For Lithuanian tax residents using the investment account regime, taxable investment account income in 2026 is subject to a flat 15% income tax rate, regardless of amount. This income is excluded from the annual total subject to the progressive 20%, 25% and 32% rates. VMI’s tax rate guidance.
On 14 October 2026, VMI announced its updated commentary on Article 6 of Lithuania’s Personal Income Tax Law, referring to its letter of 13 October, No. RTD-121. The 15% rate discussed here applies from 1 January 2026; the October announcement date is not the date that rate took effect. VMI’s announcement.
How do the 2025 and 2026 rules differ?
In 2025, the standard rate was 15%, with 20% applying to the part of the combined amount above 120 VDU, or €253,065.60. The calculation combined investment account income with the other income specified in Article 6(1²). The threshold concerned this particular group of income. VMI’s explanation of the 2025 rules.
In 2026, taxable investment account income remains subject to 15% even at higher amounts.
Worked example: withdrawing €12,000
Suppose you use one declared investment account and your remaining contribution balance before the withdrawal is €10,000. This is a tax accounting amount, which should not be confused with your portfolio’s market value.
You withdraw €12,000 to an ordinary account in 2026, with no other contributions or withdrawals.
Taxable income: €12,000 − €10,000 = €2,000.
Income tax on this withdrawal: €2,000 × 15% = €300.
A withdrawal within the contribution balance reduces it without creating taxable income. VMI’s withdrawal calculation guidance.
What does this mean when declaring income?
Use the rules for the relevant tax year. A return submitted in 2026 for income received in 2025 still uses the 2025 rules.
Keep your broker reports and transfer records. The calculation needs contributions, withdrawals, their dates and the contribution balance before each withdrawal. Profits from eligible investments retained within the investment account are not immediately taxed under the regime.
Dividends are taxed separately. Interest outside the investment account regime also needs to be assessed under its applicable rules. VMI’s investment account guidance.
GPMas currently prepares filing data for the 2025 tax year. See how GPMas prepares those figures.
This article provides general information based on the cited VMI sources and does not assess your individual tax circumstances. For guidance on your particular situation, contact VMI or a tax professional.