Individual activity or MB in Lithuania: which is better in 2026?
An individual activity is simpler: income tax with the IV credit (about 5 % on profit up to €20,000) plus Sodra – VSD 12.52 % and PSD 6.98 % on 90 % of the profit. An MB pays corporate tax (0 %, 7 % or 17 %) and the member takes money out as a fee or dividends with no Sodra on them, but an MB files more. Compare your own figures in the calculator.
Updated 21 October 2026 · Sources: VMI: income tax rates from 2026, Sodra: contributions of the self-employed, 2026, Sodra: MB members, VMI: the 7 % rate, VMI: the 0 % rate
Side by side
| Individual activity | Small partnership (MB) | |
|---|---|---|
| Tax on profit | GPM 20 % with the IV credit (about 5 % up to €20,000) | Corporate tax 0 % / 7 % / 17 % |
| Taking money out | The profit is yours | A contract fee (15 % up to 12 VDU) or dividends (15 %) |
| Sodra | VSD 12.52 % and PSD 6.98 % on 90 % of the profit | On withdrawals for personal needs; the minimum PSD if not insured otherwise |
| Filings | GPM311 with the IV annex, income-expense journal | PLN204, GPM312, annual statements for Registrų centras, member decisions |
| Rūta per year | €118.80 | €358.80 |
Work out your own case in the MB vs individual activity calculator.
Good to know
- The comparison covers taxes under the 2026 rules; before switching, also weigh set-up, bookkeeping and administration costs.
- This is an estimate, not tax advice.
Rūta does the books for both
She works out your real taxes and prepares every filing – in English.
FAQ
From what income is an MB worth it?
There is no single threshold – it depends on profit, expenses and how you take the money out. The IV vs MB calculator shows which leaves more.
Can a foreigner open an MB or an individual activity?
This depends on your residence and status in Lithuania – check with VMI and Registrų centras. Once registered, Rūta keeps the books in English.
Which is easier to run?
An individual activity: one annual declaration (GPM311) and an income-expense journal. An MB files PLN204, GPM312 and annual statements with Registrų centras.