Doing business in Lithuania: Lithuania trade and export guide
Updated 26 October 2015
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This publication is available at https://www.gov.uk/government/publications/exporting-to-lithuania/exporting-to-lithuania
EU Exit
Learn about changes for UK exporters to Lithuania if the UK leaves the EU without a deal.
Managing risk
Find out how UK companies can control risks when doing business in Lithuania.
Export opportunities and advice
Find more export advice and explore opportunities overseas on great.gov.uk.
1. Lithuania export overview
Lithuania is located between northern and eastern Europe, and is the largest of the 3 Baltic States.
Contact a Department for International Trade (DIT) Lithuania export adviser for a free consultation if you’re interested in exporting to Lithuania.
Contact UK Export Finance (UKEF) about trade finance and insurance cover for UK companies. You can also check the current UKEF cover position for Lithuania.
Lithuania has benefited from EUR180 million per year of European Union (EU) assistance and development funds since joining the EU in 2004. This has helped modernise the country’s economy. Lithuania is a member of the EU’s Schengen Area.
It’s ranked 24th in the World Bank’s ‘Ease of Doing Business’ report.
Lithuania joined the eurozone on the 1st January 2015.
Benefits for British businesses exporting to Lithuania include:
- English widely used as business language
- politically and economically stable
Strengths of the Lithuanian market include:
- strategic location
- funding and support available for businesses
- strong transport infrastructure
- multilingual and educated population
- world leading Information Communications Technology (ICT) infrastructure
Read the EU’s practical guide to doing business in Europe.
2. Challenges
Doing business in Lithuania is very similar to doing business in the UK. If your product or service is successful in the UK, there’s a good chance you’ll be successful in Lithuania.
At present there are no major challenges to UK companies.
3. Growth potential
3.1 Economic growth
Lithuania has come out of recession quickly. It’s currently among the fastest growing economies in the EU. The economy grew by 2.9% in 2014 and is forecast to grow by 2.0% in 2015.
Average annual inflation was 0.2% in 2014. The unemployment rate as of December 2014 was 10.7%.
Lithuania’s priority sectors for economic development include:
- energy
- infrastructure, particularly transport
- education and training
- life sciences
- ICT
3.2 Trade agreements
Lithuania is a member of the EU and the World Trade Organisation (WTO). This means that goods manufactured in the UK are exempt from import duties.
Contact the SOLVIT team if you have market access issues relating to the operation of the Single Market.
3.3 EU funds
Lithuania will receive EUR6.8 billion of further EU financial support between 2014 and 2020. This will contribute to the country’s social, economic and business infrastructure development.
UK companies can benefit by:
- participating in EU financed tenders
- cooperating with local partners
3.4 Gateway to Russia
21% of Lithuanian exports go into Russia. Lithuania can be a gateway to the Russian market due to:
- over 70% of Lithuanians speaking Russian
- Lithuanian companies usually have a lot of knowledge of operating in the Russian market
- direct rail route into Russia
However, internal and foreign affairs political decisions by Lithuania and the EU have impacted the operation of this trade route into Russia. The Russian government has been known to:
- ban certain goods
- cause border crossing issues
- put in place temporary trade embargoes
4. UK and Lithuania trade
Lithuania imported EUR 1,091 million of goods from the UK in 2014. The UK had a 4.2% share of the Lithuanian market.
Top UK exports to Lithuania include:
- electrical machinery
- machinery, mechanical equipment and spare parts
- optical, precision and medical devices and equipment
- plastics
- transport vehicles
- chemical products
- essential oils, resinous plant exudates, cosmetics and toiletries
- footwear
- furniture, home textiles
- food products
5. Opportunities for UK businesses in Lithuania
Department for International Trade (DIT) provides free international export sales leads from its worldwide network. Search for export opportunities.
Access high value public procurement notices via Tenders Electronic Daily (TED). TED contains all procurement notices above a certain threshold from the EU and European Economic Area (EEA).
Learn more about business opportunities in the Nordic and Baltic regions.
5.1 Transport
Transport infrastructure development and its integration into the European network are supported by EU funds.
The major transport infrastructure development project is Rail Baltica. This will link the Baltic States to Poland via a high quality European standard gauge rail line. The project is:
- estimated to cost £3 billion
- co-financed by the EU’s Connecting Europe Facility (CEF) fund up to 85%
Opportunities for UK companies include:
- master planning, environmental consultancy, financial planning
- creative services, including branding, architecture
- engineering design services
- project and commercial management
- rail technologies
- construction
- rolling stock components
- operations, maintenance and training
Contact UKTI.Vilnius@fco.gov.uk for more information on transport opportunities in Lithuania.
5.2 Education
There will be £549 million in EU funds for all levels of education in Lithuania between 2014 and 2020. These funds will be allocated to:
- acquisition of special educational aids and technical aids
- modernisation and development of infrastructure in education and Research and Development (R&D)
- acquisition of educational equipment and supplies
There are opportunities for UK companies to supply expertise and technologies for the:
- modernisation of the education infrastructure across all education levels
- creation of a non-formal education network, especially in Science, Technology, Engineering and Mathematics (STEM) subjects and special needs
- vocational education sector to improve practical training infrastructure
- development of integrated science and business centres
- development of training courses for public service employees, teachers in vocational, general and adult education
- development of employment and corporate training
Contact UKTI.Vilnius@fco.gov.uk for more information on education opportunities in Lithuania.
