Personal income tax relief on life insurance
Personal income tax relief for persons paying life insurance premiums
Important to know: Personal income tax relief on investment life insurance is applicable for contracts concluded till 31 December 2024.
The State promotes voluntary savings, taking care of one’s own future and the future of loved ones by providing the opportunity to recover up to EUR 300 annually. How you can benefit from tax relief for life insurance contracts?
- You must declare income and expenses for life insurance for the previous calendar year to the State Tax Inspectorate till May 1 of the current year.
- Residents of Lithuania who actually pay premiums under investment life insurance and/or to pension funds are entitled to the personal income tax (hereinafter referred to as the “PIT”) reliefs.
- The tax relief for the resident is calculated on the part of the taxable income to which 15, 20 or 27 per cent of the PIT rate was applied.
- The relief is applied to the benefit of oneself, a spouse, a minor child or a disabled foster child by transferring the amount of premiums, which, including other income tax-reducing expenses, does not exceed EUR 1,500 and 25 per cent of the annual taxable income.
More information on tax reliefs here.