Expatriates' Salaries and Business Ventures in Lithuania: 2024 Updates

Expatriates planning to work or start a business in Lithuania in 2024 will need to understand the local salary and employment landscape as well as the procedures for starting a business. This article provides an overview of the current minimum and average salaries for expats, the process for starting a small business, and the costs involved. Let's dive into the details.

The Minimum and Average Salary in Lithuania for Expatriates

In 2024, the minimum wage in Lithuania stands at approximately 607 euros per month. This is the statutory minimum wage and applies to all employees in the private and public sectors. While this wage may seem modest, it should be noted that cost of living in Lithuania is generally lower than in more developed European countries, making it a more affordable destination for expatriates. Additionally, the average wage in Lithuania has been reported to be higher, typically ranging from around 1,000 to 2,000 euros per month, depending on the industry and level of experience.

Can a Foreigner Start a Business in Lithuania on a Work Permit?

Yes, a foreigner can indeed start a business in Lithuania, even on a work permit. However, the process and requirements can vary depending on the type of business and the individual's qualifications. To start a business, an individual must typically demonstrate finance for the investment and a solid business plan.

Investment Requirements and Business Plan

Starting a business in Lithuania may require a foreign investor visa and involves several key steps:

Investment Requirement: For those seeking to start a business, a minimum investment of approximately 50,000 euros is typically required. Business Plan: A detailed business plan outlining the total funding, market analysis, business objectives, and implementation strategies must be submitted. Registered Address: The business must be registered at a valid address in Lithuania, which can be a rented space. Employment Permit: In addition to the business permit, the founder will likely need an employment permit if they are managing the business day-to-day.

The entire process can be time-consuming and may take several months to complete. It is advisable to consult with local legal experts or business advisors to ensure all requirements are met.

Costs to Run a Small Food Point or Shop in Lithuania

Starting a small food point or shop in Lithuania involves additional financial considerations beyond just the initial investment required for the business permit. Here's a breakdown of some common costs:

1. Rent for the Premises

The cost of renting a shop or food point can vary widely depending on the location, size, and demand. Generally, rents in urban areas can be higher, with some cities charging around 500 to 1,000 euros per month for a small space. Rural areas or smaller towns may offer more affordable options, potentially between 200 and 500 euros per month.

2. Utilities

Utilities such as electricity, water, and gas are essential for any food business. Monthly costs can range from 80 to 300 euros depending on the usage.

3. Licenses and Permits

In addition to the business permit, a food business in Lithuania would require specific licensing such as a "Food Business Operator" license. These licenses can cost around 200 to 300 euros and may need to be renewed annually.

4. Inventory and Supplies

Initial inventory and supplies, including raw materials, kitchen equipment, and furniture, can be substantial. The cost can range from 1,000 to 5,000 euros or more, depending on the specifics of the business.

5. Marketing and Initial Operations

Marketing expenses, both digital and traditional, can start from a few hundred euros, and initial operations might require an additional 1,000 to 3,000 euros to get the business up and running fully.

Total Estimated Costs

Combining all the above factors, starting a small food point or shop in Lithuania can initially cost around 50,000 to 70,000 euros, with the business permit and investors visa being the most costly components. It's important to note that ongoing costs such as rent, utilities, and inventory will need to be considered in the business's ongoing operations.

For those who are planning to start a business in Lithuania, whether as an expatriate or not, it is crucial to plan meticulously, seek professional advice, and ensure compliance with all local regulations and requirements.

Conclusion

Expatriates in Lithuania can find employment opportunities and can also start their own businesses provided they understand the local legal and financial environment. The process and costs can be complex, but with the right planning, support, and resources, success is achievable.
If you have more questions about working or starting a business in Lithuania, feel free to reach out to local business consultants or legal advisors to get personalized assistance.