In Lithuania, cryptocurrencies are legally classified as assets, not currency. The country operates within a regulated environment, meaning crypto asset service providers (CASPs) are supervised, particularly under Anti-Money Laundering and Counter-Terrorist Financing (AML/CFT) rules. While there is no specific crypto tax legislation, the Lithuanian State Tax Inspectorate (STI) applies existing general taxation rules to all crypto activities. The Lithuanian State Tax Inspectorate (STI) governs crypto taxation, applying principles from the Personal Income Tax Law and Corporate Income Tax Law. This means general tax rules designed for other asset classes or income sources are extended to cover cryptocurrency transactions. When you sell, swap, or convert crypto to fiat currency, any capital gain is a taxable event. For occasional traders, gains are typically subject to a 15% personal income tax rate. This rate increases to 20% if your total non-work-related income, which includes crypto gains, exceeds 120 times the average monthly salary for the year. An annual exemption of 2,500 EUR applies to the combined gains from all personal asset sales, including cryptocurrencies, only gains above this threshold are taxed. There is no distinction between short-term and long-term crypto holdings, the same tax rates apply regardless of how long you held the asset. If you are registered as a self-employed cryptocurrency trader, your income tax rates range from 5% to 15%, plus mandatory social security and health insurance contributions. Crypto asset service provider (CASP) services, and typically individual trading, are exempt from VAT. Specific crypto activities also have clear tax treatments. Staking rewards are recognized as taxable income when received, subject to a 15% rate for occasional participants or 5-15% if you are self-employed. Mining is generally considered a business activity, if conducted regularly, you should register as self-employed, paying 5-15% income tax plus social contributions, and can deduct business expenses like hardware and electricity. DeFi activities, such as yield farming or liquidity pool rewards, generate taxable income or capital gains depending on their nature, with each withdrawal or realization of value potentially being a taxable event. Non-fungible tokens (NFTs) are treated as personal asset sales, with gains taxed at 15% (or 20% for high-income earners) and benefiting from the 2,500 EUR annual exemption. Swapping one cryptocurrency for another (crypto-to-crypto) is a taxable event, with gains calculated based on the euro fair market value at the time of the transaction. Looking ahead, the Markets in Crypto-Assets Regulation (MiCA) became fully applicable on 30 December 2024. This significant EU-wide regulation establishes a unified framework for crypto-asset issuance, trading, and service provision, affecting how crypto businesses operate in Lithuania and across the European Union.
Tax Rates
| Effective individual rate | 15 |
| Capital gains tax | 15% standard, 20% when non-work income exceeds 120x average salary |
| Income tax on crypto | 15% occasional traders, 5-15% self-employed plus social contributions |
| Corporate tax | 5-15% depending on company size and income brackets |
| VAT | 0% exempt for CASP services, mining reward-based exempt |
Activity Taxes
| Staking | Taxed as income at 15% receipt, 5-15% if self-employed |
| Mining | Business income 5-15% self-employed, hardware and electricity deductible |
| DeFi | Income or capital gains depending on activity, each withdrawal taxable |
| NFTs | Taxed as personal asset sales at 15%, 2,500 EUR annual exemption applies |
Taxable Events
| Crypto → Fiat | Taxable event, gain calculated at euro FMV minus cost basis |
| Crypto → Crypto | Taxable swap event, calculated using euro FMV at transaction time |
Holding Period
| Holding period benefit | None, no distinction between short and long-term holding |
Sources