Investeerimiskontothe way it should be

Investeerimiskonto is an account opened with an investment firm, to which you can deposit cash for investing. The investment account allows you to defer your income tax liability for any investments bought and sold with the money deposited in an investment account.

This means you can buy and sell investments, receive dividend income, and reinvest the gains tax efficiently.

You will need to declare the investment account activity in the following tax year, but can effectively defer income tax payment until you’ve withdrawn more money from your investment account than you have put in.

While it’s entirely optional, the investment account comes with tax benefits when investing as a private person. You’ll be able to defer paying income tax, meaning you can reinvest sale profits, interest and dividends, without paying tax on each profitable transaction.

Loss from the sale of investments can be deducted from the income from the sale of other investments. If there’s no income in a specific tax year, the deduction of loss is carried on.

With the investment account system, a private person has the possibility to defer income tax liability on income from investments until that income is used for other purposes. If a payment is made out of an investment account, tax is charged on the amount by which the withdrawals from an investment account exceed the amounts deposited to the investment account.

You’ll need to declare activity from your Lightyear investment account every year, but will not have income tax liability until the time you take more money out from the investment account that you have put in.

Yes! The number of investment accounts you can have is not limited – you can open one with every bank or investment firm that offers it.

If you have an investment account in a bank, you can deposit money from there into your Lightyear investment account without this bringing about tax liability. That’s because transfers between different investment accounts keep the money within the investment account system.

From the 2025 tax season onwards, forwarding your investment income data from Lightyear to EMTA is automated for both regular accounts and Investeerimiskonto. We will generate a tax report, based on your activity throughout the year. You simply review and confirm it, and we’ll forward the data to your final declaration in EMTA’s portal.

In general, you only need to declare to EMTA:

• the money transferred into the investment account and
• the money paid out from the investment account.

The tax liability for Investeerimiskonto arises only when the amount withdrawn exceeds the amount contributed. You don’t need to declare purchases or sales of specific investments, nor transfers between different investment accounts.

Absolutely! Click here to read more about transferring over your investments from other service providers.

If these investments have been acquired inside the investment account system and transferred to Lightyear investment account, then they’ll remain within the investment account system.

If you have acquired investments with another provider outside the investment account regime however, then you can still transfer these over to Lightyear, but those can not be included in the investment account system (unless transferred before 1.01.2024) and hence will be taxed upon selling, i.e. pursuant to the regular regime.