Debitum taxes explained: 10 common questions investors ask
When you invest through Debitum, you earn interest by financing businesses operating in the real economy.
Like any investment income, interest earned on Debitum may be subject to taxes. The exact rate depends on your country of tax residence and whether your country has a tax agreement with Latvia.
The good news is that much of the process is straightforward. In many cases, taxes are applied automatically and the necessary documents can be downloaded directly from your profile.
Read on to see the answers to the most common tax questions Debitum investors ask.
Please note that Debitum is not a tax consultant. As each investor’s situation may differ, the best approach is to consult the relevant tax authority in your country of tax residence or a qualified tax advisor.
Key tax facts for Debitum investors
Before diving into the details, here is a quick overview.
Current withholding tax rates:
- Latvian investors: 25.5%,
- EU and EEA investors: 5%,
- Other countries: 25.5%, which may be reduced through tax treaties.
You can download a tax statement from the “My Balance” section of your profile each year to help with reporting your investment income to the country of your tax residence.
1. Do you pay taxes on Debitum?
Yes.
Interest earned through Debitum is considered investment interest income, which may be taxable depending on your country of tax residence.
To simplify the process, Debitum withholds the tax automatically after interest is credited to your Debitum account.
However, as an investor you typically still need to declare your investment income when filing taxes in your country of tax residence.
Read this full article to learn more about how withholding tax at Debitum works!
2. What tax do Debitum investors pay?
The withholding tax applied to Debitum investments depends on your country of tax residence.
The current rates are:
- Latvian investors: 25.5%,
- Lithuanian investors: up to 0% with form FR0254,
- EU and EEA investors: 5%,
- All other investors: 25.5%, potentially reduced through tax treaties.
To make it easier for you, this tax is deducted automatically after interest is credited to your account.
3. Why do EU investors pay 5% tax on Debitum?
Investors from the European Union (EU) and European Economic Area (EEA) benefit from a 5% withholding tax rate.
This reduced rate has been applied since November 2022.
For investors, this means:
- A portion of the tax is handled automatically,
- Reporting investment income becomes simpler,
You receive clear documentation showing taxes already paid.
4. Why do Latvian investors pay 25.5% tax on Debitum?
For investors who are tax residents in Latvia, the withholding tax rate is 25.5%.
This rate is required under Latvian legislation for private individuals receiving interest income.
Debitum makes it seamless for you by deducting the tax automatically after interest is credited to your Debitum account.
5. Can Lithuanian investors receive 0% tax on Debitum?
Yes.
Lithuanian investors may qualify for a 0% withholding tax rate, but they must submit the required documentation first.
To receive the reduced rate, investors must upload a tax residence certificate (form FR0254) issued by the Lithuanian tax authority (VMI).
Once verified, the reduced rate will apply to future interest payments.
6. Can you reduce the 25.5% tax on Debitum?
In many cases, yes.
Investors outside the EU or EEA are subject to a 25.5% withholding tax, but the rate may be reduced if their country has a double taxation agreement (DTA) with Latvia.
Depending on the agreement, the withholding tax rate may decrease to approximately 2.5% – 10%.
To apply the reduced rate, investors must submit the required tax residency documents.
7. How do you apply for a reduced tax rate on Debitum?
If you want to apply for a reduced withholding tax rate, you simply need to upload two documents through your Debitum profile:
- Tax Residency Certificate issued by your country’s tax authority,
- Signed Tax Relief Application available in the Tax section of the platform.
Both documents must correspond to the same tax year.
Important details:
- Documents must be submitted each year,
- Digital scans are accepted,
- The reduced rate applies only after verification,
- Reduced tax rates cannot be applied retroactively.
8. Do you need to report Debitum income in your country?
In most cases, yes. Even though withholding tax may already be deducted, investors typically still need to declare their foreign investment income in their country of tax residence.
Depending on your country’s tax system:
- The withheld tax may be credited toward your tax obligation,
- You may need to pay additional tax locally,
- Or the withheld amount may already cover most of the tax due.
Because tax rules differ between countries, it is best to confirm details with your local tax authority or a qualified tax advisor.
9. Where can I download my Debitum tax statement?
You can download your tax statement directly from your Debitum profile.
Follow these steps:
- Go to “My Balance” page at Debitum Investments.
- Open the “All Transactions” tab and select “Tax”.
- Select the desired time period in the “Calendar” tab.
- Choose your preferred file format: PDF or Excel.
- Click “Download selected statement”.
The report includes:
- Total interest earned,
- Taxes withheld,
- Full transaction history.
If you’d like to learn more about tax or any other topics regarding Debitum check out our FAQ page here.
10. When should Debitum investors download their tax statement?
Most investors download their tax statement at the beginning of each year, once the previous year’s investment activity is complete.
You can access and download this statement at any time from the “My Balance” section of your profile.
The statement shows the total interest earned and tax withheld during the previous year, which can be provided to your tax authority when filing your tax return.
A clear takeaway for Debitum investors
Taxes are part of investing, but the process does not need to be complicated.
For most Debitum investors, it comes down to three simple points:
- Part of the tax is withheld automatically,
- Your account statement provides the necessary documentation,
- You report the income according to your country’s tax rules.
With transparent reporting and clear documentation, you can focus on what matters most – growing your portfolio while supporting real businesses in the real economy.
If you’d like to learn more about tax or any other topics regarding Debitum check out our FAQ page here.
Disclaimer
This article is provided for general informational purposes only and does not constitute tax, legal or financial advice. Tax treatment may vary depending on your country of tax residence and personal circumstances. For specific guidance, please consult your local tax authority or a qualified tax advisor.
This is a marketing communication and should not be interpreted as investment research, advice, or an endorsement to invest. The historical performance of financial instruments is not indicative of future outcomes. Investing involves risks; the value of investments may fall as well as rise. Be sure to assess your knowledge, experience, financial situation, and investment goals before investing.