Table of Contents
Be a Lithuanian tax resident → open an investicinė sąskaita → invest, sell, switch — none of it taxed → 15% GPM only on withdrawals above your contributions → register via GPM311 by 1 May of the following year → stays outside the 20/25/32% income tax scale
If you've moved to Lithuania and gone looking for how to invest here, you'll have found what I found: very little in English, and most of it out of date. That's a shame, because Lithuania quietly introduced one of the more attractive retail investing regimes in Europe in 2025 — and hardly anyone outside the Lithuanian-language personal finance scene seems to know about it.
The short version
Lithuania has an investment account regime (investicinė sąskaita). Money inside it compounds completely untaxed. You pay 15% GPM only when you withdraw more than you put in — and only on the excess. You can sell one fund and buy another, rebalance, switch strategy entirely, and none of it is a taxable event. It also sits outside the new progressive 20/25/32% income tax scale, staying at a flat 15%.
What the Deferral Is Actually Worth
Tax deferral sounds abstract. Here's what it does to real numbers — the same contributions, the same returns, the only difference being whether gains are taxed as you go or at the end.
Investment account calculator
What this comparison assumes. The "taxed as you go" column models an investor who realises gains each year — by rebalancing, switching funds, or holding distributing funds. If you buy a single accumulating ETF and never touch it, an ordinary account defers tax too, and the gap narrows considerably. The investment account's real advantage is freedom to change your mind without a tax bill. Returns are illustrative, not a forecast.
The Investment Account Explained
The regime has operated since 2025. The mechanism is simple enough that it's worth stating plainly.
How it works
You designate an account as an investment account
Either the broker flags it, or you designate it yourself when declaring.
You pay money in
Everything you deposit is tracked as contributions.
You invest, sell, switch, rebalance — freely
None of this triggers tax. Gains and losses net off inside the account.
Tax arises only when you take money out
And only once cumulative withdrawals exceed cumulative deposits. Below that line, you're withdrawing your own capital.
15% GPM on the excess
Flat rate, separate from the progressive employment income scale.
Worked example
You deposit €10,000 in 2025. By 2026 the portfolio is worth €12,000. You sell everything and buy different funds — VMI asks for nothing, because you haven't withdrawn. If you later take out €10,000, still nothing is taxable, because you haven't exceeded what you put in. Take out €13,000 and the €3,000 above your contributions is taxed at 15%.
Why the flat 15% matters more from 2026
From 2026, employment and self-employment income moved onto a progressive scale reaching 25% and 32%. Investment account gains stay outside that, at a flat 15%. For anyone with a decent salary, that gap is now larger than it used to be — see our income tax guide.
The €500 Trade-Off
There is one thing you give up, and honest guides should say so.
Outside the investment account regime, Lithuania applies an annual GPM exemption on investment income — commonly cited at €500 a year. Inside an investment account, that exemption does not apply.
Investment account is better if…
- ✓ You're investing for the long term
- ✓ You expect gains well above €500/year
- ✓ You want to rebalance or switch funds
- ✓ You're reinvesting rather than drawing income
Ordinary account may be better if…
- ✓ Your annual gains are small
- ✓ You're realising under €500/year
- ✓ You want simplicity above optimisation
- ✓ You're drawing income now, not accumulating
Confirmed with an accountant
The €500 annual capital gains exemption does not apply to withdrawals from an investment account. If you're used to relying on it, it doesn't carry over into the IS regime.
Which Brokers Support the Investment Account
This is the practical question, and it's where most people get stuck. Not every broker supports the regime, and support means different things.
