New opportunities for investments in large-scale projects in Lithuania

A new package of measures for promoting large-scale investment projects has entered into force in Lithuania.

On the 1st of January 2021 legislative amendments entered into effect in Lithuania, creating more favourable conditions for local and foreign capital investments in large-scale projects in manufacturing, data processing and data hosting services.

The package of measures, also known as the ‘Green Corridor’ includes amendments to the Laws on Investment, the Legal Status of Aliens, Territorial Planning, Employment, and Corporate Income Tax. These amendments mean that a project will be considered as a large-scale investment project, when:

  • at least 20 million euro of capital expenditure (or 30 million euro when investing in Vilnius) is invested; and
  • at least 150 new full-time jobs (or 200 when investing in Vilnius) will be created and maintained for at least 5 years.

These indicators must be achieved by the investor within five years from the date of entry into force of a project investment agreement concluded with the Lithuanian Government.

The ‘Green Corridor’ guarantees investors in large-scale projects:

  • tax incentives: exemption of investors in large-scale projects from corporate income tax for up to 20 years, starting from the tax period when the fixed amount of investment and the average number of employees were reached;
  • easier recruitment of workers from third countries by exempting them from the obligation to obtain a work permit. They are also not subject to qualification requirements for employment or work experience, and can start work from the day they apply for their Temporary Residence Permit;
  • quicker and easier land planning, environmental impact assessment and lease of state-owned land: conditions are created for leasing state land without having to go through an auction, the obligation to prepare detailed plans for large-scale projects is waived, the procedure for setting servitudes is simplified.

After concluding an investment agreement on a large-scale investment project with the Lithuanian Government, it will also be granted the status of a project of national significance, which must guarantee faster and smoother decision-making: public administration (apart from some exceptions, e.g., related to national security public disclosure), will have to provide the necessary administrative services within 3 working days and decisions concerning the project will be taken in order of priority.

The ‘Green Corridor’ package of measures is expected to stimulate investment in innovation and creation of high value-added jobs and will act as a catalyst for quicker transformation of Lithuanian industry.

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