Lithuania free zones

Lithuania free zones

Healy Consultants assists its Clients with setting up businesses in Lithuania’s seven free economic zones, where they benefit from generous tax holidays. Furthermore, the Lithuanian Government has designated five Science and Technology Valleys that boast multiple tax deductions for R&D expenses.

The Lithuanian free economic zones

    Setup a freezone company
  • 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 for manufacturing companies to register their business in Lithuania and begin exporting their products abroad, thanks to i) close proximity to Lithuania’s business centers and ii) their ready-to-build industrial sites with modern infrastructure;
  • The Lithuanian authorities currently operate seven free trade zones, including: i) Klaipeda FEZ; ii) Akmene FEZ; iii) Siauliai FEZ; iv) Panevezys FEZ; v) Kaunas FEZ; vi); Marijampole FEZ and vii) Kedainiai FEZ;
  • These free zones offer competitive advantages, including i) complete corporate tax exemption for the first 6 years; ii) reduced corporate tax of 7.5% for up to 10 years and iii) no real estate taxation. The most developed FEZ in Lithuania – Kaunas FEZ – additionally offers i) 100% tax exemption on dividends and ii) convenient 99-year land leases;
  • In order to conduct operations in a Free Economic Zone, a company must comply with the Lithuanian Law on Free Economic Zones. Healy Consultants will be happy to help our Clients to i) determine the optimum FEZ in Lithuania for their business ii) evaluate the eligibility of their project iii) draft a detailed business plan fulfilling the Lithuanian registration requirements and iv) register their company with the relevant government body.

The Lithuanian Science and Technology Valleys

  • The Lithuanian authorities currently operate five Science and Technology Valleys (STV), which are R&D centers located in close proximity to Lithuania’s main cities. These STVs are: i) Marine Valley; ii) Nemunas Valley; iii) Santaka Valley; iv) Sauletekis Valley and v) Santara Valley;
  • All 5 STVs aim to offer the following services and incentives to investors:
    1. Promotion and development of specific activities, with each valley having a different specialism;
    2. Multiple corporate tax deductions for research and development expenses;
    3. Provision of conditions for cooperation between business and academic institutions and;
    4. Creation of advanced infrastructure for R&D.

Table of comparison between Lithuanian free zones

Free zone comparisonKlaipeda FEZAkmene FEZKaunas FEZOther FEZSTVs
FTZs used mostly by which industry?ManufacturingAgricultureLogisticsManufacturing and LogisticsR&D
Average annual warehousing space rent per 1000 sq. m.?€ 5,000€ 4,500€ 6,000€ 4,500 - €6,000€ 3,000 - €6,000
How long to set the company up?3-4 weeks3 weeks3 weeks3-4 weeks2-3 weeks
Registration with which government agency?POK AuthorityAkmene Region MunicipalityKuanas FEZ AuthorityFEZ specificCentre of Registers
How long to open company bank account?2-3 weeks2-3 weeks2-3 weeks2-3 weeks2-3 weeks
Quality of utilities?ExcellentGoodExcellentGoodExcellent
Allowed to sign sales contracts with Lithuanian Clients?YesYesYesYesYes
Allowed to invoice Lithuanian Clients?YesYesYesYesYes
Agent required to conduct business outside of FTZs?NoNoNoNoNo
Benefits for operations outside of FTZs?NoNoNoNoNo
Corporate tax payable in Lithuania?0%0%0%0%15%
Corporate bank account options?Unicredit BankSEB bankNordea BankSEB bankFINASTA
Physical office space required?YesYesYesYesYes
Subsidies for land purchases?YesYesYesYesNo
Allowed to import raw materials?YesYesYesYesYes
Allowed to export goods?YesYesYesYesYes
No duties on imports and exports?YesYesYesYesYes
VAT exemption on imports?NoNoNoNoNo
VAT exemption on products sold in Lithuania?NoNoNoNoNo
Can be wholly foreign owned?YesYesYesYesYes
Can the entity hire expatriate staff in Lithuania?YesYesYesYesYes
Foreign employee quota of?Case by CaseCase by CaseCase by CaseCase by CaseCase by Case
Payroll tax exemption for foreign employees?NoNoNoNoNo
Social security contributions exemptions for foreign employees?NoNoNoNoNo
Minimum number of directors?11111
Minimum number of shareholders?11111
Tax and VAT registration certificate required?YesYesYesYesYes
Individual shareholders allowed?YesYesYesYesYes
Corporate shareholders allowed?YesYesYesYesYes
Corporate director(s) allowed?NoNoNoNoNo
LLC company allowed?YesYesYesYesYes
Annual financial statements?YesYesYesYesYes

Contact us

For additional information on our free zone company registration services in Lithuania, please email us at email@healyconsultants.com. Alternatively please contact our in-house country expert, Ms. Grace Odhiambo, directly:
latvia-registrylatvia-lrvlatvia-coclatvia-tax