FAQ

Large-scale investment project contract may be signed when all of the following conditions are met:

• The planned investment project meets the criteria of a large-scale project (creates at least 150 jobs (200 jobs when investing in Vilnius) and maintains them for at least 5 years; invests at least EUR 20 million CAPEX (EUR 30 million when investing in Vilnius);
• The investor is financially and economically capable of implementing the large-scale project and executing the investment contract;
• The investor has the experience as well as technical and human resources necessary to implement the large-scale project and to fulfil the requirements of an investment contract;
• The investment project passes the minimum qualifying score which is set  by the Government for an investment project. It is calculated by assessing the number of new jobs created, the percentage of highly qualified employees in all new jobs, the average wage for new jobs compared with the average wages (as published by Statistics Lithuania) in the municipality in which the large-scale project is implemented, the total share of exports in percent, the location of the large-scale project implementation, the impact of the large-scale project on the long-term economic development, competitiveness and public welfare of the Republic of Lithuania.

The following safeguards regulates the large-scale project implementation:

• Large-scale investment project contract is not signed if it doesn’t comply with public order, national security, public security and/or health interests.
• An investor is held liable for non-performance or improper performance of large-scale investment project contract in accordance with the procedure laid down in the investment contract and the Civil Code. If the investor violates the established obligations due to his own fault, it is considered a material breach of the investment contract. A Government authorized institution will have the right to unilaterally terminate the investment contract taking into account the causes, extent of the infringement and the fault of the investor.
• The Government authorized institution supervises the investor’s compliance with the terms and conditions of the large-scale investment project contract. The supervision of the investment contract is exercised throughout the period of validity of the investment contract in accordance with the procedure laid down by the Government.
• During the supervision of the large-scale investment project contract, the Government authorized institution has the right to have unimpeded access to the site of the implementation of the large-scale project, give mandatory instructions to investors, public administration entities, other legal entities and organisations without the status of a legal entity as well as natural persons to submit the information and documents, related to the implementation of the large-scale investment project contract. Except for those which may be obtained by the Government authorized institution within the limits of its competence. These mandatory requirements may be appealed against in accordance with the procedure established by legal acts.

The Ministry of the Economy and Innovation will appoint an large-scale project (LSP) coordinator responsible for overseeing LSP contracts and ensuring cooperation between investors and the relevant institutions. A consultative committee (comprised of Ministers and Vice-Ministers) will be established to address key inter-institutional questions regarding LSPs.

Recognition as a Project of National Significance. All large-scale investment projects (LSP) will be given the status of national significance once the project is added to an official list of LSPs. This status ensures additional state support for territorial planning and environment assessment procedures. (saves ~6 months in comparison to current regulation)

0% corporate income tax for 20 years. All LSPs who meet the requirements of investing at least EUR 20 million CAPEX and creating at least 150 new full-time jobs (EUR 30 million and 200 new full-time jobs when investing in Vilnius) will enjoy 0% corporate income tax for up to 20 years, provided both requirements are kept. (Additional incentives to investments above EUR 100 million CAPEX will be defined by the European Commission based on the EU regulations.)

Faster decision-making from public authorities. Public authorities will be required to decide on matters regarding LSPs within 3 working days (an exception applies to procedures regarding national security, public disclosure, temporary residence permits, environmental impact assessment, territorial planning, etc.). For matters where this turnaround time is not possible, public authorities will have to give priority to matters regarding LSPs (the duration can be extended by 3 more working days in specific situations).

Simplified planning requirements cutting set up time by 6 months. Territories dedicated to LSPs will be developed under municipality territorial master plans. This means LSPs will not have to prepare detailed plans, which will cut 6 months off implementation time for the project.

Access to land plots. Servitudes necessary for the LSP’s operation, including private land plots, can be arranged under the administrative act. This will ensure faster planning for large territories.

Leasing of state land. LSPs will be able to lease state land without having to go through an auction.

Streamlined migration process for employees. The LSP contract will define the number of foreign employees to be brought in for the project. These employees will have the right to start working in Lithuania from the day they apply for their Temporary Residence Permit, and decisions on whether an employee is necessary and suitably qualified will rest with the investor.

Direct communication channel with the government. The Ministry of the Economy and Innovation will appoint an LSP coordinator responsible for overseeing LSP contracts and ensuring cooperation between investors and the relevant institutions. A consultative committee (comprised of Ministers and Vice-Ministers) will be established to address key inter-institutional issues regarding LSPs.

Tailored educational and training programmes. The Government will consider the training needs of LSPs when planning government-funded study places in vocational schools and distributing scholarships. Study programmes in vocational schools can be adjusted to meet the needs of LSPs.

