EXPORT OF FEZS’
IN 2020, DIRECT FOREIGN INVESTMENTS (FDI) INCREASED 4.1 % COMPARED TO 2019. BOTH LITHUANIAN AND FOREIGN INVESTORS ARE INVITED TO THE FEZs
INVESTORS COMPANIES IN FEZS
TAXES PAID ON WAGES ANNUALLY
FDI PER CAPITA FOR 1 PERSON IN 2020
- Income tax
- Real estate tax
- Dividend tax
- TAXES IN FEZ
- The first 10 years 0%,
The next 6 years 7.5%
- 0 %
- 0 %
- USUAL TAXES
- 15 %
- 0,3 – 3 %
- Foreign companies 0 %
Lithuanian companies 15 %
“Green Corridor” PREFERENCES
MAJOR INVESTMENT PROJECT
0% INCOME TAX RATE FOR 20 YEARS
INVESTING 20 MLN. EUR
AT LEAST 150 NEW JOBS CREATED
EMPLOYING EMPLOYEES FOR AT LEAST 5 YEARS
Significant amendments passed to the Law on Investments relevant to major Lithuanian and foreign investors
In June 2020, the Seimas of the Republic of Lithuania passed significant amendments to the Law on Investment, which made Lithuania more appealing to foreign as well as Lithuanian investors and boosted its competitive edge in the region.
Exclusive conditions for major foreign investors:
- Building permits for plants or factories could be made faster.
- It is envisaged that major investors will have the land plot formation and redevelopment design drafting or approval services provided in an accelerated procedure.
- Local authorities have a right to modify planning documents to make provisions for the areas designated for major investors in advance.
- Foreign nationals will receive Lithuanian residence and work permits with more ease.
- Public authorities are under the obligation to render the services to companies that operate in a FEZ as a matter of priority — within 3 days.
- One of the key changes is that major investors will have the right be exempt from corporation tax for as many as 20 years if they invest EUR 20 million and create 150 jobs in any region across Lithuania. Investments in data processing, web server services and manufacturing would be recognised as major projects provided they fulfilled the above conditions within at least 5 years.
- Exclusive business conditions will apply to major investors once agreed in an investment contract.
THE BUILDING PERMIT’S ISSUANCE TERMS
The law establishes the procedures and conditions for the setting up, functioning and liquidation of free economic zones in the Republic of Lithuania as well as the legal status of economic operators in a free economic zone. The purpose of the law is to create favourable business conditions in terms of taxation, customs and currency as well as financial, legal and other preferential conditions for business so that both foreign and domestic entities can establish, in the free economic zones, enterprises and organisations that create and implement progress in the areas of international trade, production, export, finances, and scientific research. The law is aimed at promoting foreign investments and new job creation.