In June 2020, the Government of the Republic of Lithuania passed the amendments of major significance to the Law on Investment, which will make Lithuania even more appealing to foreign investors and boost its competitive edge in the region. Investment Partner, which manages the Kėdainiai and Šiauliai FEZs in Lithuania, has shared this piece of great news for major foreign investors.
Why will Lithuania offer yet more advantages to investors?
- Building permits for plants or factories will be made available faster.
- It is envisaged that major investors will have the land plot formation and redevelopment design drafting or approval services provided in an accelerated procedure.
- The Seimas has allowed local authorities to modify planning documents to make provisions for the areas designated for major investors in advance.
- Foreign nationals will receive Lithuanian residence and work permits with more ease.
- Public authorities will be under the obligation to render the services to companies that operate in a FEZ as a matter of priority — within 3 days.
- One of the key changes is that major investors will have the right to be exempt from corporation tax for as many as 20 years if they invest EUR 20 million and create 150 jobs in any region across Lithuania. Investments in data processing, web server services and manufacturing would be recognised as major projects provided they fulfilled the above conditions within at least 5 years.
Exclusive business conditions will apply to major investors once agreed in an investment contract.
Up until now, the following incentives had applied to foreign investors: no corporation tax for the first 10 years and only 7.5% corporation tax for the subsequent 6 years, providing the investment in fixed assets accounted for at least 1 million euro. Foreign investors had been exempt from property tax and from dividend tax.
In July 2020, a new Kormotech plant, which is set to produce and export cat and dog food, has started operations in the Kėdainiai FEZ. The construction of the Kormotech plant and its manufacturing solutions in the Kėdainiai FEZ has seen EUR 16 million worth of investments. The plant will be equipped with state-of-the-art automated and robotic Danish and German equipment. A significant contribution to the roll-out of the technological equipment has been received from the experts from the Ukrainian Kormotech plant, American consultants and Lithuanian engineers. The capacity of the Kormotech plant, which is set to operate in Lithuania, will be 20,000 tons of wet pet food a year.
According to Kormotech representative, Yaroslav Alokhin, “the Ukrainian company has chosen to invest in the Kėdainiai FEZ for the reason that Lithuania sits in a strategic location convenient for further development in the EU countries. There is also another important factor — the most attractive conditions for business and tax incentives”.
Would you like to get exclusive conditions for investments in Lithuania?
Please contact https://www.investmentpartner.lt/