Tax Incentives & Grants - Lithuania

Lithuania has emerged as a top destination for international film and television productions, offering competitive financial incentives, diverse locations, and a growing pool of skilled professionals. Managed by the Lithuanian Film Centre (LFC), Lithuania's film incentives are designed to attract global filmmakers and foster the growth of the local industry.

Lithuania’s combination of financial incentives, diverse locations, and cost-efficient production environment has firmly established it as a top choice for international filmmakers. Its strong government support and growing industry infrastructure ensure that productions of all sizes can benefit from what Lithuania has to offer. With its rich history, skilled workforce, and commitment to supporting creative industries, Lithuania continues to attract high-profile global productions.

  • Lithuania provides an attractive tax incentive scheme for international productions. The scheme has been a major driver in establishing the country as a key filming destination in Europe.

    a. Tax Incentive Program

    • Rebate Rate:

      • Productions can claim up to 30% of Qualifying Production Expenditures (QPE) incurred in Lithuania.

    • Eligible Productions:

      • Feature films, television series, documentaries, and animation projects.

      • Co-productions and independent productions are also eligible.

    • Qualifying Expenditures:

      • Salaries and wages paid to Lithuanian residents.

      • Costs incurred for goods and services purchased within Lithuania, such as equipment rental, location fees, and transportation.

    • Minimum Spend:

      • Productions must spend at least €43,000 in Lithuania to qualify.

      • The maximum benefit is calculated based on the total Lithuanian budget, ensuring expenditures align with the country’s economic and cultural goals.

    • Duration:

      • The incentive program is guaranteed until 2024, with extensions expected due to its success.

    • Annual Cap

      • The annual cap for Lithuania's Film Tax Incentive Program is set at €12 million. This budget is allocated on a first-come, first-served basis for qualifying productions within a given calendar year.

    b. VAT Refund

    • Productions can reclaim the 21% Value Added Tax (VAT) on certain qualifying expenses related to filming.

  • The incentive program is administered by the Lithuanian Film Centre, which oversees applications and compliance.

    Steps to Apply:

    1. Pre-Approval:

      • Submit an application to the Lithuanian Film Centre, including:

        • A detailed production plan.

        • Budget and expenditure breakdown.

        • Filming schedule.

        • Proof of financing.

      • Applications must be submitted at least 30 days prior to the start of production.

    2. Cultural Test:

      • The production must pass a cultural test, which assesses:

        • Promotion of Lithuanian culture, history, or heritage.

        • Use of Lithuanian locations, cast, and crew.

    3. Production Phase:

      • Maintain detailed financial records of all qualifying expenditures.

    4. Post-Production Submission:

      • After filming, audited accounts and proof of expenditures must be submitted to the Lithuanian Film Centre for final approval.

    5. Rebate Disbursement:

      • Rebates are typically disbursed within 90 days after approval.

  • Challenges

    • High Demand:

      • Increased interest from international productions may lead to limited availability of resources during peak seasons.

    • Remote Locations:

      • Some rural areas may require additional logistical planning and transportation costs.

    • Annual Cap:

      • The total budget for the incentive program is limited, so early application is recommended.

    Opportunities

    • Growing Industry:

      • Lithuania’s commitment to expanding its film industry creates opportunities for co-productions and long-term partnerships.

    • Untapped Locations:

      • Many of Lithuania’s historic and natural sites remain underutilized, offering fresh backdrops for filmmakers.

    • Sustainability Initiatives:

      • Lithuania is introducing eco-friendly filming practices and incentives for productions adopting sustainable methods.

  • The Lithuanian Film Centre provides extensive support to filmmakers, including:

    • Assistance with applications and permits.

    • Location scouting and logistical support.

    • Guidance on meeting cultural test requirements.