# Lithuania Film Tax Incentive: Raise Up to 30% From Local Donors

Source: https://storiara.com/incentives/lithuania
Last updated: 2026-09-14
Author: Charles Hirschhorn, Storiara

> Lithuania's Film Tax Incentive lets Lithuanian companies give a film producer up to 30% of the production costs of a film or part of a film made in Lithuania, then cut their corporate income tax. At least 80% of the costs must be incurred in Lithuania and local spend must be at least EUR 43,000. The Lithuanian Film Centre certifies projects, and the law covers funds granted through December 31, 2028.

## Money from companies, relief from the tax office

The state doesn't pay anything out under Lithuania's incentive. The Law on Corporate Income Tax lets a Lithuanian company (or a foreign company's permanent establishment in Lithuania) give money free of charge to a Lithuanian film producer, and then reduce its own corporate income tax by that amount, with limits. The production gets cash up front from donors, who get their tax relief after the Lithuanian Film Centre certifies that the money was spent correctly. Read it as structured [soft money](https://storiara.com/glossary/soft-money) raised from the private sector.

The Film Centre describes it as a way to save up to 30% of the production budget. The legal limits are:

| Rule | Limit |
|---|---|
| Share of production costs funded by all Lithuanian donors | Up to 30% of the film or part made in Lithuania |
| Costs incurred in Lithuania | At least 80% of the production costs of the film or part |
| Lithuanian eligible spend | At least EUR 43,000 |
| Donor's tax reduction | Up to 75% of the funds given, and up to 75% of the donor's tax for the period, with any excess carried forward two periods |
| Funds granted | January 1, 2019 to December 31, 2028 |

The Film Centre estimates the donor's net profit at up to 12%. That margin is the pitch the Lithuanian producer makes when lining up donors.

## For a foreign production, "part of a film" is the key phrase

The 80% rule sounds impossible for a US or UK show. The law applies it to "the film or part thereof", and the Film Centre says the incentive covers commissioned films made under a service agreement. So a foreign production's Lithuanian service contract is the "part", and the 30% and 80% tests run on that part's budget. The Film Centre's 2025 results show it working this way: 19 service projects received EUR 16.7 million of the EUR 25.6 million raised that year, out of 108 films in total.

## Worked example

A Scandinavian series contracts a Vilnius service company for EUR 1,000,000 of Lithuanian production costs.

| Line | Amount |
|---|---|
| Lithuanian production costs (the part) | EUR 1,000,000 |
| Maximum donor funding at 30% | EUR 300,000 |
| Lead actor limit (4% of Lithuanian costs) | EUR 40,000 per cast member |

If the lead is paid EUR 70,000 for the Lithuanian block, EUR 30,000 of that is excluded from the eligible costs. Development, marketing, distribution, travel that neither starts nor ends in Lithuania, and the cost of preparing the application are also out.

A donor that gives EUR 300,000 can cut its tax by up to EUR 225,000 (75%), and never by more than 75% of its tax bill for the period.

## Eligibility tests

The Film Centre certifies projects against two sets of criteria. Production: EUR 43,000 of eligible spend in Lithuania, at least three shooting days in Lithuania (animation excepted), and at least 51% of the crew hired by the Lithuanian production company from Lithuania or other EEA countries. Animation has its own 20% rule on specific stages. Cultural content: the film must meet at least two of eight criteria, such as a story set in Lithuania or another European country, European themes or figures, European values, or artistic value. Advertising, reality, lifestyle shows, music videos and open-ended soaps are excluded, as is content spreading disinformation or war propaganda.

Eligible formats are features, TV dramas, documentaries and animation, including domestic films, co-productions and service productions.

## Where it fits

This structure takes more work than a [cash rebate](https://storiara.com/glossary/cash-rebate) because someone has to raise the donor money. The upside is timing: donors give the money to the producer first, and the investment certificate comes afterward. For background on credits and their monetization, see [how film tax credits work](https://storiara.com/blog/how-film-tax-credits-work). Nearby, [Poland](https://storiara.com/incentives/poland) and the [Czech Republic](https://storiara.com/incentives/czech-republic) run their own programs, covered on their pages. In Lithuania, your [qualified spend](https://storiara.com/glossary/qualified-spend) is the Lithuanian service budget, so size it first in the [incentive calculator](https://storiara.com/tools/incentive-calculator) and compare the region on the [incentives hub](https://storiara.com/incentives).

## Frequently asked questions

### How does Lithuania's film tax incentive work?

A Lithuanian company gives money free of charge to the Lithuanian producer of the film. Once the Lithuanian Film Centre issues an investment certificate, the company can reduce its corporate income tax, limited to 75% of the amount given and 75% of its tax for the period.

### How much can a production get in Lithuania?

Total funds from all Lithuanian donors can't exceed 30% of the production costs of the film, or of the part made in Lithuania.

### What is the minimum spend for Lithuania's incentive?

EUR 43,000 of eligible costs in Lithuania, and at least 80% of the production costs of the film or part must be incurred in Lithuania.

### Does the Lithuanian incentive have an end date?

The Law on Corporate Income Tax covers funds granted from January 1, 2019 to December 31, 2028.

## Sources

- [Lithuanian Film Centre: Film Tax Incentive, How it Works](https://www.lkc.lt/en/tax-incentives/how-it-works)
- [Law on Corporate Income Tax of Lithuania, Articles 17(2) and 46(2), English excerpt](https://www.lkc.lt/docs/Lengvata/17-2%20ir%2046-2%20straipsniai-EN(revised).pdf)
- [Lithuanian Film Centre: Film Tax Incentive results for 2025 (February 5, 2026)](https://www.lkc.lt/en/article/film-production-in-lithuania-attracted-more-than-%E2%82%AC25-million-in-investments-through-the-film-tax-incentive-in-2025-2165)