Lithuania

Lithuania's FDI stock reached EUR 38.25 billion in 2024, representing a year-on-year increase of 7.58%, with the largest outbound Lithuanian investment flows directed toward the United States, Latvia, and Estonia. Germany, Estonia, and Sweden remain the leading source countries for inbound FDI, reflecting Lithuania's continued positioning as a Baltic hub for European capital.

Ministry of Foreign Affairs of the Republic of Lithuania · 2026-05-23

A registered legislative amendment proposes classifying agriculture and food as a sector of strategic importance under Lithuania's FDI screening law, which would bring it within the national security review framework. This follows a broader trend of intensifying regulatory scrutiny of cross-border investment as geopolitical conditions reshape the FDI landscape across the European Union.

White & Case LLP · 2026-03-31

Lithuania's national development bank, ILTE, has designated defence, security, and energy independence as top investment priorities, targeting EUR 6 billion in directed investments into the national economy over the next four years. A state-controlled defence industry holding company has been established to consolidate state capital and facilitate integration of Lithuanian suppliers into European defence value chains, including through the EU's SAFE joint procurement programme.

InfoErdve / ILTE · 2026-05-09

Total bilateral trade in goods and services between the United Kingdom and Lithuania reached GBP 3.6 billion in the four quarters to end-Q3 2025, a 7.3% increase year-on-year, with UK imports from Lithuania growing at a faster rate (9.8%) than UK exports to Lithuania (4.5%). Lithuania ranked as the UK's 58th largest trading partner over the same period.

UK Department for Business and Trade · 2026-03-26

An OECD Trade Policy Paper published in 2025 documents that Lithuania's relatively low trade dependence on China and its diversified export base materially mitigated the impact of Chinese trade coercion following Lithuania's opening of a Taiwanese representative office in 2021. Product-level evidence from the laser and peat industries illustrates how lower trade concentration supports both robustness and recovery in the face of external disruption.

OECD Trade Policy Papers · 2025-12-02

Lithuania has implemented a streamlined investment facilitation mechanism—designated the 'Green Corridor'—for large-scale defence-sector manufacturing, reducing facility setup timelines from approximately two years to as little as six months. Qualifying projects are eligible for a 0% corporate income tax rate for up to 20 years, creating a structurally differentiated incentive environment for defence-industrial market entrants.

U.S. International Trade Administration · 2025-12-23

The OECD projects Lithuania's GDP growth at 3.1% in 2026, rising from 2.5% in 2025, driven primarily by household consumption, strong real wage gains, and one-off withdrawals from second-pillar private pension savings. The European Commission's Spring 2026 forecast is slightly more conservative at 3.0%, with inflation expected to ease to 2.9% in 2026 from 3.4% in 2025 as energy prices moderate.

OECD / European Commission · 2026-05-23

Lithuania's Seimas approved a 2026 state defence budget of EUR 4.79 billion, equivalent to 5.38% of GDP—a 43% increase versus 2025 and the largest defence allocation in the country's post-independence history. The budget encompasses armoured vehicle acquisitions, air defence strengthening, military infrastructure development, and approximately EUR 240 million in dual-use infrastructure projects.

Lithuanian Ministry of National Defence · 2025-12-23

The 2026 state budget projects revenues of EUR 21.1 billion against expenditures of EUR 27.5 billion, implying a deficit exceeding 5% of GDP on a national accounting basis—though the European Commission's harmonised estimate is 2.6% of GDP. Allianz Trade notes that public debt could approach the Maastricht 60% threshold over the medium term if defence commitments are not accompanied by sufficient revenue measures, and flags Lithuania's bank-centric financial structure as a concentration risk.

China-CEE Institute / Allianz Trade · 2026-01-15

Lithuania's comprehensive tax reform, effective 1 January 2026, restructures corporate income tax, value-added tax, personal income tax, and real estate tax, while introducing a new 10% security contribution on non-life insurance premiums directed to the State Defence Fund and a new excise duty on sugar-sweetened beverages. Newly established small companies may apply a 0% corporate income tax rate for their first two tax periods, and immediate full-year expensing is now permitted for qualifying asset classes including machinery, equipment, and software.

KPMG Baltics / Motieka ir Audzevičius · 2026-03-03

Lithuania's Bank of Lithuania (Lietuvos Bankas) is enforcing full Markets in Crypto-Assets (MiCA) licensing requirements for all crypto-asset service providers (CASPs) operating in the country as of 1 January 2026, with minimum capital requirements ranging from EUR 50,000 to EUR 125,000 depending on service type. Non-compliant operators face prohibition from service provision, financial penalties, and potential criminal liability, while licensed firms are positioned to leverage EU-wide passporting rights.

Bitget News / COREDO · 2025-12-26

Lithuania's competition law was amended in May 2025 to suspend enforcement of 50% of antitrust fines—and associated interest—pending final court rulings, reducing immediate financial exposure for companies contesting Competition Council decisions. A new advisory function was also inserted, under which the Competition Council will provide guidance to businesses and public bodies on compliance and preventive measures; these modifications entered into force at the start of 2026.

MLex · 2025-05-15