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Investment

Lithuania has been working intensively to attract foreign investments to the country. A more business-friendly legal base is being prepared, free economic zones that are particularly favourable to foreign investments have been created, and the state is involved in implementing an investment promotion policy. Lithuania is attractive to investors because it provides the ideal environment for the set up of service and data centres. In recent years, Lithuania has managed to attract global giants such as Barclays and Western Union. Lithuania also promotes foreign investments in the industry. Representatives of the Ministry of the Economy and Innovation often meet with the major global companies abroad and invite them to set up in Lithuania. Lithuania aims to appear on the business investment map and strengthen its positions in international markets.

 

The package of investment and corporate income tax laws offering a new instrument for attracting large-scale investment projects has been adopted by the Parliament of the Republic of Lithuania. The initiative aka the ‘green corridor for large-scale investment’, provides a much faster and simpler establishment for investors as well as incentives for investor-hosting municipalities. It is a regional development-oriented initiative aimed at creating jobs for citizens and increasing regional competitiveness.

The new package of laws offers tax incentives and cuts the red-tape. Large-scale investment project that meets the requirements of investing at least €20 million CAPEX (€30 million when investing in Vilnius) and creating at least 150 new full-time jobs (200 when investing in Vilnius) in manufacturing or data processing, internet server hosting services will enjoy 0% corporate income tax for up to 20 years. 

Alternatively, the incentive may apply to manufacturing investment projects that undertake to create between 20 and 149 new jobs, or between 20 and 199 new jobs when investing in Vilnius. Each newly created job must be maintained for at least five years. For at least 20 new jobs created by the investment project, the average annual gross salary of each employee must be at least 1.25 times the latest average monthly gross salary, including individual enterprises, published by the State Data Agency for the municipality in which the investment is made. For any additional jobs created above those 20, the average annual gross salary of each employee must be at least equal to the latest average monthly gross salary published by the State Data Agency for the respective municipality.

The developer of a project has to sign a mandatory contract with the Government which grants the project the status of national significance, ensuring fast decision-making, simplified procedures and all-round reduction of bureaucracy.

Under the new package of laws, the investors will be incentivised to invest in more remote localities of Lithuania. In these localities, the threshold for becoming a large-scale investment project will be lower than in capital Vilnius. The municipalities will be incentivised to prepare territories in advance because they‘ll be subject to Government grants up to 5% from the investment projects CAPEX value. It is expected to help reduce income inequality and social exclusion.

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Incentives for Large-Scale Projects

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. (Alternatively, the incentive may apply to manufacturing investment projects that undertake to create between 20 and 149 new jobs, or between 20 and 199 new jobs when investing in Vilnius. Each newly created job must be maintained for at least five years. For at least 20 new jobs created by the investment project, the average annual gross salary of each employee must be at least 1.25 times the latest average monthly gross salary, including individual enterprises, published by the State Data Agency for the municipality in which the investment is made. For any additional jobs created above those 20, the average annual gross salary of each employee must be at least equal to the latest average monthly gross salary published by the State Data Agency for the respective municipality.)

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.

 

An industrial park

is a territory defined in territory planning documents, which is intended for the implementation of more than one project of green field investments, has engineering networks and transport communications, is controlled by a single operator and is the location of the implementation of production development investment projects.

Free economic zone

is a territory designated for the purpose of economic – commercial and financial activities within which economic entities are provided with special economic and legal conditions of operation as established by the Law on the Fundamentals of Free Economic Zones of Republic of Lithuania. The territory must have no permanent residents.

More information on Free economic zones.

Last updated: 23-09-2026