Lithuania approves incentives for large-scale investment projects

The Lithuanian Seimas has approved amendments to the Law on Investments and the Law on Land, aimed at facilitating large-scale investment projects in the country. The changes, which are set to take effect on July 1, 2027, introduce incentives such as state land lease tax relief and the potential for investors to purchase state-owned land, provided other laws permit it.

To qualify for these benefits, projects must demonstrate significant economic value to the state by meeting specific criteria regarding investment volume, job creation, and salary levels. National-level projects must involve investments of at least 250 million EUR. For regional projects—excluding the municipalities of Vilnius, Kaunas, and Klaipėda—the threshold is set at 20 million EUR, with a goal for at least 30 percent of new investments to reach these regions.

Under the new provisions, investors may also be able to lease or acquire land owned by state-controlled companies without an auction or competition if it is deemed effective for attracting large-scale investment. Projections suggest that a single large-scale project could create an average of 272 jobs with an average monthly wage of approximately 2,994 EUR, which is significantly higher than the manufacturing sector average.