Lithuania was one of the first EU member states to issue official laws on the taxation of cryptocurrency.
The State Tax Inspectorate (Valstybes mokesciu inspekcija, VMI) published its initial guidance on virtual currency taxation in 2018 and has updated it since, providing clarity for individual taxpayers and businesses alike. Lithuania was also an early mover in licensing Virtual Asset Service Providers (VASPs), establishing a registration regime that attracted numerous crypto businesses to the country.
Cryptocurrency gains are subject to personal income tax (Gyventoju pajamu mokestis, GPM) in Lithuania. This rate applies to capital gains from crypto disposals under the Law on Personal Income Tax. The VMI has confirmed that crypto-to-crypto exchanges constitute taxable events, meaning that swapping one cryptocurrency for another triggers a tax liability on any gain realised.
Capital Gains Tax Rules
Capital gains from cryptocurrency disposals in Lithuania are taxed under the Law on Personal Income Tax at the flat rate of 15%.
The VMI’s guidance clarifies that the events that constitute taxable disposals include the sale of crypto for fiat currency, exchange of one cryptocurrency for another, use of crypto to purchase goods or services, and gifting of crypto.
Each of these events triggers a computation of the gain or loss on the relevant disposal.
How CGT is Calculated
The taxable gain is calculated as the difference between the proceeds received (or the market value of assets received in an exchange) and the acquisition cost of the crypto disposed of. Lithuania does not apply a long-term holding discount; the 15% rate applies regardless of whether the asset has been held for one week or five years.
Where multiple acquisitions have been made of the same cryptocurrency at different prices, the first-in first-out (FIFO) method is commonly applied, though the VMI guidance should be consulted for the officially sanctioned approach.
Losses from crypto disposals may be set off against gains from other crypto disposals within the same tax year. The carry-forward of crypto losses to future tax years under Lithuanian law should be confirmed with a VMI-registered adviser, as the specific loss offset rules for crypto transactions were not fully articulated in the 2022 guidance update.
Record Keeping
Taxpayers must maintain complete records of all crypto transactions, including acquisition dates and costs, disposal dates and proceeds, exchange rates used for conversion to euros, and the nature of each transaction.
These records must be retained for at least five years from the date of filing the relevant tax return. The VMI may request records to support declarations made in the annual tax return, and taxpayers who cannot substantiate their reported figures may face reassessment.
Income Tax Rules
Where an individual’s cryptocurrency activity constitutes a business or professional activity rather than personal investment, the income is subject to personal income tax under the business income provisions of the Law on Personal Income Tax, at the same 15% rate. However, business income also attracts social insurance contributions, increasing the effective tax burden for self-employed crypto traders compared to passive investors.
Cryptocurrency received as remuneration for employment is treated as employment income at its euro market value at the date of receipt and is subject to 15% income tax together with applicable social insurance deductions. Freelancers and self-employed individuals who accept crypto as payment for services similarly bring the market value of the crypto into income as business revenue at the time of receipt.
The 15% corporate income tax rate applies to companies incorporated in Lithuania that derive profits from crypto activities, including trading, lending, and exchange operations. Companies must convert crypto amounts to euros for accounting and tax purposes using the exchange rate at the date of each transaction.
Mining and Staking Treatment
Mining
Under VMI guidance issued in 2022, cryptocurrency mining is treated as an individual business activity for Lithuanian tax purposes. Income from mining is included in the miner’s gross business income at the market value in euros of the cryptocurrency received at the time of receipt. This income is subject to 15% personal income tax and to social insurance contributions at the applicable self-employment rate under the Law on State Social Insurance.
Business expenses directly related to mining activities, including electricity costs, hardware amortisation, and any costs of operating a mining facility, are deductible against mining income. Miners must register as self-employed persons or operate through a company structure if conducting mining at a commercial scale. The subsequent disposal of mined cryptocurrency gives rise to a further tax event: the mined tokens have a cost base equal to their market value at the time they were brought into income, and any further gain on disposal is subject to 15% GPM.
Staking
The VMI’s 2022 guidance touched on staking but did not provide the same level of detail as the treatment of mining.
Applying the principles in the VMI guidance, staking rewards are likely to be treated as income at the market value of the reward tokens at the time of receipt. If staking is conducted regularly and systematically, it may be characterised as a business activity attracting both income tax and social contributions.
For passive individual stakers who delegate their holdings through a protocol or exchange and receive periodic rewards, the income may be characterised differently, potentially as a form of capital income.
As of 2026, Lithuania has not issued specific guidance distinguishing passive staking from active staking operations for income classification purposes, and taxpayers in this space are advised to apply the more conservative business income treatment or seek a ruling from the VMI.
NFT Taxation
Lithuania has not issued dedicated guidance on the taxation of NFTs as of 2025. However, the general framework of the Law on Personal Income Tax and the VMI’s virtual currency guidance apply by analogy. NFTs held as investment assets and disposed of at a profit would be treated as capital gains taxable at 15% GPM.
Individuals and entities who create and sell NFTs commercially are likely to be treated as conducting a business, with proceeds from sales constituting business income subject to income tax and, where applicable, social contributions. The cost base for creator-sold NFTs would typically include the cost of creating the NFT (development, minting fees, gas fees) rather than a simple acquisition cost.
VAT implications for NFT transactions are not specifically addressed by the VMI as of 2025. Under EU VAT rules, the supply of an NFT may constitute a supply of electronically supplied services, potentially attracting Lithuanian VAT for local suppliers.
Reporting Requirements
Lithuanian residents have to declare their annual income and capital gains in the annual personal income tax return filed with the VMI.
The declaration must include all crypto-related income and gains, converted to euros at the exchange rate applicable on the date of each transaction. The VMI’s electronic filing portal (EDS) is the standard filing mechanism. All crypto gains and income must be included in the return for the calendar year in which they were realised or received.
The VMI has not published details of a dedicated crypto data-matching programme, but Lithuania participates in EU information exchange under the DAC8 directive, which requires crypto-asset service providers to report transaction data to their home member state’s tax authority from 2026.
Lithuania also participates in the OECD CARF framework. These channels mean that transaction data held by licensed crypto exchanges and service providers is increasingly available to the VMI.
Records supporting crypto tax declarations must be retained for at least five years. Taxpayers should maintain transaction histories from every exchange or wallet used, showing acquisition dates and prices, disposal dates and proceeds, gas fees and transaction costs, and exchange rates to euros at the relevant dates.
Social insurance reporting obligations apply separately for self-employed individuals deriving mining or other business income from crypto. These must be declared to the State Social Insurance Fund Board (Sodra) in addition to the VMI income tax return.
Penalties
The VMI administers penalties for tax non-compliance under the Law on Tax Administration. Late filing, underreporting of income, and non-payment of tax all attract financial penalties calculated as a percentage of the tax shortfall, with higher penalty rates for deliberate evasion compared to negligent omission.
Interest accrues on unpaid tax from the due date until the date of payment. The VMI has the power to conduct tax audits covering up to five years of returns where systemic non-compliance is suspected. In serious cases of tax fraud, criminal prosecution is possible under Lithuanian law.
Voluntary disclosure before a VMI audit or investigation is treated as a mitigating factor and typically results in reduced penalties. Taxpayers who identify errors in previous filings related to crypto income or gains are encouraged to file amended returns promptly. The VMI’s increasing access to cross-border crypto transaction data through DAC8 and CARF makes proactive compliance the advisable course of action.
