Crypto Taxation in Lithuania — Rates, Rules & Filing

Key points

In Lithuania, individual gains from crypto disposals are taxed at 15% under the Law on Personal Income Tax once net annual gains exceed EUR 2,500. A 20% rate applies when total non-employment income exceeds 120 times the average wage. Every disposal -- including crypto-to-crypto exchanges -- is a taxable event per VMI guidance.

How does Lithuania tax cryptocurrency gains for individuals?

Lithuania treats cryptocurrency as property under Article 2(28) of the Law on Personal Income Tax (LPIT). When an individual disposes of crypto assets outside of a registered individual activity, any gain is classified as "other taxable income." The State Tax Inspectorate (Valstybine mokesciu inspekcija, VMI) confirmed this framework in its 2018 explanatory letter on virtual currencies, which remains the primary administrative guidance. The gain is calculated in EUR by subtracting the acquisition cost (including documented transaction fees) from the disposal proceeds [SC1]. Proceeds denominated in a foreign currency or another cryptocurrency are converted to EUR at the market rate on the date of each transaction [SC1].

What is the EUR 2,500 exemption and how does it apply?

Article 17(1)(27) of the LPIT provides a non-taxable threshold: if total net gains from the disposal of non-registrable personal assets (including crypto) do not exceed EUR 2,500 in a tax year, no personal income tax is due and no declaration is required for that income [SC1]. If gains exceed EUR 2,500, the full amount above zero is taxable -- this is a threshold, not a deduction. At that point, the portion above the threshold is taxed at 15% up to the 120-average-wage ceiling [SC2]. The VMI confirmed that this threshold applies to incidental (non-regular) crypto disposals [SC1].

When does the 20% rate apply?

The 15% rate gives way to 20% when total non-work-related income -- aggregating dividends, interest, rental income, capital gains, and crypto gains together -- exceeds 120 times the national average monthly wage for that tax year [SC2]. For 2024, the average wage was EUR 1,902.70, placing the 120-wage threshold at approximately EUR 228,324 [SC3]. PwC Worldwide Tax Summaries for Lithuania confirms the 15% rate for gains up to EUR 253,065 per year and 20% on the exceeding portion, the EUR 253,065 figure reflecting the actual 2025 calculation under the same statutory formula [SC2]. Taxpayers must aggregate all non-employment income categories to determine which rate applies. Note that from 1 January 2026, Lithuania introduced a new three-tier progressive structure (20%, 25%, 32%) for most income; the separate flat rates for certain categories are under review and content will be updated following VMI clarification [SC4].

Is every crypto disposal a taxable event?

Yes, per VMI guidance. Five transaction types trigger recognition of gain or loss [SC1]:

Transaction type	Income measure	Notes
Sale for fiat (EUR, USD, etc.)	EUR proceeds received	Most straightforward disposal
Crypto-to-crypto exchange	Market value in EUR of crypto acquired	Each swap is a disposal of the outgoing asset
Payment for goods or services	Fair market value in EUR of goods/services received	Applies to any purchase paid in crypto
Staking rewards received	Market value in EUR on date of receipt	Taxable as other income
Airdrop received	Market value in EUR on date of receipt	Taxable if non-zero value

Transactions that are NOT taxable events include: purchasing crypto with fiat currency, transferring crypto between wallets the same taxpayer controls, and simply holding (no disposal) [SC1].

How is mining income treated?

The VMI 2018 guidance classifies individual mining as an individual activity -- a form of self-employment -- when it meets the criteria of operational autonomy, continuity, and profit-seeking [SC1]. Under this classification the mined cryptocurrency itself is not taxed as income on receipt; tax arises when the mined coins are later disposed of, and the gain is the disposal proceeds minus the production cost (electricity, hardware proportionally allocated) [SC1]. The VMI also confirmed that mining is not subject to VAT, as no goods or services are supplied to a third party during the mining process [SC1]. Taxpayers who mine at scale may be required to register as individual activity (sole proprietorship) participants with the VMI, in which case separate self-employment deduction rules apply. See the Lithuania country overview for the broader Lithuanian tax and regulatory context.

Annual personal income tax returns must be filed with the VMI by 1 May of the year following the tax period. Taxpayers should retain all transaction records -- timestamps, asset types, amounts, EUR valuations, and fees -- for at least five years. For jurisdiction-specific guidance and to connect with a verified Lithuanian tax professional, review the qualified practitioners listed in the TaxPros Rated directory.

Frequently asked

At what rate is cryptocurrency gain taxed in Lithuania?

For individuals making incidental (non-regular) disposals, gains above the EUR 2,500 annual threshold are taxed at 15% personal income tax under the Law on Personal Income Tax. A 20% rate applies once total non-employment income -- all categories combined -- exceeds 120 times the national average wage, approximately EUR 228,324 for the 2024 tax year, per VMI guidance and PwC Worldwide Tax Summaries.

Is a crypto-to-crypto exchange taxable in Lithuania?

Yes. The VMI explicitly identifies crypto-to-crypto swaps as taxable disposal events. When one cryptocurrency is exchanged for another, the outgoing asset is treated as sold at the fair market value in EUR of the incoming asset on the date of the exchange. Any gain relative to the acquisition cost of the outgoing asset is included in that year's taxable other income, subject to the EUR 2,500 annual threshold.

What is the EUR 2,500 crypto exemption in Lithuania?

Article 17(1)(27) of the Law on Personal Income Tax provides that net gains from disposals of non-registrable personal property, including crypto assets, are non-taxable if total annual gains stay below EUR 2,500. This is a threshold: if gains reach EUR 2,500 or more, the full taxable amount above zero becomes subject to the 15% rate. No declaration is required for gains that remain below the threshold.

How is cryptocurrency mining taxed in Lithuania?

The VMI classifies individual mining as an individual activity when it meets autonomy, continuity, and profit-seeking criteria. Mined cryptocurrency is not taxed on receipt; taxation occurs at disposal, with the tax base equal to proceeds minus documented production costs. Mining is also exempt from VAT because no goods or services are provided to a counterparty. Miners operating at scale may need to register as individual-activity participants with the VMI.

When must a Lithuanian taxpayer file a crypto income return?

Lithuanian tax residents must include crypto income in their annual personal income tax return filed with the VMI by 1 May of the year following the relevant tax year. Supporting documentation -- transaction records, timestamps, EUR valuations, and fees -- must be retained for at least five years. Taxpayers whose total crypto gains remain below the EUR 2,500 annual threshold are not required to declare that income.