Lithuania is strategically positioned at the crossroads of Europe and Eurasia. It offers investors a diversified economy, EU rules and norms, a well-educated multilingual workforce, advanced IT infrastructure, low inflation, and a stable democratic government.
There’s no doubt that Lithuania is rapidly becoming a tech and startup hub to watch within the Baltics and indeed Europe in general. With a plethora of tech talent, a strong suit of hallmark sectors such as fintech, cyber security, and edtech, and favorable conditions for foreign investors, it’s not stupefying that Lithuania made it to the top 30 Europe’s startup hubs in 2020.
Openness to innovation, an increasingly digitized society, and a stamp of approval from hundreds of leading global companies, Lithuania has drowned more foreign investors to the shores of investing in their economy.
Here are some reasons why investors see Lithuania as an elixir of business opportunities and possibilities.
Investment environment
When money realizes that it is in good hands, it wants to stay and multiply in those hands. Lithuania is attractive to investors because it provides the ideal environment for the set-up service and data centers. International companies that are already there testify of the expertise, infrastructure, and unparalleled work-life balance as key advantages Lithuania has to offer. In recent years, Lithuania has managed to attract global giants such as Barclays and Western Union.
Lithuania is also one of Europe’s leaders when it comes to jobs created by FDI projects.
Optimal conditions for your growth
The Lithuanian tax system is one of the most favorable environments for the investor and his investments to thrive. Lithuania pursues a consistent growth-friendly tax policy, and the taxation system is adapted to the legislation of the European Union. Since 1990, Lithuania’s taxation system has drastically changed to support foreign investments and labor market development.
Investment opportunities in Lithuania
Lithuania offers a wide range of investment opportunities for investors in most of its sectors of the economy. There are so many potential opportunities open for investors which can perfectly fit their ideas and innovations. The sectors which have attracted the most foreign investors include:
1. Information and Communication Technology
2. Biotechnology
3. Metal processing
4. Machine and electrical equipment
5. Plastics
6. Paper industry
7. Textile and clothing
8. Wood processing
9. Furniture
Lithuania also offers opportunities for investment in the growing sectors of Real Estate and Construction, Business Process Outsourcing (BPO), shared services, financial technologies, and lasers.
Information and communication
Internet in Lithuania is one of the fastest in the world. Modern technologies are available such as EDGE technology, 3G mobile communications infrastructure with a data speed of 3.6 Mbps, and mobile WiMAX 4G Internet, the fastest Internet upload in Europe and the greatest GSM penetration in the EU. These factors make Lithuania attractive for offshore services.
The Internet offers big opportunities for all investors, looking to market their products and services internationally. The Internet can provide investors with a low-cost gateway to global markets by helping to overcome many of the barriers or obstacles to internationalization commonly experienced by businesses. Such companies can compete more easily in the global marketplace, and consumers in emerging markets, in particular, benefit from an expanded range of products, services, and information to which the internet gives them access.
Free economic zones
The Lithuanian free economic zones (FEZ) are large estates offering industrial, logistics, and warehousing facilities to foreign investors in Lithuania. FEZs are an ideal location, designated for economic, commercial, and financial activities where companies enjoy great economic and financial conditions for their operation.
A successful FEZ is, “a city within a city”, with a developed infrastructure, communicating and cooperating companies, good transportation infrastructure, and a culture of care for its employees’ wellbeing, as well as a wide network of academic and social partners. Territories like this attract both employees and investors.
