Investment in Lithuania: Environment and support

Transcription

1 Investment in Lithuania: Environment and support April 15, 2011

2 If Lithuania continues successfully, it has a good chance of grabbing the best investments in the region and the best talents with it. Kitty Kubo, Head of Foresight Division of Estonian Development Fund, adviser to Estonian Government

3 FDI projects in jobs 350 jobs 150 jobs jobs 50 jobs 70 jobs 110 jobs

4 Market strategy High Value Focus on innovation development economic recession Focus on priority sectors Northern Europe Innovation Centre Present situation Northern Europe Service Hub 2020 Low Stable platform for high value added economy development Time

5 Market power 2011: 14 th best outsourcing destination (7 spots up) (A.T.Kearney Global Services Location Index 2011) 2012: 1/3 of FDI in Lithuania will settle down in the service sector 2015: share of exports of services will make 1/2 of Lithuania s total exports

6 Focus on priority sectors Services business services R&D logistics medical services Clusterized higher value added traditional industry engineering chemicals plastics food

7 Focus on innovation High-tech life sciences clean-tech ICT future energy R&D R&D centres science and business valleys integrated international clusters

8 Europe s prime location Crossroads of North, East and West 3 Pan-European transport corridors 4 modern international airports BSR million Northernmost ice-free seaport on the eastern shore of the Baltic Sea Regionally best network of roads and highways 3 strategic multimodal logistic centres under development EU million CIS million

9 Talent pool of 3 million 40 % of the year olds have higher education 30 % of overall population with higher education compared to the EU average (24%) 46 higher education institutions: 200,000 students and 40,000 graduates annually ~90 % of Lithuanians speak at least one foreign language

10 Leading ICT and Internet capacities Global leadership in mobile e-signature World s 2 nd fastest Internet World s 6th and Europe s No. 1 fiber broadband penetration (23 %) Europe s highest fiber optic density EU s greatest GSM penetration (147 %) World s No. 1 in the number of mobile telephone subscribers per 100 population Europe s densest network of public Internet access points Sources: Study by University of Oxford (England) and University of Oviedo (Spain), 2009; GSM European Coverage report; European Commission, 2009 World s fastest upload Internet in 2011, Mb/s South Korea LITHUANIA Latvia Aland Islands Romania Iceland Moldova Andorra Japan Bulgaria Sweden Lithuania Italy Luxembourg Austria Germany Netherlands Denmark UK Ireland EU s highest mobile penetration 129% 126% 126% 119% 142% 134% 132% 147% 146% 0% 50% 100% 150% 200%

11 Financial support for FDIs INVEST LT+ Tax incentives for investments into new technologies and R&D Tax holidays in 2 free economic zones

12 INVEST LT+ program grants to cover expenses of FDIs in Lithuania Financial support available per FDI project in the field of services, R&D or manufacturing Construction, Infrastructure, Special personnel training and Salary costs General personnel training costs up to EUR 1.5 million up to EUR 2 million MAX POSSIBLE SUPPORT up to EUR 3.5 million

13 INVEST LT+ average support MANUFACT URING PROJECT % of the total investment into assets; SERVICES PROJECT R&D PROJECT % of the gross salaries paid during 24-month period for each full-time position within 3 years; % of the gross salaries paid during 24-month period for each full-time position within 3 years / or of the total investment into assets.

14 Incentives for new technologies and R&D Scientific research and experimental development (R&D) costs deducted 3 times from income for the tax period during which they were incurred, if the performed R&D works are related to the usual or intended activities of the entity that generate or will generate income or economic benefit Super-accelerated depreciation - acquisition price of fixed assets used in the R&D activities can be written-off within two years Investments into substantial technological improvements will entitle the companies to reduce the taxable profit down by 50 %

15 Tax incentives in 2 FEZes 0 % corporate tax during the first 6 years and only 50 % of corporate tax over the next 10 years 0 % tax on dividends 0 % real estate tax

16 Network of 5 valleys Santara Valley (Vilnius) ICT & Life Sciences Centre Centre of Innovative Medicine Nature Research Centre Sunrise Valley (Vilnius) Centre of Physical and Technological Sciences Santaka Valley (Kaunas) National Open-access Centre of R&D Centre of Sustainable Pharmacy and Health Technologies National Open-access Centre of Future Energy Nemunas Valley (Kaunas) Centre of Agriculture and Forest Sciences Maritime Valley (Klaipėda) National Centre of Marine Sciences and Technologies

17 Working answers for FDIs