Frequently Asked Questions - Employment
How to declare tax refund?
If you’re a foreign worker in Lithuania and you want to apply for a tax refund (i.e., get back income tax you paid during the year), here’s how it generally works:
1. Understand What a Tax Refund Is
While you’re working in Lithuania, your employer deducts income tax from your salary each month as an advance payment toward your annual tax liability. At the end of the tax year, you may discover that you overpaid — meaning you are entitled to a refund of the excess amount.
2. File an Income Tax Return
To claim a refund, you usually have to submit an annual income tax declaration (tax return) to the Lithuanian tax authorities (Valstybinė mokesčių inspekcija – VMI). This is typically done through the Electronic Declaration System (EDS) on the VMI website
Key points:
- The normal deadline to submit the income tax declaration is by May 2 of the following year.
- If you submit it on time and the declaration shows you’ve paid more tax than required, you are eligible for a refund. The refund is usually paid out by July 31 if submitted by the deadline.
3. What You’ll Need
When filing your declaration, you’ll need:
- Your tax ID number (TIN) in Lithuania (assigned by VMI)
- Your income and tax withheld details — usually provided by your employer (they often issue a certificate or summary of incomes/taxes at the end of the year)
- Your personal information and employment details
Often the declaration is pre-populated with your income data, and you can confirm or adjust it before submission.
4. Submit Through EDS or VMI Office
You have two common ways to submit your tax return:
- Online through the EDS: Log in with Lithuanian e-ID (like SMART-ID or bank login).
- In person at your local VMI office: Bring passport and documents your employer gave you.
If you have difficulties with digital access (like SMART-ID), visiting the VMI office in person may help.
5. Getting Your Refund
If the tax authorities confirm that you overpaid:
- The refund will be transferred to your bank account; or
- You might receive it by another method specified by VMI.
This refund is from personal income tax (GPM) — it’s not a VAT (shopping) refund.
Tips for Foreign Workers
- You normally need to submit the declaration even if you are non-resident, if you want the refund.
- Many foreign workers receive refunds of a few hundred euros, depending on income and tax withheld.
- If you worked only part of the year, it’s more likely you overpaid and will get money back.
Need Help?
You can contact VMI directly for guidance:
📞 VMI hotline: 1882 (in Lithuania) or +370 5 260 5060
When can I transfer to another employer?
As a foreign worker in Lithuania, your ability to transfer to a new employer depends on the type of residence/work permit you hold and the applicable migration rules:
Temporary Residence Permit for Work
If you have a standard temporary residence permit for work (issued for employment with a specific employer):
- You cannot simply start working for a new employer immediately after changing jobs.
- You must first apply to the Migration Department for permission to change your employer (and usually also get a decision from the Employment Service confirming that your new job fits the labour market needs).
- Recent rules (since July 1, 2024) also require that you normally work at least six months for your initial employer before you can request permission to change employers if you are not highly qualified.
- During this waiting period, you should not resign or start the new job until the Migration Department has approved the change.
EU Blue Card Holders (Highly Qualified Workers)
If you hold an EU Blue Card (a special permit for highly skilled workers):
- You can generally change employer more easily than with a standard permit.
- If you have held the Blue Card for more than 12 months, you don’t need prior permission to switch employers; you simply must notify the Migration Department within 7 working days after signing a new contract.
- If you have held the Blue Card for less than 12 months, you do need permission from the Migration Department before changing employers.
General Principles
- You typically must be legally resident and permitted to work in Lithuania — you cannot switch employers without maintaining valid status.
- If you change employers without the proper permission, your temporary residence permit could be at risk of cancellation.
- It’s best to submit the change request before ending your current job, so you remain legal while the process is underway.
Stay Connected
Want to get involved or stay updated?
Join our Facebook Group where we share announcements, events, tips, and stories.
We’d love to meet you. Whether you’re just visiting, newly arrived, or have been here for years — tara, sama ka na!