Since 2025, the Investment Account (IA) regime has come into effect in Lithuania. It is a new way to invest and manage taxes more efficiently. Below is the key information based on official data from the State Tax Inspectorate (VMI).

WHAT IS AN INVESTMENT ACCOUNT?

An Investment Account (IA) is any separately maintained account used to hold and invest funds. It allows investors to defer the payment of Personal Income Tax (PIT) until profits are withdrawn from the account.

Purpose of the IA:

• Encourage long-term investing.
• Simplify the taxation of investment income.
• Allow profits to be reinvested without immediate tax calculations.

WHO CAN USE AN INVESTMENT ACCOUNT?

A permanent resident of Lithuania who:

• Lives in Lithuania for more than 183 days during a calendar year.
• Has personal, social, or economic ties to Lithuania (e.g., family, employment, business).
• Declares Lithuania as their permanent place of residence.

HOW DOES AN INVESTMENT ACCOUNT WORK?

1. Choose an Investment Account.

The account may be:

Newly opened,

An existing account in a bank or other payment institution located in Lithuania, the EEA, OECD countries, or countries with which Lithuania has a double taxation treaty.

The account must be used exclusively for investments and not for everyday transactions.

2. Transfer Funds into the Account. Funds transferred into the IA are treated as contributions. All contributions and withdrawals must be tracked and declared to the State Tax Inspectorate (VMI).

3. Invest in Eligible Instruments.

Funds held in the IA may be invested in financial instruments permitted by law, such as:

Shares (stocks)

Bonds

Investment funds

Crowdfunding projects

Other qualifying investments

4. Taxes Are Paid Only When Profit Is Withdrawn

As long as investment returns and profits remain in the IA and are reinvested, no PIT is payable. A tax liability arises only when withdrawals exceed the total amount contributed to the account. The excess is treated as taxable profit.

HOW TO OPEN AN INVESTMENT ACCOUNT?

An Investment Account is simply a separate bank or payment institution account dedicated exclusively to investment activities. It must not be used for daily payments or other personal financial operations.

Steps to Open an IA

Choose a bank or payment institution. The account can be opened in Lithuania, the EEA, OECD countries, or countries with which Lithuania has a double taxation treaty.

Open a separate investment account. You may open a new account or designate an existing account for investment purposes only.

Transfer funds. Deposited funds are considered IA contributions and serve as the basis for calculating investment performance and taxable profit.

When investing through the PROFITUS platform, please note that one investor may have only one assigned investment profile/account.

WHAT CAN YOU INVEST IN THROUGH AN IA?

• Publicly traded shares and bonds
• Units of collective investment undertakings (funds)
• Derivative financial instruments
• Money market instruments
• Government savings bonds
• Crowdfunding and peer-to-peer lending investments (including investments through the PROFITUS platform)

WHAT CANNOT BE HELD IN AN IA?

• Cryptocurrencies
• Loans to related parties
• Investments in businesses where you have significant control (e.g., your own startups)

HOW TO DECLARE AN INVESTMENT ACCOUNT?

The IA must be declared through the VMI Electronic Declaration System (EDS) as part of the annual income tax return.

1. Log in to the VMI EDS system.

2. Provide the investment account details:

• Account number
• Financial institution details
• Account opening date
• Closing date (if applicable)
• Date from which the IA regime is applied.

3. Declare contributions to the IA.

4. Declare withdrawals from the IA, including:

• Date
• Amount
• Country where the transaction took place.

5. Verify that all information matches the records of your financial institution.

Interest and Dividends

• Interest earned from qualifying investments may be reinvested without immediate PIT.
• Dividends are not covered by the IA regime and are taxed under the standard rules.
• Dividend amounts transferred into the IA are treated as additional contributions.

HOW ARE PROFITS AND PERSONAL INCOME TAX (PIT) CALCULATED?

Profit = Withdrawals – Contributions – Investment-related Expenses

PIT Rates

• 15% if annual profit does not exceed 120 average monthly salaries (approximately EUR 200,000–250,000).
• 20% on the portion exceeding 120 average monthly salaries.

Important

• Tax is due only when funds are withdrawn from the IA.
• The standard EUR 500 annual tax exemption does not apply under the IA regime.

Example

• Contributions: EUR 10,000
• Withdrawals: EUR 15,000
• Expenses: EUR 500

Profit = EUR 4,500 PIT (15%) = EUR 675

ADDITIONAL IMPORTANT POINTS

• You may have multiple IAs, but each must be declared separately.
• Financial instruments acquired before 31 December 2024 may be included if declared by 1 May 2026 for the 2025 tax year.
• Their acquisition value is treated as an IA contribution.
• Investments made in 2025 outside an IA do not qualify for the IA regime.
• Funds can be transferred between IAs without tax consequences.
• The IA regime is optional.
• If annual interest income does not exceed EUR 500, using an IA may not be advantageous.

USING AN INVESTMENT ACCOUNT ON THE PROFITUS PLATFORM

To ensure that investments made through the PROFITUS platform qualify under the IA regime:

1. Funds must be transferred from your Investment Account.

2. The PROFITUS wallet created by Lemonway cannot be recognized as an Investment Account.

3. Once funds have been credited to the PROFITUS wallet, investments can be made as usual.

Withdrawing Funds

1. Withdrawals from the PROFITUS wallet must be returned to the same IA from which the funds originated.

2. If the new IA has not yet been used, you may make a minimum EUR 1 transfer to the PROFITUS wallet and provide proof of transfer.

3. Lemonway will verify the account within approximately 2–3 business days.

4. Once approved, you may withdraw funds.

INVESTMENT ACCOUNT OR EUR 500 TAX EXEMPTION?

QUICK PREPARATION CHECKLIST

• Open a dedicated investment account.
• Use it exclusively for investments.
• Transfer funds through this account when investing via PROFITUS.
• Declare the account as an IA when filing your annual tax return in 2026.

For additional questions, contact: support@profitus.lt

PROFITUS team

*Investing always involves risk

Frequently Asked Questions About Investment Accounts

Many investors have questions about the benefits of an Investment Account, its suitability for different types of investments, declaration requirements, taxation, and other specifics. Below are answers to the most frequently asked questions.

What is the main advantage of an Investment Account?

The main advantage of an Investment Account is that Personal Income Tax (PIT) is payable only when profit is withdrawn from the account. This allows investors to reinvest all earned returns and grow their investments for a longer period without additional tax burde

What investments can be held in an Investment Account?

• Shares (stocks)
• Bonds
• Units of investment funds
• Government savings bonds
• Certain crowdfunding and peer-to-peer lending investments

These investment types qualify under the Investment Account regime.

Is an Investment Account suitable for short-term investing?

Yes, an Investment Account can also be used for short-term investing. However, it provides the greatest benefit to investors who plan to reinvest their profits rather than withdraw them immediately.

Is an Investment Account suitable for long-term investing?

Yes, an Investment Account is ideally suited for long-term investing because it allows profits to accumulate and be reinvested without triggering immediate taxation.

How many Investment Accounts can I have?

There is no limit to the number of Investment Accounts you may have. The key requirement is that all Investment Accounts must be declared to the State Tax Inspectorate (VMI).

How does an Investment Account differ from a regular securities account?

The main difference is taxation:

• With an Investment Account, PIT is paid only when profits are withdrawn from the account.
• With a regular securities account, investment income is taxed according to the standard taxation rules when income is earned.

Is an Investment Account mandatory for investing?

No, using an Investment Account is not mandatory. However, depending on your investment strategy and expected returns, it may provide significant tax advantages.