Investment Environment in Lithuania: Kedainiai FEZ Offers Unique Conditions

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In 2019, Lithuania attracted 47 foreign direct investment projects, including those involving companies on the prestigious Fortune 500 list. According to the attractiveness of the investment environment, Lithuania ranks 11th in the Doing Business rating. The recent years have been outstanding for the attention showed by international companies, the maturity of projects and the rise in jobs with high added value. The decade saw EUR 1,569 billion worth of foreign company investments attracted and 25,689 new jobs created following the launch of the companies’ businesses.

Despite the turmoil in the global economy, Lithuania’s GDP change was measured at 3.7% in 2018, and 3.9% in 2019 (see the chart).

 

Lithuania rates 2nd globally in terms of its appeal to manufacturing companies with 19% of Lithuania’s GDP generated by this sector. The workforce demonstrates strong competencies in the production of plastics, metal, electronics and machinery. Across the Central and Eastern Europe, Lithuania ranks 3rd by the number of young people with a bachelor’s degree in science, technology, engineering and mathematics.

Lithuania’s manufacturing output varies, but has been gaining increasing strength (see the chart).

 

 

 

Business Case

Lithuania has created excellent conditions for foreign investors. For this reason, the international corporation Linde has opted for business expansion here. It is planned that the construction of Linde Gas, UAB air separation plant will be completed at the end of 2020. This excellent example illustrates success as Linde, a leading global industrial gases and engineering company with 2019 sales of $28 billion (€25 billion), seeing the growing need for industrial gases to manufacturing companies, has chosen, for its investments, the Kedainiai Free Economic Zone (FEZ), which operates in the heart of Lithuania, with full capacity to offer the most favourable conditions for the launch of such entities as international corporations with high standards for their business environment. Its investments will reach EUR 20 million.

Dalius Klyvis, the Business Development Manager for the Baltics at Linde Gas, stresses: “We have chosen the Kedainiai FEZ for its infrastructure that suited us. Its convenient geographical location for logistics purposes met our requirements. The speed and costs of the project along with full support from the executives of the FEZ exceeded our expectations”.

 

Unique economic and legal conditions in the Kedainiai and Siauliai FEZ:

  • No corporation tax for the first 10 years followed by 7.5% corporation tax for the next 6 years, where the investments in fixed assets are at least EUR 1 million.
  • No real estate tax.
  • No dividend tax for foreign investors in the Siauliai or Kedainiai FEZ.
  • The plots may be customised to the customer needs.
  • The project takes between 9 and 12 months from the idea to its completion. More info: investmentpartner.lt

Lithuania already is the country of choice for business development for such companies as Continental, Hollister, Bar Cargolift Allbright International, Haltex, Sofa Brands, Vita Baltic, Intersurgical International, Hella, Camira Fabrics, etc.

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