Comparison

Estonia vs Lithuania: Company Formation Compared

Estonia suits founders who want the most digital, remote-first company with deferred 0% tax; Lithuania suits those who want low capital, a flat low rate and strong local fintech banking.

Last updated June 2026 · 5 min read

Estonia vs Lithuania side by side

Both are popular jurisdictions for founders, but they suit different situations. Here are the headline numbers, verified June 2026. Each country links to its full profile with the complete data.

Feature 🇪🇪Estonia 🇱🇹Lithuania
Main company typeOÜ (private limited)UAB (private limited)
Corporate tax0% retained / 22% distributed17% (2026)
VAT24%21%
Minimum capital€0 (€0.01/share)€1,000 (UAB)
Setup time~1 day~3-5 days
Remote setupYes, e-ResidencyYes

Which is right for you

Choose Estonia if e-Residency and 0% tax on reinvested profit matter most, and you want no minimum capital.

Choose Lithuania if you want a EUR 1,000-capital company, a flat 17% rate (2026) and easy accounts with locally licensed fintechs like Wise and Revolut.

Still weighing it up? Compare them against the rest in company formation in Europe, or see the overall best country ranking.

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Frequently asked questions

Is Estonia or Lithuania better for company formation?

Estonia suits founders who want the most digital, remote-first company with deferred 0% tax; Lithuania suits those who want low capital, a flat low rate and strong local fintech banking.

What is the corporate tax in Estonia versus Lithuania?

In Estonia the headline corporate tax is 0% retained / 22% distributed, and in Lithuania it is 17% (2026). Both are national rates that apply regardless of company form.

Can I form a company in Estonia or Lithuania remotely?

Estonia: Yes, e-Residency. Lithuania: Yes. We handle the cross-border requirements either way.

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