Green Corridor for Large-Scale Investment Projects

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. 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