Tempo de leitura: 2 minutos
Many countries around the world have set up free trade and economic zones as a way to accelerate the economic development of regions, manage post-industrial property and infrastructure, create new jobs and attract foreign investors. Only few European Union member states have Special Free Economic Zones inside the World’s biggest trading block and single market.
According to the number of Special Economic Zones (SEZs) operating in the country, Lithuania is the third in the Western world, after the United States of America and Poland. While SEZs can be found in about 70 percent of developed countries and are mostly customs-free zones to encourage foreign trade, Lithuania is different.
To boost its competitiveness, the Government of EU member state – Lithuania has established special incentives for both foreign and domestic investors. The basic benefit of investing in a Free (Special) Economic Zone is the possibility of obtaining a tax allowance consisting of a corporate income tax exemption. Lithuania’s six Free Economic Zones are located in the country’s economic centres – Marijampolė, Kaunas, Kėdainiai, Panevėžys, Šiauliai, Klaipėda – and provide favourable conditions for developing business by offering ready to build industrial sites for “green field” investments with physical and other infrastructure, support services and tax incentives.
Today, the Lithuanian legal regulation of Free Economic Zones is among the most favorable in Europe, which means that the production companies set up in Lithuanian Free Economic Zones have significant competitive advantage and opens up European single market at a significantly lower production, operational costs. Ranked alongside Ireland, Germany and Switzerland for its business environment, Lithuania can also guarantee a fantastic quality to cost ratio.
According World Investment Report 2019 Special Free Economic Zones are among the most important tools, aiding countries to attract investment. Foreign direct investment flow for 2018 in Lithuania increased by 39%, to 905 million EUR, compared to 2017 figures of 654 million EUR. The situation is different globally, with FDI flows continuing to slide, falling by 13 percent to $1.3 trillion from $1.5 trillion recorded in 2017.
Benefits for the free economic zone investors:
– 0% corporate tax for the first 10 years;
– 50% discount on corporate tax over the next 6 years;
– 0% tax on dividends;
– 0% tax on real estate;
– available EU financial incentives.