The use of entrepreneur accounts has been boosted, among other things, by virtual ways of working and the spread of platform work. People’s desire to be their own employer has also given a boost to the use of entrepreneur accounts.
According to Riina Randver-Sõer, the Service Owner of the Income Tax Department of the Estonian Tax and Customs Board (ETCB), using an entrepreneur account is convenient primarily because there is no need to worry about financial statements, monthly tax returns and paying taxes. “All of this is done automatically based on the entries in the entrepreneur account. Also, from the beginning of 2025, using an entrepreneur account is more affordable than before. All income between 25,000 and 40,000 euros in a calendar year will be subject to a 20% tax rate instead of the previous 40%,” said Riina Randver-Sõer.
According to the Estonian Tax and Customs Board, as of the beginning of April, there were over 30,000 entrepreneur accounts in active use in Estonia. In the first three months of this year, the volume of transactions made with entrepreneur accounts exceeded 13 million euros. Last year in total, the number of transactions made with entrepreneur accounts exceeded 50 million euros.
People between the ages of 21 and 30 have the most, more than 10,000, active entrepreneur accounts. They are followed by people aged 31-40, who currently have nearly 8,500 valid accounts in total. The third-highest number of users are people aged 41–50, who have a total of over 5,000 active entrepreneur accounts.
By region, residents of Harju County, Tartu County, and Ida-Viru County have the most active entrepreneur accounts. While the people of Harju County have nearly 18,000 entrepreneur accounts in total, the people of Tartu County currently have nearly 3,500 and the residents of Ida-Viru County have almost 3,000.
Customer satisfaction with the entrepreneur account has improved significantly over the year. While in 2023 the customer satisfaction index was 55%, in 2024 this indicator was already 72%. “Customer feedback has shown that the entrepreneur account is a very user-friendly, simple, and convenient way to earn income. Among others, this has been highlighted by clients who give private lessons as teachers, offer beauty services in addition to their main job, sell arts and crafts, or other similar things," stated Riina Randver-Sõer.
Entrepreneur accounts are intended primarily for people who provide services to other natural persons that do not involve direct costs. It is also a useful way to earn extra income for those who provide services and sell goods that have low material or acquisition costs or are self-made to people or businesses.
The entrepreneur account is therefore well suited for babysitters, pet sitters, domestic helpers, gardeners, and those who provide repair or construction work that does not involve direct costs or whose work costs are borne by the customer. It is also suitable for craft and art makers, sellers of home-grown or home-prepared food, seedlings, plants, or other similar items. You can find more options and examples of how the entrepreneur account works on the ETCB’s website.
At the beginning of 2025, using an entrepreneur account became more affordable than before. The most important change is the more favourable tax rate of 20% for income between 25,000 and 40,000 euros per calendar year. The business income tax rate of an entrepreneur account holder who has joined the second pension pillar will only increase by the rate of their funded pension contribution. If the income received in the entrepreneur account is a person’s only income, then to obtain health insurance, their entrepreneur account must receive 2255 euros in one calendar month.
