Lithuania: Investing

FDI in Figures

According to the Lithuanian Statistics Department, foreign direct investment reached LTL 34.6 billion in January 2008, which means a growth of nearly 20% in one year. With the global economic crisis, foreign investment in Lithuania experienced a slight decrease in 2009. Sweden remains Lithuania's main investor. 

FDI increased 10% in 2010, in relation to the previous year.  The specialists are optimist in regards of the future economic situation of Lithuania's economy and expect it to be very promising.

Why You Should Choose to Invest in Lithuania

Strong Points

Lithuania is ranked among the fastest growing economies in the European Union. It offers investors a diversified economy, a skilled workforce, low corporate taxation, the best developed road network in the region and a stable and democratic political system. The country is a member of the European Union and at the same time it is close to the eastern European countries. Lithuanian legislation offers equal protection for both foreign and domestic investments.
Lithuania is going to benefit from significant European Union assistance over the period of 2007-2013, which means the country is going to be able to invest in infrastructures and business opportunities will be available to local and foreign investors.

Weak Points

The country has a number of weak points:
- Lithuania's income level is still below the European countries' average. This involves re-adjusting the selling prices of products;
- There is a high rate of Lithuanians emigrating to other European countries;
- High wage inflation; and
- Relatively inefficient bureaucracy. Corruption and a lack of transparency in certain areas of the economy slow down the country's development and could discourage potential investors.

Government Measures to Motivate or Restrict FDI

Lithuania's laws ensure equal treatment between foreigners and domestic investors. No special permit from government authorities is necessary in order to invest foreign capital in Lithuania. Apart from a few exceptions, nearly all sectors of the economy are freely accessible. To encourage investment, the government has also created free economic zones with tax benefits and one-stop-shop services.

Procedures Relative to Foreign Investment

Freedom of Establishment

Freedom of establishment is guaranteed. Foreign entities are allowed to establish branches or representatives offices ; there are no limits on foreign ownership or control.

Acquisition of Holdings

A majority holding interest in the capital of a local company is legal in Lithuania.

Obligation to Declare

There are no particular regulations or obligations to declare for foreign investment. However, there are some areas of the economy where investment is limited (investment in sectors related to the security and defence of the State, licensing is necessary for activities related to human life, health and which are potentially risky, non-Lithuanians are generally not able to buy agricultural or forestry land).

Competent Organization For the Declaration

Lithuanian Development agency

Requests For Specific Authorizations

Licensing is necessary for activities related to human life and health.

Investment Opportunities

Investment Aid Agency

Business Lithuania

Tenders, Projects and Public Procurement

Tenders Info, Tenders in Lithuania
Globaltenders, Tenders & Projects from Lithuania
Ted - Tenders Electronic daily, Business opportunities in EU 27
DgMarket, Tenders Worldwide

Other Useful Resources

Ministry of Economy

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