Fractional CFO services in Lithuania

Lithuanian R&D tax incentives

Lithuanian companies can deduct 300% of qualifying R&D expenditure against corporate income tax (effectively a 200% super-deduction). One of the most generous R&D credits in the EU and a core part of the Lithuanian startup funding stack.

INVEGA loans and guarantees

INVEGA is the Lithuanian state guarantee institution providing loans, guarantees and risk-capital instruments for SMEs and innovative companies. Anchors much of the public-sector lending available to Lithuanian startups.

Koinvesticinis Fondas

Koinvesticinis Fondas is Lithuania's state-backed co-investment vehicle, investing alongside private VCs at seed and Series A. Often the institutional anchor in Lithuanian early-stage rounds.

Lithuanian VC ecosystem

Lithuania's VC scene has grown materially in the last five years. Active funds include Practica Capital, Iron Wolf Capital, 70Ventures, Open Circle Capital and Contrarian Ventures. Cross-border participation from European and US investors is common at growth stage.

Fintech sandbox and licensing

Lithuania is one of the EU's main fintech hubs, with the Bank of Lithuania operating a regulatory sandbox and a streamlined EMI/PI/SPB licensing regime. Materially relevant for fintech founders considering EU-passportable licensing as a substitute or complement to capital.

Venture debt

Limited domestic venture debt market. Cross-border providers (Kreos Capital, Claret Capital Partners, HSBC Innovation Banking) operate in Lithuania via Baltic and Nordic lending arms. Typically deployed against ARR or contracted revenue from Series A onwards.

Lithuanian favourable option regime

Lithuanian employee stock options can benefit from preferential tax treatment under specific conditions - three-year minimum holding, qualifying employer status. Taxed at capital gains rather than employment income on sale, materially improving the employee outcome.

Standard stock options

Options outside the favourable regime are taxed at exercise on the spread as employment income at marginal rates. Less attractive - most Lithuanian venture-backed startups structure plans to qualify for the favourable regime where possible.

Phantom shares and SARs

Cash-settled equity-like instruments are used in Lithuanian startups, particularly where the favourable regime does not fit. The holder receives a cash bonus equal to the value of a notional option at exit. Taxed as employment income at payout.

Restricted Stock Units (RSUs)

Used at later-stage Lithuanian companies, particularly those with US investors. Taxed as employment income at vesting at marginal rates. Less common in early-stage venture-backed startups given the favourable Lithuanian regime.

Option valuation

Lithuanian startups typically peg option strike values to the price of the most recent priced round. Independent valuations are useful for material grant programmes to support the State Tax Inspectorate (VMI) position on fair market value at grant.

Reporting and VMI

Option exercises and equity events flow through Lithuanian payroll for personal income tax and Sodra (social insurance) contributions. Annual employer reporting required. Worth aligning between cap-table tool, Lithuanian payroll provider and tax advisor.

Accounting

• •Stekas - common Lithuanian accounting platform.
• •Pragma or RM5 - alternatives widely used at Lithuanian accounting firms.
• •Xero - used by Lithuanian companies with international operations.

Payroll

• •Local payroll modules in Stekas or RM5 - common at Lithuanian accounting firms.
• •Factorial - modern HR + payroll alternative.
• •Deel or Remote - for hiring contractors and staff outside Lithuania.

Business banking

• •Swedbank Lithuania, SEB Lithuania or Luminor - for treasury, FX and traditional debt facilities.
• •Revolut Business - for early-stage simplicity; Revolut has a Lithuanian banking licence.
• •Paysera Business - Lithuanian-founded; useful for multi-currency operations.
• •Wise Business - for multi-currency operations.

Cap table & equity admin

• •Ledgy - strong European coverage; common at Lithuanian venture-backed startups.
• •Carta - for Lithuanian companies with US investors or a US parent.
• •Pulley - modern alternative at later stage.

Expenses & corporate cards

• •Pleo - European default; clean integrations.
• •Spendesk - strong approval workflows for larger teams.
• •Payhawk - alternative with strong European coverage.