Dear Investors,
I would like to inform you about important changes that will affect the investment process in Lithuania.
From 1 January 2025. Investment Account, an innovation aimed at simplifying the taxation of capital gains and the tax declaration process, will be introduced in Lithuania on 1 January 2025. This account will provide more flexibility and convenience for investors. Please note that these changes are only relevant for Lithuanian taxpayers.
Changes from 1 January 2025:
- Income taxation - you will only be subject to income tax on your income when the amount of withdrawals from your investment account exceeds the amount of funds you deposit. Reinvested funds will not be taxed.
- Declaration - The investment account will have to be declared to the State Tax Agency (VMI) by 1 May 2026, together with the 2025 annual income tax return.
- Multiple accounts - you can have more than one investment account, but you will need to inform the VMI about each one.
- Optional use - the use of an investment account is voluntary - you can choose to continue investing as normal.
No action is required at this stage, but you should consider the following points:
- Account notification - if you decide to use an investment account, you will have until 1 May 2026 to notify the VMI of the account(s) you have chosen.
- Separate use of accounts - the funds for investment will need to be separated from the funds used for daily needs.
Evaluate how an investment account can help you optimize your tax management, and if you have any questions, please contact us at info@inrento.com.
For more information on investment accounts, please visit the VMI website -https://www.vmi.lt/evmi/en/5552
