The Lithuanian government on June 17, 2025, passed legislation providing for a new security contribution on non-life insurance premiums effective January 1, 2026.
The security contribution will apply to all non-life insurance contracts (e.g., property, motor, liability, travel, health, business risks, etc.) when the insured risk is in Lithuania. The levy will not apply to:
- Life insurance
- Compulsory motor third-party liability insurance (MTPL) for individuals, provided the vehicle is not used for business purposes and is not made available to legal entities
- Crop, plant, and livestock insurance
A 10% contribution will be paid by all insurers operating in Lithuania (including Lithuanian, EEA, and certain third-country or WTO-member insurance companies and branches authorized to provide such services) on the total amount of insurance premiums specified in non-life insurance contracts that are newly concluded, extended or amended (provided the insurance premium also changes) on or after 1 January 2026.
The tax period is the calendar quarter. The deadline for submitting the declaration and paying the contribution is the 15th day of the following month. If no new contracts are concluded during the quarter, no declaration is required. The declaration may be adjusted for the current and the previous three years.
Reporting and registration rules related to this new levy are currently being prepared. These are expected to be published by December 31, 2025, and will provide guidelines on registration and access to the tax systems for insurers who are not Lithuanian taxpayers.
For more information, contact a KPMG tax professional in Lithuania:
Ignas Grybauskas | igrybauskas@kpmg.com
Julius Matuzevičius | jmatuzevicius.Luc@kpmg.com
