The state encourages independent accumulation by offering personal income tax relief – those who do so can recover up to EUR 300 annually.*
The maximum amount of contributions that can be deducted cannot exceed 25% of the taxable income you have received over the entire tax period (Article 21(1) of the Law on Personal Income Tax).
Permanent residents of the Republic of Lithuania can recover PIT on contributions of up to EUR 1,500 paid under unit-linked life insurance contracts and to pension funds.
The tax relief is calculated on the basis of that part of the person's taxable income that was subject to the 15%, 20% or 27% PIT rate.
- You can take advantage of the relief when you declare your income for the previous calendar year to the State Tax Inspectorate.
- You must submit your tax refund for the previous year by 1 May of the current year.
- The income tax share of premiums paid in the previous year will be refunded by 31 July.
* By concluding unit-linked or III pillar pension accumulation agreement until 31st December 2024, you will be able to use tax benefit and receive up to 300 euros annually for another 10 years. Tax benefit applies to contributions paid in one year to II and III pillar pension funds contracts and/or unit-linked contracts of no more than 1,500 Eur. Whilst the total amount of expenses cannot exceed 25% of your taxable income per calendar year. Tax benefit will not be applied to unit-linked agreements and/or III pillar pension accumulation contracts from 1st January 2025.
