Ettevõtluskonto Eestis 2026. aastal: kellele see sobib ja millal tasub valida FIE või OÜ

In brief: what you need to know in 2026

In Estonia, a business account is a simplified way for an individual to earn business income without conventional accounting, monthly tax returns, or separate tax calculations.

A business account may be suitable for a person who:

• provides services, for example as a babysitter, domestic helper, private tutor, or gardener;
• provides services through platforms, for example as a food courier, ride-sharing service provider or translator;
• sells self-made goods or handicrafts if material or acquisition costs are low;
• rents out their property on a short-term basis, such as a car or real estate.

The main advantage of a business account is its simplicity. The client transfers money to the business account, the bank withholds the tax amount and forwards it to Maksu- ja Tolliamet.

However, a business account has an important limitation: expenses cannot be deducted. Therefore, it is not suitable for every type of activity.

How a business account works

The customer transfers payment for the service or goods to the business account. The bank reserves the amount corresponding to the business income tax and transfers it to Maksu- ja Tolliamet.

The remaining amount is available for use by the business account holder.

At present, a business account can be opened at LHV Pank. If the person is not an LHV customer, they must first open a private customer account there and then enter into a business account agreement. Opening and closing the account is free, but the exact terms of banking services and any applicable fees must be checked in the bank’s current price list.

Business income tax rate in 2026

From 1 January 2026, the business income tax rate is 22% of the amount received in the business account.

If the business account holder is required to contribute to a funded pension, the tax rate is increased by their funded pension contribution rate.

This means that in 2026, the business account tax rate is:

• 22%, if the person is not required to make second-pillar pension contributions;
• 24%, if the funded pension contribution rate is 2%;
• 26%, if the funded pension contribution rate is 4%;
• 28%, if the funded pension contribution rate is 6%.

Important: tax is calculated on the entire amount received

With a business account, the entire amount credited to the business account is taxed, not just the profit.

This means that costs cannot be deducted. The taxable amount cannot be reduced by the cost of materials, purchasing goods, transport, rent, advertising or other expenses.

This is precisely why a business account is not suitable for every type of activity.

If providing the service involves few or almost no costs, a business account may be a convenient solution. If the activity involves direct or substantial costs, it may be more sensible to operate as a sole proprietor (FIE) or through a private limited company (OÜ).

€40 000 annual limit

If the amounts received in the business account exceed €40 000 per calendar year, the individual must register as an entrepreneur in the commercial register.

Possible formats include:

• sole proprietor;
• private limited company.

If this limit is exceeded, the person must also register as a VAT payer with Maksu- ja Tolliamet.

After registration, the entrepreneur must maintain accounting and tax records.

Health insurance through a business account in 2026

A business account may provide entitlement to health insurance, but only if the minimum social tax obligation has been met.

In 2026, the monthly social tax base is 886 €. The minimum social tax obligation calculated on this amount is:

886 € × 33% = 292,38 €

According to the 2026 version of the law, the business income tax rate is 22%. The social tax component of this tax is 33/57.

If a person operates solely through a business account and is not required to make payments into the second pension pillar, approximately 2 295,55 € per month must be credited to the business account for the social tax portion of the business income tax to cover the minimum social tax obligation.

Calculation:

2 295,55 € × 22% = 505,02 €

Of this, the social tax component is:

505,02 € × 33/57 = 292,38 €

Once the minimum social tax obligation has been met, the person becomes entitled to health insurance.

It is also important that the entire required amount of social tax does not have to come solely through the business account. Social tax paid under contracts governed by the law of obligations is also taken into account when meeting the minimum obligation.

When is a business account useful?

A business account is useful when the activity is simple and does not involve significant costs.

It may be suitable for a person who:

• provides services to other private individuals;
• operates in a field where there are no direct costs or they are very low;
• sells self-made goods with low material or acquisition costs;
• earns income through platforms;
• wants taxes to be paid automatically;
• does not need to deduct expenses;
• does not wish to maintain conventional accounting records.

Examples of suitable services:

• babysitter;
• domestic helper;
• private tutor;
• gardener;
• cleaning service;
• smaller repair or construction services where the service provider does not incur substantial direct costs;
• platform services;
• handicrafts and self-made products with a low production cost.

When an entrepreneurship account is not useful

An entrepreneurship account is not useful if the activity involves direct or substantial expenses.

Because the entire amount received in the business account is taxed, rather than just the profit, costs and expenses cannot be deducted.