No mandatory environmental assessment programme. It will not be mandatory for LSPs to carry out an Environmental Impact Assessment Programme (EIA). The EIA procedures remain intact on the basis of EU Directive 2001/42/EC but the surplus requirements are lifted.

A large-scale investment project (LSP) is an investment project in manufacturing or data processing, internet server hosting services and related activities that has a large-scale investment project contract with the Ministry of the Economy and Innovation of the Republic of Lithuania for its implementation.

This contract binds the investor to achieve certain requirements over 5 years after it enters into force:

1. At least 150 new full-time jobs (200 when investing in Vilnius) created and maintained for at least 5 years;
2. At least EUR 20 million of Capital Expenditure (CAPEX) Investment (EUR 30 million when investing in Vilnius).

Yes, all Lithuanian and foreign tourists are required to present a valid identity document and the required data contained in their identity documents upon arrival at the accommodation. Currently, accommodation providers have a choice as to how such data is collected – whether it is recorded on paper cards, electronically or in the National Tourism Information System. From 1 January 2025, all accommodation providers will be obliged to use the National Tourist Information System to register tourists.

The European Union Tourism Funding Guide provides information on how businesses, NGOs, research institutions and other applicants can apply for support for tourism projects. The information in English can be filtered by the type of support, applicant and purpose.

Accommodation can be provided by both natural and legal persons. The first step is to choose the type of accommodation you want to provide. If you intend to provide a classified service, you will need to carry out an assessment of the facility and services and obtain a certificate; if you intend to provide a non-classified service, you will need to inform the State Consumer Rights Protection Authority. You must also register your individual activity and/or business licence with the State Tax Inspectorate or register as a legal entity.

For more information, click here.

In Lithuania, hotels are classified according to the criteria set by Hotelstars Union, which are the same in most of Europe. This ensures that the same number of stars means the same quality in different countries. The criteria for classifying hotels can be found here.

To provide guiding services, you must have a guide’s certificate, which is issued by the State Consumer Rights Protection Authority for an indefinite period of time. The certificate is issued to natural persons who have a university degree, have completed a guide training course of at least 250 academic hours, and have paid a fee. More information, click here.

Don't forget to register your individual activity and/or business licence with the National Tax Office.

The following fields of activity of the Ministry of the Economy and Innovation are responsible for administering the funding of investment from the EU funds for business:

• The public institution Innovation Agency administers the programmes and projects financed from the State budget, the EU, international and other sources of funding (including the evaluation of applications, project administration and supervision of their implementation) in the fields of business, experimental research, experimental development and innovation, energy, etc. in accordance with the procedure laid down in the legislation.
• The public institution Central Project Agency administers the programmes and projects financed by the financial mechanisms of the EU, the European Economic Area and Norway Grants, the Swiss-Lithuanian Cooperation Programme, international institutions, the state and other funds, as well as performs the functions of the administering, implementing and intermediate bodies for European Union funds investment programmes, actions and projects, as laid down in the legal acts.
•   The operational objectives of the private limited liability company ILTE are as follows: to carry out incentive financing activities, provide financial services, implement and administer financial support measures to ensure long-term profitability.

A major project is defined as an investment project in manufacturing or data processing, web hosting and related activities for which a major project investment agreement has been concluded and is valid, under which the investor undertakes to invest at least EUR 20 million of private equity investment (EUR 30 million of private equity investment in the case of investments in Vilnius) and to create at least 150 new jobs (200 new jobs in the case of investments in Vilnius) or 20 to 149 new jobs (20 to 199 new jobs in the case of investments in Vilnius), within the period of five years from the entry into force of the contract, by ensuring that the average gross wage of the persons employed in the 20 new jobs created by the investment project for the relevant tax period (applicable to each individual employee) is at least 1,25 times the average monthly gross wage, including for sole proprietorships, of the municipality in which the investment is made, as recently published by the State Data Agency, and the average gross monthly wage of the persons employed in the new jobs created by the investment project in excess of this figure for the relevant tax period (applicable to each individual employee) will be at least equal to the average gross monthly wage of the municipality where the investment is made, including sole proprietorships, as published most recently by the State Data Agency (this criterion applies only to investment projects in manufacturing).

A major project (MP) investment agreement can be concluded when all the following conditions are met:

• The planned investment project meets the MP criteria (at least 150 jobs are to be created (200 jobs in Vilnius) and maintained for at least 5 years; at least EUR 20 million is to be invested in fixed assets (CAPEX) (EUR 30 million in Vilnius);
• The investor is financially and economically capable of implementing the MP and fulfilling the MP investment agreement;
• The investor has the experience, technical and human resources necessary to fulfil the requirements for the MP and the MP investment agreement;
• The investment project is rated at least at the minimum investment project qualification score set by the Government, calculated by looking at the number of new jobs created, the percentage of highly skilled workers in the total number of new jobs, and the average wage of new jobs, the average wage of the municipality in which the major project is implemented, the percentage of total exports, the location of the major project, the impact of the major project on the long-term development of the economy of the Republic of Lithuania, its competitiveness and the enhancement of the public welfare, as published by the Lithuanian Statistics Department.

