Lithuania offers an affordable cost of living with a Cost of Living Index of 49.7 (NYC = 100). Groceries are relatively inexpensive at 46.5, and restaurant prices are moderate at 55.6, making daily expenses manageable.

The housing market is moderate, with a Property Price to Income Ratio of 9.5 years. The Rent Index is low at 13.9, indicating that renting is generally more affordable than purchasing property.

The Purchasing Power Index is 98.2, suggesting a moderate buying power compared to New York City. While not exceptionally high, it indicates a reasonable ability to afford goods and services.

Lithuania has a progressive income tax system. For 2025, income up to €126,532 is taxed at 20%, and income above this is taxed at 32%. A 15% rate applies to certain income like dividends. The standard VAT rate is 21%, with reduced rates of 12% (e.g., transport, accommodation) and 5% (e.g., books, medical aids) effective January 2026. Property tax rates vary by value and municipality.

Lithuania boasts a highly favorable business environment, ranking 19th worldwide in the Global Startup Ecosystem Index 2025 and 16th globally in the 2025 Index of Economic Freedom. Its startup ecosystem reached €16.4 billion in 2025, supported by a clear regulatory framework and initiatives like the Startup Visa Program.

Lithuania provides a comprehensive social security system. It offers universal healthcare funded by compulsory contributions, covering all insured residents including expats. The pension system is a three-pillar structure, and unemployment benefits are available for up to nine months for eligible individuals.

Deposits in Lithuanian banks are protected up to €100,000 (approximately USD 108,000) per depositor per bank under the EU Deposit Guarantee Scheme. The banking sector is stable and highly liquid, overseen by the Bank of Lithuania, which also acts as the single financial supervisory authority and works with the ECB under the Single Supervisory Mechanism.