Lithuania’s cities will need to specialise more in specific industries and capabilities it they want to remain competitive in attracting foreign direct investments, said Dr Samir Hamrouni, head of the World Economic Zones Organization and the chief advisor at the Dubai technological park, Silicon Oasis.
Kauno pilis
© DELFI (R.Achmedovo nuotr.)

“With the increasing globalization of the economy, competition for foreign direct investment is becoming more intense, so now more than ever it is important to clearly identify your strengths. In recent decades, the number of free economic zones in the world has increased significantly, and market participants need to have a clear business strategy to focus on, I think it's important for Lithuanian FEZ as well, especially those taking their first steps. Lithuania has plenty potential to be attractive to a variety of investors,” said Hamrouni.

Lithuania FEZ has just become a member of the World Free Zones Organization with Lithuania;s Free Economic Zones' Association launched last year. It has six member companies and around 3% of Lithuanian GDP is generated in FEZ areas.

In the next three years FEZ association members plan to implement at least 26 investment projects, creating up to 2,000 new jobs, and investing €390 million up to 2018.

"The membership of this professional network will allow access to the latest research in the organization and training events, and information on global trends. Our knowledge platform allows the exchange of knowledge and practical experience between different regions and countries. We believe that active involvement in this organization will provide useful knowledge, experience and possibilities to develop the Lithuanian free economic zones, making them even more competitive in the international market" said Eimantas Kiudulas, Lithuanian Association of SEZ.

Lithuanian and foreign companies are able to access well-developed infrastructure and exceptionally favourable economic and legal conditions in Lithuanian FEZ‘s.

Companies that invest more than €1 million are exempt from income tax for the first six years and over the following ten years will pay only half the normal income tax rate in Lithuania.

The companies are also exempt from real estate tax, and dividends received by foreign investors are not taxed.

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