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In order to improve the city's investment environment, Kaipėda City Municipality during the July city's council meeting has approved an incentive model that should entice Service sector investors to Klaipėda. This is the first time in Lithuanian when municipality endorses the incentive tailored to service sector investors, writes "Klaipėda ID".
Klaipėda
Klaipėda
© Klaipėdos savivaldybė

A reimbursement related to premises rent is to be given to all new and expanding service sector companies after a 12-month period. The requirements are: one - more than 20 new workspaces created in Klaipėda city, two - keeping them at least for 36 months. The financial incentive program for SSCs was initiated and created by Klaipėda city development agency Klaipėda ID in collaboration with the public enterprise Invest Lithuania and Klaipėda city municipality administration International affair and economic development department.

"We are excited to see Klaipėda city systematically completing the set goals of "Klaipėda 2030" strategy, which are aimed at attracting shared service centres. The new financial incentive of rent compensation contributes heavily to the value proposition for the investors,"- says Simas Simanauskas, the director of Klaipėda ID.

The incentive is aimed at foreign service sector investors and the already present companies in order to motivate them to expand and most of all - create new, well paid workspaces in Klaipėda. It is no secret - service sector companies are one of the most desired employers in Lithuania, that in combination with higher education schools provide an excellent environment for top-tier workers to learn and flourish. It is expected that this incentive will also contribute to the rejuvenation of the real estate office space supply.

SSCs contribute to the economic wellbeing of the city by nourishing and creating new workspaces, which culminate in more accumulated taxes. It is calculated, that taking in consideration only the collected income tax, the incentive will pay for itself in about 6 months’ time, and with the added financial stream multiplicative effect - in 3 months’ time.

"We always support proactive city initiatives that aim to draw potential investors' attention. This approved incentive initiative no doubt will improve Klaipėda's region investment environment. Shared service centres create sizable economic benefits for the city with high added value workplaces and with the increasing number of SSC's talents and professionals have a broader choice of fulfilling job opportunities in Klaipėda. The next goal should be to fuel the future students' desire to study foreign languages and relevant to the service sector programs," - says Laisvis Makulis, Head of Business Services of Invest Lithuania.

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