The number of Lithuanians emigrating to Britain, Norway or Germany has decreased in recent years, but there is a trend, albeit moderate, of seeking the opportunity to settle in so-called tax havens.
This is the information provided by the Lithuanian Tax Inspectorate (VMI), however, it should be noted that the data only reflects the number of persons who officially announced their move to a specific country in a specific year, and not the total number of Lithuanians living in a country.
Official Lithuanian statistics show that the total volume of emigration has increased in recent years, most of all to Belarus and other destinations in the category “other countries”, while the number of persons who chose to move to Britain, Norway and Germany has decreased. According to the VMI, 6,299 people announced their intention to move to the UK last year, which is 34% less than in 2023. Emigration to Norway decreased by 34% compared to 2023, while to Germany – by 24%.
Indrė Genytė-Pikčienė, chief economist at Artea Bank, pointed out that these countries have traditionally dominated the Lithuanian emigration scene. She said that, in addition to economic aspects, the popularity has been due to knowledge of the languages of the countries in question, similar culture, established Lithuanian communities and also easily accessible practical information about settling in the destination country.
The main reason for emigration is still economic considerations.
Despite the rapid growth in wages, the wage gap is significant. Lithuania is sixth from the bottom in the European Union ranking for hourly wages, which is about half the European average. Germany, the UK and the Scandinavian countries, on the other hand, are at the top of the ranking.
Genytė-Pikčienė pointed to several economic factors that may have reduced emigration to previously popular destinations. One of the reasons is automation and the search for efficiency. Developed countries have also faced macroeconomic difficulties, and growth remains sluggish, even after central banks began to cut interest rates.
Kaunas University of Technology (KTU) economics researcher Evaldas Stankevičius linked the decrease in emigration to the UK to Brexit. He pointed out that on December 31, 2020, EU citizens could no longer simply come to the UK and start working, as was the case before. In the case of Norway and Germany, the reason could be that the attractiveness of these countries has decreased, in addition, many representatives of the previous wave of emigration are returning home, and the Lithuanian labor market has also become more attractive.
One of the most interesting nuances in the VMI data is the announcements of moving to places with lower taxes, so-called tax havens.
The number of Lithuanians who have moved to the United Arab Emirates has grown by about 10% each year,
and in 2025 there were 283 people. The UAE does not impose personal income tax on individuals, and companies must pay a 9% corporate tax if the specified limit is exceeded. Nerijus Nedzinskas, managing of PricewaterhouseCoopers, said that such destinations are chosen by the wealthiest Lithuanians.
However, Stankevičs called for a different approach to emigration to “tax havens.” He noted that even together, officially declared moves to the UAE, Cyprus, Malta, the Netherlands Antilles, the British Virgin Islands, the Bahamas, Panama, Monaco, Singapore and the Isle of Man account for only 2.2% of the total emigration volume. So, while some of the exotic destinations may be related to tax issues, the number of people emigrating to them is more likely to indicate a niche phenomenon than a broad trend.
Economist Marius Kušlys also noted that moving to exotic destinations is unlikely to become a mass phenomenon. He said that we are talking about a few dozen people, and it will never become a mass phenomenon, because moving to live, for example, on islands is associated with significant costs. “These are people with large earnings and businesses operating across multiple countries, for whom declaring residency abroad and saving on tax actually makes financial sense,” said Kušlys.
Read the full article in English here: https://www.lrt.lt/en/news-in-english/19/2892049/lithuanian-emigration-shifts-fewer-heading-to-uk-more-eyeing-tax-havens
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