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Europe
Lucky Nomads World Index
7.36 / 10
Global rank
#21
18 scoring dimensions scored independently using a deterministic methodology built on primary sources and structured analytical inference.
Web TLD and phone codes are general references and can differ for territories or special numbering plans.
Corporate taxation basis: Worldwide. The country generally taxes worldwide income of resident companies.
Worldwide income basis for resident companies. Foreign-source income from a permanent establishment in an EEA state or DTT partner is exempt if subject to corporate income tax or an equivalent tax there. Outbound dividends may be exempt under the participation exemption where the recipient holds at least 10% of voting shares for at least 12 months without interruption, subject to anti-abuse rules.
Standard 17% headline CIT from 1 January 2026, raised from 16% in 2025. A reduced 7% rate applies to small companies with income during a tax period not exceeding EUR 300,000, with 0% for their first two tax periods. The former 10-employee cap was abolished from 2026, leaving the EUR 300,000 income threshold as the key eligibility test, subject to statutory exceptions. A 22% rate applies to credit institutions on taxable profits exceeding EUR 2 million.
Personal income tax basis. Worldwide. The country taxes worldwide income of residents.
Worldwide income for residents (>183 days or centre of vital interests in Lithuania). Self-employed Individual Activity taxable income: effective 5% PIT up to EUR 20,000, rising to 20% by EUR 42,500 via tax credit, lost in full above that cap. No wealth tax, no inheritance tax for close relatives.
Progressive 20%/25%/32% from 1 January 2026 (previously 20%/32%). Brackets set at 36 and 60 average monthly wages (Law on Personal Income Tax Article 6(1)), official 2026 thresholds EUR 83,237.40 and EUR 138,729 of aggregated annual income. Dividends taxed separately at a flat 15%.
Tax percentages here are editorial reference figures for comparison, not individualized tax advice.
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Reduced corporate income tax rate of 7% (raised from 6% on 1 January 2026) for Lithuanian companies with annual gross revenues not exceeding EUR…
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Corporate income tax exemption of 0% for the first 10 years of operation followed by a 50% rate reduction (effectively 8.5% from 2026 against the…
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Two-pronged corporate IP and innovation regime.
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Alternative corporate income tax regime for shipping companies in international maritime transport.
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Corporate income tax exemption of 0% for up to 20 years on income from a qualifying large investment project in manufacturing, data processing, or…
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Reduced personal income tax regime for residents pursuing individual self-employment activity (individuali veikla) registered with the State Tax…
You either qualify for Lithuania's special tax regimes, or you don't. GeoCompass determines your eligibility, highlights the applicable conditions, and helps estimate your potential tax exposure.
Check my eligibilityPick a nationality to see whether you need a visa for Lithuania and how long you can stay. We remember it on your device for the next country.
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Lithuania lists several residency and mobility routes across residence by investment, business founder routes, work (employer sponsored), and family and dependant routes. Lucky Nomads tracks these programmes as editorial reference points. Thresholds, documents, and personal eligibility are evaluated in GeoCompass against your exact profile.
6 programmes listed · 6 are marked available in our editorial review
Capital, property, fund, or declared investment routes that can lead to longer-term residence.
Major Investor TRP via Investment Agreement
Founder, entrepreneur, or company-linked pathways for people building a business locally.
Lawful Activity TRP (Business Shareholder)
Startup Visa Lithuania
Employer-linked permits and skilled employment passes for hired professionals.
EU Blue Card (Lithuania)
Temporary Residence Permit for Employment (Work TRP)
Spouse, dependant, and family reunion style permits.
Family Reunification TRP
Not all residency routes are accessible. Some require minimum income, investment thresholds, local substance, or strict eligibility conditions. GeoCompass evaluates which options you can actually secure in Lithuania.
Evaluate my residency optionsThresholds, documents, and personal eligibility are available in GeoCompass. Programme names here are editorial reference points, not individualized legal advice.
Visa labels reflect editorial research, not legal advice. Always confirm eligibility and rules with official government sources before you plan a move.
