Investment Environment: Why is Lithuania a Favourable Place for Manufacturing Companies to Invest?

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In 2019, 47 foreign direct investment (FDI) projects were attracted to Lithuania, among them companies listed in the elite Fortune 500. Last year was an extraordinary one in terms of the amount of interest in Lithuania shown by international companies, the maturity of the projects and the increase in the number of high value-added jobs. In 2019, Lithuania was ranked 4th on the Global Fintech Index, and was 11th in the Ease of Doing Business rankings.

Foreign investors choose Lithuania for 5 main reasons: talent orientated to investors, world-class infrastructure and living standards, an excellent price/quality ratio, the business-friendly environment and financial incentives.

In recent years, more and more companies from Great Britain have been investing in Lithuania. The British startup Arrival Ltd acquired UAB Thor Motors, the main activity of which is development and production of gearboxes, electric motors and battery modules for commercial transport. The company produces and supplies components for Kia and Hyundai electric vehicles. Arrival has already invested 4 million euros into a new factory, with an additional 5 million euros to be invested in the future. Arrival Ltd is reported to be one of the highest-valued startups in Great Britain, valued at 3 billion euros.

RGE Baltic, a unit of the British company RGE Group, began operations in Lithuania in 2007. The company is a world-class manufacturer and supplier of plastic injection moulding components, tools and products. The company’s products are used across a variety of sectors, including household appliances, office furniture and storage containers.

Other British companies which operate successfully in Lithuania include Albright International, Haltex, Sofa Brands, Vita, Intersurgical International and Camira Fabrics.

Lithuania’s geographic location and well-developed logistics network permit fast and efficient connections with EU and CIS markets. We would like to draw your attention to investment opportunities in the Šiauliai and Kėdainiai Free Economic Zones.

Exceptional economic and legal advantages:

No tax on profits earned during the first 10 years and only 7.5 % profit tax during the following 6 years, when not less than 1 million euros is invested in plant and equipment.
No real estate tax.
No tax on dividends paid to foreign investors in the Šiauliai or Kėdainiai Free Economic Zones.

Plots of land can be formed according to the investor’s preferences. The length of the project from idea to realization is 9-12 months. For more information, visit

Lithuania boasts a qualified workforce in the metal, plastic, electronics and mechanical engineering sectors. The country is second in the world in terms of attractiveness to manufacturing companies, and 19% of GDP is generated by the manufacturing sector. A new company can be registered in just one day, using electronic signature technology. Business and academic institutions cooperate closely. Convenient infrastructure is being built, and comprehensive assistance is provided to investors. The country’s laws are quite favourable to foreign investments. We will do all we can to get your business up and running!

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