Free Economic Zone

 

The activities of the free economic zones (FEZ) are regulated by the Law on Fundamentals of Free Economic Zones of the Republic Lithuania.

FEZ is an area designated for economic, commercial and financial activities, where the special economic and legal operating conditions provided for in the aforementioned law and applicable to economic entities are present.
Commercial, production and export, business, banking or other activities may be developed in a zone established in the Republic of Lithuania. The types of activities shall be determined by a separate law on the establishment of a specific zone. The following spheres of capital investment and activities shall be prohibited for enterprises in the FEZ:

1. economic-commercial activities related with ensuring State security and defence, as well as with the production, storage or sale of arms, ammunition or explosives, or having a harmful effect on the environment;
2. production, processing, storage and neutralisation of hazardous and radioactive materials;
3. production, sale and storage of narcotics, narcotic, virulent and poisonous substances;
4. processing, sale and storage of crops containing narcotic, virulent and poisonous substances;
5. manufacturing of vodka, liqueur and other liquors;
6. manufacturing of tobacco products;
7. manufacturing of securities, paper money and coins, postage stamps;
8. founding and keeping of gambling-houses;
9. organisation of lotteries;
10. publishing activities, except for personal needs, preparation and broadcasting of radio and TV programmes, with the exception of technical servicing of printing – houses, radio and television;
11. treatment of patients who are ill with serious and especially dangerous infectious diseases, including venereal and contagious skin diseases, aggressive forms of mental diseases;
12. treatment of animals ill with especially dangerous diseases; and
13. settlement of labour migration issues.

A licence issued by the Government of the Republic of Lithuania or its authorised State institution must be obtained for licensed activities specified in the Law on Enterprises of the Republic of Lithuania. Investment of capital of foreign origin into exploitation of natural resources shall be prohibited without a concession.

 

Free Economic Zones in Lithuania