Minister E. Grikšas proposes new tax incentives: a faster technological breakthrough is expected
The Ministry of Economy and Innovation is preparing a package of measures to accelerate economic growth – it will propose tax incentives for companies investing in advanced technologies and will launch initiatives designed to promote innovation, high-value-added manufacturing, and business competitiveness. These measures aim to make Lithuania an even stronger economy with a GDP of 100 billion euros.
“We already have real potential to become one of the most competitive economies in the region – in recent years, we have grown faster than many EU countries, and our businesses have demonstrated their ability to adapt to complex geopolitical and economic conditions. To become an even stronger economy with a GDP of 100 billion euros, we must increase exports to 50 billion euros, strengthen industry, and attract more investment, as growth in domestic consumption or the services sector alone will not be enough. Therefore, we will submit concrete proposals to both the Government and the Parliament, the implementation of which would accelerate investment in technological renewal and productivity,” says Minister of Economy and Innovation Edvinas Grikšas.
To encourage companies to invest more in smart manufacturing, the ministry will propose expanding the income tax break for reinvested profits. For example, if a company invests in smart technologies or new equipment, it could reduce its taxable income by half. This practice is already being successfully applied in Italy and helps businesses grow faster. Calculations show that this proposed income tax relief alone would increase Lithuania’s GDP by about 0.25 percentage points annually.
The second proposal concerns the promotion of innovation in the country. The ministry will propose simplifying the procedures for evaluating research and experimental development activities, with the aim of enabling even more companies to take advantage of the tax incentive. It has been noted that companies are reluctant to invest in innovation due to uncertainty about whether their activities qualify as research and development.
The third proposed measure is a targeted personal income tax credit for individuals who invest in early-stage startups, with the aim of increasing access to venture capital and promoting the growth of innovative businesses.
The Ministry of Economy and Innovation is also planning a new subsidy program aimed at particularly large investments – exceeding 110 million euros – that focus on high labor productivity, smart manufacturing, and economic transformation.
The package of measures prepared by the Ministry of Economy and Innovation is part of Lithuania’s “3i” economic transformation plan, which aims to transition to sustainable, high-value-added growth.
The implementation of these measures and investments in technological renewal, productivity, and innovation would ensure faster economic growth in Lithuania.
Last updated: 25-05-2026
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