Therefore, an entrepreneurship account may be unsuitable if a person:

• purchases goods for resale;
• incurs significant material costs;
• pays rent;
• buys equipment;
• invests in advertising;
• incurs transportation or storage costs;
• operates in a sector with high production costs;
• approaches the annual limit of 40 000 €.

In such cases, it is worth considering operating as an FIE or OÜ.

Working with companies: an important tax rule

A business account may be used with both private individuals and legal entities.

However, when providing a service to a resident company, non-profit association, foundation, or religious association, an additional rule must be taken into account: the payer may incur an additional income tax liability at the rate of 22/78.

Its purpose is to prevent situations where a conventional employment relationship or service contract is replaced by payments made through an entrepreneur account.

The owner of an entrepreneurship account must inform the payer that they provide the service through an entrepreneurship account and that the income is taxed under the Simplified Business Income Taxation Act.

No additional income tax liability arises from the sale of goods.

How an entrepreneurship account differs from a sole proprietorship and a private limited company

The main differences concern expenses, reporting, and the form of business.

Business account

Suitable for simple activities with low costs.

Features:

• tax is withheld automatically;
• no monthly reports need to be submitted;
• expenses cannot be deducted;
• 
  
  2026. the tax rate is 22% per year, or 24%, 26% or 28% for a person obligated to contribute to a funded pension;
• if annual receipts exceed 40 000 €, you must register as an entrepreneur and for VAT.

The holder of an entrepreneurship account may not be liable for VAT or operate as a sole proprietor in the same or a similar field of activity.

FIE

FIE sobib inimesele, kes tegutseb iseseisva ettevõtjana ja kellel on ettevõtlusega seotud kulud.

Unlike with an entrepreneurship account, a sole proprietor can deduct business-related expenses on Form E of the income tax return.

However, operating as a sole proprietor entails reporting, tax accounting, and the obligation to make advance social tax payments.

OÜ

OÜ sobib tegevuseks äriühingu vormis.

OÜ kaudu saab pidada täiemahulist ettevõtlust, töötada eraisikute, FIE-de ja teiste ettevõtetega, arvestada kulusid, esitada vajalikke deklaratsioone ja majandusaasta aruannet.

2026. the following, among other things, apply to private limited companies during the year:

• corporate income tax 22/78;
• payroll taxes, including social tax of 33%, income tax of 22%, unemployment insurance contributions, and funded pension contributions for participants;
• reporting, including TSD, KMD, KMD INF, and the annual report to the commercial register.

Millal tasub valida FIE või OÜ

FIE või OÜ valimist tasub kaaluda konkreetsete tunnuste põhjal.

The transition may be logical if:

• the amounts received in the business account approach the annual limit of 40 000 €;
• the activity involves regular or substantial expenses;
• expenses need to be deducted;
• the activity involves purchasing and reselling goods;
• accounting and tax records need to be maintained;
• the activity becomes more permanent;
• personal funds and business-related funds need to be kept separate;
• a business account no longer corresponds to the actual scale of the activity.

If it is a one-person independent activity involving business-related expenses, the FIE form may be considered.

If it involves developing a business, working with different clients, accounting for expenses, reporting, and growth, an OÜ is usually considered.

Summary

A business account in Estonia in 2026 is a convenient solution for simple activities: services for private individuals, platform work, handicrafts, and self-made goods with low expenses.

This is particularly suitable when simplicity, automatic tax payments, and the absence of monthly reports are important to the person.

However, an entrepreneurship account is not suitable for activities involving substantial expenses, the purchase of goods for resale, significant investments, or annual receipts exceeding 40 000 €.

The basic rule is simple: if there are almost no expenses, an entrepreneur account may be convenient. If there are expenses and the business is growing, it is worth considering an FIE or OÜ.

Useful advice from Easyfind

If you have questions about a business account, taxes, or choosing between a sole proprietor (FIE) and a private limited company (OÜ), it is worth consulting a specialist.

On Easyfind, you can find accounting service providers who can help with taxes, reporting, and choosing a suitable form of business:
https://dev.easyfind.ee/listing-category/raamatupidamisteenused/

Accountants, join Easyfind

If you provide accounting services or tax advice, register your service on Easyfind.

Easyfind helps you be visible to those seeking assistance with questions related to business accounts, sole proprietorships (FIE), private limited companies (OÜ), taxes, or reporting.

Sources

• Riigi Teataja: Simplified Business Income Taxation Act, version effective as of 01.01.2026.
• Maksu- ja Tolliamet: Entrepreneur account.
• Maksu- ja Tolliamet: Tax rates 2026.