Safeguards are applied to regulate a major project (MP):

• An MP investment agreement shall not be concluded if it is not in the interests of public policy, national security, public safety and/or health.
• The investor shall be liable for non-performance or improper performance of the MP investment agreement in accordance with the procedure laid down in the MP investment agreement and the Civil Code. If the Investor, through its own fault, breaches the established obligations, this shall be considered as a material breach of the MP investment agreement, and the authority authorised by the Government, taking into account the reasons for the breach, the extent of the breach and the investor’s fault, shall have the right to unilaterally terminate the MP investment agreement.
• The authority authorised by the Government monitors the investor's compliance with the terms of the SP Investment Agreement. The supervision of the MP investment agreement shall be carried out throughout the term of the MP investment agreement in accordance with the procedure established by the Government.

The authority authorised by the Government, when supervising the MP investment agreement, shall have the right to have unimpeded access to the MP implementation site, provide the investor, public administration entities, other legal entities and their subdivisions, other organisations without legal personality and their subdivisions, natural persons with mandatory instructions to provide information and documents related to the performance of the MP investment agreement, necessary for the supervision of the MP investment agreement, except for those which may be obtained, within the scope of competence, by the authority authorised by the Government. These mandatory instructions may be appealed against in accordance with the procedure laid down by law.

The Major Project Coordinator is a public body that will assist the investor in the conclusion and implementation of the major project investment agreements, as well as other state and municipal institutions and bodies in providing services to the major project promoter.

Major Project Advisory Committee (at ministerial and vice-ministerial level) will be set up to coordinate key inter-institutional issues related to major projects. The Advisory Committee would have an advisory function in cases where the Coordinator identifies major disagreements between institutions and seeks to identify possible solutions.

Status of a project of national importance. All major projects (MPs) for which MP investment agreements have been concluded are automatically assigned the status of projects of national importance from the moment they are included in the list of MPs. The process of obtaining the status of a project of national importance is shortened by approximately 6 months.

0% corporate income tax for a term of up to 20 years. From the date of entry into force of the MP investment agreement, investors in a major project are subject to a 0% corporate income tax for up to 20 years, provided that the both MP requirements are fulfilled. (Additional incentives for investments above EUR 100 million CAPEX will be defined by the EC on a major project-by-major project basis, taking into account the EU state aid rules.)

Faster decision-making by public administrations. It is foreseen that public administration entities will provide the administrative services necessary for the implementation of the MP (except for the performance of an administrative procedure) and adopt individual administrative acts in priority order (with the exception of procedures related to national security, public information, examination of temporary residence permits, environmental impact assessment, spatial planning, etc.) within 3 working days (with the possibility of an extension of another 3 working days). This reduces the administrative burden.

Simplified spatial planning requirements. The sites allocated for MP will be developed in accordance with municipal master plans. This means that the MP will not have to prepare detailed plans, which will reduce the project implementation time by 6 months.

Access to land plots. Servitudes necessary for the activities of the MP, including on private land, may be established by administrative act, with the owner being indemnified on a general basis.

Renting state land. The investor will be able to lease the state land needed for the project without an auction and without building on it.

Simplified migration process. Speeding up the issuance of temporary residence permits for workers needed to implement the MP. The number of foreigners specified in the MP contract will be able to start working from the date of the application for a residence permit and they will be able to bring their family members. Temporary residence permits are issued within 1 month. It is up to the investor to satisfy himself if the foreign worker is needed and if his qualifications are suitable.

Coordinator of major projects. A coordinator within the Ministry of the Economy and Innovation is appointed to ensure smooth and rapid cooperation between the investor and the authorities, as well as to supervise the major project investment agreement . A consultative committee (ministerial and vice-ministerial level) is established to coordinate key inter-institutional issues related to the MP.

Adapting the study programmes. To increase the supply of human resources, the possibility of adjusting vocational training programmes and the planning of vocational training and study places according to the needs of a major project.

Redundant preparation of an Environmental Impact Assessment (EIA) programme is refused. The EIA can be integrated into the EIA report preparation procedure. This reduces the duration of the EIA process to 1-2 months. (The EIA procedure remains in place, in line with Directive 2001/42/EC of the European Parliament and of the Council of 27 June 2001, but redundant requirements are removed.)

