Focus on Lithuania: low costs and skilled labour force!
Companies are seeking ways to optimize business performance and financial results. Lithuania is considered one of the low-cost options to outsource business activities within Europe, especially due to low labour costs.
Average hourly wage in EUR from 2014-2016
Lithuania’s government have made various regulations during the last years towards building an attractive business environment. Many procedures have been digitalized, including their tax administration system. The country is also a part of EU and NATO and overall considered stable. Other economic key indicators:
- Unemployment rate: 7.9 % (2016)
- Inflation rate: 0.7 % (2016
Types of entities for foreign investors
Amongst the most common entities for foreign investors you will find: Limited liability company (LLC), public limited company (PLC), branch office and representative office
For further reading on entities and detailed comparison table visit this page (here).
The standard corporate tax in Lithuania is 15% and VAT is 21%. The country holds 50 double taxation avoidance agreements, as well as offering reduced tax rate of only 5% if your Lithuanian business fulfill following requirements: have less than 10 staff, and generates less than 300k EUR annually. More details available here.
Lithuania’s global rankings and attractive industries (infographic below)