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A sign of Europe’s troubled times? Lithuania brings in tax reforms to boost defence spending

Written by Karl Matikonis, Assistant Professor, University College Dublin

Lithuania is entering 2026 with a tax shift that brings its system closer to countries like Ireland and the UK. From January 1, the long-standing flat 15% personal income-tax rate for self-employed people is being abolished for higher earners. These workers will now be integrated into the same new progressive bands that apply...

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A sign of Europe’s troubled times? Lithuania brings in tax reforms to boost defence spending

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