Lithuania

Investing in Lithuania

FDI in figures | Why you should choose | Administrative procedures relative to foreign investment | Finding assistance or further information

FDI in figures

According to the Lithuanian Statistics Department, foreign direct investment as of January 2008, reached LTL 34.60 billion, or by 19.6% more than on January 1st, 2007.

Foreign Direct Investment	2004	2005	2006
FDI of inward flow (millions USD)	773	1,032	1,812
FDI inward stock (millions USD)	n.c.	n.c.	10,939.0
Performance Index*, world ranking	67	67	48
Potential Index**, world ranking	38	39	n.c.
Number of Greenfield investments	23	77	59
FDI inwards (in % of GFCF)	15.8	18.7	26.3
FDI stock (in % of GDP)	n.c.	n.c.	36.7

Source: UNCTAD, World Investment Report

Note: * The UNCTAD Inward FDI Performance index is based on a ratio of the country's share in global FDI inflows and its share in global GDP. ** The UNCTAD Inward FDI Potential index is based on 12 economic and structural variables such as GDP, foreign trade, FDI, infrastructures, energy use, R&D, education, country risk.

Why you should choose Lithuania

Strong points: Lithuania is ranked among the fastest growing economies in the European Union, it offers investors a diversified economy, a well educated workforce, a low corporate tax system, the region's best developed road network, a stable and democratic system, as well as membership to the European Union and proximity to nearby Eastern European countries. The Lithuanian law offers equal protection for both foreign and domestic investment.
Weak points: Lithuania's income level is still behind the standards of the European Union thus offering an internal market where selling prices should be adjusted. This fact is also encouraging emigration of Lithuanians in other European countries. Wage inflation (nearly 18% in 2007) is also an element to be taken into consideration for foreign investors.
Government measures to motivate or restrict FDI: Lithuania's law ensures equal treatment between for both foreigners and domestic investors. No special permit is necessary from government authorities to invest foreign capital in Lithuania. Nearly all sectors of the economy are freely accessible with limited exceptions. The government has also created free economic zones with tax benefits and one-stop-shop services, to encourage investment.

Administrative 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.