Lithuania gives tax breaks to defence industry

Lithuania’s parliament has allowed domestic and foreign defence firms to set up in the country’s Free Economic Zones from 2024, entitling them to tax breaks.

Some 113 MPs voted in favour of the amendments, which will lift a ban, in place since 1995, on activities in FEZs that are related to national security and defence, as well as the production, possession or sale of weapons, ammunition, and explosives.

Setting up businesses in the FEZs allowed them to receive tax breaks. Previously, the heads of the areas in Marijampolė, Akmenė, Klaipėda, and Kaunas said they had received inquiries from foreign defence firms.

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