Lithuania has carved out a remarkable niche as Europe's most startup-friendly fintech jurisdiction. The Bank of Lithuania has issued more fintech licences than any other EU regulator, making Vilnius the EU base for companies like Revolut, Kevin, and dozens of payment and lending startups. With approximately €0.2 billion in venture capital in 2024, the overall ecosystem is still small, but the fintech vertical is outsized and globally significant.
The Lithuanian government has made startup support a strategic priority. The Startup Visa Lithuania programme provides a streamlined path for non-EU founders. Enterprise Lithuania supports internationalisation, and the country offers a competitive incentive stack: 15% corporate tax rate (5% for small companies), free economic zones with 0% CIT for 10 years, and one of Europe's fastest company incorporation processes (3 days). Vilnius has invested heavily in becoming a tech hub, with the Vilnius Tech Park hosting 400+ startups.
Beyond fintech, Lithuania has growing strengths in laser technology (a global leader in ultrafast lasers), biotech, and gaming. Vilnius University and Kaunas University of Technology feed a solid engineering talent pipeline. The country's IT workforce has grown 40% in the past five years, and English proficiency is high among the younger generation.
Startup Ecosystem
Vilnius is the clear startup centre, home to the Bank of Lithuania's fintech sandbox, Vilnius Tech Park, and the majority of VC activity. The city is particularly dominant in fintech — over 250 fintech companies are licenced to operate from Lithuania. Kaunas, Lithuania's second city, has strengths in laser technology (Light Conversion, Ekspla), industrial tech, and gaming. The Kaunas Free Economic Zone offers 0% CIT for 10 years. Klaipeda, the port city, has a nascent logistics-tech scene. Lithuania's ecosystem benefits from its status as an EU and Eurozone member with very low costs — Vilnius is roughly 60% cheaper than London or Amsterdam for office space and salaries.
National Funding in Lithuania
Enterprise Lithuania
The national business development agency, supporting internationalisation, export growth, and FDI attraction. Provides export development grants and the Startup Visa processing service.
Visit website →Startup Visa Lithuania
A fast-track 1-year visa for non-EU founders with an innovative, scalable business concept. Evaluated by the Startup Committee within 30 days. Renewable and convertible to a temporary residence permit.
Visit website →MITA (Agency for Science, Innovation and Technology)
Lithuania's R&D agency providing innovation vouchers (up to €100K), Seal of Excellence co-financing, and Eurostars programme management for Lithuanian R&D participants.
Visit website →INVEGA
State guarantee institution providing loan guarantees (up to 80%), subsidised-interest loans, and venture capital co-investment through the fund-of-funds KOFINANSAVIMAS programme backed by EU structural funds.
Visit website →Tax Incentives for Startups
15% Corporate Tax (5% for Small Companies)
The standard CIT rate is 15%. Companies with fewer than 10 employees and less than €300K in revenue pay just 5%. Both rates are among the lowest in the EU.
Free Economic Zone (0% CIT)
Companies in Lithuania's seven free economic zones (Kaunas, Klaipeda, etc.) pay 0% CIT for the first 10 years and 7.5% for the following 6 years, provided they invest over €1M and create 20+ jobs.
R&D Tax Relief (Triple Deduction)
Companies can deduct 300% of qualifying R&D costs from their taxable income. At 15% CIT, this creates an effective additional subsidy of 30% on R&D spending — one of the most generous R&D deductions in the EU.
Top Startup Cities in Lithuania
Vilnius
Lithuania's startup capital and Europe's fintech licensing hub. Over 250 fintechs, home to Vilnius Tech Park (400+ startups), and the Bank of Lithuania's fintech innovation sandbox.
Kaunas
Lithuania's second city with strengths in laser technology (world leader in ultrafast lasers), gaming, and industrial tech. Kaunas Free Economic Zone offers 0% CIT for 10 years.
EU Co-Financing in Lithuania
Lithuania uses EU structural funds extensively for innovation. The INVEGA fund-of-funds leverages EIF instruments to co-invest in Lithuanian startups. MITA recognises the Seal of Excellence for national co-financing. Lithuania's EU structural fund allocation (~€6.3B for 2021-2027) includes significant innovation and digitalisation components. The country also actively participates in Horizon Europe, particularly in photonics and laser technology.
EU Funding Available in Lithuania
Startups in Lithuania
VC Funds Active in Lithuania
Atomico
🇬🇧London, UK
Balderton Capital
🇬🇧London, UK
Lakestar
🇨🇭Zürich, Switzerland
EQT Ventures
🇸🇪Stockholm, Sweden
Northzone
🇸🇪Stockholm, Sweden
Speedinvest
🇦🇹Vienna, Austria
Dawn Capital
🇬🇧London, UK
Credo Ventures
🇨🇿Prague, Czechia
Radix Ventures
🇵🇱Warsaw, Poland
Contrarian Ventures
🇱🇹Vilnius, Lithuania
Expeditions Fund
🇵🇱Warsaw, Poland
Frequently Asked Questions
The Bank of Lithuania processes fintech licence applications in 3-6 months (vs 12-18 months in most EU countries), operates an innovation sandbox, and has a dedicated fintech team. Lithuania is an EU and Eurozone member, so licences passport across the single market. Costs are 60% lower than London or Dublin. Over 250 fintechs now operate from Vilnius.
Non-EU founders apply with an innovative business plan, evaluated by the Startup Committee within 30 days. Successful applicants receive a 1-year visa (renewable for 2 years). Requirements include an innovative, scalable concept and sufficient personal funds. The programme is one of the fastest and simplest in the EU.
The UAB (uzdaroji akcine bendrove) is Lithuania's private limited company, requiring €2,500 minimum share capital (can be reduced to €1,000 with a shareholder agreement). Incorporation takes 3-5 business days. This is the standard entity for fintech and tech startups.
Yes. Companies can deduct 300% of eligible R&D costs (salaries, materials, subcontracting) from their tax base. This means for every €100 spent on qualifying R&D, €300 is deducted from taxable income. At 15% CIT, the additional benefit is €30 per €100 of R&D spending — effectively a 30% subsidy.
Explore Other Countries
Get EU Funding for Your Lithuania Startup
EUACC helps startups in Lithuania navigate EU grants and national co-financing. Write competitive applications with AI trained on winning proposals.
Start Your Application