🧾 LHV / MTA

Entrepreneur account

The entrepreneur account is the simplest way to earn business income as a private person: the bank automatically reserves 20% of every receipt for taxes and forwards it to MTA — no declarations, no bookkeeping, no business registration. Since 2025 the rate is a flat 20% (the former 40% tier above 25,000 euros is gone); second-pillar members add the pension contribution (22/24/26% in total). LHV Pank currently offers the account.

Service passportUpdated: 29.07.2026.

Cost

A 20% tax on receipts

Duration

Opened in the internet bank

Deadline

Above 40,000 EUR/yr — register a business

Where

LHV internet bank

Open the official service →

✓ Information verified: 2026-07-29 Report an error

Who this applies to

Service providers and makers selling their own goods with low costs — the whole receipt is taxed, expenses aren't deductible. The account holder may not be VAT-registered or work as a FIE in the same field. Health insurance arises in months when the social-tax share of receipts covers the minimum obligation. Entrepreneur-account income is not added to the tax return — it's already taxed.

Step by step

Open the account and sign the contract

Open a private account at LHV and sign the entrepreneur-account contract in the internet bank. The bank forwards the data to the employment register automatically.

Route your business income there

Have clients pay into this account; use another for daily spending to avoid tax on mistaken transfers. The bank reserves 20% and remits it to MTA monthly.

Watch the annual limit

If receipts exceed 40,000 euros a year, register in the business register (FIE or OÜ) and as VAT-liable with MTA.

Common mistakes

Using it for a high-cost business — the whole receipt is taxed, not the profit, and an OÜ may be cheaper.

Letting friends and family send personal transfers there — tax is reserved on those too.

Expecting automatic health insurance — it arises only in months when the social-tax share meets the minimum.

Frequently asked questions

What is the tax?

20% of every receipt (22/24/26% for second-pillar members depending on the pension rate). Since 2025 there is no higher tier.

Do I file declarations?

No — taxation happens automatically per receipt, and the income is not added to your tax return.

Official sources

Verified against official sources · 29.07.2026.