When looking for a new location for investment, companies often consider functional issues: look for more modern premises, the possibility to optimize costs or larger area providing enough space for the growing volumes of production. For a business developer seeking efficiency, these are all everyday issues which we can help solve.

Kaunas FEZ covers a 534 ha territory in which we can offer efficient solutions to business developers depending on the customer’s needs:

• land lease for a period of 99 years;
• engineering networks in the infrastructure corridor within proximity of the site;
• tax incentives;
• convenient geographic location;
• a market of educated and qualified professional talents.

We administer a large territory and thus we are able to adapt flexibly to the investors’ needs regarding the area of the lot. Having the infrastructure in place significantly shortens the period of implementation of greenfield projects; therefore, all the customers need to do after concluding the contracts is take care of the design and planning of their business activities.

Kaunas FEZ is located in a convenient site - close to the airport, Baltic Seaport in Klaipeda and an excellent geographical location in Europe altogether.  Kaunas is suitable for investors looking for logistics connections for international exchanges. The logistical attractiveness of the free economic zone allows for the successful use of domestic and international transport infrastructure.

Kaunas FEZ is equipped with high-capacity engineering networks:

• internal network of asphalted roads;
• water supply;
• domestic wastewater system;
• gas supply;
• rain wastewater system.

The company which manages Kaunas FEZ is a private company which constantly takes care of social infrastructure as well: public transportation, maintenance of common territory.

Favourable tax incentives apply

During the last year, the number of free economic zones in Lithuania has significantly expanded. To help both Lithuanian and foreign investors, tax and other activities are applicable in such zones.

Besides the infrastructure and quick settlement, Kaunas FEZ offers the possibility to avail of tax incentives:

• profit tax incentive;
• real estate tax incentive;

CORPORATE TAX incentive breakout:

• 0 % during the first 10 years
• the following 6 years - 7.5 % (elsewhere in Lithuania – 15 %)
  

A profit tax incentive is granted in two stages:

• a 100% discount from the valid rate is applicable for the first 10 years;
• a 50% discount from the valid rate is applicable for the next 6 years.

A company must meet several conditions in order to be able to use the profit tax incentive:

• be registered as a company of the Zone;
• reach the investment threshold:
  • for manufacturing companies – EUR 1 million,
  • for service companies – EUR 100 thousand;
• generate 75% of income from activities performed in the territory of FEZ;
• perform activities which are not prohibited by the Law on FEZ (Law on the Fundamentals of FEZ, article 8.1);
• service companies – average annual number of employees must be at least 20.

Zero real estate rate is applicable for the whole period of operation of Kaunas FEZ, i.e. until 2045.