KLAIPĖDA FREE ECONOMIC ZONE:

A magnet for international companies

The Klaipėda Free Economic Zone (Klaipėda FEZ) was established in 1996 and opened officially in 2002. FEZ offers tax incentives to qualified investors that invest at least 1 million euros. In 2008, due to overcrowding the zone was expanded from 205 hectares (510 acres) to 412 hectares (1,020 acres) of developed land. As of March 2008, before expansion, FEZ had 22 investors: seven were operating, one just finished construction, six were under construction, and others in development stage. Web page: www.fez.lt E-Mail: info@fez.lt

The Klaipeda Free Economic Zone (FEZ) was the first and is still the only fully functioning free economic zone in Lithuania. The two companies that first started operations in the zone was the Japanese company Yazaki Wiring Technologies Lietuva, and the Danish company A.Espersen A/S, which opened their fish processing factory here in January 2003. FEZ was established to provide favourable conditions for the development of business activities by offering a prepared industrial site with a ready physical and juridical infrastructure, support services and tax incentives.

The 412 hectares area is located in a strategic position, close to the port of Klaipėda and with well developed connections to rail and road. Palanga International Airport is located only 30 km from the FEZ.

The Klaipėda FEZ has signed agreements with 20 foreign and Lithuanian capital firms, of which 16 are already operating. Since its inception, there has been invested more than LTL 792 million and created more than 1.000 jobs in the zone. The Klaipeda FEZ is recognized an ‘importance for the state project’.

During the last eight years, approximately 400 million Euros has been invested here. Business is carried on here by 16 companies from countries of Western Europe, Asia, and Scandinavia. Another four companies have already commenced construction or design works.

The Klaipėda FEZ has been recognised as an economic project of state importance. Such status of the zone ensures a favourable attitude of authorities in solving any issues that may arise.

In 2010 the Klaipėda Free Economic Zone took part in a world ranking for free economic zones, organised by the “FDI Magazine” belonging to the “Financial Times” group of publications. Out of 700 world free economic zones, which participated, the Klaipėda FEZ took 20th place. In the category ‘facilities’ the zone took 5th place.

The first in Lithuania
Klaipeda Free Economic Zone is the first and leading free economic zone in Lithuania. The advantages of setting up a business here became especially apparent after Lithuania joined the European Union in 2004. Based within the security of doing business within the EU it provides an excellent point from which to explore the vast Eastern, Western, Scandinavian and Russian markets.

Tax incentives
Companies investing in the Klaipeda Free Economic Zone will have considerable benefits in terms of no or reduced profit tax, no tax on dividends for foreign investors and no real estate taxes. These tax incentives in the Klaipeda Free Economic Zone are regarded as state aid for regional development, and therefore comply with European Union regulations.
• 6 years’ exemption from corporate income tax following made investment and 50% discount for the following 10 years –for companies that have invested more than €1 million
• No real estate taxes
• No taxes on dividends paid on foreign investments

Management
The Klaipėda FEZ is managed by a separate company that provides clients with all the necessary services in order to make the process of setting up easier and faster. The company provides the following services:

– consultations on establishing and registering enterprises and setting up businesses in the zone; 
– issues permits for activities in the zone; 
– informs about EU structural support opportunities for the client’s investment projects
– helps the clients’ construction and other project vs. authorities
– provides temporary start-up offices and services
– provides contacts to reliable and verified service providers and contractors.

Director Eimantas Kiudulas of the Klaipeda Free Economic Zone (FEZ).

How to become a Klaipėda FEZ enterprise? 
• Contact the FEZ management company by e-mail at marketing@fez.lt  or by phone at +370 46 312163. Complete the investor’s questionnaire at www.fez.lt. 
• Introduce your investment project, agree on the terms and conditions of doing business in the zone and sign an agreement with the Klaipėda FEZ Management Company. 
• Obtain a permit for activity in the zone from the zone management company. 
• Register a zone enterprise in the register of enterprises. 
• Take on a sublease from the FEZ management company for a land plot or lease premises for doing business in the zone. 
• Present to the tax administrator an auditor’s report, proving the amount of capital investment as prescribed by the law.

Current companies established in the zone
Klaipeda FEZ has signed agreements with 20 companies, of which 16 are operating. Their activities cover production of plastic pellets, logistics and storage, bio-diesel, electronics, appliances, architectural glass, steel constructions and a range of services. 

Four new companies are now preparing their business activities in the zone:
Fortum, Heidelberg Cement, AB Ship and Nordetanolis.

Currently based in the Klaipeda FEZ are the following companies: