The Seimas legalises 10% national defence contribution

Press release, 17 June 2025 

The Seimas has adopted the Law on the National Defence Contribution, establishing the contribution from 2026 to ensure sustainable revenues for defence funding.

Under the new law, insurers operating in Lithuania will be required to pay a 10 per cent national defence contribution, calculated on the total amount of insurance premiums under concluded, extended, or amended non-life insurance contracts. Premiums for compulsory insurance against civil liability in respect of the use of motor vehiclesby natural persons will be exempt from this requirement.

Insurers shall also be exempt from this requirement in respect of premiums received under non-life insurance contracts where the object of insurance consists of property interests related to crops, plants, or the health of livestock.

At the time of the adoption of the Law, the Seimas did not support the proposal to exempt insurance contracts covering agricultural machinery used in agricultural activities from this contribution.

The funds collected through the national defence contribution will be allocated to the State Defence Fund and used for defence purposes.

There are currently 19 insurance companies and branches of insurance companies established in the European Economic Area operating in Lithuania, 14 of which provide non-life insurance services. In 2024, they received €1.2 billion in non-life insurance premiums.

The Law on the National Defence Contribution was adopted by the Seimas with 104 votes in favour, 11 against, and 15 abstentions.