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.

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.

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.

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).