The Lithuanian Film Tax Incentive came into effect in January 2014 as a new policy measure to foster local and foreign film production in Lithuania.

From 2019 the Lithuanian Film Tax Incentive offers an opportunity to save up to 30% of the local film production budget through a private investment scheme.

How it works

As a foreign filmmaker, you must cooperate with one of the local production companies that will submit the application. The local production company will take responsibility for finding a local corporate donor willing to invest up to 30% of the local production budget in exchange for a reduced corporate income tax.

Who benefits from this scheme? Everyone.

Film production companies may receive financial aid for filmmaking in Lithuania if their production meets eligibility requirements and they comply with the formal procedure approved by the Lithuanian Film Centre. Local corporate donors in return can deduct the amount given to the local budget from their taxable income. The estimated net profit for the donor participating in the scheme is up to 11,25%.


The incentive is available for the production of feature films, TV dramas, documentaries, and animated films. It includes domestically produced, co-produced, or commissioned films (produced under a service agreement). At least 80% of eligible film production costs (from the Lithuanian production spend) must be incurred in Lithuania and the total amount of eligible spend in Lithuania has to be no less than 43,000 EUR.


  • Costs of consultation concerning the preparation of the application, and costs of the preparation of the application;
  • Fines, penalties, litigation costs;
  • Acquisition of fixed assets, construction, and reconstruction costs if they are unrelated to the production of the film;
  • Travel costs when the Republic of Lithuania is not the place of arrival or departure;
  • Development costs;
  • Film promotion and marketing expenses;
  • Film distribution costs;
  • Payment for actors (if the payment exceeds 4% of the production costs of the film or its part).

The Film Tax Incentive is only available for films that meet the approved production and content requirements. Pornographic production and films promoting violence are not considered for the Film Tax Incentive.


The film cannot be pornographic, incite violence or hatred. It has to meet at least two of the following criteria:

  • The script is based on events that are part of Lithuanian or European culture, history, mythology, or religion;
  • The film reflects events of Lithuanian or European social life or politics;
  • The film tells about a well-known figure related to Lithuanian or European culture, history, religion, or society or a mythological character;
  • The script is based on a culturally significant work of Lithuanian or European literature;
  • The film builds on important Lithuanian or European values: diversity of cultures and religions, human rights and civic awareness, democracy and solidarity, minority rights and tolerance, respect for cultural and family traditions;
  • The film focuses on issues of Lithuanian or European identity
  • The film is set in Lithuania or Europe.


The film has to meet all of the following production criteria:

  • The production is not a promotional film, advertisement, unscripted entertainment (e.g., a game show, reality show, talk show, talent show), a music video, a computer game, or a series that is broadcast daily or several times a week and is characterised by certain character schemes and drama rules that would enable it to continue endlessly and does not create artistic value;
  • At least three days of shooting take place in Lithuania in the course of the production (except for animation projects);
  • At least 51% of the crew hired by the Lithuanian production company are citizens of Lithuania or citizens of other European Economic Area (EEA) countries.

At least 20% of an animated film’s production costs in Lithuania must be incurred for producing two of the elements listed below:

  • Shooting (if it is required by the script);
  • Characters and/or backgrounds design;
  • Layouts and/or storyboards;
  • Visual effects;