All relevant information on public procurement is published on the Central Portal of Public Procurement (CPPP). The procuring entity shall publish a contract notice at the start of the procurement procedure, thus, inviting suppliers to participate (except in exceptional cases where the procurement may be carried out without publicity).

Lithuania, like other EU Member States, is taking measures to promote clean technologies and the production of recyclable products to strengthen environmental protection. Green public procurement is one of the effective solutions to achieve this. From 2023, contracting authorities should aim to make all purchases green (100%). Green procurement is a procurement in which the contracting authority aims to purchase products, services or works that have the lowest possible environmental impact at one stage, several stage or all stages of the life cycle of the product, service or work.

For more information on green procurement, click here.

More methodological information for suppliers can be found on the website of the Public Procurement Office.

The supplier (its sub-supplier, the entity whose capacities are relied upon) is established in the countries or territories designated by the Government, or is a member or the manager of a group of economic operators any member of which is established in such countries or territories, another member of a management or supervisory body, or any other person(s) having the power to represent or control the supplier, a subcontractor, an economic operator whose capacities are relied upon, to take a decision on its behalf, to conclude a transaction, and thus participates in the activities of groups of economic operators and/or economic operators.

On 23 March 2022, amendments to the Law on Public Procurement allowing contracting entities to reject tenders of suppliers if:

• the supplier (its sub-supplier, manufacturer or controlling persons of the products offered) or the origin of the products (including their components) or the provision of services from hostile territories the list of which is approved by the Government;
• the Government has taken a decision on the non-compliance of suppliers with national security interests;
• the contracting authority has information about suppliers’ interests that could threaten national security,

entered into force.

On 21 June 2024, an additional ground for the rejection of suppliers’ tenders or applications, provided for in Article 45(2)1(6) of the Law on Public Procurement, entered into force: the supplier, its sub-supplier, the economic operators whose capacities are relied upon is established in a hostile country or territory or is a member of a group of economic operators, any member of which is established in the said country or territory, a member of the group of economic operators, or its manager, other member of the management or supervisory body, or any other person(s) having the power to represent or control the supplier, sub-supplier, economic operator relying on its capacities, or to take a decision on its behalf, or to enter into a contract, and thus participates in the activities of such groups of economic operators and/or economic operators.

The list of states posing a threat to national security currently includes the Russian Federation, the Republic of Belarus, Crimea annexed by the Russian Federation, the territory of Transnistria not under the control of the Government of the Republic of Moldova, and the territories of Abkhazia and South Ossetia not under the control of the Government of the Government of the Republic of Gerogia.

This list can also lead to the termination of public procurement contracts which have already been concluded.

The EPC Catalogue is only open to suppliers who offer products, services or works in accordance with the descriptions of the procurement modules in the Catalogue and who meet the qualification requirements for suppliers.

Further details on registration in the EPC Catalogue can be found here.

CPO LT electronic tool “Electronic Procurement Centre” (EPC Catalogue) is intended for entities of non-procuring organisations whose procurement is financed by the state budget, including the European Union financial assistance and other international financial assistance, and/or the municipal budget funds.

Necessary steps to become a CPO LT electronic catalogue supplier:

• Participate in supplier selection competitions published by CPO LT, carried out by means of a public procurement procedure, through the CPPP;
• Win a tender (sign a preliminary contract for the provision of products, services, works through the CPO LT catalogue) or be admitted to the dynamic purchasing system (this system can be accessed at any time during its validity).
• After receipt of the registration link in the CPO LT catalogue, fill in the supplier’s application form and send it signed by the manager to the CPO LT by e-mail [email protected].
• After receipt of the login data, connect to the CPO LT catalogue and participate in the public procurement. The CPO LT electronic catalogue can be found here.

The CPO LT electronic catalogue is an information system managed by the central contracting authority CPO LT, where contracting authorities can purchase and businesses can offer products, services or works. Procurement through CPO LT is fast and simple and automated.

Procurement is carried out through the Central Portal of Public Procurement (CPPP) and is open only to suppliers registered in the system. Registration in the CPPP is free of charge – you need to fill in a registration form and send your registration request to the Public Procurement Office. Instructions on how to participate in the CPPP are available here. The CPPP is administered by the Public Procurement Office, so you can also contact the Consultation Centre of the Public Procurement Service for CPPP-related questions.

Suppliers wishing to follow procurement have the possibility to subscribe to RSS feeds of relevant announcements according to the area of activity of the undertaking. Advertisements can be filtered by specific types of products, services, works, i.e. by procurement (CPV) codes. Training material on how to subscribe to notices is available here. Once you have subscribed, you will receive a summary of the Central Portal of Public Procurement (CPPP) notices by e-mail.