Lithuania is a member of the European Union and the Schengen Area, which sets the entry framework for foreign nationals. European Union, European Economic Area, and Swiss citizens can enter Lithuania with a valid national identity card or passport and may stay for up to 3 months without any formalities. For stays beyond 3 months they must register their residence and meet a qualifying ground under European Union free-movement rules, such as employment, self-employment, study, or sufficient resources combined with sickness insurance. Citizens of approximately 60 visa-exempt third countries, including the United States, United Kingdom, Canada, Australia, New Zealand, Japan, South Korea, and most Latin American nations, may enter Lithuania visa-free for a maximum of 90 days within any rolling 180-day period under the Schengen short-stay regime. The passport must have been issued within the last 10 years and remain valid for at least 3 months beyond the planned departure from the Schengen Area. From the last quarter of 2026, these visa-exempt nationals will need a European Travel Information and Authorisation System (ETIAS) approval before travelling, valid for 3 years or until passport expiry. Nationals of countries not on the Annex II European Union visa-free list, including most African and Middle Eastern countries, China, and India, must obtain a Schengen short-stay (Type C) visa before travelling, allowing up to 90 days within 180 days at a standard fee of EUR 90 for adults and EUR 45 for children aged 6 to under 12, subject to reduced fees or waivers for certain nationalities and categories of applicants. The Schengen visa permits tourism, business meetings, family visits, and short-term cultural or training activities, but does not authorise local employment, study programmes longer than 90 days, or self-employment. Special rules apply to Russian and Belarusian nationals: under national sanctions extended to 31 December 2027, Lithuania suspends acceptance of their Schengen visa applications except where mediated by the Lithuanian Ministry of Foreign Affairs. Russian nationals crossing the European Union external border into Lithuania are additionally subject to detailed individual security screening, so tourism and other non-essential short-stay entry are not treated as a standard Type C visa route. Stays beyond 90 days require either a national long-stay visa (Type D), generally issued for up to 12 months, or a temporary residence permit, depending on the purpose of stay, applied for through the Migration Department at migracija.lt. The same Schengen 90/180 calculator applies cumulatively to all 29 Schengen states, so prior days spent in other member states reduce the remaining quota in Lithuania.
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Lithuania offers several long-term residence pathways for internationally mobile non-EU nationals, governed by different provisions of the Law on the Legal Status of Aliens (Law No. IX-2206 of 29 April 2004 as amended) and, for investment-based routes, by the Investment Law, so they do not all sit under a single article. The investment-agreement route under Article 13(1)(3) and (4) of the Investment Law is the formal residence-by-investment option, built on an agreement with the Lithuanian State that fixes special investment and business conditions, with at least EUR 1,448,100 of private investment and a commitment to create at least 20 jobs paid no less than 1.5 times the relevant municipal average wage. A separate major-project agreement exists under Article 15(7)(6) of the same law. These agreements are assessed and concluded through the Ministry of the Economy and Innovation, with Invest Lithuania coordinating the process, and the resulting temporary residence permit (TRP) is issued for up to 3 years and renewable, and where separately eligible it can be combined with Free Economic Zone or large-project corporate tax reliefs. Qualifying shareholders and employees attached to the investment may also obtain permits under the same agreement. The Lawful Activity TRP under Article 45(1)(1) of the Law on the Legal Status of Aliens is the long-standing entry-level entrepreneur route. It requires a Lithuanian company operating for at least 6 months under a business plan, with equity or net assets of at least EUR 28,000 of which the foreign national has personally invested at least EUR 14,000, the applicant acting as manager or holding at least one third of the authorised capital, and full-time employees who are Lithuanian, EU or EFTA citizens or permanent residents whose combined monthly wages reach at least 2 times the national average gross monthly wage. This permit is issued for 2 years and renewable. The Startup Visa, administered by Innovation Agency Lithuania (Startup Lithuania) under Article 45-1 of the same law, removes the capital, hiring and labour-market-test requirements for innovative non-EU founders, with up to 4 founders per company, asking only for proof of funds of around EUR 1,153 per month (about EUR 13,836 over twelve months in 2026) and health insurance of at least EUR 30,000. The startup permit is granted for 2 years and may be extended for a further 3 years subject to a committee assessment of business progress. The EU Blue Card under Article 44, transposing Directive 2021/1883, is the principal