Business environment

Business environment

Lithuania is a member of EU over a decade now and is perfectly located to serve European, Scandinavian and CIS countries’ markets. The economy and engineering know-how in Lithuania grows rapidly compared to other emerging countries of the EU. Manufacturing efficiency, quality of life, R&D development and general economy is 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
Real GDP growth 3.0% (2015), 2.9% (2014), 3.3% (2013), 3.8% (2012), 6.1% (2011)

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 Social sexurity tax
0 / 15 % 21% 0 / 15% 20% 9% employee/ 30.98% employer

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.

Productivity and costs

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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