On 17 June 2025, the Lithuanian Parliament adopted Law No. XV-283, introducing a new Security Contribution (SD) on non-life insurance premiums. The measure aims to support the National Defence Fund and is aligned with the EU Solvency II Directive (2009/138/EC).
The new SD regime applies to both domestic insurers and foreign insurers operating in Lithuania under the Freedom of Services (FoS) framework. A 10% contribution will be levied on gross written premiums under non-life insurance contracts, with two key exemptions:
(1) premiums under motor third-party liability insurance contracts concluded with private individuals; and
(2) premiums related to insurance of crops, plants, and livestock health.
The contribution will apply to contracts concluded, renewed, or amended on or after 1 January 2026. It must be calculated and paid quarterly, with filings due by the 15th day of the month following each calendar quarter.
Implementing regulations are expected by the end of 2025 and are antecipated to provide further clarity on practical aspects of this new insurance premium tax regime.