route for highly qualified non-EU professionals. It requires a higher education diploma or at least 5 years of equivalent professional experience (3 years for information and communication technology (ICT) specialists), a binding contract of at least 6 months, and a salary of at least 1.5 times the average gross monthly wage, currently around EUR 3,617.10, or 1.2 times for shortage occupations on the high value-added list, currently around EUR 2,893.68. It is issued for up to 36 months and is exempt from the general work-based residence quota, which stands at 24,706 for 2026, down from 24,830 in 2025. Family reunification under Articles 43 and 43-1 covers spouses, registered partners, dependent minor children and certain dependent parents, with direct access to the labour market, though the sponsor must generally have resided in Lithuania for 2 years, hold a permit valid for at least 1 year and show a realistic prospect of permanent residence, with earlier access for families of Blue Card holders, researchers and several innovation-linked categories. All routes converge on permanent residence after 5 years of continuous lawful residence, subject to Lithuanian language and Constitution exams. Citizenship by naturalisation generally requires 10 years of lawful residence with the right of permanent residence at the time of application, a legal source of income, the same language and Constitution exams and, as a rule, renunciation of prior nationality. Dual citizenship is permitted only in limited statutory cases, principally restoration for persons who held Lithuanian citizenship before the 1940 occupation and their descendants, not for persons of Lithuanian origin generally.
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Lithuania operates a worldwide income basis for both corporate income tax (CIT) and personal income tax (PIT). Tax residency for individuals is triggered by a permanent place of residence in Lithuania, by the centre of personal, social or economic interests being in Lithuania, by presence of 183 days or more in a tax period, or by 280 days or more across successive tax periods with at least 90 days in one of them. Lithuanian citizenship is relevant only in the specific case of a citizen paid under an employment contract whose cost of living abroad is covered from Lithuanian state or municipal budgets, not as a standalone rule. The standard CIT rate rose from 16% to 17% on 1 January 2026, with a 22% rate on the taxable profits of credit institutions exceeding EUR 2 million (17% plus a 5% additional charge). Foreign-source income from a permanent establishment in a European Economic Area (EEA) state or a double tax treaty (DTT) partner is exempt if subject to tax there. Outbound dividends to qualifying EU or EEA parents flow at 0% withholding under the Parent-Subsidiary Directive. The Reduced CIT for Small Companies regime applies a 7% rate, raised from 6%, to companies with annual revenue below EUR 300,000, with a 0% rate for the first two tax periods of newly established small companies, subject to eligibility conditions and with the former ten-employee cap removed from 2026. Several corporate concessions materially reduce the effective burden. The Free Economic Zone (FEZ) relief, governed by the Law on the Fundamentals of Free Economic Zones No. I-1573 and Article 58(16) of the CIT Law, grants 0% CIT for 10 years and 8.5%, a 50% reduction, for the next 6 years across the seven zones of Kaunas, Klaipeda, Akmene, Kedainiai, Marijampole, Panevezys and Siauliai, conditional on EUR 1 million capital investment or EUR 100,000 with 20 employees for service entities, plus 75% of revenue from FEZ activities. The Patent Box and research and development (R&D) super-deduction allow a 7% rate on income from copyright-protected software and patented inventions developed in-house, plus a triple deduction of qualifying R&D expenses. The Large Project Relief grants 0% CIT for up to 20 years on revenue from manufacturing, data processing or hosting projects, requiring EUR 20 million capital investment and 150 employees outside Vilnius, or EUR 30 million and 200 employees in Vilnius, or EUR 110 million with European Commission approval, under a government investment agreement and with 75% of revenue from qualifying activities. The Tonnage Tax Scheme (state aid SA.45764, prolonged in 2017) computes CIT on a notional base derived from net tonnage for international shipping operators. Personal income tax was reformed effective 1 January 2026, moving from a 20% and 32% structure to a 20%, 25% and 32% progressive scale on aggregated income. The 25% rate applies between EUR 82,962 and EUR 138,270, equivalent to 36 to 60 average wages (AW), and the 32% rate applies above EUR 138,270. Dividends are taxed separately at a flat 15%. Capital gains on real estate held at least 5 years are exempt, reduced from 10 years in 2026. The Individual Activity Reduced PIT regime (individuali veikla) grants an effective 5% rate on self-employed profit up to EUR 20,000, ramping progressively toward 20% by EUR 42,500, with Sodra social security and health insurance contributions of 19.5%, including 6.98% health insurance, generally levied on 90% of individual activity income rather than accounting profit, subject to contribution ceilings and any additional pension accumulation