Investment Account

You deposit EUR 2,000 in the Investment Account and purchase shares. After three years, due to an increase in share value, your shares are worth EUR 2,500, and you sell them. You decide, for example:

• to withdraw EUR 2,500. You will pay resident income tax on the EUR 500 profit you earned.

Or

• to withdraw EUR 1,000. You will not pay resident income tax until the withdrawn amount exceeds the EUR 2,000 you deposited, and you can continue investing the remaining sum.

You have deposited EUR 2,000 in the Investment Account and withdrawn EUR 1,000, leaving a balance of EUR 1,500 with investment returns, which you used to purchase exchange-traded bonds with an annual interest rate of 10 %. After two years, these bonds were redeemed for EUR 1,500, and EUR 300 in interest was paid over the period. You decide, for example:

• to withdraw the full amount of EUR 1,800. In this case, your total withdrawn amount will be EUR 2,800 (EUR 1,000 + EUR 1,800), and you will pay income tax on EUR 800 (EUR 2,800 – EUR 2,000).

Or

• not to withdraw the funds and continue investing.

You have deposited EUR 2,000 in the Investment Account and withdrawn EUR 1,000, leaving a balance of EUR 1,800 with investment returns, which you used to purchase shares in two companies, Company A – for EUR 1,000, and Company B – for EUR 800. Company A performed successfully, and after two years, you sold its shares for EUR 1,300, while Company B performed poorly, and you sold its shares for EUR 300. You decide, for example:

• to withdraw the full EUR 1,600 (EUR 1,300 + EUR 300). In this case, your total withdrawn amount will be EUR 2,600 (EUR 1,000 + EUR 1,600), and you will pay resident income tax on EUR 600 (EUR 2,600 – EUR 2,000).

Or

• to withdraw EUR 1,000. You will not pay income tax if the amount does not exceed EUR 2,000 (EUR 1,000 + EUR 1,000) – which you deposited – and you can continue investing the remaining funds.

You have deposited EUR 2,000 in the Investment Account and withdrawn EUR 1,000 twice, leaving a balance of EUR 600 with investment returns, which you used to purchase shares in a dividend-paying company. Over three years, the company paid EUR 100 in dividends into your Investment Account, and the value of the shares remained unchanged. You sold the shares. You decide, for example:

• to withdraw EUR 700. You will pay resident income tax on EUR 600 (EUR 2,700 – EUR 2,100), which exceeds your deposited amount of EUR 2,100 (EUR 2,000 + EUR 100). The EUR 100 in dividends will be subject to income tax when you declare your income.

• Lithuanian residents whose permanent place of residence is in Lithuania;
• individuals who stay in Lithuania for more than 183 days in a calendar year;
• individuals who have personal, social or economic interests in Lithuania (e.g. family, employment, business);
• other individuals holding the status of a permanent Lithuanian resident.

The Investment Account regime does not apply to legal entities and individuals who are not considered permanent Lithuanian residents (non-residents).

Deposits in the Investment Account include all funds contributed by the individual to the Investment Account during the tax period (calendar year), including dividends received in the Investment Account.

The following income from investments in eligible financial instruments received in the Investment Account is not considered a deposit in the Investment Account:

• interest and other income received from eligible financial instruments, excluding income from distributed profits;

• income received from the sale or other transfer of ownership of eligible financial instruments.

The Investment Account is not mandatory. The previously applicable investment tax regime remains in effect.

There is no limit to the number of Investment Accounts that can be opened. The Investment Account regime can be applied to an account in a financial institution established in a European Economic Area (EEA) state, a member of the Organisation for Economic Co-operation and Development (OECD) or a state with which Lithuania has a double taxation avoidance agreement. This is provided the account is held with a payment service provider or its branch, or a permanent establishment in these countries. Inform the State Tax Inspectorate about each account to which you would like to apply the Investment Account regime.

There is no limit to the amount of funds that can be invested through the Investment Account or the value of the financial instruments held.