Disclaimer. Investing in stocks, ETFs and other financial instruments carries the risk of loss of capital. Past performance is no guarantee of future results. HowToLithuania.com is an informational publisher, not a licensed broker or financial adviser. Some links on this page are affiliate links — we may earn a commission when you open an account through them, at no additional cost to you.
| Provider | IS regime | Reports to VMI | Admin burden | Best for | |
|---|---|---|---|---|---|
| Swedbank | ✓ Full | ✓ Yes | Low | Simplest declaration, Lithuanian-language statements | Open |
| SEB | ✓ Full | ✓ Yes | Low | Same — full local support | Open |
| Luminor | ✓ Full | ✓ Yes | Low | Same — full local support | Open |
| Interactive Brokers | ✓ Eligible | ✗ No | You track it | Lowest costs, widest choice — accounts via EEA entities | Open |
| Trading 212 | ✓ Eligible | ✗ No | You track it | Simple interface, if the account is EEA | Open |
| XTB | Self-designate | ✗ No | You track it | Flag it yourself on the declaration | Open |
| Revolut | ✗ Not available | ✗ No | — | No deferral — see below | — |
Last updated July 2026. Broker treatment of the IS regime is evolving — confirm directly with the provider before opening.
The real choice: convenience or cost
Lithuanian banks flag the account as IS, report your status to VMI, and give you an annual statement in Lithuanian with FIFO profit-and-loss worked out. Declaration becomes close to automatic. Foreign brokers are usually cheaper with far more choice, but they don't report to VMI — you must track every deposit and withdrawal yourself and get the declaration right. Neither is wrong; know which trade you're making.
The Revolut Exception
Revolut Securities Europe UAB does not offer the Lithuanian investment account regime. It's the only major option covered here that doesn't. An investment account with Revolut is an ordinary broker account — no tax deferral. Gains are taxed as they're realised, and the compounding advantage shown in the calculator above simply doesn't apply.
We recommend Revolut throughout this site for banking — it issues Lithuanian IBANs, opens with just a passport, and is genuinely the best first account for a new arrival. For investing, it's the wrong choice in Lithuania, and the reason is specific and structural rather than a matter of taste.
If you already hold investments there, it's worth understanding what you're giving up before adding more.
Accumulating vs Distributing ETFs
A distinction that matters everywhere, but interacts with the IS regime in a way worth understanding.
Accumulating (Acc)
- ✓ Dividends reinvested automatically inside the fund
- ✓ No income to declare each year
- ✓ Simpler admin
- ✓ Usually the default choice for accumulation
Distributing (Dist)
- ✓ Pays dividends to you in cash
- ⚠ Dividends are taxable income when received
- ⚠ More admin
- ✓ Useful if you want income now
Inside an investment account, accumulating funds fit the logic particularly well: nothing leaves the account, nothing is realised, nothing is taxed until you withdraw. Distributing funds pay cash out, which complicates the picture.
Hold accumulating ETFs and the dividend question disappears
Accumulating funds — VWCE, CSPX, IWDA and similar — reinvest dividends internally at fund level, so nothing ever lands in your account as a distribution. No foreign withholding to reclaim, no manual tracking, nothing extra to declare.
Sources genuinely conflict on how dividends received into an investment account are treated, and if you plan to hold distributing funds you should ask an accountant. Everyone else can sidestep it entirely.
How to Declare It
The investment account is declared through your annual income declaration.
- Lithuanian banks report your IS status and provide the figures — the declaration is largely pre-filled
- Foreign brokers require you to designate the account yourself on the declaration form, and to supply your own deposit and withdrawal totals
- Keep records of every deposit and withdrawal from day one. The entire regime rests on the in-versus-out figure, and reconstructing years of flows retrospectively is miserable
- Filing runs from around 1 March to 2 May — see our tax return guide
Start the spreadsheet on day one. If you use a foreign broker, the single most useful thing you can do is keep a running log of money in and money out, dated. It takes seconds per transaction and saves you a genuinely unpleasant afternoon years later.
Pillar II and III Pensions
Investing in Lithuania isn't only brokerage accounts. Two pension pillars sit alongside:
- Pillar II — an optional additional 3% contribution alongside Sodra, invested in a pension fund on your behalf. Our salary calculator lets you model the effect on take-home pay
- Pillar III — voluntary private pension contributions, which may attract income tax relief
⚠ Verify before publishing. Pillar III tax relief conditions and annual limits need confirming against VMI and Sodra. This is a common question and deserves accurate figures.
