An investment account comes into force in Lithuania from 2025. Its main advantage is simplified taxation and declaration of income received from investment activities.
Key changes for investors:
- Taxation of income
When investing through the investment account, income earned from investments is taxed only when the amount withdrawn from the investment account exceeds the amount of funds deposited. - Declaration
The declaration of the investment account to the State Tax Inspectorate (VMI) shall be carried out together with the annual income declaration - for the 2025 tax period the declaration will need to be completed by May 1, 2026. More information available in VMI FAQ section about the investment account. - Possibility of multiple accounts
It is possible to have multiple investment accounts, but each must be reported to the VMI no later than by the end of the declaration period for 2025. - Transfer of existing financial instruments to the investment account
Financial instruments acquired by December 31, 2024 in Luminor Trading platform (Baltic securities) can be transferred to the investment account, indicating their acquisition value. This option can be used until December 31, 2025. - Using investment account will not be mandatory
Investors can choose to switch to the new investment account tax regime from 2025 or at any time later, or invest under the old regime (declaring income annually and paying taxes on investments during the tax period).
