Business environment

Favourable conditions for investment growth

Lithuania – an ambitious country

for your business to grow

Lithuania is a member of the European Union and the eurozone, ensuring a stable legal and economic environment for business. The country is characterised by a competitive business environment, a high level of digitalisation, an efficient public service system and a favourable attitude towards foreign direct investment.

The Lithuanian labour market is valued for its high employee qualifications, productivity and strong work ethic. The country has one of the lowest strike rates in Europe, so companies can plan their activities in a stable and reliable business environment.

The country’s geographical advantage is the ice-free Baltic Sea port in Klaipėda and a convenient location at the crossroads of European regions. Most European capitals are reachable within a three-hour flight from Lithuania. The road, sea and rail transport system in Lithuania is also well developed and connected to neighbouring countries. Being in the north-eastern region of the EU, Lithuania is a convenient logistical connection for international exchanges.

Member of the EU, NATO, Eurozone and OECD

Stable regulatory and legal environment focused on business progress.

61,8 %

The share of Lithuanian residents aged 30-34 with higher education.

90 %

People aged 18-24 in Lithuania speak English fluently.

44th

Lithuania’s global ranking by GDP per capita. World Bank, 2025.

43 %

Lithuania’s export share in relation to GDP.

Member of the EU, NATO, Eurozone and OECD

Stable regulatory and legal environment focused on business progress.

61,8 %

The share of Lithuanian residents aged 30-34 with higher education.

90 %

People aged 18-24 in Lithuania speak English fluently.

44th

Lithuania’s global ranking by GDP per capita. World Bank, 2025.

43 %

Lithuania’s export share in relation to GDP.

Kaunas region

Strategic industrial and innovation centre

Kaunas region is one of the most important economic centres of Lithuania, distinguished by a strong industrial base, favourable geographical location and developed infrastructure. Located in the centre of the country, the region ensures effective accessibility to both local and international markets.

 

Kaunas is traditionally considered one of the main manufacturing centres of Lithuania. The furniture, food, electronics, construction and logistics sectors are well developed in the region. In recent years, Kaunas region has become a significant destination for foreign direct investment, especially in the areas of life sciences, information technologies, automotive component manufacturing, aviation maintenance and repair (MRO) and business services.

 

Kaunas region is characterised by a strong education and innovation ecosystem, the centre of which is Kaunas University of Technology (KTU). The university, together with other higher education institutions, annually prepares qualified specialists in the fields of engineering, technology, IT and business, contributing to the development of a high-value-added economy.

60 %

Students studying STEAM sciences

18 %

Kaunas region’s workforce works in manufacturing

350,000

Working-age people within a 50 km radius

Energy

Lithuania's strategic direction: energy independence and resilience

Since 2024, the country has had its own liquefied natural gas (LNG) terminal. The Baltic countries joined the Central European grid in 2025, leaving the BRELL electricity system.

 

Lithuania has been consistently investing in energy security and renewable energy, strengthening a sustainable business environment. Currently, about 70% of the energy produced in the country comes from renewable sources, mainly from wind power plants and hydroelectric power plants. 35% of all electricity consumed comes from renewable sources.

 

Companies in the Kaunas FEZ territory use roofs to produce solar energy. Electricity produced by solar power plants is effectively used in production and building maintenance processes. In addition to private initiatives, there are also public access electric vehicle charging stations in the territory.

 

District heating infrastructure is being actively developed in the Kaunas FEZ territory. The networks developed by Kauno energija provide investors with opportunities to use sustainable and efficient heating solutions and more quickly implement decarbonisation goals. Access to green thermal energy also helps reduce the environmental impact of operations and strengthen companies’ ESG strategic indicators.

Activity

Cabinet furniture production

Building area

36,000 sq m

From contracts to start of operations

12 months

Start of operations

2017

Capital

Lithuania

Large sites, developed infrastructure and strategic location gave FREDA the opportunity to quickly implement the investment project and consistently expand its activities. From 2017 to 2024, the company expanded its production capacity in Kaunas FEZ three times, creating one of the most modern production and logistics complexes in the Baltic region. Sustainability solutions have also become an important part of the project: a 10,000 m² solar power plant installed on the roofs of buildings produces about 20% of the electricity needed for warehousing activities.

Investment development
agencies

Helping businesses establish and grow

National agency for the development of foreign direct investment, which provides one-stop assistance to foreign capital companies to establish themselves in Lithuania. The agency also oversees large projects of Lithuanian capital companies. Invest in Lithuania is a reliable partner of Kaunas FEZ, ensuring supervision of important projects before and after establishment.

National business ecosystem platform. The Innovation Agency provides consulting on business start-up and development, international business development opportunities. The Agency also helps to develop business competencies, provides access to EU and other sources of funding and networking resources.

Kaunas City Agency works in the areas of attracting international investments, promoting business, and developing tourism. The agency oversees talent development projects in the region: the “Future for Electronics” project was initiated together with Kaunas businesses, and the ongoing campaign “Study in Kaunas” is being implemented.

Education and science
community

Strong talent and R&D ecosystem

Kaunas universities and higher education institutions closely cooperate with businesses on issues of scientific research, competence development, and talent development. Educational institutions widely involve businesses in improving curricula, promoting the popularisation of study areas relevant to business, cooperating in the field of R&D, and training specialists, taking into account the needs of businesses.

Institutional partners

National and regional partners consistently strengthening the business environment

Ministry of Economy and Innovation

The Ministry of Economy and Innovation, together with “Invest in Lithuania”, implements a strategic policy of attracting investment to the regions, implementing investment incentive packages for large local and foreign capital projects. The “Investment Highway”, the “Green Corridor” and other strategic initiatives contribute to the financial incentive package for investing in the Kaunas FEZ.

Kaunas District Municipality

The main partner of Kaunas FEZ in developing the external and social infrastructure of the territory, installing the necessary engineering infrastructure. In cooperation with the municipality, essential projects for the accessibility of the territory have been implemented: a viaduct has been built, an internal road and engineering infrastructure network has been installed, and the A1-A6 connection project is being developed.