Estonia (Ettevõtluskonto & FIE) vs. Lithuania (Individuali Veikla) — 2026 Tax Comparison
Head-to-head 2026 net take-home comparison between Estonia’s Ettevõtluskonto / FIE sole-proprietor regimes and Lithuania’s Individuali veikla pagal pažymą across 30k–120k € annual EUR revenue.
- Up to 40,000 €/yr: Estonia’s Ettevõtluskonto withholds a flat 20% bank-automated tax with zero bookkeeping, whereas Lithuania’s Individuali veikla (30% flat expenses + PMK credit + Year-1 0% VSD) achieves ~86%–92% net retention.
- Above 40,000 €/yr: Estonia’s Ettevõtluskonto terminates at 40,000 € and FIE faces ~38%–43% combined sotsiaalmaks + tulumaks, while Lithuania’s uncapped 30% presumed deduction keeps total effective burden around ~17%–26% up to 100,000 €.
- VAT Thresholds & Rates: Lithuania exempts up to 45,000 €/yr from 21% PVM, whereas Estonia exempts up to 40,000 €/yr from 24% käibemaks.
- Is Estonia or Lithuania better for self-employed B2B contractors in 2026?
- For natural-person freelancing, Lithuania’s Individuali veikla pagal pažymą delivers substantially higher net take-home pay at every revenue level—especially above 40,000 € where Estonia’s 20% Ettevõtluskonto ends and FIE incurs 33% / 1.33 social tax plus 22% PIT. Estonia excels under 40,000 € for zero-bookkeeping simplicity or when retaining profits inside a corporate OÜ.
- How do Year-1 startup reliefs compare between Estonia and Lithuania in 2026?
- Lithuania grants first-time Individuali veikla freelancers a 100% 12-month VSD pension/social holiday (paying only 6.98% PSD health + GPM). Estonia has no startup tax holiday on Ettevõtluskonto or FIE, though side-job FIEs with employer coverage are exempt from the 292.38 €/mo social tax floor.
- How do VAT thresholds compare between Estonia and Lithuania in 2026?
- Estonia’s domestic VAT (käibemaks) threshold is 40,000 €/yr at a 24% standard rate, while Lithuania’s domestic VAT (PVM) threshold is 45,000 €/yr at a 21% standard rate.
Official 2026 Statutory Sources & Verification
Verified against official 2026 statutory tax & social contribution rules (Last verified: Nov 2026).