Investment account

At LHV Pank, we recommend opening two separate accounts – one for everyday transactions and another for investments. The account opened for investments can be declared as an investment account, which allows the deferral of tax liability. You can find more detailed information about investment accounts and how to declare them on the Tax and Customs Board’s website.

The investment account system is suitable for less active investors as well. Even if you trade securities only occasionally, we also recommend opening two accounts, one for everyday baking and the other for trading securities.

Yes, an investor can have multiple investment accounts, either in the same bank or in different banks. Just bear in mind that each account must be reported separately to the tax authority.

The Growth Account can also be declared as an investment account, and we urge you to do so next year on your tax return.

Yes, the definition of financial assets should be carefully considered in the case of this account so that the deposits and withdrawals get correctly recognized.

Short-selling is allowed. Borrowing is allowed only within certain limits – i.e., money can be used to secure obligations directly connected to acquiring financial assets. The financial asset itself may be used as collateral or pledged. Yet bear in mind that it is very complicated to declare such transactions in the investment account system.

All fees that are not directly related to the purchase and sale of securities must be declared as withdrawals, such as interest payments and information service fees, as well as any cash withdrawals from the account. Within the investment account system, transaction fees and safekeeping fees related to securities do not need to be declared.

No, this possibility existed only on the 2012 tax return and such losses can no longer be declared as deposits.

No, this possibility existed only on the 2012 tax return. After that time, securities can no longer be declared as a deposit. An exception is made for securities acquired as a gift or inheritance. In such a case, the acquisition cost is to be declared as a deposit to the investment account. Bear in mind that acquisition cost means the acquisition cost for the recipient or heir, generally zero.

The Ministry of Finance has developed a guide to investment accounts.