contribution. There is no general net wealth tax, although real estate remains subject to separate municipal real estate taxation, and there is no inheritance tax for close relatives, including the surviving spouse, children, parents, grandparents, grandchildren and siblings. Lithuania does not provide a broad exemption for listed securities held beyond a fixed number of days. Since 2025, residents may use an investment account regime that defers taxation until non-reinvested withdrawals, and from 2026 gains on shares acquired outside such an account and held for at least five years are taxed separately at 15%, while investment account profits are taxed at 15% up to 120 AW, approximately EUR 253,065, and at 20% above that level. Lithuania has 58 double tax treaties in force, including with all major EU partners, the United States, Canada, the United Kingdom, the UAE and Singapore.
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Lithuania lets foreign residents and non-residents open bank, payment and investment accounts, but access is not frictionless. The sector is supervised by the Bank of Lithuania (Lietuvos bankas) within European banking supervision, and the four largest banks are directly supervised by the European Central Bank (ECB). At the end of the third quarter of 2025 the market by assets was led by Revolut Holdings Europe at 35.8%, ahead of Swedbank at 23.5%, SEB bankas at 17.7% and Artea bankas (formerly Šiaulių bankas) at 6.2%, with foreign bank branches at 13.9% of total assets, dominated by the Luminor Bank Lithuanian branch at 9.4%. Revolut holds its European banking licence in Vilnius, but the Bank of Lithuania notes that most of its assets sit in other European Union countries rather than domestically, so its headline share overstates its weight in everyday Lithuanian retail banking, which is still anchored by Swedbank, SEB and Luminor. Luminor is now controlled by a Blackstone-led private equity consortium holding about 80%, following Nordea's full exit in 2022. Onboarding is risk-based and uneven. Simple fintech or payment-account onboarding for European Economic Area (EEA) residents can be remote and completed within days, but traditional-bank onboarding for non-resident individuals, foreign-owned companies, complex ownership structures, politically exposed persons, crypto-related businesses or clients from higher-risk countries triggers enhanced due diligence, source-of-funds and source-of-wealth review, beneficial ownership disclosure, tax-residence documentation and Common Reporting Standard (CRS) reporting, and can take several weeks. Costs are not uniform either: resident basic service plans run roughly EUR 1 to EUR 10 per month, but non-resident individuals pay an additional non-resident service fee, and companies with non-resident owners can face a separate verification fee payable before the bank decides on the relationship. Transfers under the Single Euro Payments Area (SEPA) instant scheme are free or near-free. Lithuania remains one of the European Union's strongest fintech hubs, ranking first in the bloc by number of fintech licences issued, with 248 active fintechs at the end of 2025 (down from 282 a year earlier as the market consolidates) serving around 40 million customers across the European Union. The Bank of Lithuania runs CENTROlink, a payment system giving European Economic Area licensed payment and electronic money institutions direct technical access to SEPA, including instant payments, alongside a regulatory sandbox and a specialised bank licence requiring EUR 1 million of minimum capital against EUR 5 million for a regular bank. Revolut Bank UAB and Paysera are among the most prominent Lithuania-licensed players, and Lithuanian International Bank Account Numbers (IBANs, with the LT prefix) are recognised across the European Economic Area. Capital deployment is broadly open. Lithuania uses the euro, has been in the euro area since 1 January 2015, applies no general foreign-exchange controls and benefits from European Union free movement of capital. Foreign nationals can generally buy built property such as apartments, houses and commercial premises, but land ownership is more nuanced: citizens and permanent residents of European Union, European Free Trade Association (EFTA), Organisation for Economic Co-operation and Development (OECD) and North Atlantic Treaty Organisation (NATO) countries can acquire residential or commercial land without a permit, while agricultural and forest land is restricted with additional eligibility conditions, and a temporary security law bars acquisition by Russian citizens and non-residents. Property in strategic zones such as border areas, the coast and sites near military installations requires special permission. Vilnius residential prices average around EUR 2,800 per square metre, with central and new-build districts above the city average. Crypto exposure is legally possible but bank acceptance is risk-based, with fintechs more likely to offer access while traditional banks apply enhanced due diligence or decline certain crypto flows. Lithuania is not on the Financial Action Task Force (FATF) high-risk or increased-monitoring lists, applies the European Union anti-money laundering and counter-terrorist financing framework and is subject to the General Data Protection Regulation (GDPR).
