Taxation on transfer of shares
Updated 20.01.2026
Taxation of Share Transfers
When shares are transferred, the taxable amount is the capital gain derived from the sale of the shares, i.e. the difference between the sale proceeds and the acquisition cost. The acquisition cost includes the full amount paid for the shares, together with directly incurred acquisition-related expenses, such as brokerage fees, taxes, state duties, etc.
Taxation of Individuals
Where income received by an individual from the transfer of shares qualifies as taxable income, the capital gain is subject to personal income tax (PIT) at the following progressive rates:
— 15% PIT on the portion of annual taxable income up to 12 average monthly salaries (AMS)* (Eur 27,745);
— 20% PIT on the portion from 12 to 36 AMS (Eur 27,745–83,237);
— 25% PIT on the portion from 36 to 60 AMS (Eur 83,237–138,729);
— 32% PIT on the portion exceeding 60 AMS (Eur 138,729).
Please note that, for the purpose of determining the applicable PIT rate on share transfer income, not only income from share transfers is aggregated, but also other annual income earned by the individual, such as employment income, individual activity income, rental income, gains from disposal of assets, etc. The above PIT rates are then applied depending on the individual’s total annual taxable income (Article 6 of the Law on Personal Income Tax). The categories of income excluded from such aggregation are listed below**.
Tax Reliefs and Exemptions
Income from the transfer of shares eligible to be held through an investment account is taxed only when funds are withdrawn from the investment account, and the investment account taxation regime applies.
Income from the transfer of shares acquired outside an investment account is subject to a flat 15% PIT rate (without application of progressive taxation), provided that the shares were acquired more than five years prior to the transfer date.
In addition, the portion of capital gains from the sale of shares not exceeding EUR 500 is exempt from PIT (Article 17(30) of the Law on Personal Income Tax). This exemption does not apply where:
1. The shares are transferred to the issuing company;
2. The shares were acquired through an increase of share capital from the company’s own funds (subject to additional conditions);
3. The income is derived from shares in foreign entities established or otherwise organized in targeted tax territories;
4. The shares are deemed transferred upon liquidation of the company.
Entity taxation
Capital gain from the sale of shares (the difference between the sale and purchase prices of shares) is subject to corporate income tax at the rate of 17% or 7% (the 7% rate may be applied to entities meeting the criteria for a small enterprise).
Capital gain from the sale of shares is not taxable if both of the following conditions are met:
1. The company whose shares are transferred shall be incorporated or otherwise organized in a State of the European Economic Area, or in a State which has been concluded a double taxation agreement with Lithuania, and is liable to corporate tax or tax equivalent thereto.
2. The company transferring the shares shall hold more than 10% of the voting shares of the company whose shares are transferred for at least 2 years without interruptions.
This relief does not apply when the shares are transferred to the shares issuing company.
Notes
* Average monthly salaries (AMS) in 2026 for the calculation of personal income tax amounts to EUR 2.312,15.
** The following categories of income are not aggregated with other annual income and are subject to a separate 15% personal income tax rate:
1. Dividends;
2. Income received through an investment account;
3. Income from the sale or other transfer of shares acquired outside an investment account, provided that the shares were acquired more than five years prior to the date of sale;
4. Income from the sale or other transfer of shares acquired under stock option agreements from an employer or a related party, or through other employee share incentive arrangements;
5. Sickness, maternity, paternity, childcare, and long-term employment benefits;
6. The portion of life insurance benefits equal to the insurance premiums paid;
7. The portion of pension benefits received from a pension fund equal to the contributions paid.
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