Doing Business in Lithuania: A Practical Guide for Foreign Investors

Lithuania has steadily built a reputation as a rising destination for international investment, thanks to its EU membership, innovation-driven economy, and strong commitment to creating a business-friendly environment. The speaks to the strength of its fundamentals, from streamlined regulations to an innovative talent base. To this day, Lithuania has attracted over 400 international companies which led to creating over 38,000 jobs.

Whether you’re considering starting a business in Lithuania or exploring long-term expansion into the region, this guide offers practical insights into what makes Lithuania an increasingly compelling choice for global investors.

Why Invest in Lithuania?

Lithuania’s strategic location within the European Union offers investors seamless access to both Nordic markets and Central & Eastern Europe. The country continues to strengthen its reputation in high-growth sectors such as fintech, biotech, ICT, and advanced manufacturing. This progress is underpinned by a strong institutional framework and a government committed to supporting foreign investment through forward-looking policies, infrastructure development, and targeted incentives.

The momentum is particularly visible in the ICT sector, which contributed 25% of Lithuania’s overall economic growth in the first half of 2024, with value-added rising by nearly 10% year-on-year, citing Gintarė Verbickaitė, Head of Unicorns Lithuania. Investor confidence is also on the rise: foreign direct investment surged by 62.2% in Q3 2024 alone, reaching €848.7 million, according to the Bank of Lithuania.

The Lithuanian investment environment is also reinforced by its role in European supply chains, regulatory alignment with the EU, and growing visibility as a gateway for regional expansion. Foreign companies increasingly view foreign investment in Lithuania as a key step in their European growth strategies.

Vilnius Central Business District © S. Bernotas

Why Foreign Investors Choose Lithuania for Long-Term Growth

Business Environment and Ease of Setup

One of Lithuania’s standout advantages is the simplicity with which a foreigner can start a business in Lithuania. Company registration is largely digital, with transparent and efficient processes. Legal and regulatory frameworks are predictable and business friendly. The government has put systems in place to ease bureaucracy and support foreign direct investment seekers, such as the Investment Highway initiative, which offers key benefits such as 0% corporate tax for 20 years, same-day permits, and pre-construction timelines up to 12 times faster for large-scale investment projects.

Investors from abroad benefit from supportive case management and guidance to navigate local compliance, licensing, and registration requirements.

Talent and Innovation Ecosystem

Lithuania offers a multilingual, highly educated workforce, especially strong in STEM fields, with over 85% of young professionals proficient in English and one of the highest shares of women scientists and engineers in the EU, reaching 52% [Eurostat, 2022]. The country also hosts a dynamic startup ecosystem, with R&D incentives, tech clusters, and innovation partnerships between universities and industry. These capabilities make it easier to attract talent and innovate locally.

Research institutions and universities across Vilnius, Kaunas, and Klaipėda help feed the talent pipeline, making Lithuanian business services more competitive.

Infrastructure and Strategic Location

Lithuania’s infrastructure supports ambitious growth: it has modern ports, airports, road and rail networks linking it with the EU and beyond. Digital infrastructure is advanced, with high-speed fibre (fibre-optic) connectivity and growing data center investments. Its location makes it a regional gateway for services and manufacturing for Europe.

Support and Incentives for Foreign Investors

The Lithuanian state backs investment support through a mix of EU funds, grants, and tax incentives, especially for strategic and high-value sectors. The investment promotion agency, Invest Lithuania, plays a central role in guiding and supporting foreign investors throughout their setup journey. It helps with site selection, incentive navigation, regulatory support, and introductions.

Corporate  grants for R&D, and streamlined approvals are available to attractive projects.

Lithuania’s Strong Foreign Direct Investment Record

In the third quarter of 2024 alone, foreign direct investment in Lithuania increased by 62.2% year-over-year, reaching €848.7 million in inflows, as reported by the Bank of Lithuania. Lithuania has also seen a growing pipeline of investment projects: in 2023, authorities approved 53 new FDI projects, involving over €207 million in fixed asset investments. Leading global investors from the U.S., Germany, Sweden, and the Netherlands have contributed significantly to cumulative FDI in Lithuania, reflecting its appeal as a stable investment destination. These figures underscore Lithuania’s capacity not just to attract, but to absorb and sustain foreign investment.

Conclusion

Implementing a business in Lithuania offers foreign investors a unique blend of simplicity, talent, and opportunity. From a smooth setup process to a highly skilled workforce and strong institutional backing, the conditions are in place for businesses to thrive. As foreign direct investment in Lithuania continues to gain momentum and key sectors expand, the country is increasingly viewed as a smart, future-focused location for international growth.

For investors looking to enter the European market or expand existing operations, Lithuania provides both the platform and the potential. Now is the right time to explore what this dynamic and open economy has to offer.