5.3 Defence and security
Defence sector funding will double from 2015 to 2020 to reach 2% of Lithuania’s GDP. EUR 830 million will be allocated for defence procurement during this period. The additional funding is due to:
- the Ukraine crisis
- Lithuania having the longest external land border in the Schengen area
A National Cyber Security Centre was launched in Lithuania on 1st January 2015 as a division of the Ministry of National Defence. The centre intends to collaborate with NATO Cooperative Cyber Defence Centre of Excellence and other international cyber security organisations. Cyber incidents exceed 25,000 per year.
Opportunities for UK companies in the cyber security sector include:
- environment analysis
- security of information resources in the public/private sector, including critical infrastructure
- threat management
- coordination and supervision whilst implementing cyber security measures
- incident investigation and response to cyber incidents
Contact UKTI.Vilnius@fco.gov.uk for more information on education opportunities in Lithuania.
5.4 R&D and innovation technologies
Almost £560 million of EU funds are allocated for R&D and innovation up to 2020. £320 million is being invested in state-of-the-art R&D infrastructure.
EU funds will be prioritised to technologies for:
- energy and sustainable environment
- healthcare and biotechnology
- agro-innovation and food
- advanced manufacturing processes and materials
- transport, logistics and ICT
- education
- disruptive innovation development and implementation
Opportunities for UK companies include:
- R&D co-operation, including EU funded projects
- participation in procurement procedures of the EU financed projects
- services for R&D and pharmaceutical companies
- supply of laboratory equipment and consumables
Contact UKTI.Vilnius@fco.gov.uk for more information on education opportunities in Lithuania.
5.5 Energy
The closure of the Ignalina nuclear power plant in 2009 resulted in a reduction in power capacity. Lithuania is now trying to increase capacity through:
- interconnection with other countries
- refurbishment of existing power plants
- construction of new power infrastructure and generation units
There are opportunities for UK companies to supply energy products and services for:
- development of renewable energy
- construction of electricity and gas grids to connect Lithuania with neighbouring power markets
- modernisation of old power plants
- biomass development
- potential construction of new nuclear power plant
Contact UKTI.Vilnius@fco.gov.uk for more information on energy opportunities in Lithuania.
5.6 Smart cities
Smart cities and regions in Lithuania is a long-term project supported by the Lithuania government and partly financed by EU funds.
Vilnius benefits from one of the fastest Internet connections in the world and it recently received an IBM grant as part of the ‘Smart Vilnius’ project. This is earmarked for upgrading transport and its management, as well the development of data-based infrastructure.
Opportunities for UK companies include:
- smart management
- smart lighting
- development of urban spaces
Contact UKTI.Vilnius@fco.gov.uk for more information on smart city opportunities in Lithuania.
5.7 Retail / consumer goods
Retail turnover grew by 5.6% in 2014. 9 to 12% increases were registered by companies selling:
- clothes and footwear
- textiles
- audio and video equipment, recordings, hardware
- paints and glass
- electrical household appliances
- furniture, and lighting equipment
Opportunities for UK companies arise due to:
- higher consumer purchasing power
- consumer focus turning towards quality products
- newly developing shopping spaces and existing network of shopping malls
Contact UKTI.Vilnius@fco.gov.uk for more information on retail opportunities in Lithuania.
5.8 Supply to major industries
Lithuania has traditionally had a strong and well developed industry. Good opportunities exist for British companies to supply products and services to sectors including:
- food processing
- chemicals, petrochemicals and plastics
- wood processing / furniture
- electronics, electrical manufacturing and lasers
- metal processing and engineering
- transport and logistics
- medical devices and pharmaceuticals
- textiles and clothing
Contact UKTI.Vilnius@fco.gov.uk for more information on opportunities to supply to industry in Lithuania.
6. Start-up considerations
UK companies can approach the Lithuanian market in several ways:
- direct export
- set up an agency
- appoint a distributor
- form a joint venture
- set up local manufacturing
- acquire entire or part of Lithuanian company
In most cases doing business in Lithuania requires local representation in the form of a distributor. It is relatively easy to appoint a distributor and there are no legal barriers to agents and distributors operating for a UK company within Lithuania.
Establishing a company in Lithuania takes about 15 working days and involves 7 steps. Find out more on starting a business in Lithuania.
7. Legal considerations
Lithuanian legislation, although harmonised with EU requirements, is complex.
Contact the Department for International Trade (DIT) team in Lithuania to help find tax and legal advisers before entering into agreements.
7.1 Standards and technical regulations
Products and packaging should meet EU standards.
Labelling should be in Lithuanian.
The Lithuanian Standards Board is the standards authority.
7.2 Intellectual property
Trademarks, designs, patents and copyright are the principal forms of Intellectual Property (IP) protection available to companies and individuals.
IP law, especially for patent protection, is not totally harmonised within the EU.
More information about patents in Lithuania is available from the State Patent Bureau.
8. Tax and custom considerations
Information on taxes in Lithuania is available from the State Tax Inspectorate.
8.1 Value added tax (VAT)
The general VAT rate in Lithuania is 21%.
Check with HM Revenue and Customs (HMRC) regarding VAT refund of business expenses incurred in Lithuania.
8.2 Corporate tax
The standard corporate tax in Lithuania is 15%.
8.3 Income tax
Income tax in Lithuania is 15%.
8.4 Customs
The internal market of the EU is a single market which allows the free movement of goods and services. Therefore no import duties are applicable for goods imported from within the EU.
8.5 Documentation
Goods which are in free circulation within the EU can move between member states without being subject to any documentation requirements.
9. Entry requirements
You don’t need a visa to enter Lithuania, but have to travel with a valid passport or ID card.
9.1 Travel advice
If you’re travelling to Lithuania for business, check the Foreign and Commonwealth Office (FCO) travel advice beforehand.
10. Contacts
Contact the Department for International Trade (DIT) team in Lithuania for more information on opportunities for doing business in Lithuania.