How to Actually Start
Sort your residency and banking first
You'll need an asmens kodas for a Lithuanian bank brokerage account.
Decide: convenience or cost
Local bank with automatic VMI reporting, or foreign broker with lower fees and more work.
Confirm the account is designated as an investment account
Don't assume. Ask explicitly, and get it in writing if you can.
Start your deposit and withdrawal log
Especially with a foreign broker. Day one.
Choose broad, low-cost funds
Most long-term investors are best served by diversified index funds rather than stock picking. Nothing about the Lithuanian regime changes that.
Automate contributions and leave it alone
The regime rewards not touching it.
Declare annually by 2 May
Even in years when nothing is taxable.
Need a Lithuanian account first?
Local brokerage requires an asmens kodas and a resident bank account.
What Can Go Wrong
Investments lose money. Everything above concerns tax treatment, not returns. Markets fall, sometimes for years. The 7% in the calculator is an illustration drawn from long-run historic averages, not a forecast, and your actual outcome could be substantially worse — including losing capital. Never invest money you may need in the near term.
Assuming your broker supports the regime
Revolut doesn't. Others vary. Confirm before you commit money.
Losing track of deposits and withdrawals
With a foreign broker, this is the whole basis of your tax position. Reconstruct it later at your peril.
Optimising tax at the expense of everything else
A tax-efficient wrapper around a bad portfolio is still a bad portfolio. Get the investment approach right first.
Forgetting the €500 exemption trade-off
For small annual gains, the ordinary regime may genuinely be simpler and no worse.
Not declaring
The declaration obligation exists whether or not tax is due.
Currency and platform risk
Understand where your account is held, in what currency, and what protection applies.
Frequently Asked Questions
What is an investicinė sąskaita?
Lithuania's investment account regime, operating since 2025. Gains compound untaxed inside the account; 15% GPM applies only when withdrawals exceed deposits, and only on the excess.
Do I pay tax when I sell a fund?
Not inside an investment account. You can sell, switch and rebalance freely — tax arises only on withdrawal above your contributions.
Is investment income taxed on the new progressive scale?
No. Investment account gains stay at a flat 15%, outside the 20/25/32% scale that now applies to employment and self-employment income.
Can I use Revolut for this?
No. Revolut Securities Europe UAB does not offer the Lithuanian investment account regime — it's the notable exception among major providers. Revolut remains an excellent banking choice; it just isn't the right investing account here.
Which broker is best?
Depends on the trade you want. Lithuanian banks report to VMI and make declaring near-automatic. Foreign brokers like Interactive Brokers are cheaper with more choice, but you track your own flows and complete the declaration yourself.
What happens to the €500 exemption?
It doesn't apply inside an investment account — confirmed with an accountant. For investors realising small annual gains, the ordinary regime may be simpler and equally good.
Do I still declare if I made no withdrawals?
Yes — the declaration obligation is separate from whether tax is due. See our tax return guide.
Can I move an existing portfolio into an investment account?
Treatment of transfers in is a detail worth confirming with VMI or your broker before acting, since it affects your contribution baseline.
Should I invest or overpay my mortgage?
Genuinely personal, and depends on your rate, risk tolerance and timeline. No guide can answer it for you — but understanding the tax treatment on both sides is a good starting point.
Related Guides
Disclaimer. Investing in stocks, ETFs and other financial instruments carries the risk of loss of capital. Past performance is no guarantee of future results. HowToLithuania.com is an informational publisher, not a licensed broker or financial adviser, and nothing here is personal investment advice. Tax treatment depends on individual circumstances and may change — confirm your position with VMI or a qualified adviser before acting.
Disclosure. Some links on this page are affiliate links, which may earn us a commission at no cost to you and do not affect our recommendations — as evidenced by the fact that we recommend against one of our banking partners for investing.