Lithuania accelerates setup procedures for defence companies

Defence manufacturers can now launch operations in Lithuania in as little as half a year. The Lithuanian parliament has approved new legal amendments that simplify territorial planning, land procurement, and construction procedures, shortening the setup period from two years to six months.

The amendments introduce a new category of investment projects in Lithuanian regulation. From now on, large-scale manufacturing projects in the defence sector can be recognized as addressing national security needs. Such projects will enjoy regulatory exemptions and simplified procedures, which will allow investors to set up operations significantly faster. For instance, companies could start the construction of their facilities without a building permit, obtaining the permit before completing the construction.

Designed to promote the development of large-scale defence production, the new regulation boosts the comprehensive support Lithuania offers for defence companies. Tax incentives for large-scale investment projects include a 0% corporate income tax for 20 years.

Defence manufacturers establishing operations in Lithuania will join a rapidly developing ecosystem of innovative companies. The country is home to a growing number of businesses that leverage its industrial strengths in telecommunications, lasers, sensors and other high-tech fields to produce unmanned aerial vehicles and systems, anti-drone devices, remote initiation systems and other cutting-edge military products. Between 2018 and 2023, the number of specialists employed in Lithuania’s defence industry grew by 14% annually on average, which is twice as fast as the national average in the same period.