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Lithuania offers strong digital infrastructure, with fibre broadband widely available in Vilnius, Kaunas and Klaipeda. Consumer fibre plans commonly run from around EUR 10 per month for entry tiers to roughly EUR 15 to 25 for gigabit speeds, with top residential speeds reaching up to 2.5 Gbps in Vilnius. English is widely used in professional, technology and startup environments, with around 70 percent of people aged 15 to 34 reporting English knowledge, although broader population-level proficiency is closer to 30 percent. Vilnius hosts an active coworking and innovation ecosystem including Talent Garden, Workland and ROCKIT Vilnius, alongside several international schools and private healthcare networks such as Northway and Affidea. Vilnius International Airport (VNO) offers scheduled non-stop service to roughly 55 destinations across a mix of year-round and seasonal routes, served by carriers including airBaltic, Ryanair, Wizz Air and LOT Polish Airlines, with strong links to hubs such as Warsaw, Helsinki, Riga, Copenhagen and Frankfurt. The wider Lithuanian Airports network of Vilnius, Kaunas and Palanga markets close to 100 routes for the 2026 summer season. The cost of living sits materially below Western European capitals. A one-bedroom apartment in central Vilnius rents for roughly EUR 700 to 900 per month, with EUR 450 to 700 outside the centre and EUR 400 to 650 for comparable units in Kaunas or Klaipeda. Utilities for a standard apartment run roughly EUR 140 to 250 per month depending on size and the heating season, with broadband adding around EUR 15 to 25. A casual restaurant meal averages around EUR 13, and a three-course dinner for two in a mid-range venue around EUR 55 to 70. The Vilnius monthly public transport pass is EUR 38 at full price. Public healthcare is accessed through the compulsory health insurance system (Privalomasis sveikatos draudimas, PSD), with eligibility tied to legal residence or qualifying employment status, and is supplemented by private providers at competitive rates. Vilnius is a low-crime capital by European standards, though petty crime such as pickpocketing and theft occurs around transport hubs and tourist areas, and late-night incidents in poorly lit districts warrant normal precautions. The principal institutional risks are geopolitical, stemming from the shared border with Belarus and Russia's Kaliningrad exclave, including periodic airspace disruptions such as satellite navigation jamming and occasional temporary flight suspensions. This exposure is mitigated by North Atlantic Treaty Organisation (NATO) membership since 2004 and by Germany permanently relocating its 45th Armoured Brigade of around 5,000 personnel, with full operational capability expected in 2027, although the United States rotational presence is under review as of June 2026, with the existing rotation departing and the next not yet confirmed. Labour immigration has tightened, with the work-based residence quota for third-country nationals falling from 40,250 in 2024 to 24,830 in 2025 and 24,706 in 2026, though highly qualified specialists fall outside this quota. For internationally mobile clients seeking a Schengen base with a low cost-to-quality ratio, English-friendly institutions and an active fintech ecosystem, Lithuania is operationally viable, although the tax environment is materially less favourable than peers such as Cyprus, Malta or the United Arab Emirates for those seeking foreign-source income exemption.
