Lithuania – 2026 Tax Comparison (MB vs UAB company types)
A clear, numbers-based comparison of MB vs UAB company types in Lithuania, showing how taxes, social contributions, and dividends differ for solo founders in 2026.
January 23, 2026
Published 03 Nov 2025
Do I need to pay Compulsory Health Insurance (PSD) in Lithuania?
You must pay PSD in Lithuania if you have declared residence, hold a temporary residence permit, and are employed or self-employed. Some family exemptions apply.
You must pay PSD in Lithuania if you have declared residence, hold a temporary residence permit, and are employed or self-employed. Some family exemptions apply.
Categories:
Eligibility and Requirements
Health Insurance in Lithuania
You must pay PSD contributions if the Migration Department or/and SODRA (State Social Insurance Fund Board) has provided information to the National Health Insurance Fund confirming that you meet all of the following conditions:
- You have declared a place of residence in Lithuania;
- You are employed, a member of a small partnership (MB), or self-employed (for example, conducting individual activity) or you are employed on another basis;
- You hold a temporary residence permit (TRP).
If you meet these conditions and have a spouse, your spouse must also pay PSD contributions.
There are, however, some exceptions — if your family has a child under 8 years old or two or more children, one parent may be exempt from paying PSD (note: this exemption does not apply to single parents). To use this exemption, you must submit a separate application, which can be done retroactively.
