Lithuania

Lithuania Startup Funding Guide 2026

Funding Amount

€60K grants to €150M loans + 300% R&D tax deduction

Lithuania offers a comprehensive startup and business funding ecosystem featuring grants and venture capital for early-stage companies, world-class R&D tax incentives (300% deduction), and loans up to €150 million for growth and expansion. This complete guide covers all major programs available in 2026.

Major Funding Programs

1. Accelerator 2 (Innovation Promotion Fund)

Provider: INVEGA, Ministry of Economy and Innovation

Amount: ~€60K grants (acceleration programs) to ~€120K (VC investments)

Total Fund: €20 million

Focus: ICT, EdTech, GameTech startups

Best For: Early-stage innovative startups needing funding for product development

2. R&D Triple Tax Deduction

Type: Tax Incentive

Benefit: 300% deduction on R&D expenses (deducted three times from income)

Additional: 7% CIT on patent profits, 2-year accelerated depreciation, STEM scholarships

Best For: Any R&D-intensive business (no size or industry restrictions)

Impact: One of the world's most generous R&D tax incentives

3. ILTE Enterprise Lithuania Loans

Provider: ILTE (Enterprise Lithuania)

START Loans: Up to €3M, 10-year terms

Billion for Business: Up to €150M (direct), €250M (syndicated), 15-year terms

Guarantees: Up to 80% ILTE/EIF guarantee coverage

Best For: Growth-stage companies, major investments, working capital

Quick Comparison

Program | Type | Amount | Best For

Accelerator 2 | Grant/VC | €60K-€120K | ICT/EdTech/GameTech startups

R&D Triple Deduction | Tax Break | 300% deduction | R&D companies (all sizes)

ILTE START Loans | Loan | €3M max | Growing SMEs

ILTE Billion for Business | Loan | €150M max | Large investments

Strategic Approach by Stage

Early-Stage Startups

Apply for Accelerator 2 grants/VC (€60K-€120K)
If conducting R&D: Begin utilizing 300% tax deduction
Join specialized acceleration programs for ICT/EdTech/GameTech

Growth-Stage Companies

Maximize R&D triple deduction (300% on all qualifying expenses)
Access ILTE START loans (up to €3M, 10-year terms)
Apply for 80% ILTE guarantees to improve loan terms

Scale-Ups and Large Investments

ILTE Billion for Business loans (up to €150M direct, €250M syndicated)
Continue R&D triple deduction for ongoing innovation
If commercializing patents: Claim 7% CIT rate on patent profits
Leverage InvestEU-backed financing for sustainability/digitalization projects

How to Apply

Accelerator 2

Visit www.startuplithuania.com and www.invega.lt
Prepare pitch deck and business plan
Submit during open application periods

R&D Triple Deduction

Document all qualifying R&D expenses throughout tax year
Calculate total eligible expenses
Apply 300% deduction in corporate income tax return
Visit finmin.lrv.lt for tax guidance

ILTE Loans

Visit www.ilte.lt and review loan programs
Prepare business plan, financials, and project documentation
Submit loan application with supporting documents

Key Contacts

INVEGA: www.invega.lt

Startup Lithuania: www.startuplithuania.com

ILTE: www.ilte.lt

Ministry of Finance (Tax): finmin.lrv.lt

Ministry of Economy and Innovation: eimin.lrv.lt

Last updated: February 23, 2026

Common Questions

Lithuania offers a range of government-backed funding programs including grants, tax incentives, concessional loans, and equity financing instruments designed to support businesses at various stages of growth. Companies should evaluate each program's eligibility criteria, funding amounts, and application timelines to identify the best fit. Many programs can be combined to create a comprehensive support package, and working with a local advisor familiar with the funding landscape can help maximize the total available benefits for your specific business situation and sector.

Many funding programs in Lithuania are accessible to foreign-owned companies, provided they meet specific requirements such as local incorporation, minimum domestic employment levels, or operational presence within the country. Some programs may prioritize locally owned businesses or impose ownership restrictions, so it is important to verify eligibility criteria for each program individually. Establishing a local subsidiary or joint venture with a domestic partner can broaden access to available incentives. Consulting with a local legal or financial advisor is recommended to navigate the specific regulatory requirements.

Lithuania established Europe's preeminent fintech licensing jurisdiction through specialized banking licenses, electronic money authorization pathways, and regulatory sandboxes. The Newcomer Programme provides pre-licensing consultation accelerating market entry. These innovations complement ILTE loans, Accelerator 2 grants, and Invega guarantees, creating an ecosystem where licensing efficiency and capital availability converge.

Lithuania permits three hundred percent deduction of eligible R&D expenditures from taxable income, among the most generous globally. Combined with the fifteen percent corporate rate, this can effectively eliminate tax liability for innovation-heavy companies. The deduction covers personnel, materials, contracted research, and equipment depreciation. This structure targets knowledge-intensive ventures considering Baltic incorporation.

References

Startup Lithuania. Startup Lithuania (2025). View source
ILTE Services. ILTE (2025). View source
Tax Incentives for Investment. Ministry of Finance Lithuania (2025). View source

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