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Lithuania should be read as a corporate platform first and an individual residence destination a distant second. The state has spent a decade engineering corporate income tax (CIT) reliefs around three vectors, early-stage companies, intellectual property (IP) backed by genuine research and development (R&D) substance, and large industrial capital parked in its Free Economic Zones (FEZ), while building no comparable regime for the private wealth of the individuals behind that capital. There is no flat tax, no remittance basis, no foreign-income exemption window, and no sign that one is coming. The structural error for an advisor is to evaluate Lithuania through the lens of where the client will live: the correct question is where the client's operating or IP vehicle should sit, with the personal residence solved elsewhere. The 2026 reform package adopted by the Seimas in mid-2025 settles the strategic read. Its moves are not symmetric: personal taxation of high earners was repriced upward through a new progressive scale, framed as funding defence spending, and headline corporate income tax rose a point to 17 percent, yet the start-up company window was widened with a zero rate over the first two tax periods and the former ten-employee cap removed. The timing verdict follows directly. For a founder or industrial investor, the corporate toolkit is stable and politically protected, so structuring now carries little reform risk. For an individual weighing Lithuania as a personal tax residence, the direction of travel is adverse, so any residence decision should assume further upward pressure on top personal rates over the defence-spending cycle rather than a reversal. Against direct EU comparators, the proposition is mixed. Estonia's distribution-based CIT (0 percent on retained profits, 22 percent on distribution) is structurally more efficient for IP holding and SaaS structures with reinvestment cycles. Cyprus offers a 15 percent corporate rate from 2026 plus an 80 percent IP Box deduction producing a roughly 3 percent effective rate on qualifying IP income, alongside a Non-Dom regime granting individuals up to 17 years of exemption on foreign dividend and interest income. Portugal's Tax Incentive for Scientific Research and Innovation (IFICI 2.0) caps qualifying expat employment income at 20 percent for 10 years. The UAE delivers 9 percent federal CIT above , 0 percent on Qualifying Free Zone Person (QFZP) income, and zero personal income tax. Lithuania's competitive zone is narrower: industrial investors with FEZ-eligible projects, IP-rich businesses able to anchor genuine R&D substance in Vilnius or Kaunas, family office structures targeting an EU passport-light operating company, and Startup Visa founders attracted by one of the lower-friction entrepreneur visa routes in the EU. Outside that perimeter, Lithuania loses to neighbours. The risk profile is the inverse of most emerging-residence jurisdictions: institutions are the strength and geography is the exposure. Regulatory and banking infrastructure is Eurozone-grade and the fintech supervisory apparatus is genuinely sophisticated, so compliance risk for a clean structure is low. The two vectors that matter are external. The Russian and Belarusian borders create a tail risk that no tax saving compensates for clients who weight physical security heavily, even if NATO integration and permanent allied deployments make the realistic scenario disruption rather than danger. The second vector is policy hardening: the third-country work-permit quota was cut sharply to 24,830 in 2025 from 40,250, and banking onboarding for non-EU beneficial owners has become more documentation-heavy and selective. Read this as a jurisdiction tightening its perimeter, which favours early, well-documented entrants and penalises opaque structures arriving late. Lithuania fits three client profiles and actively misfits the rest. The first is the early-stage founder targeting the EU market, for whom the Startup Visa is among the lower-friction entrepreneur entries in the bloc and the operating company enjoys one of the lightest effective tax envelopes in Europe during its formative years. The second is the industrial or data-centre investor able to commit at scale, capturing either the Large Project corridor of up to 20 tax periods at zero CIT, or the FEZ regime of 10 years at zero followed by 6 years at a 50 percent reduced rate, a depth almost no EU peer matches. The third is the family business anchoring an IP subsidiary with real R&D substance. The misfits are equally clear: clients seeking exemption on foreign passive income belong in Cyprus or Portugal, expat employees seeking a capped employment regime belong in Spain or Italy, and retirees or pure lifestyle relocators optimising personal tax belong in Greece or the UAE. Lithuania rewards operators who build there and offers no meaningful personal-tax advantage to those who merely want to reside there.
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Founder, Lucky Nomads · Wealth manager
Researched from official sources, leading global indices and Lucky Nomads' own scoring.
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