Tax free zone. Industries: plastics & chemicals, offshore & large metal structures, electric vehicles & components, food processing, value added logistics and others.
Klaipėda Free Economic Zone or Klaipėda FEZ (Lithuanian: Klaipėdos laisvoji ekonominė zona) is the first free economic zone in the Baltic region. It was established in 1996 and officially launched in 2002.
Klaipėda FEZ consists of 412 hectares of land dedicated to manufacturing plants, logistics, and business park development. It is located in Klaipėda, Lithuania, a port city on the Baltic Sea connected to the rest of continental Europe by road and railway.
History
Tax incentives
Tax
Corporation tax
0% (first 10 years) 7.5% (following 6 years)
Real estate tax
0%
The first steps for the establishment of the Klaipėda zone were undertaken in 1996. In 1997, a management company was selected after reviewing five proposals.[1] The Klaipėda FEZ is managed by Klaipėda FEZ Management Company (Lithuanian: Klaipėdos LEZ Valdymo Bendrovė), a private limited liability company. The Baltic Fund, an investment fund, financed by the Rockefeller and Company, Lazard, and investors from Saudi Arabia,[2] owned about 60% of the management company. The remaining shares are owned by city enterprises, municipalities and the government of the Lithuanian Republic.[3] In 2001, the Rockefeller Foundation sold its shares to Pierre J. Everaert Family Trust based in Demarest New Jersey, which then became the largest private shareholder of the KFEZ.
Another set of obstacles was raised during Lithuania's negotiations for accession to the European Union.[4] Klaipėda FEZ began its activities in December 2001.[5] In 2003, Thailand-based Indorama announced an investment of 80M euros into a plastic production factory.[6] To further attract investors to FEZ, Lithuanian-based companies have been allowed to participate since 2004.[7] A year later, the FEZ began plans for expansion and further development of its land, requesting assistance from structural funds of the European Union.[8] By the end of 2007, FEZ attracted some 600M litas (174M euros) of investments.[9] Total attracted investments since 2002 are 783M Eur.
Currently, more than 5000 employees work at the FEZ investor and supporting companies.
Klaipėda FEZ community currently connects over 5000 employees working in more than 100 industrial businesses focused on Plastics & PET, food processing, offshore & large metal structures, electric vehicles & components, value-added logistics and other industries.
Klaipėda FEZ has 45 clients which are foreign and Lithuanian companies. In total, 19 countries are represented. Total investments are approx. 825M Euros.
Klaipėda FEZ is a recognized economic project of national significance.[10]
Main Award for Digitization and Red Tape Reduction, Honourable Mention for Industry 4.0 and Positive Impact at Economic Zone Sustainable Recovery Strategies Awards 2021[12]
Honourable Mention for EU Compliance, 5G connectivity at Global Free Economic Zone of the Year Awards 2021[13]
Bespoke Award for Sustainability at Global Free Economic Zone of the Year Awards 2020[14]
Honourable Mention for Investor Expansions, Local transport, Workforce Amenities, FlexStart at Global Free Economic Zone of the Year Awards 2019[15]
Bespoke Award for Investor Expansions, Investor Incentives, Economic Impact and Flexible Space at Global Free Economic Zone of the Year Awards 2018[16]
In 2017 Klaipėda FEZ was recognised within the categories of “Quick Launch award” (Editor’s choice), Expansion, Energy Efficiency, Specialism (for Plastics industry) and Contribution to the National economy. Investors wishing to establish operations in Lithuania’s Klaipėda FEZ can use the zone’s Fast Factory Launch scheme. The scheme offers companies ready for use sites that come complete with all the required construction permits, as well as the ability to make minor adjustments to customise the site to fit the investor’s needs. Outside of Klaipėda, construction permits in Lithuania can take up to six months. Additionally, the Flexstart programme aims to allow investors to commence operations in less than one month, with customisable pre-built manufacturing facilities. New offices are currently under construction that will be offered to SMEs as part of the programme.[17]
General Facts & Information
Address – Pramonės Str. 8, LT-94102, Klaipėda, Lithuania.
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