Amends the Investment law to establish the land reservation scheme and introduce more flexible job creation criteria for large-scale investments
01 Jan 2024
On 21 December 2023, the Seimas of Lithuania implemented several amendments to the Investment Law. Notably, a State land reservation scheme was established to mitigate the shortage of large, developed plots of land for investment projects. This model enables the pre-reservation of State land for potential private investment projects, allowing for the development of these plots (such as infrastructure development and planning procedures) by the State or municipality ahead of securing an investor. These prepared plots can then be leased to investors without a public auction, provided the investment project meets specific legal criteria, such as agreements with state or municipal authorities, creation of a minimum number of jobs, and investment of a minimum amount of funds. These measures became effective on 1 January 2024.
Another modification pertains to large-scale investments. The revised regulation for large-scale investment projects introduces more flexible criteria for job creation, allowing projects that generate fewer jobs to qualify for large-scale project status and its associated benefits. This change aims to foster investment in projects that, despite generating fewer new jobs, provide higher wages, thereby encouraging capital-intensive initiatives with an exceptional nature. The changes will come into force on 1 July 2024.
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Promotion and facilitation (Investment facilitation , Investment incentives)
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