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www.investlithuania.com
Investment in Lithuania:
Environment and support
April 15, 2011
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“If Lithuania continues successfully, it has
a good chance of grabbing the best
investments in the region and the best
talents with it.”
Kitty Kubo, Head of Foresight Division of
Estonian Development Fund, adviser to
Estonian Government
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350 jobs
150 jobs
20-50 jobs
FDI projects in 2010
600 jobs
50 jobs
70 jobs
110 jobs
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Northern Europe Innovation Centre
Time
Value
Present situation
Low
High
2008-2010 economic
recession
Northern Europe Service Hub
Focus on priority
sectors
Focus on innovation
development
2015
2020
Stable platform for high value added
economy development
20112010
Market strategy
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Market power
• 2011: 14th best outsourcing
destination (7 spots up) (A.T.Kearney Global Services
Location Index 2011)
• 2012: 1/3 of FDI in Lithuania
will settle down in the service
sector
• 2015: share of exports of
services will make 1/2 of
Lithuania’s total exports
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Focus on priority sectors
Services • business services
• R&D
• logistics
• medical services
Clusterized higher value added traditional industry • engineering
• chemicals
• plastics
• food
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High-tech• life sciences
• clean-tech
• ICT
• future energy
R&D• R&D centres
• science and business valleys
• integrated international clusters
Focus on innovation
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Europe’s prime location
• Crossroads of North, East and West
• 3 Pan-European transport corridors
• 4 modern international airports
• Northernmost ice-free seaport on the
eastern shore of the Baltic Sea
• Regionally best network of
roads and highways
• 3 strategic multimodal logistic
centres under development
EU -340 million
BSR -110 million
CIS -250 million
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• 40 % of the 25 - 34 year olds have
higher education
• 30 % of overall population with
higher education compared to the
EU average (24%)
• 46 higher education institutions:
200,000 students and 40,000
graduates annually
• ~90 % of Lithuanians speak at
least one foreign language
Talent pool of 3 million
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Leading ICT and Internet capacities
Sources: www.speedtest.net; Study by University of Oxford (England) and University of
Oviedo (Spain), 2009; GSM European Coverage report; European Commission, 2009
• Global leadership in mobile e-signature
• World’s 2nd fastest Internet
• World’s 6th and Europe‘s No. 1 fiber
broadband penetration (23 %)
• Europe’s highest fiber optic density
• EU‘s greatest GSM penetration (147 %)
• World’s No. 1 in the number of mobile
telephone subscribers per 100
population
• Europe’s densest network of public
Internet access points
8.048.849.339.429.459.95
10.1810.88
13.4615.02
21.06
0 5 10 15 20 25
Sweden
Bulgaria
Japan
Andorra
Moldova
Iceland
Romania
Aland Islands
Latvia
LITHUANIA
South Korea
World’s fastest upload Internet in 2011, Mb/s
119%
126%
126%
129%
132%
134%
142%
146%
147%
0% 50% 100% 150% 200%
Ireland
UK
Denmark
Netherlands
Germany
Austria
Luxembourg
Italy
Lithuania
EU’s highest mobile penetration
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• INVEST LT+
• Tax incentives for investments into new
technologies and R&D
• Tax holidays in 2 free economic zones
Financial support for FDIs
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INVEST LT+ program grants to
cover expenses of FDIs in
Lithuania
MAX POSSIBLE SUPPORT up to EUR 3.5 million
up to EUR 1.5 million up to EUR 2 million
Financial support available per FDI project in the field of
services, R&D or manufacturing
Construction, Infrastructure, Special personnel training and
Salary costs
General personnel training costs
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MANUFACT
URING
PROJECT
20-30 % of the total investment
into assets;
SERVICES
PROJECT
10-15 % of the gross salaries
paid during 24-month period for
each full-time position within 3
years;
R&D
PROJECT
20-30 % of the gross salaries
paid during 24-month period for
each full-time position within 3
years / or of the total investment
into assets.
INVEST LT+
average support
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Incentives for new
technologies and R&D
• Scientific research and experimental development (R&D) costs
deducted 3 times from income for the tax period during which they
were incurred, if the performed R&D works are related to the usual or
intended activities of the entity that generate or will generate income or
economic benefit
• Super-accelerated depreciation - acquisition price of fixed assets
used in the R&D activities can be written-off within two years
• Investments into substantial technological improvements will entitle
the companies to reduce the taxable profit down by 50 %
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• 0 % corporate tax
during the first 6 years
and only 50 % of
corporate tax over the
next 10 years
• 0 % tax on dividends
• 0 % real estate tax
Tax incentives in 2 FEZes
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• Santara Valley (Vilnius)ICT & Life Sciences CentreCentre of Innovative MedicineNature Research Centre
• Sunrise Valley (Vilnius)Centre of Physical and Technological Sciences
• Santaka Valley (Kaunas)National Open-access Centre of R&DCentre of Sustainable Pharmacy and HealthTechnologiesNational Open-access Centre of Future Energy
• Nemunas Valley (Kaunas)Centre of Agriculture and Forest Sciences
• Maritime Valley (Klaipėda)National Centre of Marine Sciences andTechnologies
Network of 5 valleys
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Working answers for FDIs
www.investlithuania.com