Lithuania’s Ministry of Finance had proposed amendments to simplify and expand the Investment Account tax regime from 2027, including changes to taxable income calculations and eligible financial products.
Lithuania’s Ministry of Finance (MoF) had prepared draft amendments on 29 September 2026 to Article 12¹ of the Republic of Lithuania Law on Personal Income Tax (GPMĮ No. IX-1007) that would broaden and simplify the Investment Account (investicinė sąskaita) tax regime from 1 January 2027.
Taxable income calculation
The draft would determine taxable income based on the overall position of the investment account for the tax period. Income would arise when withdrawals exceeded total deposited funds as of 31 December, taking into account any difference between deposits and payouts carried forward from previous tax periods.
All incoming payments would count as deposited funds, except internal account income or returns covered by Article 12¹(3).
This approach would remove the need to calculate taxable income separately each time funds were withdrawn.
Eligible securities expanded
The amendments would broaden the range of financial products covered by the regime to include certain publicly offered non-equity securities during primary distribution.
These securities could qualify before being admitted to trading on a regulated market if the prospectus specified that admission would take place within no longer than 4 months from the end of the distribution.
Assets acquired before tax residence
Individuals who had acquired eligible financial instruments before becoming permanent residents of Lithuania would be able to elect to treat those products as acquired through an investment account.
Taxpayers would have to notify the tax authority in accordance with established procedures. The acquisition cost would be determined under Article 19 of the Personal Income Tax Law.
Effective date and transition
The amendments would apply to income calculated and declared for the 2027 tax period and subsequent years.
Under a transitional provision, publicly offered non-equity securities acquired during primary distribution on or before 31 December 2026 could be brought within the regime when taxpayers submitted their 2027 tax declarations, provided their acquisition cost was attributed to the investment account.
The State Tax Inspectorate (VMI) would be required to issue implementing regulations by 31 December 2026.
