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 most important suppliers for IKEA
• Textile & apparel – 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 ecological 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 employer - 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 
  

Source: www.doingbusiness.org

Multinationals feeling at home