employers the rates are:

  • Social Security Tax – 27.28-29.60%
  • Health Insurance contribution – 3%

For employees these rates are:

  • Social Security Tax – 3%
  • Health Insurance contribution – 6%

Notice Period

In case of termination of an employment agreement between the parties, the notice period lasts for

  • 5 working days – in case of employment 1> year
  • 10 working days – in case of employment 3+years

However, the notice period is subject to discussion between the parties and may be neglected upon the mutual consent.

Dismissal Conditions

Lithuanian legislation envisages the following conditions for a dismissal, however, it doesn't restrict any specifics written in the agreement between the parties.

  • Reasons related to economic and technological aspects, restructuring of the company’s activities, results of an employee, etc.;
  • breach of employment duties, e.g. unreasonable absence from work for a whole day; poor performance within the last 12 months;
  • upon a court decision, when an employee is unable to perform employment duties or work according to a medical conclusion;

In most cases of dismissal, financial compensation is envisaged. Yet, if an employee fails to perform his duties effectively, s/he may not be able to receive any compensation.

Hiring Period

Up to 2 months

Office Rent

Office rent in the Vilnius varies between $10-20/m2. In Kaunas, the second largest city of Lithuania, this number varies between $7-15/m2. It depends on a class of office and furniture available.

IT Headcount

The local IT market amounts to 31.5K of specialists. In Lithuania, there are two main IT destinations – Vilnius and Kaunas. Owing to the EU membership, the country’s IT market is extremely attractive to foreign customers and companies. There is the fastest public Wi-Fi network in the world. The market is introduced by the direction of game development and such companies as Game Insights, Jet Cat Games, and many others. Many different events are held in Lithuania every year. Key expertise of the Lithuanian engineers is distributed mainly in such areas as Java, Oracle, Microsoft, HTML, PHP,  JavaScript, CSS, XML, etc.

IT Graduates

There are 23 educational institutions, however, not all of them provide tech education. Classes are conducted in Lithuanian, Russian, or English. However, education fee in Lithuania is much lower than in other European countries and the diplomas of these schools are valid in all European countries. Therefore many foreign students find Lithuania attractive and come there to get high education. In Lithuania, almost 8K tech specialists graduate from local universities annually, and 2000 of them are tech graduates.

The main institutions of Lithuania providing IT education:

  • Kaunas University of Technology
  • Vilnius Gediminas Technical University
  • Klaipeda State University of Applied Sciences

Average Salary

The salaries in Lithuania’s IT market are amidst the highest in Europe taking into account the experience and position:

  • Junior Software Engineer – $1100
  • Middle Software Engineer – $2400
  • Senior Software Engineer – $3150
  • Technical Lead – $4000+
Need to compare any destinations? Add the destination to your comparison list.

*If you noticed an error or considered some information to be outdated, please, contact us at team@outsourcingreview.org