Lithuania combines Eurozone membership, a 1.77% nominal employer social security rate (after the 2019 employee-side wage consolidation), a 300% R&D tax super-deduction, and 7 plug-and-play Free Economic Zones (Kaunas, Klaipėda, Panevėžys, Šiauliai, Kėdainiai, Akmenė, Marijampolė) where a €1M CAPEX investment (or €100k + 20 staff for service/R&D centers) unlocks 10 years of 0% CIT followed by 6 years at 50% CIT.
Scheme: 7 Free Economic Zones (FEZ — 10-Yr 0% CIT + 6-Yr 50% CIT) & Green Corridor Large Investment Project Tax Relief (up to 20-Yr 0% CIT) · Relief Duration: 10 years 0% CIT + 6 years 50% CIT reduction in FEZs (or up to 20 years 0% CIT under the Green Corridor for ≥€20M/€30M projects) · R&D/BSS Min-CAPEX Reduction: -90%.
| NUTS-2 | Region / Industrial Sub-Zone | Large Ceiling | Medium (+10%) | Small (+20%) | Std Min CAPEX | R&D / BSS Min CAPEX | Key Clusters & Just Transition Rules |
|---|---|---|---|---|---|---|---|
LT02 |
Vidurio ir vakarų Lietuvos regionas (Kaunas FEZ / Klaipėda FEZ / Panevėžys) | 40% | 50% | 60% | €1,000,000 | €100,000 | 40% large / 60% small ceiling (+10% Just Transition in Kaunas/Šiauliai/Telšiai); €1M FEZ threshold for manufacturing, €100k for R&D/SSC. |
LT01 |
Sostinės regionas (Vilnius Capital Region) | 25% | 35% | 45% | €1,000,000 | €100,000 | 25% large / 45% small regional aid ceiling; leading European fintech, lasers, and biotech R&D center with 300% R&D deduction. |
Class-A warehouse/factory rent, office rent, Eurostat industrial electricity tariff, and gross monthly salaries across 3 benchmarked hubs.
| City Hub & Special Zone | NUTS-2 & Aid | Industrial Rent + Svc (€/m²/mo) | Class-A Office (€/m²/mo) | Industrial Power | Prod. Operator | Mfg. Engineer | Senior R&D Eng. | Logistics Connectivity |
|---|---|---|---|---|---|---|---|---|
| Vilnius (Capital Tech & Biotech Hub) 300% R&D Super-Deduction + 5% IP Box + 1.77% Employer Social Security |
LT01 (25% / 45%) |
€5.80 + €1.20 | €18.90 | €142/MWh | €1,680/mo | €2,980/mo | €4,950/mo | 9.0/10 (Vilnius Intermodal Terminal + Via Baltica) |
| Kaunas & Klaipėda Free Economic Zones Kaunas FEZ & Klaipėda FEZ (10-Yr 0% CIT + 6-Yr 50% CIT + 40%/60% Aid) |
LT02 (40% / 60%) |
€5.20 + €1.10 | €15.20 | €140/MWh | €1,540/mo | €2,760/mo | €4,500/mo | 9.5/10 (Ice-Free Port of Klaipėda + Kaunas Rail Baltica European Gauge) |
| Klaipėda (Baltic Ice-Free Port & FEZ) Klaipėda Free Economic Zone (10-Yr 0% CIT + 6-Yr 50% CIT) |
LT02 (40% / 60%) |
€5.20 + €1.10 | €13.50 | €136/MWh | €1,520/mo | €2,690/mo | €4,250/mo | 9.3/10 (Ice-Free Deep-Water Baltic Container & Ro-Ro Port) |
0% CIT in year 1 and 6% Small Enterprise CIT thereafter for companies with ≤10 employees and ≤€300,000 annual revenue; 16% standard CIT (0% for 10 years inside 7 Free Economic Zones).
Retained Profit Rule: Investment Project Incentive cuts taxable profit by up to 100% when reinvested in qualifying machinery, software, or IP; 0% CIT for 10–20 years in FEZs / Green Corridor.
Dividend WHT: 15.0% standard (0.0% under EU Parent-Subsidiary Directive).
1.77% nominal employer Sodra social security contribution (up to ~2.49% including Guarantee & Long-Term Employment Funds). Following Lithuania's 2019 tax reform, social security was consolidated into gross employee salary.
Uncapped Portion: 1.77% · Capped Portion: 0.0%.
300% R&D Tax Super-Deduction (triple deduction of all qualifying R&D expenses!) + 5% IP Box rate on copyrighted software and patented inventions (combinable!).
Available Aid Instruments: 10-Year 0% CIT + 6-Year 50% CIT in 7 Free Economic Zones, Green Corridor 20-Year 0% CIT Relief, 300% R&D Tax Super-Deduction (Triple Deduction) + 5% IP Box, 1.77% Employer Social Security Rate (Lowest Nominal in EU).
State-aid consultancies, build-to-suit industrial developers, and cross-border tax/payroll firms active in Lithuania.
Premier German-origin cross-border legal, tax, BPO payroll, and Special Economic Zone / FEZ advisory covering all 9 CEE and Baltic jurisdictions.
Integrated alliance of European commercial law firms specializing in greenfield industrial plant permitting, SEZ/PSI state aid, and cross-border labor law.
Market-leading Francophone and DACH inbound investment practice in Romania, Poland, Czechia, and Hungary, covering R&D tax credits, CAM/ZUS payroll, and state-aid audits.
True integrated one-stop CEE law firm founded in Prague with deep Francophone and German desks handling corporate setup, M&A, industrial leases, and IP/employment law.
Tech-driven CEE corporate services, multi-country payroll, Estonian/Polish CIT accounting, and SPV/subsidiary incorporation.
Europe's largest industrial and build-to-suit (BTS) factory developer with 20M+ m² delivered across CEE Special Economic Zones.
In Lithuania, regional aid ceilings under 7 Free Economic Zones (FEZ — 10-Yr 0% CIT + 6-Yr 50% CIT) & Green Corridor Large Investment Project Tax Relief (up to 20-Yr 0% CIT) reach up to 40% for Large Enterprises, 50% for Medium Enterprises, and 60% for Small/Micro Enterprises. R&D and modern business service centers benefit from up to a 90% reduction in minimum CAPEX thresholds.
Lithuania applies a 16.0% standard CIT (0% CIT in year 1 and 6% Small Enterprise CIT thereafter for companies with ≤10 employees and ≤€300,000 annual revenue; 16% standard CIT (0% for 10 years inside 7 Free Economic Zones).). On payroll, employers contribute 1.77% nominal social security (1.77% nominal employer Sodra social security contribution (up to ~2.49% including Guarantee & Long-Term Employment Funds). Following Lithuania's 2019 tax reform, social security was consolidated into gross employee salary.). For R&D and software IP, Lithuania offers: 300% R&D Tax Super-Deduction (triple deduction of all qualifying R&D expenses!) + 5% IP Box rate on copyrighted software and patented inventions (combinable!).