International European Investment Licence

Lithuania has been a member country of the EU since May 1, 2004, with its geographic size of 65,300 km², and a population number of 2,921,262, as per 2015. Lithuanians comprise 0.6% of the total EU population. Its capital is Vilnius and the official language is Lithuanian. The Gross Domestic Product (GDP) is €37.124 billion, as per 2015. Lithuania's currency is the Euro (€) since it became a member of the Eurozone on January 1, 2015. The political system is a parliamentary republic. Lithuania holds 11 seats in the European Parliament and held the revolving presidency of the Council of the EU for the first time in 2013. Lithuania is a member country of the Schengen Area since December 21, 2007.

Section 18.2 — Invest in Lithuania Framework & Sovereign Market Profile

Situated in Northern Europe, Lithuania serves as a strategic Baltic hub with strong logistical links (rail, road, air) to the broader European market and access to natural resources, including oil. The nation is characterized by a highly educated, multi-lingual workforce ideal for business services. Following the 2008 recession, the economy demonstrated resilience, achieving high growth rates within the EU, with projections indicating continued rapid expansion and a strong, growing GDP. Lithuania is also recognized for its high quality of life.

The government of Lithuania provides numerous incentives to foreign investors who want to set up business in Lithuania. These mostly include granting tax benefits, investment guarantees and Bank Loan support, support for Research and Development Projects and structural funds. The government of Lithuania offers special incentives to investors investing in high value-added products and high-technology sectors.

Key Trends: Joining the EU in 2004 significantly boosted Lithuania's economy, establishing it as a premier, high-growth outsourcing destination with an upward, robust growth trajectory.

Section 18.3 — Resources, Market Size & Key Target Fields

Market & FDI Overview: With a population of over 3 million, Lithuania represents a dynamic market, demonstrating impressive post-recession recovery with significant FDI inflows from major partners like Sweden, Poland, Germany, and Denmark.

Key Investment Sectors: Major growth sectors include Information and Communication Technology (ICT), biotechnology, lasers, high-value manufacturing (metals, machinery, textiles), and professional business services.

Resources: The Ministry of Economy of the Republic of Lithuania has established a non-profit agency known as Invest Lithuania. The main objective of this agency is to promote foreign investment in the country as well as create an economically attractive image of Lithuania in the overseas market. It provides all the necessary information and assistance to investors who wish to invest in the country free of charge.

A growing economy, a growth trend, a business-friendly government, attractive incentives and a vibrant infrastructure and workforce, all these features really make Lithuania one of the best countries to invest in the European Union.

Section 18.4 — Corporate Investment Environment & Free Trade Zones

Lithuania is a small Baltic EU member state bordering Poland, Latvia and Belarus. The countries have free movement of labour, capital, and trade among EU member states. Lithuania attracts foreign investors because of its low tax, skilled workforce, reliable infrastructure and rule of law. The national language is Lithuanian. Lithuania has setup 2 free trade zones (FTZ) and businesses setup there are exempt from corporate taxation for its first six years, tax on dividends and real estate tax. Lithuania is also member of Schengen acquis. There are over 3,000 foreign capital companies operating in Lithuania.

Section 18.5 — Business Investment Residency Framework

Third-country entrepreneurs looking for long-term entry, business authorization, or temporary residence permits can utilize the standard corporate, high-value investment, or entrepreneur routes:

Section 18.6 — Intracommunity Pridėtinės Vertės Mokestis Identification Registry

For compliant cross-border commercial transactions, product logistics, and B2B clearings inside the European Economic Area, legal entities require a fully verified, valid intra-community Value Added Tax identifier string (Pridėtinės Vertės Mokestis / PVM mokėtojo kodas).

If an unmapped or incorrect tax number is supplied, administrative pipelines will halt under the official State Tax Inspectorate language notice: "PRIDĖTINĖS VERTĖS MOKESTIS - Jūsų nurodytas PVM mokėtojo kodas yra neteisingas. Mums reikalingas Jūsų PVM mokėtojo kodas (intra EC VAT identification number) naudojamas sandoriams Europos Sąjungoje. Šis kodas sudarytas iš prefikso LT ir 9 arba 12 skaitmenų. Būtume dėkingi, jei galėtumėte įrašyti teisingą kodą žemiau pateiktuose laukeliuose. Ačiū." Immediate verification and formal submission of the correct alphanumeric sequence are mandatory to resume valid European Community trade routing.

Section 18.7 — Alphanumeric Sequence Rules of the Lithuanian PVM Identifier

The State Tax Inspectorate (VMI) strictly regulates the specific sequence configurations and formatting rules of corporate tax identifiers:

Section 18.10 — Corporate Tax Rates & Reduced Incentives

Corporate tax rates in LLithuania 15% The tax rate is 15%.

The standard CIT rate is 15%. However, small companies and agricultural companies can apply a reduced CIT rate of 0% or 5% if certain conditions are met.

Section 18.11 — Value Added Tax (PVM) Classifications & Historical Cut Rates

Lithuania VAT rates: The statutory tax codes of the Republic of Lithuania separate consumer commodities, domestic services, and cross-border trades across four distinct core rate percentage tiers:

Sovereign Fee & National Fiscal Tariff Matrix