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)
- 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
- up to EUR 1500
- up to 30 days for legal persons and 10 days for natural persons
|
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: