Greenfield and brownfield investments

Any investment of a foreign company into assets, tangible or intangible, in another country is usually considered a foreign direct investment (FDI). Lithuania is one of the most appealing Baltic states in terms of investment. This is due to the low costs of establishing a company, but also thanks to the presence of various industries, which attract more foreign enterprises every year. 

The cumulative FDI in Lithuania increased by 4.1 per cent in 2020. Analysts expect that within 2021-2022 investors' appetites in Lithuania will continue to tilt towards stocks that favour diversification and both growth and value segments of the market.

Lithuania has been working intensively to attract foreign investments to the country. A more business-friendly legal base has been established, and free economic zones that are particularly favourable to foreign investments have been set up. On the 1st of January 2021, legislative amendments (dubbed the “Green Corridor”), entered into effect in Lithuania, creating more favourable conditions for local and foreign capital investments in large-scale projects in manufacturing, data processing and data hosting services.

The foreign company purchases, leases or constructs assets in the host country either in form of new or existing facilities. These investments are called “greenfield” investments in case of a new and “brownfield” investments in case of an existing facility. The term greenfield comes from the fact that the foreign investor starts anew from the scratch with nothing else but a green field at the beginning. Both types of investments bring their own unique challenges in various fields with its advantages and disadvantages.

A team of greenfield and brownfield investment experts at Rödl & Partner Lithuania, led by an attorney-at-law Michael Manke, is perfectly suited as the one-stop-shop for supporting foreign investors in Lithuania. We might propose everything what is essential for a smooth and successful investment process: interdisciplinary approach, global reach and a strong presence among family businesses.