Lithuania‘s Trade Profile
Major business partners:
- Neighbouring countries: Russia (6.5% of FDI, 13.2% of exports and 30.1% of imports), Poland (10.5% of total FDI in 2009, 7.2% of exports and 10% of imports), Estonia (6.5% of FDI, 7.2% of exports), Latvia (4.5% of total FDI , 10% of exports and 6.42% of imports)
- Scandinavian countries: Sweden (11.8% of FDI), Denmark (10.4% of FDI), Finland (4.7% of FDI)
- EU-27 countries represent about 64.3% of Lithuanian foreign trade flows and more than 78.7% of FDI in Lithuania
Investment and bilateral trade drivers:
- Crossroads of Central and Western Europe, Scandinavian and Baltic as well as CIS markets
- Political stability and economic freedom
- Well-developed EU prime transport centre (two international corridors, ice-free seaport, international airports and railways)
- Diverse energy capacities
- Strong knowledge economy platform, innovative businesses
- One of the EU’s most educated and multilingual people
- Competitive business set-up and operation costs
- EU Structural Funds and State’s support
- Largest and most diversified industry in North-eastern Europe
Attractive business sectors:
- Shared services and business process outsourcing (BPO) – well-educated multilingual labour pool
- Energy – well developed infrastructure and international projects
- ICT – modern knowledge economy; companies leading among the Baltic States
- Lasers – globally acknowledged production and inventions
- Biotech – World-class progress; production does not have equivalents in Central and Eastern Europe
- Plastics – with three huge plants leading in the region
- Metal processing, machinery and electric equipment – widely-acknowledged high-tech products
- Furniture & wood processing – one of the largest factories in Eastern Europe; among the most important suppliers for IKEA
- Textile & clothing – one of the most specialised EU countries in the textile and clothing sector
- Food – internationally acknowledged production; widely demanded
- Real estate – the largest market among the Baltic States with great development potential
- Tourism – untouched nature, well developed countryside tourism network, high demand for entertainment services
Taxes:
- Corporate profit tax – 15%
- Personal income tax – 15% (+ 6% health insurance contribution)
- Value added tax – 21%
- Property tax – 1%
- Social security tax for employers - 31% (+ employee's contribution of 3%)
Human resources:
- ~ 40% of the labour force with higher education
- Every third Lithuanian speaks English, and eight Lithuanians out of 10 speak Russian
- Average monthly gross salary – EUR 648
Property rental rates, EUR / m2 per month:
- New warehouses – EUR 3.5 to 4.3
- A-class office space – EUR 8.7 to 13
- B-class office space – EUR 5.2 to 8.7
- High-street retail space – EUR 20 to 25
- Retail space in shopping centres – EUR 6 to 25
Business set up costs and time:
- up to 26 days
| Procedure | Time to complete | Cost to complete |
|---|---|---|
| Open a bank account with the minimum capital and get a bank certificate proving the availability of the funds; pay the registration fee and obtain the document evidencing the payment | 1 day | 6 EUR |
| Notarise the agreement /memorandum of incorporation and bylaws; notarise the application for the registration of the private limited liability company | 2 days | 145 EUR |
| Register with the Companies Register, including registration with the State Tax Inspectorate (the Lithuanian Revenue Authority) for corporate tax, VAT, and the State Social Insurance Fund Board (SODRA) | 6 days | 57 EUR |
| Complete VAT registration | 10-15 days | No charge |
| Inform the State Labour Inspectorate of the establishment of the company by letter or phone | 1 day | No charge |
| Open a settlement bank account (to handle normal commercial transactions) | 1 day | No charge |
| Obtain an official seal for the company | 2 days | 9-26 EUR |
Source: www.doingbusiness.org
| Utilities for companies | Measurement | Average rates, EUR |
|---|---|---|
| Electricity | 1 kWh | 0.09 - 0.12 |
| Natural gas | 1 m3 | 0.45 - 0.61 |
| Cold drinking water | 1 m3 | 1.17 – 2.06 |
| Cold water for technical purposes | 1 m3 | 1.17 – 2.06 |
| Hot water | 1 m3 | 4.34 - 8.80 |
Multinationals feeling at home
