Lithuania Continues Tax Reform: What Awaits Businesses and What Are the Alternatives for Crypto Companies?

Lithuania Continues Tax Reform: What Awaits Businesses and What Are the Alternatives for Crypto Companies?

New Tax Changes: Lithuania Increases Corporate Tax

As of January 1, 2025, Lithuania’s corporate tax rate has increased from 15% to 16%. However, these changes may not stop there: the government is considering a further increase to 17% or even 18%. The primary goal of this initiative is to finance the State Defense Fund, which has become a key priority in light of current geopolitical challenges. At the same time, Lithuania remains one of the most popular jurisdictions for crypto companies in Europe due to its favorable regulatory environment and access to the European market.

How Will This Affect Businesses?

📌 For companies: An increase in corporate tax means higher expenses and potential profit reduction, especially for companies with low margins. For the cryptocurrency business, which already faces heightened regulatory requirements, this could be an additional factor influencing jurisdiction selection.

📌 For investors: Higher tax burdens may reduce Lithuania’s attractiveness as a hub for international business. While Lithuania remains a key crypto jurisdiction in Europe, further tax increases may push companies to seek alternative options.

📌 For the budget: The government plans to allocate additional revenues to national defense needs, aligning with current national interests. However, the business environment may suffer from the outflow of companies or tax structure optimization strategies.

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MiCA Regulation – New Opportunities for Crypto Businesses in the EU

Despite potential tax changes, crypto companies operating in Lithuania have an alternative way to maintain access to the European market. The MiCA Regulation (Markets in Crypto-Assets), which is coming into effect in the EU, allows companies to obtain a crypto-asset license in one of the European Economic Area (EEA) countries and operate across the entire region through the passporting mechanism.

This means companies can:
✅ Continue operating within the EU regardless of tax law changes in specific countries.
✅ Choose the optimal jurisdiction for registration with the most favorable taxation conditions.
✅ Obtain a MiCA license and expand operations without additional regulatory barriers in other EEA countries.

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How Can We Help?

We offer a full range of services for crypto companies looking to operate efficiently in the EU under MiCA regulations:

🔹 Selection of the optimal jurisdiction – analysis of tax and regulatory environments to identify the best option.
🔹 Company formation – registration of a legal entity in the chosen EU country.
🔹 Preparation of corporate documents and policies – ensuring compliance with regulatory requirements.
🔹 Preparation and submission of a MiCA license application, including passporting – full legal support for compliant operation across all EEA countries.
🔹 Opening of bank accounts, payment processing, liquidity providers and other services – assistance in integrating essential tools for business operations.

If you are looking to optimize your business in response to Lithuania’s new tax reforms, contact us – we will help you legally operate in the EU and select the most advantageous conditions for your company’s growth.