Lithuania between borders and business: legal reflections on investment and migration (2019-2024)

Abstract

Between 2019 and 2024, Lithuania underwent a significant transformation in both its economic and legal systems, evolving into a prominent destination for foreign direct investment (FDI) and a strategic entry point for migrants within the European Union. This article critically examines the legal, institutional, and demographic changes that supported Lithuania’s emergence as a Baltic innovation hub. It focuses on the rapid expansion of the startup ecosystem, which reached a valuation of €16 billion by 2024, driven by legal reforms, investor-friendly policies, and support from EU digital initiatives. In parallel, Lithuania experienced a marked increase in migration flows, with growing numbers of labor migrants, students, humanitarian entrants, and business investors arriving from Ukraine, Belarus, India, and beyond. The article further explores the legal challenges associated with investment-based residence permits and assesses Lithuania’s compliance with European standards on migration, fundamental rights, and equal treatment. Using data from national institutions, European directives, and comparative legal analysis, the study offers a nuanced view of how Lithuania balances national sovereignty with regional integration. It concludes with forward-looking policy recommendations to enhance transparency, regulatory efficiency, and migrant integration, ensuring the long-term sustainability of Lithuania’s economic and legal systems.