Lithuania's investment profile

Major business partners:

• Neighbouring countries: Poland (20% of total FDI in 2007,  6% of exports and 11% of imports), Estonia (6% of FDI, 6% of exports), Latvia (13% of exports), Russia (7% of FDI, 15% of exports and 18% of imports)
  
• Scandinavian countries: Denmark (13% of FDI), Sweden (11% of FDI), Finland (5% of FDI)
  
• EU-27 countries represent about 65% of Lithuanian foreign trade flows and more than 80% of FDI in Lithuania

Investment and bilateral trade drivers:

• Stable political and macroeconomic environment:
• EU + NATO + membership in Schengen area from 2008 + pro-business government
  
• Excellent geographical location and well-developed infrastructure: situated between markets in the east and west, two international transport corridors, four international airports, the highest-capacity Eastern Baltic ice-free seaport, nine industrial parks and two free economic zones
  
• Most diversified industry in the Baltic States and half of the total Baltic States’ GDP
  
• Overall tax burden one of the smallest in the EU, one of the lowest corporate tax rates in the EU, tax incentives in free economic zones
  
• Great labour quality/cost ratio: one of the most multilingual peoples in the EU

Attractive business sectors:

• ICT – leading among the Baltic States
  
• Lasers – global leader in production and exports of certain products
  
• Biotech – production does not have equivalents in Central and Eastern Europe
  
• Plastics – with three huge plants leading in the region; one of the world's largest plastic products manufacturers, INDORAMA GROUP, and one of the largest European suppliers of PET resin, NEO GROUP, are among the key investors in Lithuania
  
• Machinery & electrical equipment – widely-acknowledged high-tech products
  
• Metal processing & transport equipment manufacture – research, design and manufacture
  
• Furniture & wood processing – one of the largest factories in Eastern Europe; among most important suppliers for IKEA
  
• Textile & apparel – 20% of labour force in manufacturing industry, innovative production
  
• Food – widely demanded, 1/3 exported
  
• Services – demonstrating surprising leaps due to increasing consumption and a growing economy
  
• Real estate – largest market among the Baltic States with the biggest development potential

Human resources:

• Average monthly gross salary – EUR 594
  
• ~ 40% of the labour force with higher education, 20% of tertiary graduates in engineering
  
• Every third Lithuanian speaks English, and eight Lithuanians out of 10 speak Russian

Taxes:

• Corporate profit tax –15%
• Personal income tax – 24%
• Value added tax – 18%
• Property tax – 1%
• Social insurance contribution by the employer – 31% (+3% by the employee)

Property rental rates, EUR / m2 per month:

• New warehouses – EUR 4 to 6
• A-class office space – EUR 10 to 22
• B-class office space – EUR 6 to16
• High-street retail space – EUR 20 to 60
• Retail space in shopping centres – EUR 10 to 30

Business set up costs and time:

• up to EUR 1500
• up to 30 days for legal persons and 10 days for natural persons

Utility сosts:

Utilities for companies	Measurement	Average rates, EUR
Electricity	1 kWh	0.05 - 0.11
Natural gas	1 m3	0.22 - 0.42
Cold drinking water	1 m3	1.11 – 2.06
Cold water for technical purposes	1 m3	1.11 – 2.06
Hot water	1 m3	2.62 - 3.59

Major investors:

Major trade partners: