Investment and Trade Profile
Lithuania joined the European Union (EU) in 2004, Lithuanian laws are now fully harmonized with the EU legislation. When it comes to the labor market, Lithuania has to offer a unique combination of highly qualified human resources and relatively low wages. Lithuania is located on the very crossroads of 3 huge markets.
EU Single Market
Lithuania joined the European Union (EU) in 2004, Lithuanian laws are now fully harmonized with the EU legislation. The country is a part of the single EU market ensuring unrestricted movement of goods, services, persons and capital within all EU. Member States are prohibited from levying any duties or charges having equivalent effect on goods crossing a border within the EU.
Talent Pool
When it comes to the labor market, Lithuania has to offer a unique combination of highly qualified human resources and relatively low wages. With 30% of the population having completed higher education, Lithuania has one of the best educated workforces throughout the European Union.The labour market is being supplied by more than...
Transport Infrastructure
Lithuania is located on the very crossroads of 3 huge markets. It’s a springboard to the EU markets, and Eastern markets (Russia and the CIS countries) are also just at Lithuania’s side.The country has 3 modern international airports located in Eastern (in the capital city Vilnius), Central (in the 2nd largest city Kaunas) and Western (in the seaside resort Palanga) Lithuania.
Attractive Sectors
The Lithuanian Government has set a strategic goal to be achieved by the country by the year 2015 - to become the Northern Europe Service Hub. By 2015 the share of exports of services should make approximately 1/3 of Lithuania’s total exports. Similarly, it is expected that 1/3 of the total FDI in Lithuania will settle down in the services sector by 2012.
Investment-ready Locations
Unlike in other Baltic countries, the population in Lithuania is spread quite evenly, and the differences in population density are minor. Balanced regional politics have created a harmonious network between the largest cities – Vilnius, Kaunas, Klaipėda, Šiauliai, and Panevėžys. This offers more appealing business opportunities.
Business Operation Costs
Lithuania has an attractive tax system, characterized by low and flat taxes. Both private and corporate incomes are taxed at flat rates.As of 2010, group taxation of corporate profit has been introduced. This allows groups to balance profits and losses within them, whereby losses can be transferred among different entities of a group...
International Trade
The EU is the biggest trade partner of Lithuania with a 58% of total imports and 64% of total exports during the first ten months of the year 2009. The Commonwealth of Independent States is the second economic union that Lithuania trades the most with, with a share of imports of 34% and a share of exports of 23% during the same period.
