Business environment

Business environment


Lithuania has been a member of the EU for over a decade now and is perfectly located to serve European, Scandinavian and CIS  markets. The Lithuanian economy and its engineering know-how  are growing rapidly compared to other emerging EU members. Manufacturing efficiency, quality of life, R&D development and the general economy are expected only to grow in the future.

Today Lithuania acts as a manufacturing hub exporting goods all over the world. The top export destinations in EU are Germany, Sweden, Norway, Poland, Denmark, etc.

Population 3 mln
Capital Vilnius
Official language Lithuanian
Dominant foreign languages English, Russian, German, Polish

Financial incentives

Lithuania received 6 bln. Eur in grants for period 2014-2020 for different projects generally oriented into R&D Infrastructure and SME development

R&D activities:

up to 50% of costs of Industrial Research covered [max 1.16M EUR]

up to 25% of costs of Experimental Development covered [max 1.16M EUR]

up to 25% of costs of R&D Infrastructure covered [max 2.9M EUR]

up to 15% of costs of Process and Organisational Innovation covered [max 2.17M EUR]

Employee training:

Employee training:

Up to 50% of training costs covered [500,000 EUR per project and 3,000 EUR per working place]

Installation of renewable energy generation resources:

Up to 60% of costs covered [850,000 EUR per project]

Tax system

Corporate profit tax VAT Dividends tax Personal income tax
0 / 15 % 21% 0 / 15% 15-20%

Talent pool and labour force competence

Ambitious young professionals

#1 for Mathematics, Technology, and Science graduates in EU.

3-4% attrition rate in manufacturing companies

7,700 engineering graduates anually

75 vocational schools

15,000 vocational school graduates anually


80% proficiency in English among young professionals

Main languages: Russian, German, Polish, Scandinavian and Romanic languages.


Lithuania experienced fastest labour productivity growth in EU over the last decade. Labour productivity growth in engineering industries exceeds average labour productivity growth in entire economy.

  • Lithuania offers an extensive supply chain for the clients of automotive industry and has a reputation of just-in-time quality for very a competitive cost

  • Lithuania is No 4 IKEA suppliers in the World

About Lithuania

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