According to data from global greenfield investment monitor fDi Markets, Lithuania has seen a 31% increase in FDI between 2017 and 2018, rising from 61 projects in 2017 to 80 projects in 2018. The number of jobs created in 2018 is up 8.9% on the previous year. Total capital expenditure (capex) into the country amounted to $1.89bn, an 53.9% increase on 2017 figures.
Vilnius, the capital city of Lithuania, has seen the most investment, with a total of 43 projects tracked in 2018 with a capex total of $860.2m, compared to 32 projects in 2017 with a capex total of $562.9m. The major investors into Lithuania in 2018 were the US, the UK, and Germany, followed by Sweden and Denmark.
In recent years, the country has become an attractive location for FDI due to the government’s focus on support for IT companies. The software and IT sector accounts for 47.5% of FDI projects in 2018 (a total of 38 projects). Vilnius, in particular, is home to a thriving IT start-up culture, and boasts 84% English proficiency among its young professionals.
Additional incentives for business include some of the lowest corporate taxes in the region and fast-tracked applications, which make it possible to open a company in as little as three days.