Financial instruments acquired before 31 December 2024, which may be subject to the Investment Account regime, must be assigned to the Investment Account by 31 December 2025. This must follow the procedure established by the State Tax Inspectorate, with their acquisition cost included. This can be done when declaring income for 2025, in the tax return to be submitted by 1 May 2026.  For more information, refer to the answers provided by the State Tax Inspectorate.

The deduction of securities trading and/or custody fees will not be treated as a withdrawal from the Investment Account. According to the explanation of the State Tax Inspectorate, ‘Funds withdrawn from the Investment Account are considered as any payment made or funds withdrawn that the individual has not used for: acquiring eligible financial products, transferring funds to another Investment Account of a permanent resident of Lithuania, or paying for expenses directly related to acquiring and transferring eligible financial products or managing Investment Accounts’.

The EUR 500 income tax exemption, which applies to realised gains from the sale of securities, will not apply to the Investment Account.

If you have acquired financial instruments through the Investment Account to which the Investment Account tax regime does not apply, the acquisition amount of these instruments is considered as a withdrawal of funds from the Investment Account. Investment returns from such financial instruments, for example, interest on bonds or realised gains from sales, are considered regular income and must be declared to the State Tax Inspectorate. Their transfer is considered an additional deposit in the Investment Account.

Example:  you deposited EUR 10,000 in the Investment Account and acquired non-publicly traded bonds, which pay 10 % annual interest. The acquisition of these financial instruments is considered a withdrawal of funds from the Investment Account. After a year, these bonds are redeemed for EUR 10,000 and EUR 1,000 in interest. These funds were transferred to your Investment Account, from where you withdrew them. Interest on these securities, to which the Investment Account tax regime does not apply, must be declared as regular income and as an additional deposit in the Investment Account. No income tax under the Investment Account regime will be due since the withdrawal amount does not exceed the deposit amount, but you will need to pay personal income tax on the EUR 500 interest income, applying the EUR 500 income tax relief on interest.

If the portfolio consists only of bonds that are not included in a trading venue, they are not eligible for the Investment Account.

If part of the portfolio consists of bonds that are not included in a trading venue (not eligible for the Investment Account), and part consists of bonds included in a trading venue (eligible for the Investment Account), we recommend opening another securities account and transferring the ineligible bonds to it.

Bonds issued by these companies, which were distributed by Šiaulių bankas in 2024, are considered:

• Eligible financial instruments for the Investment Account since they are traded on trading venues – UAB Orkela, Capitalica Z114 Real Estate Fund, UAB Sostinės bokštai, AB Šiaulių bankas, AB Agathum, Invalda INVL, UAB FERN Group, UAB 15min, UAB Žalvaris.

• Non-eligible financial instruments for the Investment Account, as they are not traded on trading venues – UAB Preses Nams, Capitalica Baltic Real Estate Fund I, UAB Metanira, UAB Sanguškų parkas, UAB PRO BRO Group, Creditstar International OÜ, UAB Global BOD Group, UAB Corein, UAB Omberg Group, UAB Jasinskio 14 project (UAB Jasinskio 14 project are planned to be included in a trading venue).

If you acquired bonds before 31 December 2024, you must assign them to the Investment Account by 31 December 2025. This can be done by declaring the income for the year 2025 in the tax return, which must be submitted by 1 May 2026.  For more information, refer to the answers provided by the State Tax Inspectorate.

• All investment funds distributed and issued by Šiaulių bankas Group, as listed on the bank's website, are eligible financial instruments for the Investment Account.

• If you acquired fund units through Šiaulių bankas and wish to transfer them to the Investment Account, on the annual tax return you must specify the securities account through which you acquired the fund units as the Investment Account to the State Tax Inspectorate.
• If you acquired fund units directly through UAB SB Asset Management and wish to transfer them to the Investment Account, open a securities account at Šiaulių bankas, transfer your fund units and on the annual tax return, specify this account as the Investment Account to the State Tax Inspectorate.
• If you acquired fund units before 31 December 2024, you must assign them to the Investment Account by 31 December 2025. This can be done by reporting the income for the year 2025 in the tax return, which must be submitted by 1 May 2026.  For more information, refer to the answers provided by the State Tax Inspectorate.