Mundo's country rating is essentially a freedom index whereby our team of specialists rates a combination of freedoms, including freedom from violence and personal attacks, financial freedom from high taxes, business freedom from government interference, and especially from socialism and communism.

Mundo's Country Freedom Rating (out of 10)

Political stability: 8

Lithuania is a democratic nation with a stable political climate. It is well above average according to the latest corruption index that gives it the rank of 35.

The locals are a little difficult to do business with, but this is a trend that is seen worldwide, although, if you find a good consultant in Lithuania, these are easily avoidable issues.

In recent years, however, there have been worsening demographic trends and political uncertainty, which has negatively affected the number of foreign investors in the country.

Political tensions in the Lithuanian parliament don’t help much.

However, the economic index for investors has improved since 2018, and the country has continued addressing the difficult issues that affect the quality of its democracy.

In 2018, the defence committee and national parliamentary security conducted a yearlong investigation into the privileged access enjoyed by the foreign financial groups and the Lithuanian groups.

Two parliamentary parties are in court over political corruption, but overall, the fight against corruption and abuse of office is robust and focuses on the actions of high-profile people.

These actions show that necessary action is being taken to withstand any political pressure.

Investors are, however, optimistic that things will get better in the future, and the numbers of foreign investors keep rising.

In fact, the law in Lithuania assures equal protection for both domestic as well as foreign investors.

There are no special permits required from the government for a foreigner to invest capital in the country. State institutions do not have a right to interfere with the possession of a foreign investor’s property.

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Personal Safety - 10

Like in other Baltic countries, Lithuania has a very low crime rate, making it a perfect destination for foreign investors.

It is known as one of the safest places to visit, and many people reported that Lithuania is extremely civilized compared to the nearby countries. There aren’t many unpleasant situations other than the occasional pickpocketing and scam.

Overall, this is a safe country, and the most important thing, however, is to always be informed about crime and which areas to avoid.

Using your common sense and always taking precautionary measures is enough to make your stay in this country pleasant.

There are a few places you should avoid. In Vilnius, authorities publish different lists with the names of locations and clubs where a high crime rate was reported.

Here’s what you should look out for;

Petty crime and theft

Pickpocketing and other forms of petty crimes are common, so just keep your valuables safe when visiting certain restaurants.

Theft in vehicles has become a bit of a growing problem, and if you have rented a vehicle and are driving, you should be cautious of people on the road who attempt to flag you down to pull you over.

This is a ploy for you to get out of your car as a second party tries to steal some property in the vehicle. So, be watchful when driving.

Drink responsibly

In Lithuania, there is a large premium beer selection, and this is quite tasty. It is also pretty strong. Vodka is very popular and if you are planning on taking some, do this with caution.

There have been plenty of reports of foreigners becoming victims of crime after they are highly intoxicated.

Avoid drinking alone when you are new in the country or when with people you do not know. Vilnius is one of the most popular cities for stag weekends, and it can get crazy.

Lifestyle - 10

Lithuanians spend plenty of time enjoying music, eating, watching TV, and going out. The men love sports while the women prefer fashion.

Despite their many advances in foreign cuisines and restaurants, a true Lithuanian will still prefer to eat their local cuisine at home.

There is plenty of leisure in this country, from going out to crowded bars and pubs to learning how to snowboard from indoor ski facilities. You can find these in Druskininkai, or you could visit an exhilarating tree-top adventure.

There are many events focused on international students and mostly at the start of a new term. This is perfect for any new students who get to meet new people and make friends. If you are a foreigner who has travelled with your family, your kids will enjoy this social engagement.

There are national parks, kayaks, bikes, special trails, etc., to make your weekends and holidays fun. If you are looking for extreme adventures, polygons or wakeboarding, treetops, or air ballooning are among the things you get to choose from.

You’ve also got to get into the groove of the local sportsmen, as Lithuanians love to support their own and care very little about foreign sportsmen even though they are much better.

Taxation - 7

Lithuania is part of the Baltic Region. While Estonia and Latvia have preferable taxation of 0% for corporates and 20% for dividends, Lithuania stands out due to its beneficial banking sector and the lower salary cap.

In fact, of all the OECD countries, Lithuania stands at position 3 in terms of the most attractive for corporate taxes and also has the lowest average salary of the Baltic Countries, which is a great benefit to the foreigners.

Taxes are paid once every year, which helps with accounting. This country is considered a tax haven and has a great reputation in the Euro Zone. You will not find Lithuania on the blacklist.

There are, however, no special programs for micro-enterprises, although there are usually some tax privileges for SMEs. These only pay 5% tax instead of the fixed 15%.

The 5% rate applies to companies that have less than ten workers and are making more than €300,000. This is a small Partnership.

If you have a high salary, you could earn even more in Lithuania and pay less in terms of taxes than in a countries like Estonia and Latvia.

Dividends are distributed by the resident company, either to a non-resident company or another resident company.

Foreign companies that do not have a trade-off business in Lithuania or derive profits from sources in the country are subjected to a withholding tax of 15%.

Investment Potential – 10

Being strategically located at the crossroads of Eurasia and Europe, Lithuania offers investors an extremely diversified economy, norms, and EU roles.

With a multilingual and well-educated workforce, Low inflation, advanced IT infrastructure, and a stable democratic government, this country is very good for foreign investors.

Lithuania’s economy has grown steadily since 2009, where there was an economic crisis but hit a glitch in 2020 due to the Pandemic. Economists are, however, predicting a rapid recovery in 2021, thanks to the accumulated financial reserves, budget surpluses, and a diversified economy.

There are many investment opportunities in almost all economic sectors. These sectors have attracted many foreigners, and they include Metal Processing, Information and Communication Technology, Biotech, Plastics, Furniture, Machinery, Electrical Equipment, Paper Industry, and Wood Processing.

There are also investment opportunities in Construction and Real Estate.

Lithuania joined the Eurozone in 2015, and the OECD (Organization for Economic Cooperation and Development) process was completed in 2018. This opens up a whole new world of opportunities for foreign investors.

Currently, the income levels in the country are lower than most of the EU countries and based on the net monthly wage, Lithuania is number 23 out of the 28 EU nations.

As per the Bank of Lithuania’s statistics, the US was in the 16th position as their largest investor. Their cumulative investments totalled almost $245 million.

After the election in 2016, the Government of Lithuania was more focused on lowering investment barriers and partnered with private sectors to offer financial incentives for investors.

The Government offers equal treatment for domestic and foreign investors, making the environment conducive for investment opportunities.

As a foreign investor, you have a right to participate and re-invest profits without any restriction. You are also entitled to tax concessions for both strategic investors as well as small companies.

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