R&D incentives in Lithuania

Grant funding and tax incentives to support research, innovation and business growth in Lithuania.Explore the available measures and find out which could apply to your R&D activities in Lithuania.

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Support for research, development and commercialisation

Each incentive has its own rules and is assessed separately. Qualifying for one does not mean qualifying for another, and benefits are not automatically combined.

€1.5M

INVEST MTEP grantUp to €1.5 million in grant funding, depending on your project and company profile.

Triple R&D deductionDeduct qualifying R&D expenses three times when calculating taxable profit, subject to the applicable tax rules.

Patent BoxA 7% corporate income tax rate on the qualifying portion of profits from eligible intellectual property under the 2026 rules.

Why establish your R&D project in Lithuania?

Lithuania offers a strong educational foundation for R&D: 60.8% of people aged 25–34 hold a higher education qualification, compared with 44.8% across the EU. Alongside research expertise and competitive operating costs, investors benefit from Invest Lithuania’s free, tailored support – from exploring locations and research partnerships to establishing operations.

Talent and research

Connect with STEM talent, research institutions and potential partners for your R&D activities.

Competitive operating costs

Assess the cost of building and scaling your R&D team in Lithuania.

Support from planning to setup

Get free, tailored guidance on locations, research partners, incentives and establishing your operations.

INVEST MTEP: grant funding for life sciences innovation

Two funding tracks support eligible projects in Central and Western Lithuania. Supported R&D activities lead to prototypes of products, services or processes.

Application deadline

8 February 2027

Two funding tracks

Track 1

Innovation and product development

For projects that develop new high-value-added products and bring them closer to market.

Eligible applicants

Eligible SMEs and large companies.

Additional funding

An additional grant of up to €300,000 may be available for new-product-development projects meeting the EU Strategy for the Baltic Sea Region’s ‘Innovation’ requirements and the relevant selection conditions.

View track details

Supported activitiesDevelopment of new high-value-added productsResearcher participationIntellectual property protectionPilot productionPreparation for market

Baltic Sea Region partners

Eligible partners can include foreign partners from the Baltic Sea Region under the EU Strategy for the Baltic Sea Region, for qualifying innovation projects.

Track 2

Foreign investment in R&D

For R&D investment, collaboration and technology transfer between large companies and SMEs.

Eligible applicants

Eligible foreign investors, including SMEs and large companies.

View track details

Supported activitiesR&D investmentCollaboration and technology transfer between large companies and SMEsPatentingPreparing project-developed products for market

Requirements for both tracks

Location

Projects must take place in Central and Western Lithuania.

Duration

Projects can run for up to 24 months from signing the agreement.

Sector focus

Health technologies and biotechnology: molecular technologies for medicine and biopharma, advanced medical engineering, and safe food and sustainable agrobiological resources.

Company track record

At least three financial years of activity, at least €300,000 in combined sales revenue and at least €60,000 in declared R&D expenditure over the last three financial years.

Partnership

Eligible partners include large companies, SMEs, and research and higher education institutions, as well as foreign partners under the EU Strategy for the Baltic Sea Region for qualifying innovation projects. Large applicants must collaborate with at least one SME.

Selection and contribution

Funding is competitive, requires an own contribution and varies by project.

View the official INVEST MTEP call and apply ↗

R&D tax incentives

These corporate income tax incentives follow Lithuanian tax rules. The INVEST MTEP deadline, sector priority and location requirement do not apply to them.

Triple R&D deduction

Qualifying R&D expenses may be deducted three times when calculating taxable profit, subject to Lithuanian tax rules.

This reduces your taxable base. It is not a cash grant or a refund of three times the expenditure.

Patent Box

Under the 2026 rules, a 7% corporate income tax rate may apply to the qualifying portion of profits from eligible copyrighted software or patented inventions developed through R&D, subject to ownership, development and other statutory requirements.

The rate applies to qualifying IP profits, not automatically to all company profits.

Find the right support for your R&D plans

Find out what support your project could receive. Our team can explain the conditions and guide your next steps.

Check your project’s eligibility

Preview of the INVEST MTEP funding overview

Incentive information last updated: 19 October 2026. Sources: INVEST MTEP call, esinvesticijos.lt · State Tax Inspectorate (VMI). This page is a summary; the official call and tax rules prevail.