Start to Set Up a Business in Lithuania
Lithuania is a country located on the continent of Europe. Spanning over 65,300 square kilometres (62,680 square kilometres of land and 2,620 square kilometres of water), Lithuania is the 124th largest nation in the world. It gained its independence in 1918. It is after gaining its sovereignty from Russia. Blessed with the unique nature with 22,000 rivers, about 3,000 lakes, a clean seaside and 4 UNESCO World Heritage masterpieces. Lithuania is sometimes called “the land of lakes”.
Why Invest in Lithuania
Home to a population of 3.28 million, Lithuania has lots to offer as an investment destination. Lithuania’s strategic location and its excellent infrastructure enable investors to gain easy access to surrounding markets. Lithuania is the EU’s prime transport centre where the EU has recognized it. Lithuania is the prime transport centre in the region connecting the EU with the East.
As one of the European Union’s economic recovery leaders in 2010, Lithuania managed to weather through the global economic recession. It is demonstrating steady economic growth over the years. Lithuania provides loads of investment opportunities to global investors. Its modern infrastructure, highly educated labour force and a strategic geographical location have made it an attractive destination to locate manufacturing and production hub. Among many others, sectors like the Information and Communication Technology (ICT), Biotech, Metal Processing, Machinery and Electrical Equipment, Plastics, Furniture, Wood Processing, and paper industry, Textile and Clothing, are the key investment areas that foreign investors can tap into.
Know More About Investing in Lithuania
In terms of FDI/Investment policy, the Lithuanian government has put in loads of efforts to attract global investors with its liberal foreign investment policies. The Lithuanian government has set up an agency to help and assist foreign investors. Besides the pro-business investment climate, the tax policy of Lithuania is also a business-friendly tax policy. The corporate tax of Lithuania is only 15% and its overall tax burden is relatively smaller if compared with other EU nations. The government is granting many investment incentives to encourage more foreign investment in the country. The investment incentives include tax benefits, investment guarantees and Bank Loan support, support for Research and Development Projects and structural funds. The Lithuanian government also provides special incentives to investors who invest in high value-added products and high-technology sectors.
One thing worth mentioning about Lithuania is that it is a country with the capital city breathing Europe’s cleanest air and it has been recognized greenest among the new EU-members. In addition to this, Lithuania is ranked as having one of the highest qualities of life out of 190 countries across the globe.
Advantages of Starting to Set Up Business in Lithuania:
- A stable and democratic political system
- Achieved growth among the highest in the European Union (3.5% in 2017)
- A diversified economy
- State-of-art transport infrastructure (with one of the most developed road networks in the region)
- Sound international relations (Lithuania is the member of the European Union since 2004 and NATO)
- Good access to international markets
Lithuania was ranked at 16th place in the World Bank’s Doing Business 2018 report – strong evidence that Lithuania is an investor-friendly business environment that welcomes foreign investors. If you are tapping the EU markets, Lithuania is one of the investment hotspots that you can traipse into. 3E accounting can guide you to start a business in Lithuania, contact us now.