New Investment Regulation: A Breakthrough for Business and the Defense Industry in Lithuania
Starting November 1, Lithuania will implement legal reforms that fundamentally change the way investment projects are carried out. Until now, more favorable conditions were reserved only for large-scale projects deemed essential for national security and defense. Such projects – like the planned 155 mm artillery ammunition factory by the German defense industry giant Rheinmetall – were able to launch construction without a building permit.
However, most investors faced serious bureaucratic hurdles, with the building permit process taking up to three years. The situation is now set to change dramatically: a “green corridor” will open not only for large-scale projects but also for Free Economic Zone (FEZ) companies, with the defense sector becoming the main beneficiary of the reform.
Large-scale projects and FEZ companies: faster start
Under the new framework, large-scale projects (at least €20 million investment and 150 jobs, or €30 million and 200 jobs in Vilnius) and FEZ companies will be allowed to begin construction without a building permit, only by notifying the authorities of the project start. Notification will require only the technical design, expert evaluation, and other mandatory documentation. This removes a significant administrative burden and enables projects to start much faster.
For the first time, FEZ companies will enjoy the same privileges as strategic projects. This makes Lithuania more competitive in attracting large investors seeking to rapidly realize manufacturing or technology expansion plans.
Defense industry: the biggest winner
Even more significant changes await defense and security projects. From now on, companies producing military equipment, armaments, vehicles, or other technologies critical to the armed forces will face much lower entry thresholds: just €1.448 million in investment and 20 jobs.
Most importantly, defense companies will no longer need a building permit – or even to notify authorities before starting construction. This means defense industry factories or technology centers in Lithuania can launch operations extremely quickly.
These conditions open the door to a much wider range of companies seeking to enter the defense sector. This is not only a matter of economic growth – it is a strategic strengthening of Lithuania’s security. Rapid project launches ensure that critical infrastructure, manufacturing, and technology capabilities will be available when they are most needed – both for NATO and for the Lithuanian Armed Forces.
Risks and responsibilities
Speed, however, does not mean reduced responsibility. Investors will still be required to conduct environmental impact assessments and comply with architectural and urban planning requirements. The possibility to start construction earlier shortens timelines but requires careful preparation to avoid frozen investments or legal disputes.
Strategic importance – for business and the state
The central focus of these reforms is defense. Yet the reform is not only a guarantee of national security but also a real economic opportunity. Businesses – particularly in manufacturing and technology – benefit by being able to start faster, cut bureaucratic costs, and compete for international contracts. With this new regulation, Lithuania sends a clear signal to investors: we are ready to host the most important projects that strengthen both our economy and our security.
