Tallinn University of Technology


Opening a Bank Account

Banking in e-Estonia is easy. You can do most transactions online and almost never have to go to an actual bank branch.

You can make both cash deposits and withdrawals via ATMs. All standard bank transactions take place online and most of Estonians have never seen a bank cheque. Banking in Estonia is easy, fast and secure.

To open a bank account, most commercial banks in Estonia need you to come into one of their branches. Have your ID on you when visiting the branch. Once the account opening procedure is completed, you will have instant access to your account over the Internet.

Most banks also issue internationally recognised debit and credit cards like Visa, MasterCard and American Express. Be aware that each bank has its own types of account and banking plans, so check the banks’ websites beforehand.

if you are a non-eu citizen we recommend you to become an LHV client beacuse opening an account in LHV is free of charge FOR TALTECH EMPLOYEES.

Please contact: Katri Liiv, e-mail katri.liiv@taltech.ee  

Documents needed:

If you receive a positive decision for an account opening, visit LHV branch in Tallinn for the identification process.

In case of additional questions, please contact via e-mail at nonresident@lhv.ee.

Taxes and benefits

With the 20% income tax, you can actually keep the larger portion of your salary to yourself (it’s quite a different story in the neighbouring countries of Finland and Sweden, for example).

You’ll also have deductible expenses, such as:

  • housing loan interest,
  • training expenses,
  • gifts and donations,
  • pension contributions,
  • deductions for children,
  • unemployment insurance contributions.

Amount of annual tax-free income for 2019 can be calculated using the calculator.

In Estonia, taxes are withheld from your gross salary by your employer on a monthly basis. This means you don’t have to make additional payments or file monthly tax returns.

Additionally, your employer is also obliged to pay the social tax of 33% from your gross salary. This is the tax for the employer: it is based on your actual gross income and not subtracted from your salary.

Labour taxes

In Estonia, the employer pays all the taxes on behalf of the employee. This leaves you with your net salary and nothing to worry about.

Social Services

In Estonia, social services are provided by a governmental agency – the Social Insurance Board  – and two public legal bodies – the Health Insurance Fund and the Unemployment Insurance Fund.

Some social services (like transportation allowance, kindergarten and school allowance) are also provided by local government units.

Pension System

Estonia has a three-pillared pension system consisting of the state pension, the mandatory funded pension and supplementary funded pensions. 

To receive the old age or disability pension, apply for it via the Social Insurance Board. You will be eligible for the Estonian retirement pension when you have proof of at least one year of pensionable service in the EU member states, Norway, Iceland, Liechtenstein or Switzerland. 

Estonia also has separate international contracts with Latvia, Lithuania, Finland, Ukraine, Canada, and Russia.

More information: