Home loan

Locations and opening hours of LHV ATMs can be found on our website and in our mobile app.

All ATMs listed on LHV's website are marked with a corresponding note.

It is possible to withdraw up to 1000 € at a time.

The withdrawal sum also depends on the cash withdrawal limit set for the card. When the limit and balance are sufficient, and it is still not possible to withdraw the sum requested, the reason might be that there are not enough notes in the machine to withdraw the requested amount.

The limitations are imposed by the account owner and/or the user of the card (e.g. account balance or card withdrawal limit). In the case of large amounts there is also a service fee, which can be found in the applicable price list.

This can be a problem when the account owner and/or the user of the card has placed the respective restriction upon the card. To change the restriction, log in to the internet bank and choose “Everyday banking” ➞ “Bank cards”.

It is possible to deposit up to 200 notes, and there is no limitation on the sum.

All euro notes can be deposited, i.e. 5, 10, 20, 50, 100, 200 and 500 euro notes.

No, it is only possible to deposit money into a bank account. Then, if you wish, you can transfer it from your bank account to your credit account.

LHV’s ATMs can be used to change the PIN code for any LHV Pank bank card.

You can use the Car Loan for purchasing or repairing different vehicles. This includes passenger cars, motorbikes, ATV-s as well as watercraft.

The vehicle can be registered in your name right from the start.

A Car Loan is an unsecured small loan with more favourable conditions due to its intended use. If you have applied for a Car Loan, you will sign a small loan contract, which has already been prepared by using the Car Loan conditions.

As a private person, you can apply for a Car Loan if

• your monthly income is at least 250 €
• you are aged 18 to 75
• you are a citizen of the Republic of Estonia, a citizen of the Russian Federation or holder of a grey passport, who holds a residence permit and resides in Estonia.

You do not have to have a bank account at LHV to be able to apply for a Car Loan.

You only need to submit your account statement if this is requested by LHV Finance customer support. When you submit a six month account statement, you yourself choose the appropriate format:

• statement digitally certified by the bank (so-called digidoc format)
• hard copy printout certified by the bank
• statement printed out at an LHV Bank office

If your bank does not provide printouts in any other form, a PDF file will do as well.

E-mail the statement to finance@lhv.ee or drop it off at an LHV Bank office.

Once you have submitted the application, we will assign you a limit valid for 90 days. We shall send you an e-mail with the limit decision. Up to this limit, you can conclude one or several small loan contracts. You can conclude a contract conveniently without leaving home, through our self-service](/en/car-loan/application). If you are unable to sign a contract digitally, you can also conclude a contract at any Euronics shop.

We will forward the information about the amount of the first instalment and its due date to you by e-mail once a contract has been concluded. The amount of the instalment and the payment due date are also recorded on the payment schedule attached to your contract. Should you be unable to find the information you need, please call our customer support at 699 9119 or send an e-mail to finance@lhv.ee.

We will send you the invoice by e-mail or post every month, five days before the payment due date. If you have also requested an e-invoice, we will send it to the Internet bank of your choice.

Pay your instalments into the AS LHV Finance account EE707700771001062897. Indicate the number of your Car Loan contract as the reference number.

The most convenient way to make your monthly payments is to use the automatic e-invoice standing order service. You can conclude a standing order agreement via the Internet bank of the same bank where you would like to make your monthly payments.

You do not have to wait for an invoice to arrive to pay an instalment. If you have not received an invoice, look up the exact amount on the payment schedule of your contract. Transfer this amount into the AS LHV Finance account EE707700771001062897.

At the latest, the instalment must be received in the AS LHV Finance account on the payment due date set out in your contract. We therefore advise you to transfer payment before 16.00 on the business day preceding the payment due date, at the latest. This way, you can make sure that the payment will be received by us on time.

For your invoice to be paid automatically, conclude an e-invoice standing order agreement via the Internet bank of the bank where you would like to make your monthly payments. Going forward, you will no longer need to worry whether your invoice has been paid on time. It is important to just make sure that on the payment due date there are sufficient funds available in your bank account for paying the instalment.

Information that may be needed for requesting an e-invoice and concluding a standing order agreement:

• Invoice issued by: AS LHV Finance
• Account number: account from which you wish to make payments
• Customer ID: agreement number
• Expiry of order: leave this field blank
• Invoice payment: select automatic payments
• Standing order date: date of receipt of invoice
• Limit: leave this field blank

Your Car Loan contract is easy to amend. All you have to do is e-mail your request to us at finance@lhv.ee. If needed, you can apply for a grace period or change the payment due date or the amount of the monthly instalment. It costs 25 € to amend your contract. This amount will be added to your next invoice. If you repay the entire car loan amount early, there will be no service charge.

There is no charge for repaying the entire Car Loan amount early. E-mail your request to us at finance@lhv.ee.

Information is available from our customer support by calling 699 9119 or e-mailing finance@lhv.ee. Customer support operates Mon–Fri 9–17.

Since 2011, two parallel systems have existed in Estonia for the taxation of personal investment income:

• the so-called ordinary system, according to which all transactions involving the sale of securities must be declared, and
• the investment account system, according to which only the contributions to and disbursements from the account must be declared.

Securities income may also be declared according to both systems.

The ordinary system provides for the declaring of all securities transactions performed in the previous year. The income tax obligation arises once you have earned a profit as the end result of all sales transactions. However, if you have incurred a loss during the year, you can carry that forward to the following year. Service fees may be deducted from realised revenue under the ordinary system, but management fees may not be deducted.

Transactions must be entered in the income tax return by hand (see How is income declared in the ordinary system?). Optionally, the ‘Tax report’ statement available in LHV internet bank may be used for reference. It is there that we have consolidated all of the information known to LHV Pank regarding the gain or loss on the transfer of your Estonian and foreign securities, interest income from securities and foreign-sourced dividends. Declare these to the Tax and Customs Board using tables 5.1, 6.1, 7.1, 8.1, 8.2 and 8.8 of the income tax return.

When using the investment account system it is not the securities transactions that must be declared; instead, the contributions to and disbursements from the bank account marked as the investment account must be declared. An individual may have multiple investment accounts at several different banks simultaneously. A tax liability only arises if the amount by which the disbursements made from all of the investment accounts exceeds the balance of the contributions made to all of the investment accounts.

The tax report showing every contribution to and disbursement from your bank account can be forwarded automatically to the income tax return in the LHV internet bank, from the ‘Investment Account Report’ section.

The main differences between the ordinary system and the investment account system are presented in the following table.

In addition to investing as an individual it is also possible to do so as an enterprise, in which case the taxation of the company’s income resembles the investment account system. However, there are also differences between investing via a private individual’s investment account and investing as an enterprise, the most important of which are related to data disclosure and the deduction of management fees. Read more about investing as an enterprise.

If there were no dividend payments or sales transactions in your Growth Account during the year,

• you, as the user of an ordinary system, do not have to report any Growth Account investments at all;
• when using the investment account system, you still have the obligation to report the contributions to and disbursements from the Growth Account, which you can automatically send to the Tax Board from LHV’s internet bank.

Sales transactions and dividends under the ordinary system
If you have received dividends in your Growth Account during the year, you will have to report these in Table 8.1 or Table 8.8 of your income tax return.
If you have also made some sales transactions in your Growth Account during the year, any disposal of fund units must be entered in Table 8.2 of the income tax return.
All necessary data for filling in the tax return can be found in internet bank under “Assets and Liabilities” → “Tax Report”.

Declaration of dividends in the investment account system
The first step is to inform the Tax Board that you are using your Growth Account in the investment account system. To do so, information regarding the bank account being used as the Growth Account must be entered in part I of Table 6.5 of your income tax return.
Only cash contributions and disbursements will be subject to reporting. Information on cash transfers can be found under the internet bank section “Assets and Liabilities” → “Investment Account Report”, which you can send automatically to the Tax Board by pressing the button at the bottom of the page. The forwarded information should be visible in part II of Table 6.5 in the income tax return.
If, during the year, you have received dividends in your Growth Account that are subject to taxation (an overview can be found in the internet bank under “Assets and Liabilities” → “Tax Report”, Table 8.8), you must report these receipts separately in Table 8.8 of the income tax return.

Income tax shall only be paid on deposit interest by those private individuals who are Estonian tax residents and who have not informed LHV Pank that their account, in which the interest is received, is an investment account.

You can inform LHV Pank about the investment account in the internet bank section “Information and Settings” → “Accounts and Limits” → “Accounts”. Select the account and save the selection. Later, you should also declare this account on your Tax and Customs Board income tax return as an investment account.

An Estonian tax resident is a person whose permanent residence is in Estonia or who has stayed in Estonia for at least 183 days in a year. You can check your tax residency in LHV internet bank (“Information and Settings” → “Data”).

You do not have to declare or pay the interest yourself. The bank shall withhold income tax and declare and pay it on your behalf. The data of the interest earned on bank deposits will be automatically shown on your pre-populated income tax return starting from 2019.

A client, whose deposit interest is subject to income tax, will from now on see two entries in their account statement: interest and income tax payment. Calculation of income tax follows the traditional rounding-off rules.

Example

If you conclude a 12-month (365-day) deposit contract in the amount of 500 € with an interest rate of 0.30%, then at the end of the deposit period the bank will transfer the interest to your account in the amount of 1.52 € and withhold 30 cents as income tax.

As crypto assets are not considered as securities, they are taxed under similar rules as other assets (e.g., real estate, physical gold). This means, among other things, that the investment account system may not be used to trade crypto assets. Read more about the taxation of private crypto assets.

Standard system
The only allowed form of declaration for crypto assets. Every profitable sales transaction is taxable, but loss-making transactions cannot be deducted from profitable transactions. For example: if you have sold Bitcoin twice during the year, and you made a profit of EUR 100 on one of the sales and made a loss of EUR 80 on the other, you will have to pay income tax on the entire EUR 100 gain.

You can find information for the declaration of crypto income in Table 6.3 of the LHV tax report. There we will show you all profitable crypto transactions made during the reporting period, grouped by instrument. It is up to you to review the entries and, if everything is correct, copy them manually into Table 6.3 (‘Transfer of other property’) of your income tax return.

Generally, it is sufficient to declare crypto gains on an instrument-by-instrument basis. For data verification purposes, the Estonian Tax and Customs Board may require you to provide a statement of all your crypto transactions. An overview of all transactions, including loss-making ones, can be found in the ‘Assets and liabilities’ → ‘Trade report’ section of the LHV Internet Bank.

Investment account system
As crypto assets do not fall under the definition of financial assets, they are not eligible for the investment account tax benefit. For this reason, it is a good idea to make transactions with crypto assets in another account that you do not use as an investment account.

However, if you have bought and sold crypto assets in your investment account, please do the following:

• In Part II of Table 6.5 of your income tax return, declare purchases of crypto assets as a cash withdrawal from an investment account. If, after the purchase transaction, the total amount withdrawn exceeds the balance of the contributions to the investment account, you will have to pay income tax on the difference. If you sell crypto assets from your investment account, declare the proceeds from the sale as a cash contribution to your investment account. You can automatically transfer the required data on investment account contributions and withdrawals to the Estonian Tax and Customs Board from the ‘Assets and liabilities’ → ‘Investment account report’ section of the LHV Internet Bank.
• If you made at least one profitable sales transaction of crypto assets during the year, then in addition to Table 6.5, you have to manually complete Table 6.3 (‘Transfer of other property’) and pay income tax on the gain. Please keep in mind, however, that unprofitable crypto transactions cannot be deducted from the profits, i.e. income tax has to be paid on each profitable transaction. You can find the necessary data for Table 6.3 in the ‘Assets and liabilities’ menu ‘Tax report’ in the LHV Internet Bank.

You do not have to declare to the Estonian Tax and Customs Board the existence of a PIA or securities transactions carried out through a PIA. In this sense, a PIA is similar to a pension fund – contributions are exempt from tax and withdrawals are taxed on the full amount withdrawn. However, you will still have to declare and, if applicable, pay income tax each year on the financial income (dividends and interest) received by the PIA.

Dividends
Under the current law, income tax liability cannot be deferred on dividends received by the PIA. Therefore, you will have to declare the dividends received to the PIA in your income tax return and, if applicable, pay income tax on them.

Dividends received from an Estonian company to your PIA must be included in Table 7.1 or 5.1 of your income tax return. If the dividend was taxed at the corporate level at a rate of 20/80, it was received by the PIA in net amount, i.e., without withholding income tax. These dividends are only taken into account in the calculation of tax-free income and must be included in Table 7.1 of the income tax return. If the company has paid dividends at the 14/86 rate and withheld 7% on the amount of the dividend, these dividends will be pre-filled in Table 5.1 of your income tax return.

Dividends from foreign shares have to be declared in Table 8.1 or 8.8 of the income tax return. If income tax was not withheld on the dividend, it has to be entered in Table 8.1 of the income tax return and income tax must be paid on it. If the income tax was withheld in a foreign country, it is no longer taxed in Estonia, but it must still be entered in Table 8.8 of the income tax return for the purposes of calculating annual income.

Interest
An amendment to the law entered into force on 1 January 2022, according to which no income tax will be withheld on the Estonian interest received by the PIA. If you have still received Estonian interest on your PIA during 2021, you will still have to report it in your income tax return and pay income tax, if applicable. There are no special rules for interest earned abroad – you have to continue to declare and pay income tax on interest earned in a foreign country.

Interest received on Estonian bonds, investment funds, and deposits must be declared in Part I or Part II of Table 5.1 of the income tax return, depending on whether or not income tax was withheld on the interest. Interest received from abroad must be reported in Table 8.1 of the income tax return. If income tax has been withheld abroad, the amount of income tax must be entered in Column 8 of Table 8.1.

All foreign dividends and interest that you have received in a bank account opened with LHV, including PIA, are shown in Tables 8.1 and 8.8 of your LHV tax report. However, Estonian dividends and interest are not reflected in the LHV tax report – you can find information on dividends received and withheld income tax in your PIA account statement. It is up to you to review the information and copy it into the appropriate tables on your income tax return. In doing so, please note that dividends and interest received from an Estonian issuer are usually automatically included in your pre-filled income tax return, so please make sure that you do not enter the same payment twice in your income tax return.

If, during the year, you have received payments on the shares of your Estonian companies, made at the expense of the reduction of share capital, this data will appear automatically as pre-filled in Table 7.1 and/or column 4 of Table 6.4 of the Estonian Tax and Customs Board's (ETCB) income tax return.

Ordinary system
Taxable income is the difference between the payments declared in column 4 of Table 6.4 and the acquisition cost of shares.

The amount of capital share reduction taxable at the personal level will automatically appear in column 4 of Table 6.4 of the income tax return. In column 3 of the same Table, you must manually enter the acquisition cost (you can find it in LHV's summary statement or, if you have already sold the shares, in LHV’s tax report).

At the same time, it should be borne in mind that the acquisition cost, which has already been deducted on one occasion, cannot be taken into account for the second time. It means that after the share capital has been paid out, the acquisition cost of your shares will be reduced by the amount indicated in column 3 of Table 6.4. When you start selling your shares, you have to take it into account and correct the acquisition cost shown in LHV's tax report before submitting your income tax return, as changes in the acquisition cost due to the reduction of share capital are not reflected in LHV's system automatically.

Investment account system
Since share capital returns credited into an investment account usually constitute tax neutral transactions within the investment account system, make sure that the share capital payment entry in LHV’s investment account report has not been ticked, before submitting the data to the ETCB. In addition, make sure to delete the pre-filled data from Table 6.4 in order to defer the income tax liability arising from the distribution of share capital.

If part of the payment has been taxed at the corporate level, you can declare this portion of the share capital distribution as an investment account contribution in Part II of Table 6.5 of the income tax return. The amount of share capital distribution on which income tax has been withheld at the corporate level is automatically pre-filled in Table 7.1 of the income tax return.

In the LHV internet bank you will find your tax report, which consolidates all of the information in your LHV bank accounts regarding gains or losses from the transfer of Estonian and foreign securities, interest income from securities and dividends from abroad.

Transactions performed with the trading platform LHV Broker are not reflected in the tax report.

Information from the tax report can be used to complete your income tax return.

If you are declaring securities income in both the ordinary system as well as the investment account system, remove the investment account entries from the LHV tax report.

If you have received securities related income from somewhere other than LHV investment services (for example, crowdfunding platforms), then this data must be added to your income tax return by hand.

LHV’s tax report include tables 6.1 and 8.2 for declaring gains or losses from the transfer of securities, the format of which is the same as the corresponding tables in the income tax return. It is the task of the declarant to, if necessary, check the transactions and sums and thereafter copy the data into the tables in the income tax return.

In the LHV internet bank select “Tax Report” from the “Assets and Liabilities” section.

• Check the correctness of the data in the tax report.
• Copy the data from the tax report to tables 6.1 and 8.2 of the income tax return.
• Submit the income tax return.
• Be prepared to submit additional evidence at the request of the Tax and Customs Board.

In addition to the tax report, LHV’s clients are also able to receive a realized profit/loss report from the LHV internet bank for the same period of time. It contains more detailed information about the transactions made (currency, service fee paid upon purchase, and exchange rates).

If you click on the securities symbol in the realised income/expense report or in the tax report in the LHV internet bank, you will receive a detailed breakdown of the transactions that have been made to acquire this securities position – this is the securities transactions report.

This report is useful

• in calculating or controlling the acquisition cost, especially if, following the acquisition, a spilt or other corporate activity (merger, division, etc.) has taken place;
• in the case of a purchase or sales transaction for securities that is the result of the exercising of options. The costs associated with acquiring an option shall be included among the costs of the securities (call option) or the disposal costs (put option).

Any gain or loss that you have received from the sale of shares, investment fund (including money market funds) shares, bonds or debt obligations, options, derivative instruments or other unnamed securities (meaning the sale or in the course of an exchange for the asset) must be shown in the income tax return.

• When selling – the difference between the acquisition cost and the sales price of the security.
• When exchanging – the difference in market price between the acquisition cost of the security that was exchanged and the market price of the security that was received in exchange.

In the case of the merger, division or transformation of companies and non-profit organisations, new holdings received by way of exchange of shares shall be taxed when they are transferred. The difference in the acquisition cost of the exchanged share and the sales price of the share received shall be taxed.

Under similar conditions, the gains received from the transferring of shares acquired through the switching of the investment fund units of European Union Member States are also taxed.

No, you can’t do that, since the acquisition cost of the share is taken into consideration during the taxable period when the share was transferred.

No, you do not. A relevant entry does appear automatically on the tax return; however, since a transfer of securities from one of your accounts to another does not constitute a transfer of securities, you may delete this row from the declaration.

The acquisition cost of a security is comprised of all of the expenses incurred and documentarily certified in the acquisition of that security.

As the costs directly attributable to the disposal of the asset are an indefinite legal concept, they must be viewed separately in the case of each specific transaction. Directly related costs can be costs that are necessary for the transaction, without which the transaction would not be possible to complete.

Account management fees for the securities account or any other overhead costs that have been incurred by the taxpayer are not taken into account as expenses. These costs are to be borne by the individual irrespective of the transfer of the securities and cannot be deducted from the gains or added to the losses.

In this case, the tax liability arises from the transfer of shares. Their acquisition cost is zero.

No, the switching of such units is not subject to income tax. Transactions involving the switching of these units do not have to be declared.

When calculating the gain obtained from the sale of units acquired during a tax exempt swap, the acquisition cost of the units transferred during the course of the switch can be taken into consideration.

In the case of the transfer of units acquired in a tax-free exchange, the time of acquisition of the units shall be deemed to be the time of acquisition of the units transferred during the switch.

• FIFO method – the transfer takes place in the order of purchase, or
• weighted average method – the acquisition cost for one transferred security is calculated by dividing the sum of the acquisition cost of the same class of securities existing at the time of transfer by their number.

Calculation of the acquisition cost may be complicated by corporate actions (split, merger, division, fund issue, spin-off, etc.), exercise, the transfer of securities from one account to another, etc.

After calculating the acquisition cost using the FIFO method, LHV’s base system for tax reports is also able to transfer the acquisition cost for one transaction over to another. This opportunity is applied, for example, when reflecting a split: a negative entry is made in the client’s account to write-off the securities, while a positive entry is made to apply the new securities position. These entries are linked together to pass on the acquisition cost of the negative entry to the positive entry.

At the same time, more complicated transactions (but also, for example, transferring securities from one account to another) may be reflected as so-called free entries, in which case LHV must manually combine those entries with the necessary coefficients. Failure to do so will result in the acquisition cost transfer not being made and incorrect data may appear in the tax report.

Therefore, in the case of free entries and other potentially unsafe transactions, the corresponding lines in the tax report are marked with red and it is recommended that the customer double-checks them. If necessary, contact LHV in order to combine entries or make other corrections.

The transfer of securities shall take into account not only the benefits derived from the transaction but also the transactions carried out at a loss. As such, it is immaterial whether the loss from the transfer of securities was incurred during that taxable period or earlier.

If the loss from the transfer of securities was incurred in previous taxable periods, the loss must already have been declared and it is then carried forward from previous taxable periods.

If the loss from the transfer of securities is greater than the gain received from the transfer of securities during the same period, the amount of loss exceeding the gain may be deducted from the gain received from the transfer of securities during the following taxable periods.

Shares are not transferred or declared invalid during the bankruptcy process, and a loss cannot be declared. In the case of the liquidation of a company or the receipt of liquidation proceeds income tax is charged on the amount in which the liquidation proceeds exceed the acquisition cost of the holding (except the part of the liquidation proceeds which are taxed at the level of the company). The loss incurred may also be declared upon the liquidation of the company.

A loss, which has arisen from the transfer of securities, may not be taken into consideration in the case of a reduction in the gains from the transfer of securities in the event that the loss was

• suffered due to the transfer of the securities at a price which is lower than the market price to a person associated with the taxpayer or
• upon the transfer of securities acquired from a person associated with the taxpayer at a price which is higher than the market price.

Regarding transactions concluded at a loss with associated persons, place an “X” in column 8 of table 6.1 in your income tax return in the event that you acquired a security granting the right to receive a dividend 30 days before the date on which the persons with the right to receive dividends are specified and you transferred

• on the date on which the persons with the right to receive dividends are specified or
• for a period of 30 days after that date.

In the case of the last two transactions concluded at a loss, write an “X” in column 9 of table 6.1 of your income tax return.

In LHV’s tax report these transactions are marked with three stars (***).

Since the loss from the transfer of shares cannot be taken into consideration in the situation described, the option premium, which would increase the loss, also cannot be taken into consideration.

The sale or exchange of a security in the course of a market transaction before the maturity date of the bond is declared as a security transfer. The yield on an existing bond is taxed as interest, even if the interest is the difference between the issue price and the repurchase price (zero-coupon bond) of the bond.

If the employee has received securities from his or her employer, either free of charge or at a preferential price, on which the employer has paid the fringe benefit, income and social tax, or a physical person has received a security as a gift from a legal person for which the legal person has already been charged income tax, then upon the transfer thereof the sum of those securities will be added to their acquisition cost, for which the employer or the legal person has already been charged income tax.

Ask the employer or legal person that granted the security for a free-form certificate, which includes the name and registry code of the legal person that issued the security, the type, amount and cost of the security and the amount of income tax that the legal person has already been charged. As this amount can only be taken into consideration in the event that the legal person has already been charged income tax on the market price of the free of charge or preferentially priced securities, the certificate must show when and in which amount the income and social tax, mandatory funded pension payment and unemployment insurance premium declaration referred to in Annex 4 or 5 is reflected.

The taxpayer is able to take their own cost incurred in acquiring the option’s underlying assets as the acquisition cost and the value of the option taxed as a fringe benefit by the employer, which is listed on the certificate issued by the employer.

If the underlyings to which the option refers are the holding in the employer or a company that belongs to the same group as the employer, the acquisition of the holding that constitutes the underlying assets of the share option is not classified as fringe benefits, if the holding is acquired no earlier than three years as of the granting of the share option. An employee is required to notify the employer of the transfer of the share option. In the case that the underlyings to which the option refers are changed, the specified term shall be calculated as of the granting of the initial option. If the entire holding in the employer or a company that belongs to the same group as the employer is transferred during the term of at least a three-year option contract, and also in the case that an employee is established to have no work ability or in the event of the death of an employee, fringe benefits do not include the acquisition of the holding constituting the underlyings to which the option refers, to the extent that corresponds to the proportion of the time of keeping the option prior to the specified event.

The exemption from income tax does not extend to the income received from the transfer of the option.

Securities which are acquired through succession or as a gift are reflected in LHV’s tax report at an acquisition cost of zero, i.e. as securities that were received for free. Upon transfer, income tax shall be paid on the sales amount.

Securities transferred via a financial intermediary in a foreign country shall be subject to the same rules as securities acquired in Estonia. Expenditures incurred in a foreign currency, the sale and market price of securities, as well as paid taxes and withheld income tax are to be calculated in euros (if the transaction currency is other than the euro) based on the ECB’s euro foreign exchange reference rates, which was valid on the day the expenditure was incurred, revenue was received, or income tax was paid or withheld.

Securities transferred in a foreign state must be indicated in table 8.2 of the income tax return of a natural person, which is completed in the same way as table 6.1.

A transaction for a transfer executed with shares of this type is shown as securities income obtained in a foreign country.

Based on the information received regarding the securities transactions performed through the NASDAQ CSD (formerly the Estonian Central Register of Securities (ECSD)), the tax authority pre-completes table 6.1 in the tax return of a natural person.

As the NASDAQ CSD does not have comprehensive data on all transactions, it is up to the taxpayer to include data that is missing from the table for transactions that have not been performed via the NASDAQ CSD, or which they have performed with a nominee account and not their own personal account.

At the same time, the taxpayer must also update the transaction information submitted by NASDAQ CSD. For example, NASDAQ CSD is unable to provide the tax authority with information on the acquisition cost of transferred securities.

The cash sum transferred from the trading account to the bank account must be declared as transfer of other property either in table 6.3 (section “Income Received in Estonia”) or in table 8.3 (section “Income Received in a Foreign Country”) of form A in the income tax return, depending on the registration country of the portal. Foreign exchange revenue may not be declared as securities income.

No, foreign exchange transactions performed by the LHV Broker are like currency transactions and must be reflected in table 8.2.

• The symbol and name of the security, for example, “MSFT: Microsoft Corporation“ or “TAL1T: Tallink Grupp” is always marked on the issuer’s field of LHV’s tax report . While there is no requirement to enter a symbol in the guidelines for completing an income tax return, we recommend that you do so in order to clearly identify the security.
• Depending on the type of security, LHV's tax report includes options for stock, fund units, options, futures and bonds. The income tax return includes options such as shares, units, bonds or debt obligations, derivative instruments, other securities, units in investment funds (including money market funds) and options. In the case of futures, we recommend selecting derivative instruments as the type of security.
• When calculating the acquisition cost, the FIFO method is always used in LHV’s tax report. The acquisition cost includes the costs associated with acquiring securities (mostly service fees, but also, for example, the option premium and service fees for option transactions in the case of the exercising of options).
• Costs associated with the transfer of securities shall also be taken into consideration if they increase the transaction loss.
• Costs associated with the transfer also include service fees.
• The ECB’s euro foreign exchange reference rates are used (if necessary) when converting the sums listed in Table 8.2 into euros, based on the acquisition and settlement date for securities.
• The sums are rounded to two decimal places and, if necessary, this is also done with the number of securities (the restriction arises from the income tax return submission environment).
• Data on the short selling of securities is shown in tables 6.1 and 8.2 of LHV's tax report, in the fields "Sales / Market Price" and "Transfer Related Costs" and redemption data in the field "The Acquisition Cost of Transferred Securities" (although short selling occurs before repurchase). In the case of a short sale, asterisks (**) appear in the tax report, in the issuer field, after the name of the security.
• The option premium can be expensed as part of the acquisition cost of a share when the shares acquired with the option are transferred. If the option is not realised (meaning that the option’s underlying assets are not purchased or sold), then the option premium cannot be included in the costs.
• There is no need to declare a free of payment securities transfer within the limits of one person, it may be deleted from the declaration. In the case of a free of payment transaction, the declarations of tax payers having marked the acquisition cost shall be checked, if it has not been indicated in column 8 of Table 6.1 and/or in column 10 of Table 8.2 that the transaction has been made with an associated person. If the declarant marks the acquisition cost as 0 and the transaction is with an associated party, then it will not, for tax purposes, bring any consequences with it. For example, spouses are associated persons and in the event that the acquisition cost is marked, column 8 or 10 must also be completed. The loss from a transaction with relatives (associated persons) cannot be carried forward.

• The ISIN code of the respective security is used as the dividend payer code in the LHV tax report, with the name being presented as marked in the issuer field in tables 6.1 and 8.2: security symbol and name.
• Field “7. The Amount of Income” shows the gross amount of dividends. For example, if in the case of US shares the dividend recipient receives USD 70 and income tax of 30% is withheld, the gross dividend is 70 / (1– 0.3) = USD 100. Based on this example, income is marked as USD 100 in Table 8.8, and withheld income tax 100 – 70 = USD 30.
• Since LHV holds its clients’ securities with several foreign brokers and one broker may withhold income tax on the dividends while another does not, then income tax on the dividends transferred to the client’s account may only have partially been paid. In this case, LHV's tax report share of the dividend is shown in Table 8.1 and the share in Table 8.8.
• The income tax rate for foreign brokers may also differ. If the client’s securities are held with several foreign brokers, the income tax rate may be their weighted average.
• The date for withholding or paying income tax almost always coincides with the date of payment in the LHV tax report.
• Income and withheld or paid income tax is presented in the original currency, which is marked in field “6. Currency Unit”, and is rounded to two decimal places.

The acquisition cost is found using the FIFO method based on the order of purchase.

Example

14.03.2018 100 shares of MSFT were purchased at a price of USD 24.86, the service fee is USD 22.29, T+2 16.03.2018 EUR-USD exchange rate 1.413.

22.03.2018 200 shares of MSFT were purchased at a price of USD 24.50, the service fee is USD 29.53, T+2 25.03.2018 EUR-USD exchange rate 1.4115.

01.11.2018 150 shares of MSFT were purchased at a price of USD 28.08, the service fee is USD 27.47, T+2 03.11.2018 EUR-USD exchange rate 1.3773.

Tax report

Acquisition cost = (100 × 24.86 + 22.29) / 1.413 + (50 × 24.50 + 29.53 × 50 / 200) / 1.4115 = EUR 2648.25

Costs associated with transfer = 27.47 / 1.3773 = EUR 19.95

Sales price = 150 × 28.08 / 1.3773 = EUR 3058.16

MSFT: Microsoft Corporation; share; 150; USA; 2648.25; 19.95; 3058.16

In the event of a split, two entries shall be made in the securities account: with the first entry the entire existing security position will be written off, and with the second entry a position increased by the amount of the split coefficient will be added. Example 2: In the case of one split and an existing position of 100 shares, the entries of –100 and +200 shall be made to the securities account.

Mergers, divisions and other similar corporate actions are reflected in a similar manner. For example, in the case of a merger, the old company’s securities are written off and the new ones are added. At the moment of the split, the acquisition cost of the securities being exchanged is evenly distributed between the securities being replaced, and the calculation of the acquisition cost using the FIFO method is thus interrupted (see example).

Example

14.03.2018 100 shares of MSFT were purchased at a price of USD 24.86, the service fee is USD 22.29, T+2 16.03.2018 EUR-USD exchange rate 1.413.

22.03.2018 200 shares of MSFT were purchased at a price of USD 24.50, the service fee is USD 29.53, T+2 26.03.2011 EUR-USD exchange rate 1.4115.

On 05.05.2018 a 2 : 1 split of MSFT takes place –300 MSFT is written off and +600 MSFT is added, the total acquisition cost is (100 × 24.86 + 22.29) / 1.413 + (200 × 24.50 + 29.53) / 1.4115 = EUR 5267.56.

On 07.05.2018 50 shares of MSFT were purchased at a price of USD 13.06, the service fee is USD 16.79, T+2 09.05.2018 EUR-USD exchange rate 1.435701 (Please Note If the quantity was multiplied by the corresponding coefficient during the course of the split, then the price was divided by the same coefficient).

On 01.11.2018 300 shares of MSFT were sold at a price of USD 14.04, the service fee is USD 27.47, T+2 05.11.2018 EUR-USD exchange rate 1.3773.

Tax report

Acquisition cost = 5267.56 × 300 / 600 = EUR 2633.78

Costs associated with transfer = 27.47 / 1.3773 = EUR 19.95

Sales price = 300 × 14.04 / 1.3773 = EUR 3058.16

MSFT: Microsoft Corporation; share; 300; USA; 2633.78; 19.95; 3058.16

On 02.11.2018 the remaining 350 shares of MSFT were sold at a price of USD 14.12, the service fee is USD 29.66, T+2 06.11.2018 EUR-USD exchange rate 1.377274.

Tax report

Acquisition cost = (5267.56 × 300 / 600 + (50 × 13.06 + 16.79) / 1.435701 = EUR 3100.30

Costs associated with transfer = 29.66 / 1.377274 = EUR 21.54

Sales price = 350 × 14.12 / 1.377274 = EUR 3588.25

MSFT: Microsoft Corporation; share; 350; USA; 3100.3; 21.54; 3588.25

In the case of a reverse split, instead of an increase in the number of securities and a decrease in the price, the corresponding quantity of securities is reduced and the price increases. Example 1: In the case of reverse split and an existing position of 100 shares, the entries of –100 and +50 shall be made to the securities account.

A reverse split is reflected in the tax report in a manner similar to that of a standard split. Even so, it is quite likely that in the case of a reverse split a remainder in rounding will occur. Which is why the owner of the securities receives some cash for the residual position instead of securities, and when the division occurs, the sale of the residual position must be declared.

Example

On 14.03.2018 101 shares of MACR were purchased at a price of USD 15.03, the service fee is USD 19.38, T+2 16.03.2018 EUR-USD exchange rate 1.413.

On 05.05.2018 a 1 : 2 reverse split of MACR takes place –101 MACR are written of and +50 shares are added MACR and USD 22.80 in cash resulting from a remainder in rounding for 1 MACR, total acquisition cost (101 × 15.03 + 19.38) / 1.413 = 1088.05 EUR, 05.05.2018 EUR-USD exchange rate 1.4814.

Tax report

Acquisition cost = 1088.05 × 1 / 101 = EUR 10.77

Costs associated with transfer = 0

Sales price = 1 × 22.80 / 1.4814 = EUR 15.39

MACR: Macromedia, Inc.; share; 1; USA; 10.77; 0; 15.39

On 02.11.2018 the remaining 50 shares of MACR were sold at a price of USD 55.28, the service fee is USD 23.12, T+2 06.11.2018 EUR-USD exchange rate 1.377274.

Tax report

Acquisition cost = 1088.05 × 100 / 101 = EUR 1077.28

Costs associated with transfer = 23,12 / 1.377274 = EUR 16.79

Sales price = 50 × 55.28 / 1.377274 = EUR 2006.86

MACR: Macromedia, Inc.; share; 50; USA; 1077.69; 16.79; 2006.86

New shares obtained as a result of a bonus issue shall be entered in the securities account at a price of zero. Stock dividends and bonus shares are also recognised at zero price.

Example

On 05.01.2018 200 shares of WRT1V were purchased at a price of EUR 55.65, the service fee is EUR 44.57, T+2 09.01.2018.

On 08.03.2018 a bonus issue of WRT1V shares takes place, during the course of which one new share is issued for each existing share, a zero price transfer of +200 WRT1V is made to the securities account.

On 25.04.2018 300 shares of WRT1V were purchased at a price of EUR 26.54, the service fee is EUR 35.07, T+2 27.04.2018. Please Note! The share price fell by half as a result of the bonus issue.

Tax report

Acquisition cost = 200 × 55.65 + 44.57 + 100 × 0 = EUR 11,174.57

Costs associated with transfer = EUR 35.07

Sales price = 300 × 26.54 = 7962

WRT1V: Wärtsilä Oyj Abp B; share; 300; 11,174,57; 35.07; 7962

On 10.10.2018 the remaining 100 shares of WRT1V were sold at a price of EUR 19.95, the service fee is EUR 17.17, T+2 12.10.2018.

Tax report

Acquisition cost = 100 × 0 = EUR 0

Costs associated with transfer = EUR 17.17

Sales price = 100 × 19.95 = EUR 1995

WRT1V: Wärtsilä Oyj Abp B; share; 100; 0; 17.17; 1995

As a result of exercising the call option, the purchase transaction for the share serving as the underlying asset is performed at the strike price. In the tax report the acquisition cost of the option is included in the acquisition cost of the shares being purchased.

Example

On 01.08.2018, 4 BMW call option contracts are purchased with an exercise date of 19.08.2018 and an exercise price of EUR 50, the price of the option agreement is EUR 1.9, the service fee is EUR 16 (one agreement includes 100 shares and the price of the option agreement is per one share).

On 02.08.2018, 2 of the same options were sold at the price of EUR 2, the service fee is EUR 8.

Tax report

Acquisition cost = 2 × 100 × 1.9 + 16 × 2 / 4 = EUR 388

Costs associated with transfer = EUR 8

Sales price = 2 × 100 x 2 = EUR 400

CBMWAUG117200: BMW call Aug 2011 72, option, 2, 388, 8, 400

On 17.08.2018 the remaining 2 option agreements were used to acquire 200 BMW shares at a price of EUR 50, the service fee is EUR 35.16, T+2 21.08.2018.

On 19.10.2018 200 BMW shares were sold at the price of EUR 54.20, the service fee is EUR 43.70, T+2 23.10.2018.

Tax report

Acquisition cost = 200 × 50 + 43.7 + 2 × 100 × 1.9 + 16 × 2 / 4 = EUR 10,388

Costs associated with the transfer = EUR 43.70

Sales price = 200 × 54.20 = EUR 10,840

BMW: BMW AG; share; 200; 10388; 43.70; 10840

The result of exercising the put option, will be a sales transaction for the underlying share performed at the strike price. In the tax report the acquisition cost of the option is included in the cost of transfer of the shares being sold.

Example

On 23.11.2018, 400 BMW shares are purchased at the price of EUR 47.30, service fee is EUR 70.58, T+2 27.11.2011.

On 23.11.2018, 4 BMW put option agreements with an exercise date of 16.12.2018 and exercise price of EUR 50 were purchased, the price of the option contract is EUR 2.15 and the service fee is EUR 16.

On 14.12.2018, the purchased options are used to sell 400 BMW shares at a sales price of EUR 50, the service fee is EUR 70.32 EUR, T+2 18.12.2018.

Tax report

Acquisition cost = 400 × 47.30 + 70.58 = EUR 18990.58

Costs associated with the transfer = EUR 70.32 + 4 × 100 × 2.15 + 16 = EUR 946.32

Sales price = 400 × 50 = EUR 20,000

BMW: BMW AG; share; 400; 18,990.58; 946.32; 20000

Example 1

On 13.05.2018 Tallinna Kaubamaja (TKM1T) pays dividends of EUR 0.28 per share. The list of dividend recipients is confirmed as at 09.05.2018, with the LHV client having 100 shares.

Tax report

Is not declared and is not reflected in LHV’s tax report.

Please Note! The net amount of dividends received by an Estonian legal person is automatically included in the calculation of annual income.

Example 2

On 01.05.2018 Microsoft (MSFT) pays a dividend of USD 0.10 per share. The list of dividend recipients is confirmed as at 20.04.2018, with the LHV client having 300 shares. Income tax of 30% is withheld on the dividends for the 100 shares.

Gross dividend 300 × 0.1 = USD 30, of which income tax of 30% is withheld on USD 10 and with no income tax withheld on USD 20. Deposited in the client’s account is 100 × 0.1 × (1 – 0.3) + 200 × 0.1 = USD 27.

Presented in LHV tax report Table 8.1:

US5949181045, MSFT: Microsoft Corporation; USA; dividend; 01.05.2018, USD; 20.00; 0.00; 01.05.2018

Presented in LHV tax report Table 8.8:

US5949181045, MSFT: Microsoft Corporation; USA; dividend; 01.05.2018, USD; 10.00; 3.00; 01.05.2018

Based on this example, the taxable income is USD 20 and the income tax paid on it is 20 x 0.2 = USD 4 (i.e. EUR 3). On 01.05.2018 the EUR-USD exchange rate was 1.3145.

Example 3

On 25.04.2018 General Electric Co (GE) pays a dividend of USD 0.14 per share. The list of dividend recipients is confirmed as at 23.02.2018, with LHV having 500 shares. Different foreign brokers withhold income tax according to different tax rates.

Gross dividend 500 × 0.14 = USD 70, of which income tax of 15% is withheld on USD 56 and with 30% withheld on USD 14. Deposited in the client’s account is 400 × 0.14 × (1 – 0.15) + 100 × 0.14 = USD 57.40. The income tax rate becomes 18%.

Presented in LHV tax report Table 8.8:

US3696041033; GE: General Electric Co.; USA; dividend; 25.04.2018; USD; 70.00; 12,60; 25.04.2018

An investment account is a standard bank account, the user of which has declared as an investment account with the Tax and Customs Board (income tax return clause 6.5 part I ‘Investment Account and Credit Institution Information’).

The account must be declared once as an investment account: when filing the income tax return for the year in which use of the account began. Afterwards, the investment account declaration must be completed each year, even if no contributions or withdrawals take place.

The investment account can be closed at any time, although doing so may be accompanied by a tax liability.

An investor may have multiple investment accounts. Based on the example of the services of LHV Pank, it may be an LHV account, an LHV Trader Account, Growth Account as well as a portfolio management account.

Yes, only financial assets which have been defined in §171 of the Income Tax Act may be purchased for the investment account. Simply put, these are securities that are publicly traded or offered in OECD or European Union Member States. These include negotiable securities traded on securities markets or an alternative market (shares, options, futures), investment fund units, derivative instruments (the underlying asset for which is security listed on a stock exchange) and short-term debt financial instruments.

Transactions with financial assets are payment neutral in the investment account system, and therefore do not have to be declared.

Financial assets do not include II and III pension pillars units, unlisted shares and bonds, private limited company shares and shares of the same class, real estate, deposits, crowd funding investments or cryptocurrency. The acquisition of non-financial assets from the assets of an investment account is treated as a payment. Money received from the sale of non-financial assets must also be declared as an investment account contribution.

Only all movements of cash, i.e. contributions and disbursements of cash, are declared in the investment account system. The declaration is to be submitted each year, even if no contributions or payments were made during the year.

The investment account report can be forwarded to the Tax and Customs Board from the ‘Assets and Liabilities’ → ‘Investment Account Report’ section in the internet bank. Once you check the data, submit the report to the Tax and Customs Board by clicking the button ‘Send to the Tax and Customs Board’. The data sent to the Tax and Customs Board will arrive no later than the next day. At that point, you will need to add it to your income tax return in the e-Tax Board: open Part II of Table 6.5 of your income tax return, press the button ‘Data of the ETCB’ and finally click on ‘Replace data’. In addition, foreign dividends received for the purposes of the calculation of annual income must be manually declared with the Tax and Customs Board (see Regarding the declaration of dividends from foreign shares in the investment account system).

Please also bear in mind that if during the year you sold any Estonian securities, this information will reach the Tax and Customs Board automatically and will appear in table 6.1 of your pre-completed tax return declaration. If those securities were originally purchased in the investment account system, you will need to delete these pre-completed entries from table 6.1 before submitting your tax return.

If during the year you sold any Estonian, Latvian or Lithuanian securities, this information will be automatically transferred from the central securities depository to the Estonian Tax and Customs Board.

As this automatic process cannot distinguish whether the sales revenue has been obtained using the ordinary or the investment account system, the pre-filled data in your income tax return will also include transactions with Baltic securities that you have made within your investment account.

Therefore, you will have to erase the sales transactions that pertain to your investment account from tables 6.1 and 8.2 of your income tax return and use table 6.5 to disclose only cash contributions and disbursements in accordance with the taxation principles of the investment account system.

If during the year you have received dividend payments on foreign securities (including Growth account funds), your obligation to declare the dividend income depends on whether the income tax has already been deducted from received dividends or not.

Dividend payouts on which income tax has been withheld at source are reported in the Investment Account Report available in the LHV internet bank as two separate lines: gross amount of the dividend is shown as a contribution into the account and tax withheld is shown as a disbursement from the account. This format is compatible with the format of Part II of Table 6.5 of Tax and Customs Board’s income tax return, and the content of LHV’s Investment Account Report can be forwarded to the Tax and Custom’s Board automatically from the LHV internet bank. In addition, before submitting your income tax return, you need to manually complete Table 8.8 (‘Income received in a foreign country and exempt from tax in Estonia’) of the Tax and Customs Board’s income tax return. Information on foreign dividends exempt from taxation can be found in the LHV internet bank section ‘Assets and Liabilities’ → ‘Tax Report’. Check the content of Table 8.8 and then copy the data into Table 8.8 of the Tax and Customs Board’s income tax return.

Dividends received in the investment account on which income tax has not been withheld do not need to be declared in the investment account system. Obligation to declare will arise only when you withdraw received dividends from the investment account, in which case we will also include this disbursement into your LHV’s Investment Account Report. You can get an overview of such dividend payments received into your account using Table 8.1 of the Tax Report available in the LHV internet bank, however, this information does not need to be copied into Table 8.1 of your income tax return.

Example A: income tax on dividends has been withheld

• Investment Account Report shows gross dividends as contributions into the account and tax withheld is recorded as a disbursement from the account.
• You need to manually complete Table 8.8 of the Tax and Customs Board’s income tax return.

Example B: income tax on dividends has not been withheld

• Investment Account Report does not include dividends received. Obligation to declare arises only when you withdraw dividends from the investment account.
• No need to fill out Table 8.1 of the Tax and Customs Board’s income tax return.

If you would like to begin using your daily bank account as an investment account, you will need to begin keeping track of all contributions and disbursements involving the account. For example, the receipt of wages is to be reflected as a contribution to the account and the payment of utilities as a payment.

Which is why it is easier to keep track of contributions and disbursements if you only use an investment account to perform transactions related to financial assets. We recommend opening two accounts at LHV Pank and making all daily payments from one account, with investments made from the other account (which is declared the following year as an investment account).

An investment account can be declared retroactively in your annual income tax return for the previous year (e.g. the account taken into use as an investment account in 2015 could be declared in 2016).

An investment account system is also affordable for inactive investors. In this case we also recommend that you open two accounts: using one to make daily payments and the other to perform securities transactions.

An investor may have several investment accounts in one bank, as well as in different banks. However, please note that the transactions for each account must be reported to the Tax and Customs Board separately.

The Growth Account can also be declared as an investment account. We definitely recommend that you mark it in your income tax return next year.

Yes. In the case of the LHV Trader account, you must carefully follow the definition of a financial asset. In doing so, you can be sure that you are correctly reflecting deposits and withdrawals in the case of transactions.

Yes, short selling with the investment account is permitted.

Taking out a loan is only permitted within a certain limit: the money can be used as collateral for such obligations, which are directly related to the acquisition of the financial assets. Financial assets themselves can be used as collateral or may be pledged. At the same time it must be taken into consideration that declaring transactions such as these in the investment account system is very difficult.

All fees that are not directly related to the purchase and sale of securities (management fees, interest payments, information fees, as well as any transfers of funds) must be declared as disbursements. Purchase and sale transactions made using an investment account and involving securities do not have to be declared in the tax return.

No, this was only possible in the 2012 income tax return, and no further losses of this type can be declared as a deposit.

No, this was only possible in the 2012 income tax return and securities can no longer be declared as a deposit.

An exception is securities obtained as part of an estate or as a gift, in which case the acquisition cost can be declared as a deposit to the investment account. Note that the acquisition cost is understood as being the acquisition cost for the beneficiary of the estate or gift, which in most cases is zero.

In order to receive interest income from Estonian bonds and holdings without paying income tax, you must notify the issuer of the security or the depositary separately from the investment account. In the case of LHV Group bonds and LHV holdings, this can be done conveniently from the LHV internet bank: “Information and settings” → “Accounts and limits” → “Accounts”. Select the account and save the selection. Later, you also declare this account on your income tax return as an investment account. Other issuers (for example, Inbank, Baltic Horizon) must be notified separately.

Unfortunately, in most cases this is not possible. Income tax on dividend payments is always withheld under the laws of the payer’s country of residence and regardless of whether the investment account system was used for declaration or not. If you have received dividends on which income tax has not be withheld (as may be in case of Latvian stocks or Growth Account holdings), the payment of income tax on dividends can be deferred (see Regarding the declaration of dividends from foreign shares in the investment account system).

On 1 January 2018, the amendment of the Income Tax Act entered into force. On the basis of which it is possible for a company paying regular dividends to utilise a lower tax rate.

At the company level, the income tax rate for regular dividends is 14% (14/86 of the net amount), in the case of other dividends 20% (20/80 of the net amount).

The disbursement of dividends taxed at the rate of 20% is tax free for a private individual. Under the 14/86 rule, dividends payable to a private individual are subject to an income tax of 7% being withheld on disbursements.

For a private individual, both dividend payments are contributions to the investment account. In addition, in the case of a dividend payment subject to a rate of 14%, the amount of income tax withheld at the individual level (7% of the gross amount) will be entered in the investment account statement.

No, in the LHV internet bank section “Information and Settings“ → “Accounts and Limits” → “Accounts” designating an account as an investment account only impacts a deposit opened at LHV Pank and the taxation of interest payments on the LHV Group’s subordinated bonds. (see How can the payment of income tax on Estonia interest income be deferred with the aid of the investment account?).

In the case of all types of securities, you will receive reports for use in both systems (investment account and conventional system) from LHV’s internet bank.

In that case, declare your bank account until the shares are transferred to the investment account. Cash and securities transfers between your investment accounts are tax neutral.

Example

The investor subscribed to Coop Pank shares, which were credited to the account on 4 December 2019. To transfer the shares, he made a tax free securities transfer from his bank account to his securities account on 12 January 2020. In the income tax return being submitted for 2019 he will declare his bank account as an investment account as of 4 December 2019. In the income tax return being submitted for 2020, he shall declare the bank account until 12 January 2020 as an investment account.

Current taxable income on a financial asset within the meaning of the Income Tax Act (e.g. interest on a bond or deposit) and from the transfer of a financial asset (including the amount received under an insurance contract) must be received in an investment account.

If these sums are received in a non-investment account, then the money must be immediately transferred to an investment account. This means that the money received from the investment many not be placed into consumption before being transferred to the investment account. Immediately means the performance of the obligation as soon as possible, depending on the obligated person.

Income received from a financial asset, which is not immediately transferred to the investment account, is deemed to be a disbursement.

The transaction fees accompanying the purchase and sale can be declared as a contribution if that expenditure is not performed at the expense of the contribution. In the LHV investment account report all service fees can be accounted for as contributions; however, in that case the client is required to check whether this is justified in each particular case.

To facilitate decision making, the following examples have been presented in the instructions to the Ministry of Finance investment account .

Example A

Investor D’s investment account has 0 monetary units and the balance of contributions is 0 monetary units. He transfers 228 monetary units to his investment account. Investor D’s investment account has 228 monetary units, and the balance of contributions is 228 monetary units.

He purchases the shares of ABC for 225 monetary units and pays a transaction fee of 3 monetary units from his investment account.

In that case, the transaction fee many not be declared as a contribution, since one and the same sum may not be treated as a contribution twice.

Example B

Investor A’s investment account has 228 monetary units and the balance of contributions is 200 monetary units. He transfers 200 monetary units from his investment account. His investment account now has 28 monetary units, and the balance of contributions is 0 monetary units.

Investor A transfers an additional 200 monetary units to his investment account.

Investor A purchases the shares of AS ABC for 225 monetary units and pays a transaction fee of 3 monetary units from his investment account.

In that case, it is permitted to declare the transaction fee as a contribution, since the transaction amount has not been previously counted as part of the contribution.

The Ministry of Finance has prepared investment account instructions.

A child’s investment income must be declared in the income tax return, when

• the child’s account has been added to the investment account system;
• securities income (including dividends) from abroad has been received in the child’s account;
• the child’s account contains taxable profit or a loss, which you want to carry forward to the next year;
• tax free revenue (for example, Estonian dividends) in the child’s account exceeds EUR 6000.

Thus, it is not necessary to declare the child’s investments using the ordinary system in the event that no sales transactions are performed during the year, no money is received from abroad, and the income is below EUR 6000.

When using an investment account, the child’s account should be declared annually.

On its homepage, the Tax and Customs Board has prepared a precise overview of individuals who must submit an income tax return.

An income tax report can be requested by a child or their parent, by logging in to the LHV internet bank and selecting the child’s role. The tax report will open in the section “Assets and Liabilities” → “Tax report”. After checking the data, copy it to the corresponding tables in the child’s income tax return in the e-MTA and submit the return there.

An investment account report can be forwarded to the Tax and Customs Board by a child or their parent, by logging in to the LHV internet bank and selecting the child’s role.

The investment account report can be forwarded to the Tax and Customs Board from the “Assets and Liabilities” → “Investment Account Report” section of the internet bank. If everything is correct, submit the report by clicking on the button “Saada EMTA-sse”. Then continue completing the income tax return in the e-Tax Board: open Part II of Table 6.5 of your child’s income tax return, press the button ‘Data of the ETCB’ and finally click on ‘Replace data’.

In addition, if during the year your child received dividend payments on foreign securities (including Growth account funds), on which income tax has been withheld, such dividend income must be manually declared in Table 8.8 of the child’s income tax return (see Regarding the declaration of dividends from foreign shares in the investment account system).

If the child has an ID-card, they can submit the income tax return in the e-MTA themselves. If the child does not have an ID-card, then the parent can submit the income tax return on behalf of the child by logging in to his/her own e-MTA and selecting the child’s role.

The Tax and Customs Board has also prepared a set of instructions for declaring income.

An e-invoice is an electronic invoice sent to the Internet bank, replacing a paper invoice. You can order e-invoices from your service provider who provides their clients with such an option.

If you have ordered an e-invoice, we shall prepare a pre-filled payment order according to the e-invoice, which you can review and confirm for payment in LHV Internet bank.

The e-invoice standing order service allows you to pay invoices automatically. You only need to order the e-invoice and set up the automatic payment. The standing order service is convenient because it does not require separate approval of regular invoices.

Concluding an e-invoice standing order agreement and standing payments are free of charge for you at LHV.

You can choose the day on which the e-invoice arrives at the bank as the payment date for the e-invoice, or the payment due date for the e-invoice as established by the company who issued the e-invoice. Some companies provide the possibility to choose a date from their suggested range as the payment date for an e-invoice.

This service is free of charge for LHV clients. We shall not charge you for paying the invoices either.

The easiest way to order an e-invoice is via the Internet bank. To do so, choose Everyday banking → E-invoices → Order new.

You can confirm the pre-filled payment order by clicking „Pay“on your e-invoice post-it note in Internet bank. Upon paying the invoice, it is possible to immediately conclude an e-invoice standing order agreement. The concluded e-invoice standing order agreement shall become valid from the next incoming invoice.

It is possible to conclude an e-invoice standing order agreement immediately when processing the e-invoice order. To do so, in the Internet bank choose Everyday banking → E-invoices → Order new.

If the e-invoice order has been processed, then in the Internet bank choose an e-invoice, for which you want to conclude a standing order agreement, from the menu of e-invoices. To do so, choose Everyday banking → E-invoices → Choose e-invoice → Order details and changing → Invoice payment → Change.

The concluded e-invoice standing order agreement shall become valid from the next incoming invoice.

In the Internet bank choose an e-invoice, for which you want to change the standing order agreement, from the menu of e-invoices: Everyday banking → E-invoices → Choose e-invoice → Order details and changing → Invoice payment → Change.

The changes to the e-invoice standing order agreement shall become valid from the next incoming invoice.

If you terminate an e-invoice standing order agreement but an e-invoice has already come in, then termination does not apply to this invoice and it shall be automatically paid by the bank.

You can cancel the automatic payment. Here you will find an explanation how to do that.

If the issuer of the e-invoice permits the cancelling of the e-invoice order in the bank, then in the Internet bank choose the e-invoice, the order of which you wish to cancel, from the menu of e-invoices. Everyday banking → E-invoices → Choose e-invoice → Order details and changing → Cancel.

If the issuer of the e-invoice does not permit the cancelling of the e-invoice order in the bank, contact the issuer.

If you did not order the e-invoice but only pay it, only the person who has an agreement with the service provider can cancel the e-invoice order.

Please inform the service provider issuing the e-invoice about the problem.

If there are insufficient funds in your account on your chosen payment date for paying the e-invoice, the bank shall try to pay the e-invoice until the payment date shown on the e-invoice.

If there are insufficient funds on the account on the e-invoice payment date, the payment shall not be executed. In this case, you need to pay the invoice manually.

If you have entered an e-invoice standing order agreement for which you have also set a separate limit, the e-invoice was not paid due to the limit being too low.

Check the limit for e-invoice standing order agreements in your Internet bank: Everyday banking → E-invoices → Choose e-invoice → Order details and changing → Invoice payment → Limit.

If you have concluded an e-invoice standing order agreement, then partial payment of the e-invoice is not possible at LHV.

Without an e-invoice standing order agreement partial payment of the e-invoice is possible. When paying in this way, remember that many services shall not be extended before the invoice has been fully paid (e.g. newspaper order, sports club’s monthly pass, insurance agreement, etc.).

You do not have to settle the e-invoice at the bank, since an e-invoice is not an obligation towards the bank. An e-invoice is an obligation towards the company that issued it. If the e-invoice was not paid at the bank, you must ensure that you will not remain in arrears towards the company that issued the e-invoice.

If you have concluded an e-invoice with standing order agreement which is related to the e-invoice, and you wish the bank not to settle the e-invoice automatically this time, you will have to cancel the payment prepared by the bank. You can conveniently do so yourself in the Internet bank: Everyday banking ➞ Payments ➞ Pending Payments ➞ Select the payment you want to cancel ➞ Cancel selected ➞ Cancel payment.

If you have concluded an e-invoice with standing order agreement which is related to the e-invoice and in the future you wish to pay the e-invoices manually, end automatic payment of the e-invoice. You can do this conveniently in your Internet bank: Everyday banking ➞ E-invoices ➞Choose e-invoice ➞ Order details and changing ➞ Invoice payment ➞ Change ➞ Choose “I make my own payments” ➞ Confirm.

Before preparing the e-invoice order at the bank, forward the information of the actual remitter to the company issuing the e-invoice. In the future, the company will send the e-invoice to the actual remitter; however, without a detailed description of the product bought. The company shall send you an e-invoice that you cannot pay, but on which you can see the list of purchased services.

To distinguish between e-invoices ordered from the same company, you can conveniently add an order name to all e-invoices in the Internet bank. For example, you can specify in the name of the e-invoices whether this is your home or car insurance, or life insurance.

You may enter the name of the order immediately when concluding the e-invoice agreement; however, this is not mandatory. The names of orders can be changed or added at any time in the Internet bank.

If the payment date selected in the standing order agreement (for example, the 18th day) is later than the payment due date of the e-invoice (for example the 10th day), your e-invoice will be settled automatically on the payment due date (on the 10th day).

The table below describes the process of paying e-invoices with different payment dates and payment due dates.

If the e-invoice is paid after the payment due date, please consider that the company who issued the e-invoice will calculate a fine for delay.

Dwelling insurance provides a sense of security for everyone using the dwelling, which is why it is available to everyone interested in it. Dwelling insurance can be taken out by the owner, the landlord or the tenant, as well as others who have a justified interest in preserving the value of the dwelling or the items in it.

As part of the tenant’s liability insurance, we indemnify damage to the landlord where your company is liable. The insurance cover applies to the landlord’s claims for damage caused to their property by the tenant. For example, the landlord may claim compensation from your company for the cost of repairing a broken wardrobe door.

Dwelling insurance covers the dwelling and its essential parts, including walls, ceilings, interior decoration, building services equipment (such as ventilation and heating equipment), electrical wiring, sanitary installations and technical systems, as well as balconies and terraces. Also covered are storage rooms belonging to the dwelling, small buildings with a total area of up to 20 m², installations (e.g. garden, shelter, playground) and the building’s communication systems on the property, as well as greenery.

Items inside the dwelling (such as furniture, appliances and other furnishings) are insured as a set of items up to the sum insured, as indicated in the policy. Also covered are items that are located in the storage room, outbuilding, fenced courtyard or balcony. Portable property outside the residential premises is insured only if a natural person is indicated as the beneficiary in the policy. Portable property is insured if it accompanies the natural person or their family member (insurance coverage is valid worldwide). The family members are considered to be the spouse or partner living permanently with the natural person indicated as the beneficiary in the policy and their children up to the age of 18.

You can also insure financial expenses, such as loan payments related to the dwelling, lost rental income or rental expenses for temporary housing while the dwelling is unusable due to an insured event.

Our Mega and Green insurance packages offer insurance coverage against the technical failures of a household appliance up to five years old and building services equipment (such as a ventilation or heating device) up to seven years old. The Green package also covers the failure of an electric car charger.

Smart devices up to two years old are covered for up to 2% of the sum insured for home contents. For example, if you have chosen an insurance sum of 30,000 euros for movable property, we will indemnify you for up to 600 euros in an insured event involving the loss of a smart device. We do not reduce the indemnity based on the age of the device, which means that the payment does not depend on whether the device has been purchased recently or is up to two years old.

Only vehicles without a registration obligation (such as ATVs, ride-on mowers and light motor vehicles) are insured as movable property. You should check the policy to see the indemnity limit for the movable property kept in a fenced courtyard or an outbuilding. In contrast, motor vehicles, vessels and aircraft that are subject to a registration obligation are not covered by dwelling insurance.

We do not indemnify for the correction of construction or repair faults, planning or design faults.

In the case of damage caused by poor workmanship or a construction fault, we will indemnify the damage to the faultless part of the insured object. For example: a poorly connected pipe starts to leak and causes water damage. We will indemnify you for the damage to the building and the movable property in it, but not the cost of repairing the plumbing.

Always notify the insurer if you plan to carry out building or repair work that involves opening or removing parts that are permanently attached to the building. If you wish the insurance to cover any damage caused by building or repair work, you can purchase this additional protection separately.

Damage caused by building work includes damage to the insured object and/or to unused building materials stored inside the building during building or repair work. The insurance cover is valid if:

• the policy indicates that this insurance cover is selected;
• the insured building has a roof, doors and windows;
• all openings in the external structure of the insured building are closed in such a way that a third party has no access to the building and/or its interior without the use of tools.

Respective safety requirements must be observed during all building and repair work. In the case of damage caused by building or repair work, we will double the excess that we apply for the insured event.

If you are unable to use your household appliance or electronic device for some time due to an insured event, we will provide you with a replacement device that will perform the basic functions of the broken device. In addition to the rental cost, we will reimburse the transport and installation costs of the replacement device.

Liability insurance for the property owner or possessor protects you against non-contractual claims brought against you as the owner or possessor of the insured dwelling. Such a claim, for example, might be a neighbour’s claim for eliminating water or soot damage.

Make sure you provide us with accurate information when concluding the insurance contract. Among other things, check the information in the offer or the policy and have it corrected if necessary. If this information changes during the insurance period, please let us know.

Inform us about any significant circumstances affecting risk both when concluding the contract and during the insurance period. For example, let us know if there is construction work or business activities taking place at the insured dwelling, or if you are renting it out on a short-term basis.

When it comes to your property, behave prudently, don’t leave it unattended or make it accessible to third parties. Follow safety requirements arising from the law, the insurance conditions and manufacturer requirements. Remember that insurance obligations (including safety requirements) must be observed by all persons who legally possess or use the insured object.

Notify us of loss events as soon as possible. To do that,

• call us on +372 680 1122 (24 hours a day, 7 days a week)
• submit a claim
• write to us at kahjud@lhv.ee

You can pay for the insurance as often as you like – either once a month, quarterly, semi-annually or annually.

The excess is the amount that you will have to pay in the event of an insured event. If the insured object has been damaged or destroyed as a result of several insured events, the excess must be paid separately for each insured event.

The excess is not applied in the following cases:

• more than 50% of the insured building or apartment ownership is destroyed as a result of an insured event;
• only the glass surfaces of the insured building have been damaged and no other damage has occurred;
• in the event of an intrusion, the alarm system is triggered and the alarm reaches the security company;
• the policy includes insurance cover for equipment failures and a failure occurs in a building services device servicing the insured building, which is up to seven years old and has been regularly maintained;
• the door lock is replaced due to loss or theft of the key, robbery or failure of the front door lock;
• the reimbursement of rental costs for temporary housing and/or loan payments;
• the reimbursement of the state fee for applying for a replacement passport, ID card or driver’s licence.

We double the excess for an insured event if:

• objects have been stolen from the courtyard or balcony without having to break barriers or obstacles;
• the insured event is damage caused by construction or repair work.

Insured objects are not subject to depreciation when we calculate the indemnity. The insurable value of a building is its restoration value, i.e. the cost of restoring it to its original form. In the case of damage to movable property, we will indemnify the repair costs. If an item has been destroyed or damaged in such a way that makes repairing it impossible, we will indemnify you for the cost of purchasing an equivalent new item.

The insurance contract enters into force and the insurance cover begins on the start date of the insurance period specified in the policy and ends on the end date of the insurance period specified in the policy.

The insurance contract is concluded for an indefinite period. We will send you a new policy 45 days before the end of the insurance period – you do not have to do anything to renew it yourself.

By agreement of both parties, the insurance contract may be terminated at any time before the end of the insurance period. To do this, e-mail your request to kindlustus@lhv.ee, including the beneficiary name and account number for the reimbursement of any insurance premium already paid. If you do not indicate a date for the termination of the insurance contract in your request, we will terminate the contract the day following the receipt of your request.

If the insurance contract is terminated during the insurance period, we will refund you any paid insurance premiums for the time when the insurance cover was no longer valid. The insurance contract cannot be terminated retroactively.

You do not need to be a customer of LHV when applying for a loan. People can apply for a loan if their income (salary, dividends and/or lease income) after covering everyday expenses is sufficient for making loan repayments.

The range of purpose of private loans is wide. You can apply for a private loan in order to buy or renovate a property, furnish a home, finance investments or for other major expenditures.

For this purpose, you first have to complete a loan application on our website. If your salary or other income is not currently received in LHV Pank, please also send bank statement for the last 6 months to eralaen@lhv.ee (digitally signed, in bdoc format and definitely unfiltered) as well as an evaluation report of the collateral property (you can also send this later). If you receive your income from a company owned by you, please send us the annual report of the last financial year of your company and the details of the financial indicators of the current period (balance sheet and income statement), which are not older than 2 months.

You can use liquid real estate property that is in good condition and belongs to you or a person close to you as loan collateral. We grant loans in the extent of up to 70% of the market value of collateral property. Term deposits and securities are also suitable collateral for a private loan.

The smallest loan amount is 30,000 euros and the biggest depends on your creditworthiness. We analyse the repayments of your previous loans and the private loan collaterals and calculate a loan amount with repayments you can afford. Repayments of loans and leasing contracts may form up to 50% of income, but the rate also depends on the number of your dependants. We calculate the monthly loan payment at an interest rate of 6%, based on the Regulation of the Bank of Estonia.

You can also calculate your biggest possible loan amount using the calculator.

The repayment term of a private loan can be up to ten years. A repayment schedule can be drawn up so that the entire loan gets repaid over ten years, but you can also establish repayments suitable for you using a bullet schedule.

In the case of a bullet schedule, we calculate the monthly payment on the basis of the payment schedule of a loan agreement of up to 30 years, although the length of the loan agreement is up to ten years. The last monthly payment of the tenth year is the sum of all the principal repayments still payable (the bullet). When ten years have passed, we shall review your agreements and the terms and conditions of the loan. We generally then conclude a new agreement on the remaining balance for another ten years.

Yes. You can apply for a private loan while you are not yet a customer of LHV, but you have to conclude a customer agreement in our office or internet bank before you conclude a loan agreement.

Yes, it is possible. If you want to return the whole loan sum or a part of it prematurely, it can be done free of charge at LHV Pank. To do so, send an e-mail to your loan administrator.

In order to end the loan agreement prematurely, you need to transfer, by the agreed date, an amount which covers the interest accumulated to date and the unpaid principal sum to the account at LHV Pank which is linked to the loan.

If you would like to take payment leave, contact your loan manager and let him or her know. You can apply for payment leave for up to 12 months at a time.

Yes. Just like you, we at the bank are also interested in insurance to cover the losses if the real estate property that has been established as collateral gets damaged. Therefore, the real estate property has to be insured.

Upon concluding an insurance contract, choose a cover that protects against the most common risks. The cover definitely has to include fire, water, natural disasters and vandalism. The collateral real estate property has to be insured throughout the loan period. LHV Pank has to be the beneficiary.

Home can be insured with LHV Kindlustus. Find out more or ask directly from your loan manager.

You can see your valid insurance policy information in the Internet bank under contract view.

The following can be viewed:

• policy number,
• policy validity period,
• the insurance organization,
• insured property.

You may deduct the interest on the loan you have taken out for the acquisition of a house or apartment from your income. You may also deduct interest from your income if you have taken out a loan for the establishment, expansion, reconstruction of construction works based on a building permit or building design documentation, as well as for replacing, changing the utility systems of the construction works, changing the division of space and performing the construction and installation works of new technological equipment. It is not possible to deduct the interest on a loan taken for repair works from your income.

On the main page of LHV Internet bank, under the menu “Loans and leasing”, press the button “Information on loan interest to ETCB.” In the opened window you will see the amount of paid interest and the possibility to send this information automatically to the Tax and Customs Board. The forwarded information will be automatically entered into your income tax return.

We strongly recommend you to check the tax return before submitting it and if necessary, make the respective changes. If the income tax return does not show the amount of paid interest or if the amount is incorrect, please consult the private advisors of the Tax and Customs Board by phone on 880 0811. You can also contact them via Skype (mta.eesti) and e-mail at eraklient@emta.ee.

If you had already begun filling in the tax return, but did not complete it, we recommend updating the tax return and filling it in again with the Tax and Customs Board data.

If your internet bank view does not have the possibility to forward the interest information, please report it to the e-mail address laenutugi@lhv.ee or by phone on 699 9119.

You can only deduct the interest on one loan from the income. If you have taken out several loans, the income tax return will show the interest of the loan that was the last one about which you sent information to the Tax and Customs Board.

If the housing is in joint or co-ownership (i.e. it has two owners) and according to the loan agreement these two people have an obligation to repay the loan, in this case both have the right to report the interest on a home loan and deduct it from their income.

The right of deduction is proportional to the share of ownership. If, for example, both own 50% of the housing, each may enter 50% of the paid interest amount.

If one borrower has already sent the information to the Tax and Customs Board from internet bank, this information will be displayed in the income tax return of the other borrower as well. In the case that the information is not displayed in the tax return, please inform us on the e-mail laenutugi@lhv.ee or by phone on 699 9119.

If it is your first time reporting loan interest, you also have to submit the purchase contract of your property and the loan agreement to the Tax and Customs Board. These documents cannot be submitted through the internet bank.

To check whether you are using the loan for its intended purpose, the Tax and Customs Board may request additional certificates. For building works, the right to deduct home loan interest is certified with a copy of the building permit or building design documentation. This is why we advise you to keep all the documents related to the loan.

As a private person, you can get tax advice on the Tax and Customs Board information line 880 0811 or by e-mailing eraklient@emta.ee.

Read more about the 2021 income tax return

All individuals with an Estonian personal identification code (including e-residents) can open an entrepreneur account. To enter into an agreement, the individual must already be an LHV customer.

When using an entrepreneur account, the person cannot be a VAT liable person or operate as a self-employed person (FIE) in the same or similar area of activity.

If a customer is currently registered with the Unemployment Insurance Fund as unemployed and opens an entrepreneur account through LHV, this information will reach the Unemployment Insurance Fund and the customer’s unemployed status will end, regardless of whether the customer has received any funds on the entrepreneur account.

According to the Labour Market Services and Benefits Act, a person can not be registered as unemployed if the person provides a service or sells goods within the meaning of the Simplified Business Income Taxation Act; accordingly, conclusion of the entrepreneur account Agreement results in the termination of registration of a person as unemployed.

If a customer is currently registered with the Unemployment Insurance Fund as unemployed and opens an entrepreneur account through LHV, this information will reach the Unemployment Insurance Fund and the customer’s unemployed status will end, regardless of whether the customer has received any funds on the entrepreneur account.

An entrepreneur account is useful for a person who provides services in areas of activity which do not require large expenditures to be made in advance. For example, a babysitter, domestic help, gardening and repair or construction work, which are not accompanied by large business expenses. The costs of some of those services is borne by the party who orders: for example, the party who orders repair or construction works purchases their own repair tools and materials.

Please note, if you provide services to a legal entity, the additional tax liability arises to this legal entity (see question 6 - Can the service be provided to a legal entity).

An entrepreneur account is also useful for those who sell goods that they have prepared themselves, in the event that the cost of raw or source material is not very high in comparison with the sales price for the goods. Such areas of activity are, for example, handicrafts and art, and the selling of home-grown or prepared foods.

If the income is up to 25,000 € per calendar year, the tax rate is 20% of the sum received in the entrepreneur account.

If the income for the calendar year exceeds 25,000 €, the amount exceeding it will be subject to a 40% tax rate.

If the income received in the entrepreneur account exceeds 40,000 € per calendar year, the person is obligated to register themselves in the commercial register as an undertaking (FIE, OÜ) and the Tax and Customs Board as a person liable for value added tax. A registered undertaking is required to keep accounts and accounting for taxation purposes.

From each amount received in the entrepreneur account we reserve the tax sum and transfer it immediately to the Tax and Customs Board.

The tax amount reserved from the entrepreneur account and forwarded to the Tax and Customs Board is automatically divided into different tax types.

For example, if a company has joined the second pension pillar, the 20% taken from the account will be dividend as follows: income tax share rate 20/55, social tax share rate 33/55 from business activity income tax rate and pension fund part 2/55.

If the company has not joined the second pension pillar, the 20% taken from the account is divided as follows: the income tax share rate is 20/53 and the social tax share is 33/53 from the business activity income tax rate.

When providing services to a legal person, keep in mind that a legal person has an additional income tax obligation (at a rate of 20/80), which makes the tax burden equal to the tax burden on an ordinary employment relationship. The additional tax obligation is to prevent conventional employment relationships from being directed to a more favourable entrepreneur account. There is no additional income tax obligation when selling goods to a legal person.

An entrepreneur account holder cannot issue invoices as he is neither an entrepreneur nor accounting responsible entity. The owner of an entrepreneur account provides services or sells goods based on oral agreement. However, he can also enter into a simple written agreement if necessary, where essential details of the provision of the service or sale of the goods are stated. Written expense document can also be a bank statement, a payment terminal receipt or cash receipt when paying in cash.

For example, upon making a transfer to an entrepreneur account, for a legal entity expenditure bank account statement (payment order) or cash withdrawal order containing the name, quantity, price and amount of the goods or services, is perfectly suitable.

A legal person can check the existence of a person’s entrepreneur account by searching for the Tax and Customs Board.

The user of an entrepreneur account has the right to health insurance in the event that the social tax paid during a calendar month to the Tax and Customs Board is at least equivalent to the mandatory minimum social tax. It is worth remembering that the minimum social tax rate will change at the turn of the year, and this will also change the minimum amount that must be received in the entrepreneur account in order to retain the right to health insurance.

The amounts required for health insurance that must be received in the entrepreneur account are listed on the website of the Tax and Customs Board.

Broadly speaking, the same rules that apply to a bank account also apply to an entrepreneur account. For example, the account holder can order a bank card and card payment terminal that are associated with the account.

The exception is investment services: Securities transactions cannot be performed with an entrepreneur account.

In the case of everyday transactions not associated with an entrepreneur account it is recommended that other bank accounts be used, in order to avoid deposits leading to the creation of an erroneous tax burden being made to the Tax and Customs Board.

If the entrepreneur account has wrongly received the sum and it has been taxed with business income tax, the taxpayer must submit the following request via e-MTA (“Communication” - “Correspondence” - “Inquiries, Evidence, Requests” or “Claims, Obligations, Accounting”) stating that the amount received is not subject to business income tax. If necessary, you may also give in a request together with the evidence, to the Tax and Customs Board in writing. The Tax and Customs Board will then return wrongly paid tax amount to the taxpayer.

A legal person can mark a transaction in the accounting system as a purchase invoice. Suitable expense document is a bank account statement (payment order) or cash register of the entrepreneur account holder where the name, quantity, price and amount of the goods or services is indicated.

Yes, every amount received on the entrepreneur account is subject to income tax withholding. Also bear in mind that if you incur an indebtedness on the entrepreneur account, you will need not only to transfer enough funds to cover the indebtedness but also the taxes on the amount. Example: There is a 5-euro indebtedness. To pay this off, you will have to transfer 6.25 euros (5/0.8). Five euros will be used to cover the indebtedness, and 1.25 euro will be transferred to the Tax and Customs Board. For a refund of such tax payments that are not paid on actual business income, contact the Tax and Customs Board.

You can terminate the underlying agreement in the Internet bank, by selecting Information and Settings → Agreements → Entrepreneur Account → Close. Bear in mind that the bank account linked to the entrepreneur account will remain active and can continue to be used, as an ordinary bank account. If you would like to close this account as well, please send a corresponding request to info@lhv.ee. When you close your entrepreneur account, we will automatically send information to the Tax and Customs Board, which will remove the taxpayer’s data from the employment register. This is an important consideration if you plan on registering for unemployment.

The money in a deposit is released by the morning of the deposit's expiry date.

The interest amount on the demand deposit is calculated daily on the current account balance and shall be paid out to the account at the beginning of the following month. The interest rates of demand deposits are available at lhv.ee/en/price-list

You will find the interest rates for term deposits here: lhv.ee/hoius

You must have an account in LHV Bank in order to open a deposit. Once you have an account, you can open a term deposit in one of our offices or in the internet bank.

Starting from 2018, the state will tax the interest earned on the deposits of private individuals, which are paid out in 2018 or later.

If you deposit your money in an investment account and you wish to defer the payment of income tax, please inform the bank of it via the internet bank as soon as possible. Interest rates are shown without considering the taxes.

Income tax shall only be paid on deposit interest by those private individuals, who are Estonian tax residents and who have not informed the bank that their account, in which the interest is received, is an investment account.

Estonian tax resident is a person, whose permanent residence is in Estonia or who has stayed in Estonia for at least 183 days in a year. For tax purposes the residence can be verified in the internet bank (“Information and settings” → “Details”).

An investment account enables an active investor to postpone the income tax liability and reinvest the earned return without paying the income tax in between.

It is wise to carefully consider which accounts should be classified as investment accounts. Most definitely it is not reasonable to do it with your daily current account, since declaration of the same at a later date will be extremely complicated.

The choice of investment account can also be made in the internet bank. “Information and settings” ➞ “Accounts and limits” → “Accounts”. Choose the account and save the selection. Later you should also declare this account on your income tax return as an investment account.

The amendment that entered into force at the beginning of 2018 concerns both the demand deposit as well as the term deposit interest. Whereas it doesn’t matter when the deposit agreement was concluded or for which period the interest is paid, since the tax system is so-called cash-based. This means that the time when the interest is paid to the client is what matters.

You do not have to declare or pay the interest yourself. The bank shall withhold income tax and declare and pay it on your behalf.

The clients, whose deposit interest is subject to income tax, will from now on see two entries in their account statement: interest and income tax payment. Calculation of income tax follows the traditional rounding-off rules.

Example: if you took out a 12-month (365-day) deposit contract in the amount of 500 € with an interest rate of 0.30%, then at the end of the deposit period the bank will transfer the interest to your account in the amount of 1.52 € and withhold 30 cents as income tax.

All interest rates displayed by the bank are gross amounts. This means that no taxes have been deducted from the interest rates.

Some clients (such as enterprises, non-residents, users of investment account system) do not have to pay income tax on deposit interest. This is why it is not reasonable, given the complicated tax system, to show interest rates together with taxes and without them.

The data of the interest earned on bank deposits will be automatically shown on your pre-populated income tax return starting from 2019.

If you choose a deposit with automatic extension (together with interest), it will not defer the payment of income tax. To be specific, upon the expiry of your deposit, we will transfer the principal amount of the deposit to your account together with interest, withhold income tax and open a new deposit XXXX.

You can log in to LHV Bank with your ID card, Mobile ID, Smart-ID or the PIN calculator given to you by LHV Bank.

You can log in to LHV Bank with your ID card, Mobile ID, Smart-ID or the PIN calculator given to you by LHV Bank. You can also create a password that gives you access to your account if you wish. To do this, log in to your account with your ID card, Mobile ID, Smart-ID or PIN calculator and select Passwords under INFORMATION AND SETTINGS.

You can easily order a username reminder to your e-mail address.

If you don't have the possibility to authenticate yourself, contact our customer support by phone 6 800 400 or write to info@lhv.ee.

You cannot change your username in the internet bank, you have to call our client support on 6 800 400 or send an e-mail to info@lhv.ee.

If you are using the Web browser Firefox or Internet Explorer, enabling ID card extensions will help. For this, proceed as follows:

• Firefox Web browser: In the menu, open Firefox – Add-ons – Extensions. On the list, find Estonian ID Card authentication, and check to make sure the extension is enabled. Close all windows of the Web browser. Open the Web browser again and try to log in.
• Internet Explorer Web browser: In the settings menu, open Manage Add-ons – Toolbars and Extensions. On the list, find "EstEIDIEPluginBHO Class“, select it and check to make sure the extension is enabled. Close all windows of the Web browser. Open the Web browser again and try to log in.

If the problem persists, update your ID card certificates.

Call our client support helpline on 6 800 400 or send an e-mail to info@lhv.ee in the event of further problems.

Using ID-card on Google Chrome is disrupted even for users with previously successful sessions and you need to update your ID-software.
To restore the functionality, do the following:

• close all open browser tabs;
• renew your ID-software at installer.id.ee;
• reopen browser.

Read more on id.ee →
In addition to that Windows XP or Vista users need to enable NPAPI plugins. Read detailed instructions on id.ee →

This error may be caused by several circumstances occurring at the same time; it is difficult to identify one specific reason. Renewing the base software of the ID card usually helps. Read more at installer.id.ee.

Problems may also occur if use of the EstEID plug-in is prohibited. To allow the plug-in, do as follows:

• Google Chrome: due to the security requirements in place since version 32, the ID-card signature plug-in has been disabled by default. The warning text and icon reading “Plug-in blocked” will be displayed on the browser’s address bar on the signature page. You can select the plug-ins that are not blocked by clicking on the icon. Make sure in the settings that the EstEID plug-in is always enabled; after that, press the “Back” button on the signature form, as the signing process has already failed. If you have disabled the plug-in previously and no warning message is displayed, open chrome://plugins in the browser window, find the EstEID plug-in and mark the tickbox “Always allowed”.
• Internet Explorer: select Options (the gear icon) → Manage add-ons. In the table, find the plug-in EstEIDIEPluginBHO Class and check that the status is ‘Enabled’. To change the status, right-click on the row and select ‘Enable’ from the opening menu.
• Firefox: select Firefox → Add-ons in the browser menu and check that the EstEID (or Estonian ID Card) plug-in is allowed.
• Edge: The ID-card can be used for logging into the internet bank, but it is not possible to confirm payments or sign agreements. To do this, other web browsers must be used. If Edge displays an error stating it is not possible to sign with the ID-card, the same page can be opened in Internet Explorer by selecting “Open with Internet Explorer” from the menu bar on the top (the rightmost icon, with three dots).

The fastest way to get a calculator is to stop by one of our branch offices. If that is not convenient for you, please contact customer support.

1. Download the free Smart-ID app.
2. Register and associate Smart-ID with your ID card or Mobiil-ID.
3. Create your own PIN1 and PIN2 and memorise them. PIN1 is needed for logging into e-service websites and PIN2 is required for confirmation of user actions.

1. If your phone’s SIM does not support Mobiil-ID, you will have to visit your operator’s branch and get a new SIM with Mobiil-ID support. Be sure to bring a personal identification document, either your ID card or the Republic of Estonia passport if you are using digi-ID.
2. Activate Mobiil-ID certificates on the Police and Border Guard Board website with your valid ID-card or digi-ID. For that you will need your ID card’s PIN1 and PIN2.
3. When you are logging into mobile or internet bank, the phone will ask you to enter PIN1. When you are confirming a payment, you will have to enter PIN2.

Mobiil-ID works both in Estonia and abroad.
The Mobiil-ID monthly fee is approximately 1 euro.

To protect your bank account against unauthorised access and misuse, your means of authentication is blocked temporarily in situations where there have been repeated unsuccessful attempts to use it. The block is only set to a specific means of authentication, i.e. If entering with the PIN-calculator is temporarily not possible, you can still use login with a Smart-ID or password. The block will be removed automatically after a certain period of time.

If you are convinced that you have not made a mistake in entering your username and/or password, make sure to contact LHV customer support.

The public subscription of LHV Group’s new shares shall be performed during the period of 2.05-16.05. In order to subscribe for shares you need an investment services contract and an ESCD account. LHV shares may be subscribed for through all banks who are ESCD account operators: LHV Pank, Swedbank, SEB Pank, Nordea Bank, Danske Bank, Eesti Krediidipank, Tallinna Äripank, Citadele banka, and Versobank.

A subscription application may be submitted using the channels provided by the account operator; subscription for shares is easiest in the internet bank.

Holding or subscribing for LHV shares is free of charge at LHV Pank.

View details from the prospectus.

The share issue is public and primarily aimed at Estonian retail investors. All private persons and companies in Estonia can subscribe for shares. View details from the prospectus.

LHV Group plans to issue 2,000,000 new shares. The subscription price of an LHV share is 6.95 €. The subscription price is approximately twice the post-issue book value of an LHV share. Private placements of LHV shares, too, have been completed at similar price levels previously. The capital raised will be used to grow LHV’s existing businesses. View details from the prospectus.

The amount needed for subscription must to be in the account at the time of the transmission of the subscription order. The subscription amount shall be reserved until issuing the shares. View details from the prospectus.

No limit has been set on subscription during issue. At a minimum, one share may be subscribed for; however, not more than the issue size, or 2,000,000 shares, may be subscribed for. For detailed information, see the prospectus.

In the event of over-subscription, shares will be allocated on the basis of all the subscription applications. Shares will be allocated with a view to shaping LHV into a publicly traded company with the biggest possible pool of shareholders. In terms of the quantity of shares allocated, we will be entitled to prefer subscribers who were clients of LHV Pank before the subscription period due to begin on 2 May or clients of LHV Varahaldus before the General Meeting of the Shareholders held on 20 April. The results and allocation of the issue will be made known on 18 May. For detailed information, see the prospectus.

If you would like to conclude an investment services agreement with LHV Pank, select INFO AND SETTINGS> “Agreements” on the left menu in the LHV internet bank and conclude an agreement to be able to effect investment transactions.

If you do not have an Baltic securities account but would like LHV Pank to be your account manager, select INFO AND SETTINGS> “Agreements” on the left menu in the LHV internet bank and conclude an agreement for an Baltic securities account.

At LHV Pank, concluding the investment services agreement and ESCD account agreement is free. We do not charge for holding Baltic securities.

For additional information, go to investor.lhv.ee. or view the prospectus now.

We recommend opening two accounts at LHV and making all everyday payments from one account and using the other one as an investment account, which should be declared as an investment account next year. An investment account can be declared for the previous year on the annual tax return (in 2016, one could declare an account that entered use as an investment account in 2015).

The investment account system is suitable for less active investors as well. Even if you trade securities only occasionally, we also recommend opening two accounts, one for everyday baking and the other for trading securities.

Yes, an investor can have multiple investment accounts, either in the same bank or in different banks. Just bear in mind that each account must be reported separately to the tax authority.

The Growth Account can also be declared as an investment account, and we urge you to do so next year on your tax return.

Yes, the definition of financial assets should be carefully considered in the case of this account so that the deposits and withdrawals get correctly recognized.

Short-selling is allowed. Borrowing is allowed only within certain limits – i.e., money can be used to secure obligations directly connected to acquiring financial assets. The financial asset itself may be used as collateral or pledged. Yet bear in mind that it is very complicated to declare such transactions in the investment account system.

All fees not directly related to buying and selling securities – such as management fees, interest payments, information fees – and all withdrawals of funds must be declared as disbursements. It is no longer necessary to declare buy and sell transactions on the tax return.

No, this possibility existed only on the 2012 tax return and such losses can no longer be declared as deposits.

No, this possibility existed only on the 2012 tax return. After that time, securities can no longer be declared as a deposit. An exception is made for securities acquired as a gift or inheritance. In such a case, the acquisition cost is to be declared as a deposit to the investment account. Bear in mind that acquisition cost means the acquisition cost for the recipient or heir, generally zero.

The Ministry of Finance has developed a guide to investment accounts.

First, submit an application to conclude a hire-purchase contract. You can do this at our business partner’s point of sale or on our website. Once we have reviewed your application, we will assign you a limit up to which you can conclude one or, if you wish, also several hire-purchase contracts. You may also have the credit transferred to your bank account in the form of a consumer loan.

You can let us know about your purchase needs here. We will get in touch with a representative of that company and, if possible, begin to do business with them, so that you can use the LHV hire-purchase option for purchases also from that merchant.

You can apply for hire-purchase if:

• your monthly income is at least 250 €
• you are aged 18 to 75
• you are a citizen of the Republic of Estonia, a citizen of the Russian Federation or holder of a grey passport, who holds a residence permit and resides in Estonia.

You only need to submit your account statement if this is requested by LHV Finance customer support.

The easiest way to submit your bank statement is automatically via Mobile-ID or Smart-ID, which only takes a moment. The bank statement can also be taken from the internet bank and sent to us via e-mail. We will send you instructions on how to do so via e-mail.

Once you have submitted an application, we will assign you a limit valid for 90 days. Up to this limit, you can conclude one or several hire-purchase contracts.

1. From among our business partners, choose the merchant from which you would like to buy goods or services.
2. Let the merchant know that you would like to use the LHV hire-purchase option to make a purchase.
3. Together with the merchant, choose the contractual terms that suit you and review the contract.
4. Sign the contract.

You can also use the LHV hire-purchase option to make a purchase from an online shop. In this case, the merchant will provide you with information about the contractual terms and then send you the contract to sign.

Some online shops have the LHV hire-purchase link. It works like a bank url: if you choose this payment method, you can apply for a limit and sign a contract online straight away.

We will forward the information about the amount of the first instalment and its due date to you by e-mail once a contract has been concluded. The amount of the instalment and the payment due date are also recorded in the payment schedule attached to your contract. Should you be unable to find the information you need, please call our customer support on 699 9119 or e-mail to finance@lhv.ee.

We will send you the invoice by e-mail or post every month, five days before the payment due date. If you have also requested an e-invoice, we will send it to the Internet bank of your choice.

Pay your instalments into the AS LHV Finance account EE707700771001062897. Indicate the number of your hire-purchase contract as the reference number.

The most convenient way to make your monthly payments is to use the automatic e-invoice standing order service. You can conclude a standing order agreement via the Internet bank of the same bank where you would like to make your monthly payments.

You do not have to wait for an invoice to arrive to pay an instalment. If you have not received an invoice, look up the exact amount on the payment schedule of your contract. Transfer this amount into the AS LHV Finance account EE707700771001062897.

At the latest, the instalment must be received in the AS LHV Finance account on the payment due date set out in your contract. We therefore advise you to transfer payment before 4 pm on the business day preceding the payment due date at the latest. This way, you can make sure that the payment will be received by us on time.

For your invoice to be paid automatically, conclude an e-invoice standing order agreement via the Internet bank of the bank where you would like to make your monthly payments. Going forward, you will no longer need to worry whether your invoice has been paid on time. It is important to just make sure that on the payment due date there are sufficient funds available in your bank account for paying the instalment.

Information that may be needed for requesting an e-invoice and concluding a standing order agreement:

• Invoice issued by: AS LHV Finance
• Account number: account from which you wish to make payments
• Customer ID: agreement number
• Expiry of order: leave this field blank
• Invoice payment: select automatic payments
• Standing order date: date of receipt of invoice
• Limit: leave this field blank

Your hire-purchase contract is easy to amend. All you have to do is e-mail your request to us at finance@lhv.ee. If needed, you can apply for a grace period or change the payment due date or the amount of the monthly instalment. It costs 25 euros to amend your contract. This amount will be added to your next invoice. If you pay the entire hire-purchase amount early, this will attract no service charge.

It is free of charge to repay the entire hire-purchase amount early. E-mail your request to us at finance@lhv.ee.

Information is available from our customer support by calling 699 9119 or e-mailing to finance@lhv.ee. Customer support operates Mon–Fri 9–17.

The LEI (Legal Entity Identifier) is a global legal entity identifier, consisting of a 20-digit alphanumeric code. The LEI code is unique, it shall be issued once for a specific legal entity and the same code cannot be issued to another legal entity. The LEI code does not replace the registry code of the commercial register of the Republic of Estonia. In Estonia, the registry code is still used to identify a legal entity.

The LEI code associates a legal entity with key information, which allows legal entities participating in global financial markets to be clearly and uniquely identified.

LEI codes are already used to identify the parties to EMIR derivative instruments transactions and due to the application of implementing regulation EU/2017/105, no other alternative codes can be used when providing notification of transactions made with derivative instruments starting from 1 November 2017.

The LEI code shall be used for reporting as of 3 January 2018, pursuant to the MiFID II and MiFIR regulation, transaction reports shall, among other things, also be used for investigating market abuse. The format of the transaction reports is established by an implementation regulation of the European Commission.

Legal entities that have been assigned the right to provide investment services are obliged to notify surveillance authorities of transactions made with the securities of a legal entity client by using the LEI code. In case a legal entity client does not have a LEI code, the reporting obligation cannot be performed and as a result the transaction orders of such legal entities cannot be fulfilled.

Legal entities are required to submit an LEI code in the event that they wish to use an LHV Broker, LHV Trader, or LHV portfolio management service, and when they wish to buy or sell listed securities. In addition, an LEI code is necessary in the case of FOP and DVP transactions involving listed securities if there is a change in the owner of the securities (for example, shares are transferred from the account of a legal person to the account of a private person).
An LEI code is not necessary in the case of unlisted shares and private limited company shares, unlisted bonds and transactions involving traditional fund shares.
Without an LEI code, LHV Pank is unable to correctly report transactions to regulatory agencies, which means that it is no longer possible to perform the corresponding transactions. Transaction restrictions will enter into force on 03 January 2018, at the latest.

An LEI code can be applied for from separately authorised agencies, information on which can be found on the Global Legal Entity Identifier Foundation homepage. There are a number of different opportunities and the selection can be made freely. For example, LHV has enjoyed smooth and fast cooperation with the following: Bloomberg LEI, Slovenian Central Securities Clearing Corporation, and WM Datenservice.
Unfortunately, there is no agency in Estonia that issues LEI codes. Since each LEI code is unique, a code issued elsewhere is also valid in Estonia.

The LEI code shall be issued for a fee and is also subject to a yearly maintenance fee.

It is worth noting that the price may vary substantially depending on the service provider.

To correctly perform the reporting duty, the LEI code of a legal entity must be valid. The company providing the investment service shall check the validity of the code before completing the transaction.

An investment service provider must ask a legal entity client all information which is required for submitting transaction-related information to a regulatory authority. This information also includes the LEI code.

In case a legal entity client does not submit to the investment service provider all the information required for completing a securities transaction, including the LEI code, the service provider shall not be able to perform the reporting duty pursuant to law. In this case, the transaction orders of such legal entities cannot be executed starting from 3 January 2018.

Add your LEI code to the internet bank data of your company by selecting "Information and settings" → "Data" → "LEI code".
The LEI code issued to a company will reach the universal database within 24 hours of it being issued. Therefore we recommend that our clients wait 24 hours after the LEI code has been issued before adding it to their internet bank. If the code is not in the LEI database, adding it to LHV internet bank may not be successful.

The service charge of the Bank consists of several parts:

• cross-usage charge,
• processor’s charges,
• charges of international card organisations,
• bank’s margin.

Since the dynamics of the components differ, we prepare a separate offer for each trader.

It depends on what kind of terminal you wish to have. Monthly rental fees are approximately 20 € (plus VAT).

In that case, it should first be verified that the transactions were sent successfully. For that, please check if the daily report receipt came out of the terminal. If not, please send the transactions by following the instructions for your terminal, and the money will arrive in your account by 11.00 the next day. If that does not help either, write us at the e-mail address info@lhv.ee.

In that case, we will ask you to send us the copies of the receipts for that day, together with a copy of the day’s transaction report receipt, to the e-mail address info@lhv.ee.

The sales receipts from payment terminals must be kept for six months from the date of the transaction.

The money will arrive in the business’s account at LHV Bank by 11.00 on the following day.

The number of points of sale of a business is not limited. Neither is the number of terminals in one point of sale.

• Check if the terminal is in the connection area. If not, move to a connection area.
• Terminal needs a restart. Instructions on how to perform the operation are included in the User Manual.
• If restarting does not help, contact the processing person by calling 671 1444.

We are offering the standard e-commerce solution available in Estonia. Its integration is similar with that of a bank link.

The e-commerce solution we are providing complies with all PCI-DSS requirements. To reduce fraud, we are using 3D-Secure card user authentication.

Yes, we do; however, since it is a risk product, we are very careful when it comes to selecting the traders to whom we issue such terminals.

If the merchant stops using the card payment service and used LHV’s rental terminal, the terminal must be returned by the merchant to Nets Estonia AS.

The terminal must be taken to the address of Nets Estonia AS Tartu mnt 63, 10115 Tallinn on a working day between 9 am and 5 pm (tel. 6711 444).

If you are not able to deliver the terminal yourself, please send an e-mail kliendihaldurid@lhv.ee.

Select “EVERYDAY BANKING” in the internet bank→ „Accepting card payments“.

You can filter the report by selecting suitable time period, type of the report (see question 13). After making a selection click update statement’ button. An overview of transactions by point of sale and terminal is then displayed.If you require to see more detailed content, click "Save" button. The detailed report can be also downloaded as an CSV file that opens in Excel.

In the saved report you will now see more detailed transactions information and you can also use the filtering function (by selecting in the Excel form Sort & Filter - Filter).

Settlement based – reflects transactions on a cash basis, ie when the money has reached your current account.

Transaction based – reflects transactions on the basis of the actual moment of occurrence, ie the moment when the payment was made.

Home insurance provides a sense of security for everyone using a dwelling, which is why it is available to all individuals who are interested in it. A home insurance contract may be concluded by the homeowner, the landlord or the tenant, as well as other individuals who have a justified interest in preserving the value of the dwelling or its contents.

As a tenant, you have a number of risks to manage. You can insure the property belonging to you that is located in your rental home or that you carry with you. You can also insure your and your family’s liability to third parties. Home insurance indemnifies you for damage that you may accidentally cause to the landlord’s property.

The insurance covers property used by you and your family members. Your family members are your spouse or partner who lives with you, and your children up to the age of 21. Home insurance is property insurance and therefore people and animals are not covered.

Liability insurance also covers your spouse or partner and your children up to the age of 21, in addition to yourself.

Home insurance covers dwellings together with their essential parts, including walls, ceilings, interior finishing, utility system equipment (e.g., ventilation and heating equipment), electrical wiring, sanitary equipment and balconies and terraces. The cover also includes storage places that are auxiliary to the home, small buildings with a net area of up to 20 m2 that do not have heating, structures (e.g., fence, shelter, playground) and communication systems related to the building and located on the immovable property, as well as greenery.

Items inside the house (e.g. furniture, appliances and other furnishings) are insured as a set of items up to the sum insured, as indicated in the policy. Also covered are items that are located in the storage room, outbuilding, fenced courtyard, balcony or that you carry with you.

In addition to home contents, the insurance also covers up to 1,000 euros in a bank account that has been used for illegal card transactions with a stolen or lost bank card within 24 hours of the insured event taking place.
You can also insure financial expenses, such as home loan payments, lost rental income or rental expenses for temporary housing while you cannot live at home due to a loss event.

Our insurance packages Mega Home and Green Home offer insurance cover for technical faults of up to 5-year-old home appliances and up to 7-year-old utility system equipment (e.g., ventilation or heating equipment). The Green Home package also covers faults with an electric car charger.

Up to 2-year-old smart devices are insured in the extent of up to 2% of the sum insured of home property. For instance, if you have chosen 30,000 euros as the sum insured of home property, we shall indemnify up to 600 euros in the case of an insured event with a smart device. In the case of an insured event with a smart device that is up to one year old (included), we shall not reduce the indemnity in connection with the age of the device. In the case of an insured event with a smart device that is older than one year, the indemnity is based on the market value of the device before the insured event.

If you use your employer’s property, such as a laptop, at your home, it is insured.

Sports equipment is insured both at home and as movable property in the entire world, except during sports activities. You should check the policy to see the indemnity limit for portable property in a fenced courtyard, outbuilding or outside the home. If you keep sports equipment on an open balcony without windows, you should lock the equipment to the building.

Only vehicles not subject to registration (e.g., ATVs, tractor lawnmowers and personal light electric vehicles) are insured as home property, except during their use. Home insurance does not cover motor, water and air vehicles that are subject to registration.

We do not indemnify for the correction of construction or repair errors, planning or design defects.

In the case of a sudden loss event caused by low-quality work or a construction defect, we shall indemnify the damage caused to an entire part of the insured item. Example: a poorly connected pipe suddenly breaks and causes water damage. We shall indemnify the damage caused to the building and to home property, but not the cost of repairing the pipe.

Always notify the insurer if you plan to carry out building or repair work at home that involves opening or removing parts that are permanently attached to the building. If you wish the insurance to cover any damage caused by building or repair work, you can purchase this additional protection separately.

We understand damage caused by construction works to mean damage caused to an insured item in the course of construction or repair works and/or to uninstalled building materials located indoors in the building in the extent of up to 5,000 euros. The insurance cover is valid if:

• the policy indicates that this insurance cover is selected;
• the insured building has a roof, doors and windows;
• all openings in the external structure of the insured building are closed in such a way that a third party has no access to the building and/or its interior without the use of tools.

Respective safety requirements must be observed during all building and repair work. In the case of damage caused by building or repair work, we will double the excess that we apply for the insured event.

If you are unable to use your household appliance or electronic device for some time due to an insured event, we will provide you with a replacement device that will perform the basic functions of the broken device. In addition to rental costs, we shall indemnify the cost of transport and installation of the replacement equipment.

Private liability insurance provides you with a sense of security everywhere in Estonia in cases where you or a member of your family causes damage to a third party.

An insured event is a written claim that is directly addressed to you or a member of your family. For example: a fire or plumbing leak that began in your home causes damage to your neighbours’ property or you accidentally drop a valuable item in a shop.

You can extend liability insurance to cover events that take place abroad and damage caused by your pet.
Pet owner liability insurance does not cover damage caused by your pet to your own property. We will only indemnify you for the damage your pet causes to a third party. For example: your dog jumps on a car parked in the street with its front paws and scratches the body of the car.

With liability insurance, the insured persons are the policyholder (you) and the policyholder’s spouse or partner living in the same household as well as their children up to 21 years of age.

When concluding the insurance contract, make sure you provide us with accurate information. This includes checking and, if necessary, correcting the information included in the offer or policy. If this information changes during the insurance period, please let us know.

Inform us about significant circumstances affecting risk both when concluding the contract and during the insurance period. For example, let us know if there is construction work or business activities taking place at the insured dwelling, or if you are renting it out on a short-term basis.

When it comes to your property, behave prudently, don’t leave it unattended or make it accessible to third parties. Follow safety requirements arising from the law, the insurance conditions and manufacturer requirements. Remember that insurance obligations (including safety requirements) must be observed by all persons who legally possess or use the insured object.

Notify us of loss events as soon as possible. To do that,

• call us on +372 680 1122 (24 hours a day, 7 days a week)
• submit a claim
• write to us at kahjud@lhv.ee

You can pay for the insurance as often as you like – either once a month, quarterly, semi-annually or annually. If you prefer monthly payments, we recommend using an e-invoice standing payment order, which you can use internet banking to conveniently set up.

An excess is the amount that you will have to pay in the event of an insured event. If the insured object has been damaged or destroyed as a result of several insured events, the excess must be paid separately for each insured event.

An excess is not applied in the following cases:

• more than 50% of the insured building or apartment ownership is destroyed as a result of an insured event;
• only the glass surfaces of the insured building have been damaged and no other damage has occurred;
• in the event of an intrusion, the alarm system is triggered and the alarm reaches the security company;
• the policy includes insurance cover for equipment failures and a failure occurs in a building services device servicing the insured building, which is up to seven years old and has been regularly maintained;
• the door lock is replaced due to the key being stolen or robbed or due to a fault of the lock of the exterior door and no other damage has been caused to the insured item;
• the lease expenses and/or loan payments of the replacement dwelling are indemnified and the deductible has already been applied to the indemnity in the same insured event;
• the state fee for applying for a passport, ID card or driver’s licence is indemnified and no other damage has been caused to the insured item.

We double the excess for an insured event if:

• objects have been stolen from the courtyard or balcony without having to break barriers or obstacles;
• damage caused due to construction or repair works is insured and the damage was caused in the course of construction and repair works.

Insured objects are not subject to depreciation when we calculate the indemnity. The insurable value of a building is its restoration value, i.e. the cost of restoring it to its original form. In the case of damage to home contents, we will indemnify the repair costs except for insured events with a laptop or a smart device that is over one year old, in which case the indemnity is based on the market value of the device before the insured event. If home contents have been destroyed or damaged in such a way that makes repairing them impossible, we will indemnify you for the cost of purchasing an equivalent new item.

The insurance contract enters into force and the insurance cover begins on the start date of the insurance period specified in the policy and ends on the end date of the insurance period specified in the policy.

The insurance contract is concluded for an indefinite period. We will send you a new policy 45 days before the end of the insurance period – you do not have to do anything to renew it yourself.

By agreement of both parties, the insurance contract may be terminated at any time before the end of the insurance period. To do this, e-mail your request to kindlustus@lhv.ee, including the beneficiary name and account number for the reimbursement of any insurance premium already paid. If you do not indicate a date for the termination of the insurance contract in your request, we will terminate the contract the day following the receipt of your request.

If the insurance contract is terminated during the insurance period, we will refund you any paid insurance premiums for the time when the insurance cover was no longer valid.

The insurance contract cannot be terminated retroactively.

You can apply for a loan before becoming an LHV customer. But you do have to be a client by the time you sign the home loan agreement.

You can apply for a loan if your income (salary, dividends, rental income) is sufficient to cover the loan payments after covering your daily expenses. If you have previously borrowed from a bank, your repayment history must be impeccable.

Use the maximum loan amount calculator if you are interested in getting an idea of how much your loan payments will be.

A home loan can finance the purchase, renovation or construction of a home.

On our website you will find the terms and conditions for buying a home and for building a house.

To obtain a loan, please fill in a home loan application. We will make the initial home loan offer to you the following working day.

If your salary is not currently deposited with LHV Pank, you can quickly and conveniently submit your account statement for the last 6 months during the application process. We will guide you through each step of the application.

For a home loan, you should factor in the amount of self-financing, the contract fee and the real estate appraisal fee. If you're using a KredEx guarantee, you will also have to pay a one-time guarantee fee upon signing the loan agreement.

Upon concluding a notarized collateral agreement, you pay a notary fee and a state fee. This amount depends on the content of the transaction and the amount of the loan and mortgage. You can calculate the notary fee using this calculator.

The collateral must be insured throughout the loan period, so take into account the insurance costs. We offer LHV Home insurance and you can learn more about it on our website.

You can conveniently submit the account statement via a special link during the application process.

If you want to email us the account statement, please send it bearing the bank's digital signature in .bdoc format. Read the instructions for sending account statements. It is not necessary to send statements for your LHV accounts.

KredEx guarantee certificates must be sent in the correct format and directly from the www.eesti.ee environment. Please continue reading for more information on how to send us various certificates correctly.

All other necessary additional documents should always be sent as an email attachment. Unfortunately, we do not accept documents sent via links (e.g., Google Drive, Dropbox, etc.).

To use a KredEx guarantee, please first make sure that you belong to one of the groups eligible for the KredEx guarantee. You can find more information on the KredEx website.

If you belong to at least one target group, please send us proof of this. If you belong to the "Young Family" or "Young Specialist" group, you can send us a certificate directly from the eesti.ee environment.

To use a KredEx guarantee, please first make sure that you belong to one of the groups eligible for the KredEx guarantee. For more information, visit the KredEx website.

If you are in the “Young Family” or „Family with many children“ group, do the following to send a certificate:

• Log in to the older version of eesti.ee portal: https://www.eesti.ee/eng/services using an ID card, Mobile-ID or Smart-ID.

• Select from the menu: For a citizen → Family:

• This will bring up a new menu. From this menu, select “Query of own data and underage children“.

• After you select this option, the system will make an automatic query and show you your family’s information. Scroll down the page until you see the following buttons:
  

• Click the "Send" button, which will bring up a new small window:
  

• Select "PDF" as the file format and enter the e-mail address of the loan manager on the "E-mail" line. Then click the "Send" button again.

• You will see a notification that the data have been sent and you're good to go:
  

To use a KredEx guarantee, please first make sure that you belong to one of the groups eligible for the KredEx guarantee. For more information, visit the KredEx website.

If you are in the “Young Specialist” group, do the following to send a certificate:

• Log in to the www.eesti.ee portal using an ID card, mobile ID or Smart ID.

• From the menu on the left, select: Personal data → Education:
  

• This will bring up a new screen. Select “Data from the Estonian Education Information System”.
  

• After you select this option, the system will make an automatic query and show you information on your education. Scroll down the page until you see the following buttons:
  

• Click the "Send" button, which will bring up a new small window:
  

• Enter the e-mail address of the loan manager in the line "E-mail". Then click the "Send" button again.

• You will see a notification that the data have been sent and you're good to go:
  

Unfortunately, we are unable to offer you a loan during the probationary period. However, we can review the request for a home loan and make a loan decision on the assumption that after the probationary period you will continue in the same job. By the time we start concluding a home loan agreement, you must have successfully completed the probationary period and you continue to work in the same job.

In general, we take into account the average income for the last 6 months. If your salary has recently increased, please send us the amendment to your employment contract showing the new salary. Then we can take that into account.

If you have applied for a home loan for one property, but now choose another, you only need to send a link to sales ad for the new property or a price offer to the loan manager you communicated with on the subject of the home loan. You can also email information to kodulaen@lhv.ee.

If more than 2 months have passed since the previous loan application was submitted, please submit a new loan application.

Yes. If you are applying for a home loan and are not yet an LHV customer, please fill in the account opening form, authenticate your identity and then enter into a customer agreement.

You can authenticate your identity at the nearest identification point. Please bring with you a valid identity document. After identification, you can enter into a customer agreement conveniently in the Internet bank.

If the real estate secured by a home loan is damaged, the bank – just like you – has an interest in the insurance covering the losses incurred.

We offer LHV Home Insurance, which is total risk insurance with a number of possibilities. Read more about the advantages and conditions on our website.

However, if you decide to take out an insurance contract with another insurance company, choose a policy that covers all the most common risks. In any case, the insurance must cover the risk of fire, water, natural disasters and vandalism.

The real estate used as collateral for the home loan must be insured throughout the loan period. In the insurance contract, mark LHV Pank as the beneficiary.

You can see your valid insurance policy information in the Internet bank under contract view.

The following can be viewed:

• policy number,
• policy validity period,
• the insurance organization,
• insured property.

A mortgage means that if the loan is not repaid, the bank can foreclose on your apartment or house (including the land). The mortgage is set at 1.3 times the secured loan amount to cover possible additional costs related to the sale of the property if you have difficulties repaying the loan and the bank must realize the loan collateral.

Before you give consent to mortgaging property...

• carefully consider whether you are willing to take a risk and potentially forfeit your apartment or house if you have problems repaying the loan.
• decide whose obligations and what obligations you are prepared to secure.
• you have the right to ask the notary and bank to see the draft versions of contracts to be concluded, and upon receiving them, carefully read through the content of the contracts.
• you should feel free to contact both the bank and the notary's office to get answers to any questions you may have.

Use legal assistance if necessary.

Right before signing a notarial contract

• listen very carefully to the notary's explanations.
• don't be afraid to ask if you don't understand something.
• check that the agreement contains exactly what you have agreed with both the borrower and the bank.

Once the contracts have been signed

• take the initiative and take an interest in how the loan agreement is being fulfilled.

If the borrower does not answer your questions, be sure to contact the bank.

• always give notice of any changes in your contact details (address, telephone number, e-mail address). Only in this way can you be sure that the necessary information will reach you.
• carefully read the messages sent by the bank and be sure to claim any registered mail.

If the borrower fails to fulfil its obligations, the bank will contact you and give you the opportunity to do so.

By fulfilling the borrower's obligation, you can prevent the sale of the apartment or house and also avoid incurring additional costs and litigation.

You have the right to demand that the borrower reimburse you for amounts paid by you on their behalf.

The interest on a home loan depends on each individual loan applicant, and we take into account a wide variety of different factors (e.g. length of employment and profession, amount of income and liabilities, payment history, desired loan amount and amount of self-financing, etc.). In addition, we also take into account the location, condition and other related factors of the property to be purchased.

While home loan offers shouldn't be compared only on the basis of interest rate, it is a good idea to choose a bank you would like to do business with as a whole. A loan is a long-term obligation, so it is worth considering the total value: customer service and attitude, convenience and efficiency, product selection and other similar arguments. In more trying times, it is much easier to negotiate with a bank that is the home bank for all your banking products and services.

When choosing a home loan provider, be aware of other fees that may be incurred during the home loan agreement period. For example, in LHV, early repayment of a loan is free of charge. This is also the case even for partial repayment. Not having to pay early repayment penalties can represent a significant financial gain in the case of sale of the asset.

The interest on a home loan can also depend on what kind of home you plan to buy. We want to encourage the purchase of the most energy-efficient homes and offer a home loan interest rate of 1.79% + 6-month Euribor for the purchase of an A-energy class home. Interested? Read more on our website.

The contract fee depends on the amount of the loan: the larger the loan, the higher the contract fee. As a rule, the contract fee for a home loan is in the range of 0.5-0.9% of the loan amount (a minimum of 300 euros).

You can conveniently calculate the home loan amount yourself using the maximum loan amount calculator. The loan amount can be higher if your income increases or liabilities decrease. For example, if you get a second job and your monthly income increases or you repay a loan or leasing or give up your credit card.

As a bank, we must follow the principles of responsible lending and various regulations. As a general rule, a maximum of 50% of your income can be spent on monthly loan payments. If a loan applicant also has dependents (such as minor children), the share of income allowed to be spent on loan payments may be smaller.

It is worth knowing that under a Bank of Estonia regulation, we factor in an interest rate of 6% on payments on monthly new home loan payments when calculating the applicant's solvency. This is necessary should the 6-month Euribor linked to the interest rate on the home loan increase significantly, resulting in a corresponding increase in the monthly payment on a home loan. Don't be offended if, in our loan offer, we ask for additional collateral, or a larger down payment or recommend considering finding a co-signer. We are only following the above mentioned principle of responsible lending. It is in no one's interests if the loan taken exceeds the customer's ability to pay, running the risk of difficulties in making loan payments later on. Therefore, it is always worth thinking carefully about taking out a loan.

Self-financing is your own financial contribution to buying a home. This is necessary both to reduce potential risks and to demonstrate your contribution in taking out the loan. The higher your down payment, the lower your monthly home loan payment.

The amount of self-financing depends on both the loan applicant and the assets to be purchased. We consider the loan applicant's solvency and sometimes we may ask for higher self-financing in order for the monthly payment to be compatible. In the case of a real estate purchase, we take into account the condition of the property and also how well it will maintain its market value over time.

For new developments, the minimum self-financing is in the range of 15–20%. In the case of older assets, it is 20–30% of the value of the property and in the case of houses, the down payment averages 25%. Using a KredEx guarantee, the lowest possible self-financing is 10%, and with additional collateral it can be 0%.

For an apartment, we can also offer you a home loan without an appraisal report. However, an appraisal is necessary once we start concluding a loan agreement. It is a good idea to order an apartment appraisal after we have pre-approved you for a home loan. You can also ask your loan manager for a recommendation of a real estate appraiser. LHV's own in-house real estate appraiser conducts the fastest and lowest-cost appraisals on the market.

If you are building a house, though, we will need an appraisal report before we extend a home loan offer. The appraisal report must state the current market value of the house as well as the future market value of the house when the house is completed. You can also ask your loan manager to recommend a real estate appraiser for a house appraisal.

By extending the loan period, the monthly payments decrease because the amount of the home loan is spread over a longer period of time. If we offered you a longer loan period than you requested in your application, it is probably because the monthly payment is too high for your solvency for a shorter period. In order for you to qualify for the desired amount of home loan, we made you an offer with a longer loan period.

The loan amount is based in part on your solvency. If we offered you a smaller loan amount than requested, the reason is probably that, unfortunately, your current solvency is unlikely to allow you to repay a larger loan amount. In order to receive a larger loan amount, it is possible to apply for a home loan together with a co-signer or to terminate existing loan obligations prematurely.

In addition, the lower loan amount offered could also be due to the fact that assets to be purchased require a higher down payment than the one you requested. In this case, it may be helpful to use a KredEx guarantee or pledge additional collateral.

In calculating the loan amount, we consider your solvency, i.e., your financial ability to meet the new loan obligation. Unfortunately, the existence of additional collateral does not affect the loan amount.

If you use a KredEx guarantee, the lowest possible self-financing is 10% of the sale price/market value of the purchased property. In this case, the loan amount can be a maximum of 90% of the sale price/market value of the property you are looking to purchase. However, the loan amount offered also depends on your solvency, and the location and condition of the property.

With suitable additional collateral, it may be possible to enter into a home loan agreement even without self-financing. The market value, condition and solvency of the loan applicant are very important.

It is also good to know that KredEx's guarantee and additional collateral cannot be added to the home loan agreement at the same time.

If you do not want to end your current obligations, one option is to take out a home loan with a co-applicant. The co-signer can be a member of your household: a civil-law partner or a spouse. In this case, we take into account both individuals' monthly income and loan obligations.

You can use the money from the sale of your current home to self-finance a new home loan. If you do not have the necessary self-financing before selling your current home, you must wait until the home is sold and only then can we conclude a new home loan agreement.

Property owned by the borrower or the borrower's relatives is generally accepted as collateral. The additional collateral must be unencumbered and, if necessary, several such items of additional collateral can be included. We do not accept parents' sole real estate used as their place of residence.

We take into account the market value of the additional collateral. The potential loan amount is generally in the range of 50-70% of the market value of the additional collateral. For example: the price of an apartment to be purchased is 140,000 euros, so the down payment should be 20% or 28,000 euros. If real estate with a market value of 28,000 euros is offered as additional collateral to cover this down payment, we will consider its value as collateral at a maximum of 70%, i.e. 0.7 x 28,000 = 19,600 euros. However, this is significantly less than the required 28,000 euros. In this example, there are two solutions: a) the loan applicant would have to find additional self-financing of 28,000 - 19,600 = 8,400 euros, or b) the market value of the additional collateral needed to cover the self-financing of 28,000 euros should be at least 40,000 euros (0.7 x 40,000 = 28,000 euros).

Property belonging to parents is suitable as additional security for your home loan if the parents are not yet of retirement age or they own other real estate in addition to their own home. Our principle here is that we do not want to be in the position of having to foreclose on a home owned by pensioners to cover a loan in the event of possible payment difficulties. Therefore, we do not accept collateral pledges where the property is the sole home for retired persons.

Unfortunately, we cannot take future rental income into account, because there is no way to prove it without a lease agreement. We only take into account income from rentals of property owned by the client. In the case of a valid lease agreement, we calculate the rental income at the rate of 70% to hedge against possible fluctuations in rental prices. If the lease states monthly rent of 500 euros, we will count 0.7 x 500 = 350 euros as supplementary income.

In case of new developments, we can make a loan decision and enter into a loan agreement with you before the property is completed. To do this, send us a price offer or sale offer for the property. If our loan decision is positive, we will also ask for a property appraisal report. It is not necessary to submit a new appraisal report once the property is completed. When entering into the loan agreement, you will have to pay a contract fee and if you are using a KredEx guarantee, you will also have to pay a one-time guarantee fee when concluding the loan agreement.

The concluded home loan agreement has pending status until the development of the property is completed.

If you have selected the property but it has not yet been completed, the client enters into a reservation agreement with the developer at a notary's office. We recommend that you do this after the home loan agreement has been concluded with the bank and you have certainty about obtaining a loan.

In the notarial contract concluded with the developer, the terms and conditions of purchase and sale of the property are agreed upon and the client pays a down payment (home loan self-financing) to the developer. The bank is not yet involved in this transaction, as the loan will not yet be disbursed.

When the property nears completion, the developer will notify the customer. An inspection period of the property will be agreed so that the buyer can make sure that everything is suitable. If the property has been inspected and is suitable, the developer will notify the client of the time of the appointment at the notary’s office for concluding a property law contract. The bank is also one of the parties to the transaction in connection with the establishment of the mortgage, and therefore it is necessary to inform us about the notary time.

In the case of developers that are relatively little known to us, we recommend concluding a property law contract only once the property use permit is available in order to mitigate the client's risks. The risk is that a small and inexperienced developer is significantly more likely to run into difficulties. Another risk is that the local government cannot get the necessary documents in order. You can do research on the developer through the real estate agency or broker who is selling the new development. In the case of a new development, we can notify you of the need for a user permit once you have sent us the price offer for the property.

The home loan is disbursed only when the property is ready (up to 18 months starting from the conclusion of the home loan agreement).

You can choose between an annuity and a schedule with equal payments of principal.

According to the annuity schedule, the loan payment is the same every month until the end of the loan period. In the initial period of the loan, it consists mostly of interest, but with each subsequent monthly payment, the share of the principal increases. We calculate interest on the loan balance.

In a schedule with equal principal payments, the principal of the loan is divided into equal parts, plus interest. Because we calculate the interest on the loan balance, your repayment becomes smaller every month.

Thus, the annuity schedule is characterized by uniform payments throughout the loan period and, in general, a higher amount of interest. According to the fixed principal schedule, repayments are higher at the beginning of the loan period, but they decrease steadily and ultimately a lower amount of interest is charged.

In the loan application, you can specify the date on which you want to start making monthly loan payments. Based on the loan agreement, we prepare a loan schedule, which shows all repayment dates and amounts.

It is your responsibility to ensure that your LHV bank account has sufficient funds on the monthly payment date. The amount will be automatically deducted from your account and you will not be invoiced separately.

The loan manager recommends a renovation loan if the property you want cannot be bought with a home loan (e.g. the loan amount is too small or the property to be purchased is in poor condition). You can fill in a home renovation loan application on our website.

The KredEx guarantee is intended for people who want to take a loan to buy a home or renovate an existing one and reduce their down payment on a home loan. In order to receive a KredEx guarantee, it is necessary to belong to at least one target group:

• Young Family
• Young Specialist
• Acquiring energy-efficient housing or renovating energy-efficient housing
• Veteran of the Defence Forces or the Defence League
• Tenant living in a dwelling restored to the former owner

A KredEx guarantee can be used to buy an apartment, house or summer cottage. In this case, the purpose of purchasing the plot must be the construction of a residential building and, in the case of a cottage, the renovation of the cottage for year-round living. Read more on KredEx's website.

The self-financing requirement for a home loan is at least 15% of the cost of the home. Using the KredEx guarantee, it is possible to get a loan with 10% self-financing. KredEx guarantees the bank the remaining risk (up to 24%, but not more than 20,000 euros). The amount of the guarantee depends on the applicant's target group. It is usually 20,000 euros, but in the case of an A, B or C energy label, KredEx can guarantee up to 50,000 euros.

If you would like a KredEx guarantee, send us proof that you belong to a target group.

Once we can know that a KredEx guarantee is possible, a one-time KredEx guarantee fee of 3% of the guarantee amount must be paid upon concluding the home loan agreement. For example: real estate costs 150,000 euros and a down payment of 30,000 euros is required. The applicant has 15,000 euros and KredEx guarantees the remaining 15,000 euros. In this case, the one-time KredEx guarantee fee is 0,03 x 15,000 = 450 euros.

A home loan applicant and co-applicant may have only one valid KredEx housing loan guarantee in any credit institution. If the KredEx guarantee has been used for the first loan, but its validity has expired, then a KredEx guarantee can also be used for taking a new loan. The condition is that when taking a new loan, the applicant and/or co-applicant must still meet the conditions of the KredEx guarantee.

You can check the balance of your current KredEx guarantee from your loan manager or by writing to kodulaen@lhv.ee.

Yes, at LHV you can terminate your home loan agreement ahead of time free of charge. In order to terminate a home loan prematurely, you must transfer to your LHV account by the agreed date an amount that covers the unpaid principal of the loan and the interest accrued by that date. Send us a request to repay the loan amount via the Internet bank or write to kodulaen@lhv.ee.

If you want to repay part of the loan amount before the due date, please send us, via the internet bank, an application to change the loan agreement. There is likewise no penalty at LHV for partial repayment.

If you need a payment holiday, please send us, via the internet bank, an application to change the agreement. It is important that the request for the payment holiday reaches us before the debt has been incurred. To extend a current payment holiday, please contact your loan manager.

You may deduct the interest on the loan you have taken out for the acquisition of a house or apartment from your income. You may also deduct interest from your income if you have taken out a loan for the establishment, expansion, reconstruction of construction works based on a building permit or building design documentation, as well as for replacing, changing the utility systems of the construction works, changing the division of space and performing the construction and installation works of new technological equipment. It is not possible to deduct the interest on a loan taken for repair works from your income.

On the main page of LHV Internet bank, under the menu “Loans and leasing”, press the button “Information on loan interest to ETCB.” In the opened window you will see the amount of paid interest and the possibility to send this information automatically to the Tax and Customs Board. The forwarded information will be automatically entered into your income tax return.

We strongly recommend you to check the tax return before submitting it and if necessary, make the respective changes. If the income tax return does not show the amount of paid interest or if the amount is incorrect, please consult the private advisors of the Tax and Customs Board by phone on 880 0811 or e-mail at eraklient@emta.ee.

If you had already begun filling in the tax return, but did not complete it, we recommend updating the tax return and filling it in again with the Tax and Customs Board data.

If your internet bank view does not have the possibility to forward the interest information, please report it to the e-mail address laenutugi@lhv.ee or by phone on 699 9119.

You can only deduct the interest on one loan from the income. If you have taken out several loans, the income tax return will show the interest of the loan that was the last one about which you sent information to the Tax and Customs Board.

If the housing is in joint or co-ownership (i.e. it has two owners) and according to the loan agreement these two people have an obligation to repay the loan, in this case both have the right to report the interest on a home loan and deduct it from their income.

The right of deduction is proportional to the share of ownership. If, for example, both own 50% of the housing, each may enter 50% of the paid interest amount.

If one borrower has already sent the information to the Tax and Customs Board from internet bank, this information will be displayed in the income tax return of the other borrower as well. In the case that the information is not displayed in the tax return, please inform us on the e-mail laenutugi@lhv.ee or by phone on 699 9119.

If it is your first time reporting loan interest, you also have to submit the purchase contract of your property and the loan agreement to the Tax and Customs Board. These documents cannot be submitted through the internet bank.

To check whether you are using the loan for its intended purpose, the Tax and Customs Board may request additional certificates. For building works, the right to deduct home loan interest is certified with a copy of the building permit or building design documentation. This is why we advise you to keep all the documents related to the loan.

As a private person, you can get tax advice on the Tax and Customs Board information line 880 0811 and by e-mailing eraklient@emta.ee.

Read more about the 2021 income tax return

Steps for becoming a private client of LHV:

• Fill in the account opening form at LHV mobile app or internet bank
• identify yourself
  • without leaving home, electronically through internet bank or
  • at an identification point near you – please bring with you a valid identity document.
• sign the agreement
  • As soon as you have identified yourself, you can sign the customer contract in LHV's Internet bank or mobile app. You will need a valid ID card with ID card reader, Mobile ID or Smart ID.

We have decided to stop onboarding Russian or Belarusian citizens without a valid Estonian residence permit.

To open a company account

• Log in to LHV internet bank or mobile app with your username and Smart-ID, Mobile-ID or ID card. If you are not yet a private client, start by opening an account for a private person.
• Navigate to the “Information and settings” → “Agreements” menu option or if you are in the mobile app, tap the “+” icon and sign the “Company account” agreement.

If you wish, you can open a company account at our customer offices. For that, please book a time for the meeting and bring a valid identity document with you.

We have decided to stop onboarding companies whose beneficial owners are Russian or Belarusian citizens without a valid Estonian residence permit.

In Tallinn, our office is located in the city centre, in the City Plaza office building, at Tartu mnt 2. When coming by car, you can conveniently park right in front of the office. There are designated spaces for our customers, with 30 minutes of free parking time.

In Tartu, our office is located in the immediate vicinity of the Tasku Centre and the bus station, at Ülikooli 2a.

Pärnu customer office is located at Lai 15a. The entrance is from Aia Street (Port Artur 2) side.

For more information about the location of our offices, see our homepage.

An LHV current account for a minor can be opened by a parent holding the right of representation. If you are LHV’s client then you can open an account for your child conveniently via internet bank or mobile app.

To open a current account at LHV for a minor:

• fill in the open account form
• visit the client office to identify yourself as a legal representative (parent) of the minor and your right of representation
• from the age of 7 and above, the child’s identity document is required to open the account, please remember to bring it with you

Read more

Persons who, due to mental illness, mental disability or other mental disorder, are permanently unable to understand or direct their actions, have restricted active legal capacity. Restricted active legal capacity means that the person may only enter into transactions in limited volume and scope, and any contracts shall be signed on behalf of such individuals by the legal representative. The guardian of a person with restricted active legal capacity shall be appointed by the court.

A curator shall not be automatically considered a legal representative.

To open an account for persons with restricted active legal capacity you must come to LHV’s offices.

Documents required for registration of an adult with restricted active legal capacity as a customer are the following:

• the identity document of the adult with restricted active legal capacity.
• the identity document of the parent or guardian.
• court judgement on the establishment of guardianship.

To open an account

• Log in to LHV internet bank or mobile app with your username and Smart-ID, Mobile-ID or ID card. If you are not yet a private client, start by opening an account for a private person.
• Navigate to the “Information and settings” → “Agreements” menu option or if you are in the mobile app, tap the “+” icon and sign the “Company account” agreement.

If you wish, you can open a company account at our Tallinn or Tartu bank office. For that, please book a time for the meeting and bring a valid identity document with you.

To open an account for an apartment association, the association must have representative(s) registered in the Business Register. In the absence of the representative(s), the account can be opened only on the basis of a notarial power of attorney, where all members of the apartment association have authorized one or more persons to represent the association. An authorized representative does not have to own an apartment in this particular apartment association.

You can obtain your account statement from the LHV internet bank. After entering, select “Assets and Liabilities” ➞ “Account Statement” from the menu on the left.
Select the account and the period for which you need the account statement. Then, press the button “Update Statement” and save the statement in BDOC format.

To change your contact details, enter the LHV internet bank. Select “Data” under “Information and settings” on the left and make the changes.

To change your name, please send the number of your new identity document to info@lhv.ee. If your new document is a driver's license or the identity document has not been issued in Estonia, please send us a copy of both sides of the document by e-mail.

To close an account, visit a bank office or, if you have the option of digital signing, send your request to info@lhv.ee.

Crypto assets are a form of digital money that has proven to be a popular complement to "real" money. Another characteristic of crypto assets is that they can be used for payment without a need for intermediaries such as banks. This means that anyone can send money via the Internet to anyone without a central intermediary. The best known decentralized crypto asset is currently Bitcoin. Crypto assets are based on blockchains. A blockchain is a decentralized database where the data are updated through algorithms. This data is kept safe and interlinked using cryptography.

You can buy crypto assets in the LHV mobile app and in the Internet bank. In the mobile app, go to the "Investment" screen (third icon from left at the bottom), select "+" at the top right and then "Buy Crypto Assets”. Then enter the crypto asset you want to purchase and the amount.

In the internet bank, go to "Investing" and choose "crypto asset buy/sell". Enter the desired amount and crypto asset you wish to buy.

You can purchase crypto assets if you have agreed to the conditions of provision of crypto assets and completed the appropriateness questionnaire.

If you have purchased crypto assets on your LHV account, you can sell them via the mobile app or in the Internet bank. In mobile app, tap on the crypto asset and select "Sell". In the Internet bank, go to the "Investing" section and choose "crypto asset buy/sell". From there, choose the transaction type as "sell" and enter the crypto asset you wish to sell and the amount.

No, you cannot pay with the crypto assets that you have acquired through LHV. They can only be traded.

No, you will not receive a separate crypto wallet address when buying crypto address through LHV

Crypto assets are high-risk financial instruments. The value of cryptocurrency has been known to increase or decrease 20 or 30 percent in a single day. There is no guarantee that crypto assets will retain value or increase in value. The crypto sector is also less regulated and may not offer the investor protection measures that are common for securities.

Before making a transaction with a crypto asset, we recommend a thorough analysis of the nature of the specific crypto asset and the financial, legal and tax issues related to the prospective transaction.

Among other things, crypto assets are exposed to risks that may result from changes in the national legal environment, cyber security, and various fraudulent schemes that increase the risk of loss of the entire value of crypto assets.

The client's order will be completed on the following terms:

• The order will always be sent to the crypto brokerage (Bitstamp) immediately, without the broker's manual intervention.
• LHV does not gather or divide clients' orders, meaning that the order inserted by the client will be sent to the market directly, in the set amount.
• The maximum transaction sum is 100 000 Euros to avoid transactions that would affect the liquidity of the market.
• All instructions are made using using the market order type, meaning that the order will be filled immediately, with the best available price.
• The orders on the exchange will be filled using the principle of "first in – first out“, meaning that the orders that have come through first will be filled first in case of equal price point.

Ten types of crypto assets can be purchased through LHV:

• Bitcoin
• Ethereum
• Litecoin
• Uniswap
• Chainlink
• Stellar Lumens
• Polygon
• Aave
• Axie Infinity
• Cardano
• Sandbox

The crypto exchange is open 24 hours a day, seven days a week. So you can buy crypto assets at LHV at any time. The transaction is executed immediately.

It is currently not possible to transfer other crypto assets to LHV.

You can buy crypto assets as an individual and as a company. Keep in mind that the tax rules on gains are different for individuals and companies.

No, crypto assets cannot be gifted. They can only be purchased or sold on one's own LHV individual or business account.

Yes, you can. To do this, select a child account and enter a crypto asset purchase order.

No, they are not. Income tax is payable on capital gains on crypto trading made by individuals. Losses do not offset the taxable amount. Example: If you buy Bitcoin for €100 and sell it later for €150, your taxable gains will be €50. A loss of, say, 60 euros on a subsequent Bitcoin trade will not reduce your tax liability on the €50 capital gain. Read more about taxation here.

No. All crypto asset transactions take place at the current market price.

The crypto assets will appear on your LHV account immediately after the transaction.

Since crypto assets are not currently part of the investment account system, yes, we do recommend opening a separate account for trading crypto assets.

Transfers between accounts cannot be made. The only option would be to sell the crypto assets purchased on the wrong account and then re-purchase the assets on the correct account. Investment account system principles do not apply to crypto assets. Therefore, we recommend that you open a new account for trading crypto assets.

In the case of crypto assets held by LHV’s external custodian, Bitgo will make the decision on the crypto assets to be held in its custody in the event of a split. Read more about the procedures of Bitgo in the event of a split on their website.

LHV’s role in ensuring the security of its clients’ crypto assets is mainly through the selection of partners with a high level of security. LHV’s partners are Bitstamp, a licenced crypto exchange in Europe, and BitGo, a licenced custody service provider in the US. The crypto assets of all LHV clients are protected in accordance with our partners’ security processes:

• The majority of clients’ assets are stored in a cold wallet, a location that is not connected to the Internet, meaning that these assets cannot be stolen virtually. The keys to these wallets are stored in physical form in a secure location. The given assets in our foreign broker’s wallet are insured to the value of USD 100 million, providing protection in the event of theft.
• To a lesser extent, clients’ assets are held in a hot wallet, a place connected to the Internet, which is used to carry out stock exchange transactions on an ongoing basis. These assets have a higher risk of falling victim to cybercrime. The given assets in our foreign broker’s wallet are additionally insured to the value of USD 50 million, providing protection in the event of theft.

All in all, the vast majority of clients’ assets are kept in a wallet that is not electronically accessible. The final impact on a client’s assets in the event of a cyber-attack will depend on a number of factors, but mainly on which of our foreign broker’s hot wallets is attacked (which crypto assets) and the value of that wallet, i.e. whether the USD 50 million insurance will cover the loss. A cold wallet attack is supposed to be a physical attack, so it is less likely to happen. However, should this happen, clients will also be protected by higher insurance.

We recommend that you buy crypto assets in a separate crypto account (which you can open in both your mobile and Internet Bank), as crypto assets are not part of the investment account system. If you buy crypto assets for an investment account, they will appear as withdrawals in the investment account statement. Sales are recorded as contributions to the investment account. This means that when it is time to file your income tax return, all purchases of crypto transactions will be counted as withdrawals and you may incur a tax liability (if the withdrawals exceed the contributions to the investment account system).

To open a new account in the Internet Bank, go to “Settings“ -> “Add an account“. On the mobile app, go to the home icon and click the “+“ sign on the top right corner.

As crypto assets are not considered as securities, they are taxed under similar rules as other assets (e.g., real estate, physical gold). This means, among other things, that the investment account system may not be used to trade crypto assets. Read more about the taxation of private crypto assets.

Standard system
The only allowed form of declaration for crypto assets. Every profitable sales transaction is taxable, but loss-making transactions cannot be deducted from profitable transactions. For example: if you have sold Bitcoin twice during the year, and you made a profit of EUR 100 on one of the sales and made a loss of EUR 80 on the other, you will have to pay income tax on the entire EUR 100 gain.

You can find information for the declaration of crypto income in Table 6.3 of the LHV tax report. There we will show you all profitable crypto transactions made during the reporting period, grouped by instrument. It is up to you to review the entries and, if everything is correct, copy them manually into Table 6.3 (‘Transfer of other property’) of your income tax return.

Generally, it is sufficient to declare crypto gains on an instrument-by-instrument basis. For data verification purposes, the Estonian Tax and Customs Board may require you to provide a statement of all your crypto transactions. An overview of all transactions, including loss-making ones, can be found in the ‘Assets and liabilities’ → ‘Trade report’ section of the LHV Internet Bank.

Investment account system
As crypto assets do not fall under the definition of financial assets, they are not eligible for the investment account tax benefit. For this reason, it is a good idea to make transactions with crypto assets in another account that you do not use as an investment account.

However, if you have bought and sold crypto assets in your investment account, please do the following:

• In Part II of Table 6.5 of your income tax return, declare purchases of crypto assets as a cash withdrawal from an investment account. If, after the purchase transaction, the total amount withdrawn exceeds the balance of the contributions to the investment account, you will have to pay income tax on the difference. If you sell crypto assets from your investment account, declare the proceeds from the sale as a cash contribution to your investment account. You can automatically transfer the required data on investment account contributions and withdrawals to the Estonian Tax and Customs Board from the ‘Assets and liabilities’ → ‘Investment account report’ section of the LHV Internet Bank.
• If you made at least one profitable sales transaction of crypto assets during the year, then in addition to Table 6.5, you have to manually complete Table 6.3 (‘Transfer of other property’) and pay income tax on the gain. Please keep in mind, however, that unprofitable crypto transactions cannot be deducted from the profits, i.e. income tax has to be paid on each profitable transaction. You can find the necessary data for Table 6.3 in the ‘Assets and liabilities’ menu ‘Tax report’ in the LHV Internet Bank.

Essentially, a ledger of all transactions. Unlike cash settlements, every cryptocurrency transaction is recorded. The blockchain is the complete record.

Decentralization means that there is no single person, agency or computer that manages and control payments or the operation of a currency. These responsibilities are shared globally between everyone looking to participate in these activities. For example, Bitcoin is a decentralized virtual currency, i.e., it does not belong to any specific institution, so anyone who wishes can participate.

Digital token – a crypto asset-based instrument which is presented in electronic form, which can be digitally transferred, stored or traded and registered in a distributed ledger or other secure system based on similar technology, or which is based on cryptography. The instrument entitles the owner to have a say in the development of the platform associated with the token or to use or provide any service or other similar privilege.

A wallet is a unique code where crypto investors' assets are stored and which allows transactions to be made.

Allows transactions between two parties to be stored in the blockchain efficiently, controllably and permanently.

The creation of new crypto assets is also called mining. Mining requires large server farms that validate transactions and constantly crunch numbers. Miners receive new tokens in return. For example, if someone mines Bitcoin, they receive a reward for it, and acquire new bitcoin.

Smart contract – a digital algorithm or code, which is a set of functions and information located at a specific address in the blockchain. A computer network is responsible for the functioning and regulation of this code. While in the case of standard contracts, consent from a single central authority (e.g., a bank) has to be obtained, the smart contracts are autonomous and decisions can be made on the basis of the rules originally set out in the smart contract. Such a process makes the whole process more efficient and objective. Most smart contracts are created on decentralized platforms (e.g., Ethereum).

We provide leasing for passenger cars, vans, motorcycles, boats, commercial vehicles, heavy machinery and other equipment.

Not at all. However, your status as a customer of LHV will make your life much simpler – our Internet bank provides information on the lease, allows you to make payments and to conclude a standing order agreement.

You should look for the most suitable sales advertisement, and request a lease offer on the basis of the advertisement. Please keep in mind that we cannot provide the same quote for later choices – e.g. the choice of an older vehicle might shorten the lease period.

In such a case, you can apply for leasing together with another person, using his or her income or property to provide an additional security and qualify for the leasing together with that person. When a surety is involved in a lease agreement, the same documents and data as those provided by the applicant must be submitted by the surety. The verifiable regular net income must be a minimum of 1100 euros per month for the two applicants in total.

Depending on whether you wish to use the leasing option for buying out the vehicle or merely using it, you can choose between financial lease or operational lease. A financial lease allows you to pay the full price of the vehicle together with the interest over the lease period, and to become the owner of the vehicle upon expiry of the agreement. An operational lease should be your choice, if you wish to use the vehicle, but have yet to decide whether or not you wish to become its owner. You will not be required to pay the full price of the vehicle in the case of an operational lease. Rather, we will agree, upon the conclusion of the lease agreement, on the residual value of the vehicle at the end of the lease period. The residual value is thus the price of the vehicle that we do not expect you to cover with the lease payments. At the end of the lease period, you have the option of buying out the vehicle at its residual value. Should you not choose this option, the vehicle is returned to the bank. We also provide the option of establishing a residual value for the property leased under financial lease. In this case, however, you have to pay the residual value together with the last monthly instalment, or apply for amendment of the agreement to defer the payment over a longer period of time.

Indeed, we do. We simply refer to it as a “financial lease”. Vehicle hire-purchase is a form of financial lease used for cases where VAT is not added to the price of the vehicle – i.e. the vehicle is sold by a private person or another person not liable to value added tax.

Lease payments will be made on a monthly basis, on the date specified in the agreement. Ten days before the payment due date, the bank will provide you with an invoice based on which you can effect a transfer. If you wish, you can also request your leasing invoice as an e-invoice and arrange for a standing payment order, through the internet bank of your home bank, for its automatic payment.

Yes, we do. To persons not liable to value added tax, the bank will disburse the price of the vehicle together with VAT. As VAT is to be refunded to persons liable to value added tax, we have established the general rule of providing funding in the amount which does not include VAT. VAT will be refunded by the state within one or two months. In the meantime, we offer the option of deferring payment of VAT for up to three months.

Should you wish to change the date of payment for some reason, the agreement will need to be amended. For this purpose send an e-mail with your request to liising@lhv.ee. A service fee will be charged for the amendment in accordance with the price list.

Should you wish to change the lease payment, the agreement will need to be amended. For this purpose send an e-mail with your request to liising@lhv.ee. The amendment requires a new credit decision. This will take 3-7 days. A service fee will be charged for the amendment in accordance with the price list.

Should you wish to shorten the lease period, the agreement will need to be amended. For this purpose send an e-mail with your request to liising@lhv.ee. A service fee will be charged for the amendment in accordance with the price list.

Should you wish to extend the lease period, the agreement will need to be amended. For this purpose send an e-mail with your request to liising@lhv.ee. The amendment requires a new credit decision. This will take 3-7 days. A service fee will be charged for the amendment in accordance with the price list.

Never hesitate to contact us. We will find a solution together.

To apply for a grace period send an e-mail with your request to liising@lhv.ee. Private customers are requested to provide an account statement, business customers are asked to submit the financial statements. The decision regarding the grace period will be made on the basis of the documents submitted.

The insurer needs to be informed of all insured events. Please bear in mind that payments must still be continued, even if the vehicle cannot be used. Where the damage is extensive enough for the vehicle to be written off, the payment obligation will expire upon transfer of the compensation by the insurer to the bank. This will effectively terminate the lease agreement. The same in cases of theft.

The insurer needs to be informed of all insured events. Please bear in mind that payments must still be continued, even if the vehicle cannot be used. Where the damage is extensive enough for the vehicle to be written off, the payment obligation will expire upon transfer of the compensation by the insurer to the bank. This will effectively terminate the lease agreement. The same in cases of theft.

As a rule, the lease agreement may only be prematurely terminated when you buy out the vehicle yourself, or find another buyer for the vehicle. The amount to be received for the vehicle must cover or exceed the contractual residual value. The most convenient way to do so is through the self-service environment, ordering the buyout calculation via the Internet bank or mobile app, under the detailed agreement data section. Another option is to let us know about your wish, by writing to the address liising@lhv.ee, after which we will send you a buyout calculation. Once you or the buyer of the vehicle have paid the invoice, we will issue the documents on the termination of the agreement within two working days.

To all intents and purposes, such a disposal still constitutes the conclusion of a new lease agreement with a new lessee. For this purpose, the buyer (e.g. the transferee) must submit a lease application together with the additional documents required. Where the credit decision passed on the basis of the transferee's application is positive, the transferor only needs to submit an application for termination of the lease agreement. For this purpose send an e-mail with your request to liising@lhv.ee.

A change of cars requires termination of the existing agreement and conclusion of a new agreement. You thus first need to sell your existing car. The existing car can also be purchased by the seller of the new car. You need to fill out a new lease application for the new car, and submit the accompanying documents. You can also lease a new car by maintaining the existing lease agreement and putting the existing car up for sale.

Please bear in mind that you still need to make lease payments while the car is for sale. Should you face payment difficulties, you can apply for a grace period. You can also apply for an exemption from the motor own damage insurance payments, but only if the car is being sold by a partner of LHV with the appropriate insurance cover. No exemption can be provided, if the car is being sold anywhere else. No exemption can be provided from motor third party liability insurance.

Users entered in the registration certificate of the vehicle do not require an authorisation document for travel within Europe. An authorisation document in unattested written form is required where the vehicle is taken to another European country by a person who has not been and is not intended to be entered in the registration certificate. A notarised authorisation document is required for travels to Russia, other CIS countries or Asia. The authorisation document will be issued, if you have no payables to the bank (under the lease agreement or any other agreement) and if the vehicle has valid insurance cover in the country of destination.

Please bear in mind that an authorisation document from LHV is required for any operation in the traffic register of the Estonian Road Administration (change of users in the registration certificate, making copies of the registration certificate or licence plate). You thus need to submit the corresponding application to LHV to obtain an authorisation document.

The corresponding application must be submitted to LHV in order to obtain the authorisation document. The authorisation document will, as a rule, be issued only if you have no debts to the bank under the corresponding agreement or any other agreement (exceptional cases need to be coordinated with the lease manager). With no debts and valid insurance cover, the authorisation document will be issued within 24 hours. Should you have debts or insufficient insurance cover, the issue of the authorisation document will be delayed. A fee will be charged for the authorisation document in accordance with the price list.

You could need an authorisation document, when ordering an extra key for your vehicle.

We are as interested as you are in ensuring compensation for any damage that may occur to the vehicle. In addition to motor third party liability insurance, any vehicle leased must also be covered with motor own damage insurance for protection against damage not compensated through motor third party liability insurance. For example, motor own damage insurance provides compensation for damage caused to the vehicle even if you alone are responsible for the accident. Should you have no insurance cover, you will be asked to compensate any damage yourself. To make sure that insurance cover is uninterrupted (by, for instance, forgetting to make an insurance payment), the vehicle must be insured for a period of 12 months at a time, with full payment for the entire period.

You can see your valid insurance policy information in the Internet bank under contract view.

The following can be viewed:

• policy number,
• policy validity period,
• the insurance organization,
• insured property.

Should you wish to modify your car in any way, please contact LHV and ask for our consent. No consent is required if you wish to fix something or replace a spare part or if you wish to add an element that can be removed, without damaging the vehicle, upon expiry of the leasing agreement. By contrast, the installation of a gas device entails the alteration of the car, which requires the approval of the bank.

As the lessee, you will be responsible for the technical maintenance of the vehicle. You will also be obliged to maintain all technical and warranty documents. In addition, you will need to ensure preservation of the warranty. Should you have any questions, please do not hesitate to contact LHV or the car dealer. At the end of the lease period, the vehicle must be returned to LHV in the same condition it was in at the moment of delivery. Naturally, we do take normal wear and tear into account. Nonetheless, broken parts need to be replaced prior to returning the vehicle.

Under the general conditions of the lease agreement, a fee of 16 cents must be paid upon termination of the agreement for each kilometre exceeded.

First, we advise you to carefully consider your options before you make this decision. It is important to realise that although through the rental agreement you can transfer all the obligations under your leasing agreement to the person renting your car, it is you who will remain liable before LHV. If you are certain that you wish to proceed with renting out your car, you must seek LHV’s consent to do so. For this, you have to submit a relevant request including the name and personal identification code or registry code of the sublessee. Furthermore, allow for the fact that, in order to provide its consent for a sublease, LHV may wish to modify the terms of your agreement, since the risk profile of the transaction will change.

Choose a valuer suitable for you from the following selection. Both OÜ ValueExpert and OÜ Roheline Laine will carry out a valuation of the vehicle at a location suitable for you.

Indeed, we have this requirement. We would like the traffic register to verify, for its part, the due transfer of the ownership of the property, so that we may be convinced that there will be no impediments to the registration of the property. In addition, national regulations, too, require a relevant entry to be made in the traffic register within 5 business days after a vehicle is first used in Estonia or when its ownership is transferred.

IBAN is an international bank account number used for both domestic and international transactions.

The IBAN number for your personal account can be found:

• on the front page of the LHV client agreement
• in LHV Internet bank, if you choose “Summary Statement” from the left hand side, or
• on the back of your LHV bank card (if you have a bank card).

The BIC for LHV Pank is LHVBEE22.

Transfer limits can be viewed:

• In the LHV internet bank, by pushing button „Limits“→ „Transfer limits“ in Summary statement view. There you can view your active accounts, access authorisations to the account(s), and the daily or monthly limits.
• In your internet bank agreement (either printed or in digital container).
• LHV mobile app.

The following options are available for changing transfer limits:

• The most convenient way to change the limits is to submit an application in the LHV internet bank. After logging in, you can see Summary statement where you can push the button „Limits“ → „Transfer limits“. There you can view your active accounts, access authorisations to the account(s), and the daily or monthly limits. By using the button “Change”, you can select the limits and user rights you wish to grant to the users of the internet bank, and then conveniently submit your application to us. We will review the application and contact you (the owner of the account) as soon as possible to verify the limits.
• If you do not have the option of using the internet bank, we can change the limits on the basis of a digital signature. To do so, send an application in unattested written form to the e-mail address info@lhv.ee. We will then contact you to specify the information presented and send a new internet bank agreement for you to sign.
• If you do not have the option of using the internet bank or providing a digital signature, you can also change the transfer limits at LHV’s customer offices. See the opening hours of our offices here.

You can obtain your account statement from the LHV internet bank. After entering, select “Assets and Liabilities” → “Account Statement” from the menu on the left.
Select the account and the period for which you need the account statement. Then, press the button “Update Statement” and save the statement in BDOC format.

The same pricelist is valid for all of our clients.

If you need to transfer money at some point in the future, you can fill in the payment order in advance. On the day when you are inserting the payment you do not need to have the required amount for the payment on your account. However, ensure that the required amount is on your account on the payment date and that your account’s transaction limit allows for the payment to be executed.

You can view payments with a future date in your Internet bank by choosing Everyday banking → Payments → Pending payments.

Under pending payments, you can see payments yet to be made, which are:

• currently being processed,
• prepared, but awaiting your final confirmation,
• with a future payment date,
• faulty, or
• cancelled by you or by LHV. You can see payments cancelled by you for a period of 10 days.

On the payment date, checks for sufficient funds in your account and transaction limits shall be performed six times during the day (00:05, 09:30, 12:00, 14:00, 16:30 ja 18:00).

If the funds have not been received by the time of the last check or the transaction limits have not been increased for the payment, we shall cancel the payment and you will need to enter a new payment order.

The error message is displayed when:

• the reference number field should be filled in, but is empty;
• the reference number field is filled in, but is incompatible with the standard.

The reference number on LHV’s payment form must correspond to the Estonian or international creditor reference number standard (ISO 11649).

If you have made sure that the invoice has the same reference number as the one you entered on the payment form, then it means that the service provider has not followed the standard reference number format when compiling the invoice. In this case, please enter the reference number in the “Payment desciprion” field.

We'll send a failed payment notification email to the payment originator and last approver.

We'll notify you whenever there is a delay or error in processing your payment, for example, didn´t have enough balance on your account, approver did not have sufficient transfer limits, or there were other errors.

You can opt out of these notifications if you wish. To do this, log in to the Internet bank and select the role whose payment notifications you want to change (eg either an individual or a company) next to your name. Then select Information and Settings → Settings → Notifications. If you want to receive payment notifications by e-mail again in the future, you can make the necessary changes in the same place.

A European payment is a payment in EUR to another Estonian bank or a bank within the SEPA area.

The SEPA area is a single euro payments area, consisting of 27 European Union Member States: Estonia, Austria, Belgium, Bulgaria, Croatia, Cyprus, the Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, the Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden and in addition Iceland, Norway, Liechtenstein, Switzerland, Monaco, San Marino, Andorra, Vatican City State and the United Kingdom.

To make a European payment, in the Internet bank choose Everyday Banking → Payments → Payment type → European payment.

In the internet bank, European payments are free of charge for LHV’s clients.

If possible, we will always make a European payment in the form of an instant payment If an Instant Payment cannot be made, then the arrival of the payment may take longer, see payment arrival time.

When possible, a European payment is always made as an instant payment, which is received by the recipient within half a minute.

If the instant payment is unsuccessful, then settlements between banks in the SEPA area are performed five times a day. In order for a payment by a client of LHV to reach another bank on the same day, the payment needs to be made by 16:30, at the latest. The more accurate arrival periods are:

Payments made during the weekend arrive in the beneficiary’s account on Monday between 08:45-10:00.

If the payer’s bank has joined the Instant payment settlement system, then a client of LHV Pank will receive the money in half a minute, twenty-four hours a day.

If the payer’s bank has not joined the Instant payment settlement system, then it will take longer for the sum to arrive in their account. Arrival times:

* The times may vary depending on the bank. Precise information will be provided by the sender’s bank.

European payments made over the weekend are deposited in the beneficiary´s account on Monday at 08:45-10:00.

An instant payment is a European payment of up to 100,000 € to an Estonian or SEPA area bank that has joined the Instant payment settlement system.

A payment made in euros, which moves from one bank to another in half a minute, twenty-four hours a day, seven days a week.

If the instant payment cannot be performed due to technical reasons, we will perform the payment as a European payment, with arrival times available here.

To make an instant payment, enter the internet bank and select Everyday Banking → Payments → Payment Type → European payment.

If the payment was successful, a corresponding notice will be displayed for you in the Internet or mobile app, indicating how the payment was made.

If the instant payment was unsuccessful for some reason, you will receive a corresponding notice on your mobile phone or via e-mail. If the reason was technical in nature, then the payment will be made for you as a European payment.

Instant payments are made between SEPA area banks that have joined the instant payment settlement system. In Estonia, these banks are LHV, SEB, Swedbank, Coop Pank and Citadele (as of 01.09.2021).

In case of an in-house payment, the accounts of both the remitter and the beneficiary are at LHV. The payment can be in any of the currencies that LHV mediates and the payment reaches the beneficiary immediately.

To make an in-house payment, in the Internet bank choose Everyday Banking → Payments → Payment type → In-house payment.

If you use LHV Trader, then a payment entered before 17.00 and associated with a Trader account shall be received within an hour, by the morning of the next business at day the latest.

A Wise payment consists of two transactions: a currency exchange and a payment.

You can make a payment in the chosen currency to the country where this is legal tender (for instance, you can make a payment in pounds sterling to the UK, a payment in US dollars to the United States, etc.).

The payment is made in the LHV internet bank or mobile app but using Wise technology.

An LHV Wise payment can be made in the LHV internet bank or using the LHV mobile app.

The key terms and conditions of a Wise payment made via LHV’s e-channels include:

• Wise payments are available in the internet bank and using the mobile app
• Your LHV bank account must have sufficient funds in euros for both the payment and the service charges
• The receiving currency may be GBP, USD, SEK, INR or AUD
• You must have an active Wise account, in addition to an LHV bank account, to be able to make a payment

Since the payment provider is Wise, an active Wise account is required. Opening one carries no obligations for you. Once you have opened an account, you can conveniently access information on both pending and past payments by logging in to the Wise website.

When you make a Wise payment in the LHV internet bank or using the LHV mobile app, you will be redirected to open a Wise account as soon as you have chosen the currency in which you would like to make the payment.

The page for opening an account is in English.

You do not have to; however, when you make a Wise payment in the LHV internet bank or using the mobile app, you will be asked to connect your existing Wise account to your LHV account.

As soon as you have chosen the payment currency on the payment form you will be redirected to the Wise page from which you can log into your Wise account.

To make a payment, open the LHV mobile app and then:

1. Write in beneficiary’s name;
2. write in beneficiary’s account number;
3. choose the currency you wish them to receive;
4. write in the amount required;
5. you will see the exchange rate and the payment service charge on the screen (the service charge is already included in the euro amount);
6. press the ‘Start Connecting’ or ‘Continue’ button
7. you first payment will bring you to a screen where you can link your existing Wise account to your LHV account or, if you do not have one, where you can open a new account;
8. then enter the beneficiary’s details
   • details of the beneficiary’s bank
   • the beneficiary’s e-mail
   • a reference for the beneficiary
9. approve the payment order, and the amount indicated on the payment order in euros will be transferred into your Wise account.

Open the LHV internet bank to make a payment. For the Wise payment form go to: Everyday banking → Payments → New payment → Payment type → choose TransferWise payment from the drop-down menu

1. Write in the payment beneficiary’s name
2. choose the currency you wish them to receive;
3. write in the amount;
4. you will see the exchange rate and the payment service charge on the screen (the service charge is already included in the euro amount);
5. press the ‘Start Connecting’ or ‘Continue’ button
6. Your first payment will bring you to a screen where you can link your existing Wise account to your LHV account or, if you do not have one, where you can open a new account;
7. then enter the payment beneficiary’s details
   • details of the beneficiary’s bank
   • the beneficiary’s e-mail
   • a reference for the beneficiary
   8. approve the payment order, and the amount indicated on the payment order in euros will be transferred into your Wise account.

LHV collects no service charge for the payment; you only pay Wise’s service charge. The total amount of service charges is shown on the payment order, and this amount will be debited from your LHV bank account immediately after the payment has been approved.

Detailed information on Wise’s service charges and their calculation is available on Wise’s webpage.

The payment will be received within 1 to 4 business days.

The payment order shows the estimated date of its receipt. Wise will keep you up to date on the movement of the payment by e-mail until the payment has been received in the recipient’s account.

You can always call or write to LHV customer support. Wise will contact you if there is a problem with the payment.

You need to enter the ACH ABA number in the routing number field. A bank operating in the United States may have two routing numbers, one ACH and other for the Domestic Wire transaction system.

ACH ABA is a 9-digit number (like the Domestic Wire ABA number) and banks use different names for it, e.g. “Routing number", "Electronic ABA routing number", "ACH routing number" or "Routing/Transit number".

Please note that the routing number 026009593 is a Wire transfer routing number and will not work with Bank of America ACH transfers. In this instance, the correct Bank of America ABA routing number is 121000358.

Find more information on Wise site (choose English (US) in language settings).

A foreign payment is a transaction:

• in a foreign currency (even if the beneficiary’s bank is located in Estonia);
• in EUR, but the beneficiary’s bank is located outside the SEPA area.

To make a foreign payment, in the Internet bank choose Everyday Banking → Payments → Payment type → Foreign payment.

You can view service charges for foreign payments here

When filling in the foreign payment form, it is necessary to know:

• The beneficiary’s account number and the BIC number of the beneficiary’s bank;
  If you are missing the BIC, please fill in the fields “Name of the beneficiary’s bank” and “Address of the beneficiary’s bank”. If you know the beneficiary’s bank code (e.g. ABA in the USA, BLZ in Germany, Sort Code in Great Britain, etc.), please write it in front of the name of the bank, in the field “Name of the beneficiary’s bank”.

• The name of the correspondent bank can be marked down if this information has been forwarded by the beneficiary (optional).

If you are making a foreign payment, you can choose whether to pay the service charge yourself in full or to share payment of the service charge with the beneficiary. View the service charges here

Receiving a foreign payment can take 1-5 banking days depending on the payment speed, so make sure that the payment is forwarded in time and choose the suitable payment speed for your payment. View the specific payment arrival deadlines.

When making a foreign payment, you can choose whether to pay the full service fee yourself (paid by remitter) or share the fees with the beneficiary.

Shared fees mean that the remitter covers the service fees of the remitting bank and the beneficiary those of the beneficiary’s bank.

However, it may happen that each bank in the payment chain reduces the payment by its own fees (deductions).

More information in the table:

EEA- European Economic Area

Shared fee exemptions:

• Shared fee cannot be selected if payment is made in Russian roubles (RUB).

If the service fee is paid by the remitter, the latter will cover the service fee of the remitting bank as well as any other bank participating in the payment chain. The beneficiary will receive the full amount, that is, the beneficiary will receive the exact amount transferred by the remitter.

For this service fee option, the remitter will pay 20 € to LHV in the form of service fees which, as a rule, covers the service fees of all the banks participating in the payment chain. See also What is the service charge for a foreign payment?

Paid by remitter fee exemptions:

• Paid by remitter fee cannot be selected if the beneficiary's bank is located in the European Economic Area.
• Paid by remitter fee cannot be selected if payment currency is USD.
• For rouble payments, Russian banks only accept the option of full amount to beneficiary (fees paid by remitter).

Before submitting the payment, please make sure that you have sufficient funds on your account to pay the service charge. LHV’s foreign payment charges are accounted in euros.

*The service fee of 7 € is paid if the beneficiary’s bank is in the European Economic Area (EEA) and the currency of payment is the currency used in the EEA

The arrival of a foreign payment depends on the chosen payment speed:

*If the beneficiary’s bank is in the European Economic Area and the currency of payment is the currency used in the European Economic Area, the payment cannot be executed as a regular payment
**The only currencies available for express payments are the CHF, DKK, NOK, SEK, HUF, GBP, EUR, USD

The arrival of a foreign payment depends on the chosen payment speed:

*If the beneficiary’s bank is in the European Economic Area and the currency of payment is the currency used in the European Economic Area, the payment cannot be executed as a regular payment
**The only currencies available for express payments are the CHF, DKK, NOK, SEK, HUF, GBP, EUR, USD

Send the remitter:

• Your information:

  • Name
  • Address
  • Your current account’s IBAN, which can be found in the Internet bank (Estonian IBAN has 20 digits, e.g.: EE901010123456789012)
    
    

• LHV Pank information:

  • Name: AS LHV Pank
  • Address: Tartu mnt 2, 10145 Tallinn
  • BIC/SWIFT code: LHVBEE22
    
    

• Payment currency correspondent bank name and BIC (or SWIFT) code:

  AS LHV Pank Correspondent Banks

As of 30.03.2022, LHV no longer offers payment intermediation in rubles (RUB).

At LHV Pank, international payments in US dollars can only be initiated and received by individuals who are Estonian residents and companies registered in Estonia.

Other clients can only make international payments in US dollars only as TransferWise/Wise payments. Read more on the Wise payment.

If the beneficiary´s account is not in a bank located in the US, it is not possible to make a Wise payment.

If you are making a payment to a bank in the United Arab Emirates, include the payment purpose code in addition to your regular payment information.

Write this in the payment description field, before the textual explanation of the payment, in the following format:

/BENEFRES/AE//code/ written explanation of payment

If you do not add a code to the payment, or if the information in the payment description field does not meet the requirements for any other reason, you may encounter a delay in the making of payment, although the payee’s bank may also make inquiries or reject the payment.

Please note! If you fail to formalise the payment in accordance with the requirements and the beneficiary’s bank makes inquiries or rejects the payment for this reason, you will have to pay the additional service fees which occurred as a result thereof.

Cross-border payments in Canadian dollars can only be initiated and received from only two Canadian banks: Bank of Montreal (BIC starting with BOFMCA**) and Canadian Imperial Bank of Commerce (BIC starting with CIBCCA**). If the counterparty’s (payee’s/payer’s) account is not located in a Canadian the respective bank, a currency other than CAD must be selected for payment.

More information on the restrictions of payments can be found here.

Instant payment

It is not possible to cancel an instant payment. But it can be recalled by contacting customer support.

If the instant payment was unsuccessful, the payment will be performed as a European payment. In such a case, it is possible for the user to cancel it themselves within a definite interval in the online bank and mobile app. To do so, select Everyday Banking → Payments → Payments pending in the internet bank.

Other payments

If the payment has not yet begun to be processed, you can still cancel it yourself in the internet bank. To do this, choose Everyday Banking → Payments →

It is not possible to cancel a payment order yourself if it is already being processed. To do so, immediately send an email to info@lhv.ee describing the payment order you wish to cancel.

If a payment has been sent out from the bank, it can no longer be cancelled. Instead, the payment must be recalled.

To do so, send a request to info@lhv.ee. The request must be sent from the same email address on file with us in your contact details.

In the request, provide as much information as possible about the payment: the reference to the bank, account from which you made the payment, the amount and the name of the beneficiary.

Before submitting a request, also consult the service charges (see 3-5), below).

We will refund the amount to your account if the beneficiary has given consent for this. Without their consent, we are unable to refund the payment.

If we have already begun processing of a European payment, it is no longer possible to change it.

A payment can be cancelled if it has not yet been sent out from the bank. Cancellation is free.

If the payment has been sent out of the bank, you can recall the payment for 10 banking days without the LHV service charge. The beneficiary bank’s service charge however may have been deducted from the refunded amount.

If the payment has been sent from the bank more than 10 banking days ago, a fee is charged for recalls. The beneficiary bank’s service charge may also be deducted from the amount.

We will refund the amount to your account if the beneficiary has given consent for this. Without their consent, we are unable to refund the payment.

It is not possible to change or cancel an in-house payment made between LHV’s accounts.

An in-house payment can be recalled free of charge.

We will refund the amount to your account if the beneficiary has given consent for this. Without their consent, we are unable to refund the payment.

If the foreign payment has not yet been sent from the bank, it can be cancelled free of charge.

If the foreign payment has already been sent from the bank, it can be changed, cancelled and recalled for a fee. Besides the LHV service charge, the beneficiary bank’s, payment intermediary’s or correspondent bank’s service fee will be charged.

If the payment has already been received on the beneficiary’s account, it depends on the beneficiary’s decision whether it can be recalled. If the payment is refunded with the consent of the beneficiary, the beneficiary bank’s service charge and payment intermediaries’ service charges may be deducted.

If the payment has not yet begun to be processed and it is pending, you can change it yourself in the internet bank. To do so, select Everyday banking → Payments → Pending payments.

A payment order already accepted for processing can be changed only in the case of a foreign payment. To do so, immediately send an email to info@lhv.ee describing the payment order you wish to change.

In LHV, a standing order means that LHV shall perform the required transactions on your behalf, on the date agreed in the contract. In LHV, it is possible to conclude a standing order agreement for in-house and European payments.

For the standing order, you can determine:

• beneficiary
• the payment date and the interval after which the payment repeats (e.g. week, month, year), as well as
• the method of transfer, and the sum.

You can choose between three options for the transferring of funds:

• On the payment date, we will deduct the agreed sum from your account and transfer it to the recipient. We shall check whether there are sufficient funds for the payment on the payment date and on the two following days.
• On the payment date, we will transfer the entire available balance of your account to the recipient. We shall check whether there are sufficient funds for the payment only on the payment date.
• You determine the amount which has to remain in your account on the payment date – we will transfer the remaining available funds to the recipient. We shall check whether there are sufficient funds for the payment only on the payment date.

On the payment date you only need to take care that the required amount is available in your account on the right date and that the transaction limits are sufficient. If there are insufficient funds in the account at that time or the transaction limit is insufficient for a standing order payment, the standing order shall not be fulfilled.

The standing order agreement shall remain valid and this shall not hinder further payments (provided that there are sufficient funds on the account and the transaction limit is sufficient at the time of the standing order payment).

The most convenient way to conclude a standing order is in the LHV Internet bank, bank office, or with a digitally signed agreement. If interested, please contact LHV's customer support.

The standing order agreement can be changed in internet bank under Daily banking - Standing orders, changes must be confirmed with PIN2. Changing through the internet bank is free. It is also possible to change the standing order at the client's office by submitting a free-form application or sending it to info@lhv.ee with a digital signature. Changes are charged according to the price list. If you need help, please contact LHV Customer Support.

The transfer of settlement services means closing the current account in your current bank and opening a new current account in a new bank.

Upon transfer, the current account number shall change.

Upon transferring settlement services, you can choose whether you want to transfer all or only some of your standing orders and e-invoice standing order agreements.

Send your digitally signed application to info@lhv.ee or bring a printed and signed copy to one of our offices. Application to transfer settlement services.

Review the information sheet on transferring settlement services

It is not possible to transfer settlement services, if:

• your current account has been seized;
• you have debts before your current bank;
• you have concluded one of the following agreements:
• credit agreement;
• bank’s securities management agreement;
• term deposit, investment deposit, saving or operating deposit, or some other investment service agreement
• The issuer of e-invoices does not send e-invoices to LHV

For all EUR and currency transfer and converting transactions that occur with the transfer, the service must be paid for according to the price list (current and new) of the banks.

Yes, the respective application needs to be presented in writing to your local office of the National Social Insurance Board. You can file the application at the office, send it by mail or sign it digitally and send it by e-mail. The application form for the payment of pension, family benefit or parental benefit to your bank account is available at the web page of the National Social Insurance Board. The changes take force from the first day of the following month, when the application has been filed before the 20th day of the current month.

Yes, definitely, as the employer transfers your salary or wages to your bank account. For this, please fill in the application we have prepared, sign it digitally and e-mail it to your employer’s accountant or print it out and deliver it to them in person.
Application to redirect earnings

Open banking means that banking services like initiating payments or displaying accounting information can be provided not only by the banks themselves but by other service providers like fintech companies and payment intermediation service providers as well. With customer consent, service providers who have passed a background check can be given easier access to customers’ bank accounts using special interfaces called APIs. That allows them to develop new applications that are more convenient and efficient for customers than existing ones. It also opens the door to completely new opportunities and business models. Open banking consists of a number of standardized components that include both technical application programming interfaces and interfaces intended to allow end users to give service providers permission to access their account and execute payments.

As with online banking in general, cybercriminals may try to spoof open banking interface windows to get their hands on customer data and execute unauthorized payments or other transactions in the customer’s name. To avoid this, it is important to make sure that the open banking element is a genuine LHV window and interface. The following should be checked:

• Address – in the address bar of all windows and forms the URL of a genuine LHV open banking begins with the following: https://api.lhv.eu/psd2... The rest of the URL depends on the specific window and the service.
• Certificate – check the page certificate for the address; it must have been issued to LHV Pank.

Examples of the LHV open banking page

First-time user authentication. This window is needed for both the service provider and the bank to know who the account holder is and who is communicating with the system. Depending on the service provider, the application can remember the information for 90 days, so the window may not be displayed every time.

Allowing access to accounts. This window is needed for the customer to let the service provider and the bank know which accounts he or she holds. Access can be granted separately for accessing account balance, account statements or both. It depends on the service provider how it uses these data. For example, a provider of a payment service needs the window above all for querying the list of the customer’s accounts to know which accounts payments can be made from. Unless the payment institution itself has given precise instructions as to which rights are required, it is usually sufficient to indicate "account balances" in the account from which the payment is to be made. The payment confirmation and execution window is displayed separately.

Payment confirmation. In the same window, the customer confirms the payment the service provider and the customer wish to initiate. All parameters (customer’s account, recipient’s account, amount and details) come from the service provider’s system and the LHV window is to allow the customer to grant or deny consent for this.

The service providers operating in the context of the open banking ecosystem and PSD2 have received permission to do so from the Estonian Financial Supervision Authority. The service providers are issued certificates that enable use of the open banking API.

The service provider can offer its customers a wide variety of services for which data transmitted through open banking are used in various ways. New services and business models are continually being developed in this field. It is important for service providers to provide sufficient explanation to customers what the customer entitles it to do.

You can rescind open banking consent in the service provider’s system – the rules are such that it cannot be done directly in the bank’s systems. Only if you have communication problems or suspicions about legitimacy involving a service provider should you also contact the bank. The same applies to payments: if a payment went through in the incorrect amount or to the wrong recipient or there were other problems, first try to resolve the problem with the service provider. Please contact the bank only if this is unsuccessful.

Proxy payment is a payment made by entering the recipient’s phone number. Proxy payment can be used to pay individuals or legal persons.

Start a proxy payment in the LHV app just as you would an ordinary payment. If you allow the app to access your Contacts, you can select the recipient conveniently from the contacts you have saved on your phone.

Good to know: If the payment recipient has already joined the proxy payment service, their name and bank account number will automatically appear on the payment order.

Proxy Payment can be used to pay individuals or legal persons. If the recipient has not started using the service you can invite them over the LHV app.

Yes, to do this; link your company’s mobile phone number with the corporate account. Remember that a given phone number can be associated with only one account for proxy payment. The last number linked with the account remains in place.

No, one phone number can refer to only one bank account. If you have more than one account at LHV, but only one phone number, select the account where you would like the funds to be received.

Your phone number can only refer to only one bank account at a time. If you’ve activated the proxy payment service in several banks with the same mobile phone number, the last account you associated with the number with will be the active one.

This poses no hindrance to using proxy payment. Any LHV account can be associated with as many phone numbers as you wish. The only limitation is whether the phone number supports receiving of text messages, as a security code is sent to the phone for making the payment.

You can use phone numbers in any country that support receiving and displaying text messages.

No, proxy payment works between all banks that have joined the Latvian central bank administered service Proxy Registry Instant Links. The largest banks in Estonia and Latvia have joined the service as of now. View the list of banks that have joined

Yes, proxy payment works between all banks that have joined the Latvian central bank administered service Proxy Registry Instant Links. The largest banks in Estonia and Latvia have joined the service as of now. View the list of banks that have joined

The usual limits and rights for transactions also apply to proxy payment.

The association between phone number and bank account can be deleted in the app.

Yes, this can be done. A child of at least 13 years of age can join proxy payment on their own. Younger children can ask a parent or guardian with access to their account to enable the service. To do this, the adult should log in to the LHV app and associate the child’s account with the child’s phone number.

We ask access so that the payment recipient could be chosen conveniently from your contacts. We send only the phone number of your selected contact to the registry for making the proxy payment. All other data remain in your device and they cannot be viewed by LHV or the proxy payment register administrator.

An application can be submitted by a company:

1. registered and operating in Estonia, with a turnover and/or balance sheet total of up to 2 million € per annum
2. employing up to 9 people (inclusive)
3. whose operator, owners and management board members have had no overdue deferred debt in the past two months

Kindly submit your micro loan application and annual report along with your balance sheet and profit and loss account, up to 6 months old, via e-mail to mikrolaen@lhv.ee.

• The company’s equity must be over 25% of the balance sheet total.
• The company must not be loss-making.
• The debt-service coverage ratio (DSCR) of the company must be greater than 1.2. This indicator is calculated by adding the company’s operating profit for the period to the depreciation for the same period (the result is called EBITDA), and the free cash flow obtained is divided by the loan repayments for the same period. A value of the indicator below 1.2 indicates a cash flow shortfall (cash flow not covering loan repayments), whereas a value of 1.2 suggests that the company’s free cash flow perfectly covers the repayments under its current loan obligations but that there is no buffer for any potential risk scenarios. A value over 1.2 indicates that the company’s free cash flow covers its current loan obligations (e.g. a value of 1.4 signifies that free cash flow exceeds loan repayments by 40%).

The period of a micro loan is 12 to 72 months.

We will e-mail you a pre-completed loan contract. The authorised representative is requested to sign the contract digitally and return it to us.

Yes, a micro loan can be repaid before its term. If you provide three months’ advance notice of your intention to repay the loan early, there is no fee for early repayment. If you want to repay the loan before the three month notification period, a fee of 3% of the sum returned prematurely is applied. If you wish, you can e-mail a free-form application to mikrolaen@lhv.ee.

Yes, the period of a micro loan can be extended. If you wish, you can e-mail a free-form application to mikrolaen@lhv.ee.

Unfortunately, this is not possible.

Unfortunately, no grace period is available on a micro loan.

Interest on a micro loan begins from 6%, to which 6-month euribor is added. Interest depends on the company’s profile, risk level and loan servicing ability. euribor changes every 6 months, as a result of which the interest on the micro loan and, accordingly, the loan repayment change as well.

The contract fee is 1.5% of the loan amount taken out but not more than 300 €.

Once the company’s application and necessary financial information have reached us, we will normally advise the applicant of our loan decision on the following business day.

Generally, the micro loan is transferred into the company’s account on the business day following the signing of the loan and surety contracts.

There are none. This loan is designed for all kinds of development activities related to a company.

First, a loan repayment schedule will be prepared for the company. Monthly loan repayments have to be made by the client on the dates and in the amounts indicated on the schedule. This means that on the payment date the company’s account will be debited by the amount indicated on the schedule. For this, no separate invoice will be sent.

Micro loans can be applied for in amounts up to 50,000 €.

A guarantee by a private individual or company is accepted as collateral.

Typically, the guarantor is the owner(s) of the company or a member of its management board. Another company is also acceptable is a guarantor. It is important for the guarantor to not have been in arrears in the past 2 years.

A micro loan can be applied for on multiple occasions if the outstanding loan balance does not exceed 50,000 €.

Yes, the repayment term can be modified. If you wish, you can e-mail a free-form application for this to mikrolaen@lhv.ee. The contract amendment fee is 100 €.

Where a loan repayment is not made by the payment date, a reminder will be sent in the form of a letter. Given that a fine for delay will also have to be paid in the event of delayed payment, it is advisable to notify us about any payment difficulties immediately. Together, we will be able to identify the best solution.

Information about our business client services is available on our website at lhv.ee. If you have any questions, do not hesitate to contact us by calling 684 6118 or emailing to mikrolaen@lhv.ee.

No. If the company’s loan application is granted, the company will have to open an account at LHV Pank.

iOS – Tap the three dots in the bottom right corner of the screen.

Android – Tap the three-lines icon in the upper left corner of the screen.

Tap the face image in the upper right corner of the screen.

You can change the language settings under the mobile app settings.

iOS – First, tap the menu button in the bottom right and then tap the gear icon.

Android – In the menu, first select “Settings” and then proceed to the language section.

In your mobile app settings, navigate to the notifications section.

You can do this when signing in to your mobile app. The mobile app remembers which authentication tool you used to sign in with (Mobile-ID, Smart-ID or PIN calculator) and automatically uses this tool to sign transactions. If you would like to change the authentication method, please log out of the mobile app and log in again using the method you prefer.

At the top of the screen, there is a small arrow next to your name. Tap it to see all the accounts you have access to.

When you enter the mobile app, you will immediately see your account balance and recent transactions. If you would like to see the full bank statement, tap the “Show all transactions...” button.

It is not possible to change transfer limits in the mobile app. To do this, log in to the LHV internet bank via your mobile device’s web browser. Read more.

If you have not previously made a payment to this recipient, tap the “New payment” button at the bottom left of the page. Then select “New recipient” and enter the required details.

If you have made a payment to this recipient in the past, you will only need to type the first letters of the name to find the recipient.

You can also make a payment by selecting a phone number from your Contacts. Read more about proxy payment

To do this, select “Pending payments” in the menu.

To do this, tap your account number. Then select whether you want to copy the number or forward it via SMS.

If you would like to forward your account number to request a specific sum of money, you can use the “Request money” service. You can pre-fill the form and submit it via your preferred channel (SMS, Messenger, email, Viber, WhatsApp, etc.).

If you want to ask someone for a specific sum of money, you can use the “Request money” service. The button with this text is located at the bottom of your account overview page. You can pre-fill the form and submit it via your preferred channel (SMS, Messenger, email, Viber, WhatsApp, etc.).

In the mobile app, it is only possible to make an international transfer as a Wise payment. Read more.

However, if you would like to make a regular international transfer, please use the LHV internet bank.

Select “E-invoices” in the mobile app menu.

Tap the bank cards icon at the bottom of the screen. Then press the “+” sign at the top of the screen and choose whether to order a debit or credit card.

Tap the bank cards icon at the bottom of the screen. Then select the unactivated card and press the green lock image.

Enter the last four digits of your card and activate the card.

Tap the bank cards icon at the bottom of the screen. Then select the card for which you want to change limits and click on the three-lines icon.

In a new window, you can set daily and monthly limits for bank card cash withdrawals, card payments and online purchases. You can also set up the option to view your balance and account statement at the ATM.

At the bottom of the screen, tap the rightmost contract icon. Select which contract you want to see information on.

Tap the graph icon at the bottom of the screen.

• To buy or sell existing securities, tap the name of the security. You will then see information on the security (e.g. purchase price, market price). To make the transaction, tap the “SELL” or “BUY” button and fill in the required fields.

• To buy new securities, press the “+” sign at the top right of the screen. Then search for the security by name and fill in the required fields.

You are not receiving notifications because you have disabled them in your phone settings or in your mobile app. Subscribe to notifications in the notifications section under the mobile app settings.

If you forget the confirmation code or it goes unnoticed when confirming the operation, you will need to navigate between the LHV and Smart-ID applications in your smart device in order to see the code again. To see the confirmation code again, you will need to reopen the LHV app, remember the confirmation code and then make the correct selection in the Smart-ID app.

We offer different types of debit and credit cards. Find yourself a suitable solution from amongst our selection of private client bank cards or business client bank cards.

All LHV bank cards offer the option of contactless payment.

LHV bank cards can be applied for by:

• all customers of LHV;
• for a child 6–17 (incl.) years of age by a parent or guardian with the corresponding right of representation, who is a customer of LHV and
• users who have completed an application to register as a client.

The card application can be submitted:

• using LHV’s mobile app or internet bank;
• in customer offices;
• The Partner Debit Card and the Partner Credit Card, which we offer in cooperation with Tallinna Kaubamaja Grupp AS, can also be applied for at the information desks in the Tallinn and Tartu Kaubamaja and Selver supermarkets.

You can elect to:

• have your card mailed to your home, free of charge;
• visit an LHV branch, where the cost of collecting an activated card is 5 €.

A card ordered via mail will arrive within a week (depending on Omniva). In the interests of security, the bank card and PIN CODE will arrive on different days.

Read more about how to activate your bank card via the Internet bank or mobile app →

Costs associated with the bank card can be found in our Price List.

All LHV bank cards allow Internet payments. The security code required for Internet purchases is the 3-digit number on the back of your card next to the signature line.

You can pay with the card online if “Online purchases” are allowed with the card agreement. You can view and change the options of your card in the mobile app and in the Internet bank under the menu item “Everyday banking” ➞ “Bank cards” ➞ “Card data”.

You can change your bank cards’ daily and monthly transaction limits (ie cash withdrawals, card and instant payments and online purchases) under the card view in the mobile app or the internet bank.

To be protected against possible card frauds, we recommend that you keep your card payment limits as low as possible. If you wish, you can switch card operations on or off in the mobile app and in the internet bank.

A replacement card is a bank card that replaces your valid or recently closed bank card (e.g., if you have lost it). If you activate the replacement card before closing the old card, this will allow you to automatically continue using Apple Pay, Google Pay or some other digital wallet with the new card and there is no need to add the card to these platforms again. The same limits and expiration date will also continue to apply, but the card number and PIN code are new.

Digital wallet is a convenient digital payment service that allows you to use various payment solutions (e.g., Apple Pay, Google Pay, Garmin Pay) via your phone, smart watch, jewellery, etc. You just need to wave your phone or a smartwatch over the payment terminal to make the payment.

ABU (Automatic Billing Updater) is a service provided by Mastercard that allows you to automatically update your bank card credentials with web-based service providers.

This means that when your bank card expires or is replaced, Mastercard will forward the credentials of your new card to the service providers (Spotify, Netflix) with whom you have previously shared your card credentials.

This is convenient, since you don’t have to re-enter your card credentials and can continue to make payments.

Under what conditions is ABU implemented?

The service works when you start using a new bank card after replacing your previous card or when your card is automatically renewed due to its expiration date. For an automatic update of your card credentials, the service provider also needs to use this Mastercard service.

A contactless payment is a bank card payment where the transaction is effected by simply waving the card above the POS terminal. In Estonia, contactless payments can be made for purchases up to 50 euros. Contactless payments are made using contactless technology (near field communication, NFC), which has already found widespread use around the world.

You can start using the contactless payment option after you have activated your card and have effected one payment transaction at the POS terminal, which you have verified with your PIN code.

You can start using the contactless payment option after you have activated your card and have effected one payment transaction at the POS terminal, which you have verified with your PIN code. You can always change the contactless payment limits as well as disable and re-enable the service on your mobile app and internet bank.

Card payment terminals supporting contactless payments can be identified by the respective marking.

Contactless payments can be made if it has been enabled for the card and the card’s daily and monthly limit is sufficient. There is also a maximum limit set for contactless transactions in the payment terminals. Each country where contactless payments can be used has set their own limit for transactions, which differs by country. In Estonia, it is 50 €. International contactless payment limits can be found here. In case the purchase amount exceeds the transaction limit, you must enter your PIN code. Depending on the payment terminal, you may also need to insert your card in the terminal.

Each contactless payment transaction is protected by a unique cryptogram. This serves to ensure that the transaction is only effected if originated by the merchant and the card is in the immediate vicinity of the POS terminal (up to 2 cm).

Occasionally, the terminal may request PIN-verification for a contactless payment. You can change your contactless payment limits on the mobile app and internet bank, or disable contactless payments entirely, if you so desire. Should you choose to disable the service, you must perform one more transaction, verified by your PIN code.

If your bank card is lost or stolen, block it immediately in the internet bank or mobile app. If you happen to find your card yourself, and are convinced that no one else has had access to it in the meantime, you can reactivate the card via the internet bank or mobile app. If you are unable to find the card or cannot block it yourself, then please contact our customer support by phone at 6 800 400.

You can also disable the contactless payment capability in the Mobile and internet bank or set small limits for both the daily and monthly payments.

Yes, you can view and change your card rights under the mobile app and internet bank menu item "Everyday banking" ➞ "Bank cards" ➞ "Card details". For security reasons, we advise that you keep the limits as low as possible. Should you choose to disable the service, you must perform one more transaction, verified by your PIN code.

All of LHV’s new cards include contactless payment capability. Find yourself a suitable solution from amongst our selection of private client bank cards or business client bank cards.

Apple Pay and Google Pay allow you to make quick and easy contactless payments, such as with your phone or smartwatch. All you have to do is put your phone or smartwatch close to the terminal and the payment is completed. You can pay wherever contactless payments are accepted, including shops, restaurants, taxis and many other places. In addition, Apple Pay and Google Pay can be used to make online and in-app payments.

Apple Pay or Google Pay contactless payments are subject to the regular contactless payment limits set for the bank card added to your phone or other device (smartwatch, iPad). If you use Apple Pay or Google Pay to make online or in-app payments, your bank card limits for internet purchases apply. It is possible to change the limits in the mobile app and in the internet bank.

If you want to use:

• Apple Pay, then add your card to your Wallet. You can do this via your LHV mobile app by clicking on the “Add to Apple Wallet” button in the card view, or via the Wallet application on your phone. Remember to add the card to any device you want to use Apple Pay with. Read more about setting up Apple Pay.

  To use Apple Pay, your Apple device must have Face ID or Touch ID and the latest version of the software. In addition, an Apple ID account is required. Read more
  
  

• Google Pay, then add your card to your digital wallet. You can do this in the LHV mobile app by clicking the “Add to GPay” button in the card view, or via the Google Pay app.

Google Pay works on Android devices that have Near Field Communication (NFC) enabled.

If you can’t use Google Pay:

• Check your phone to make sure Google Pay is set as the default payment application, and not some other contactless payment application (such as mTasku or a payment application from another bank). To do this, open the “NFC” (“Connections”) or “Applications and notifications” section in the phone settings;
• Check if your LHV bank card is connected with Google services. To do this, please go to Settings → Google → Account Services → Google Pay on your phone;
• Make sure your phone supports contactless payments. To do this, open the phone settings, type “NFC” in the search bar and, if necessary, switch on NFC manually. If there is no NFC option, you will not be able to make contactless payments with your phone;
• Check that your phone software meets the requirements. Your phone must be running Android version Lollipop (5.0) or later, and the software must be Play Protect certified.

For additional help, read more about Google Pay tips

If you activate a new card before closing the old card, you won’t have to add the card to Apple Pay or Google Pay again. If the old card was closed before the new card was activated, you will have to add the card data a second time.

Unfortunately, you don’t earn extra points when paying with the LHV Partner Bank Card. Microinvestment still works if you have activated the microinvestment service for card payments.

Apple Pay can be used by a young person of at least 13 years old and Google Pay by a young person of at least 16 years old. The age limits are set by Apple and Google.

The cashier can use the digital card number to find your purchase and make a refund in the same way as for a regular debit or credit card payment.

Apple Pay requires you to confirm each purchase with a Face ID, Touch ID or your password. This helps prevent someone else from using Apple Pay on your iPhone, iPad, Apple Watch or Mac.

If you want to suspend or permanently end Apple Pay payment with your device, open your Apple ID account page or use the Find My iPhone app on your iPhone or iPad. This will suspend or remove your cards from Apple Pay even if your device is currently offline and not connected to a cellular or Wi-Fi network.

If you need help, please contact us at LHV customer support. Read more about what to do if your iPhone is lost or stolen.

If your phone is lost or stolen, use the Find My Device app. This allows you to look for and lock your phone. If you have locked your device, Google Pay cannot be used. Because Google Pay never stores your card information on your phone, others who have found or stolen your phone will not be able to access your card information. This applies even if the phone does not have a screen lock.

If you suspend or remove cards, your Apple Pay/Google Pay digital card number will also be suspended or removed. You can continue to use your physical card.

Apple Pay is more secure than a physical credit and debit card because every transaction you make on your iPhone, iPad, or Mac requires confirmation with a Face ID, Touch ID or password.

Your Apple Watch is protected by a password that only you know. You must enter this password each time you turn on the device or pay with Apple Pay.

Your card number or identity will not be shared with merchants. Your actual card numbers are not stored on your device or Apple's servers.

If you pay at the store, neither Apple nor your device will send your card number to the merchant.

When you make a payment in an app or Safari’s web browser, only the information you’ve agreed to share to complete your transaction (such as your name, email address, billing address, and shipping address) will be sent to the merchant.

Apple Pay stores anonymous payment information, such as approximate purchase amounts. This information cannot be associated with you and will never contain information about the products you purchased.

Apps that use Apple Pay must have a privacy policy that you can view and that sets rules for how your information is used.

Read more about Apple Pay’s security and privacy features.

Paying by phone is secure because the number associated with the device and a unique transaction code are used for each transaction. Your card data is never stored on your device or on the service provider’s servers. Also, your card number will not be forwarded to merchants at the time of payment. Thanks to this, you can make contactless payments with your phone without any worries.

Yes, you can withdraw cash from contactless ATMs with Apple Pay or Google Pay. You will need a PIN, which you can find in the LHV mobile app or internet bank.

Unfortunately, you can’t. You can only deposit money at an ATM with a physical card.

We offer private clients’ debit cards (other than the Partner debit card) in virtual form.

Just indicate on the card application that you would like to receive the new card in virtual form. As no plastic card will be manufactured, you do your part to ensure a cleaner and more sustainable environment. Nor will you have to wait for the card to arrive, as the virtual card will be ready to be used immediately after ordering and activation.

The same operations as with a plastic card.

• Contactless payments
  Add the activated virtual card to your digital wallet (e.g. Apple Pay, Google Pay) and perform convenient contactless payments with your phone or watch.
• Internet purchases
  Use the card date (full card number, expiration month/year and CVC code) from the card screen in the mobile app or internet bank and make the purchase on the website. A virtual card added to a digital wallet (e.g. Apple Pay, Google Pay) can also be used for paying over the internet and in apps.
• Cash withdrawals
  Add the activated virtual card into the digital wallet (e.g. Apple Pay, Google Pay) and perform convenient cash withdrawals from ATMs that support contactless withdrawal. You’ll need the virtual card PIN code, which you’ll find on the LHV mobile app or internet bank.

1. Order the card from the LHV mobile app or internet bank and specify on the application that you would like to receive the new card in virtual form.
2. Activate the virtual card.
3. Add the card to the digital wallet (e.g. Apple Pay, Google Pay) and perform convenient contactless payments with your phone or watch. The data necessary for online purchases (the full card number, expiation month/year and CVC) can be found in the card screen in the mobile app and internet bank.

Yes, the virtual card allows you to withdraw cash from ATMs that support contactless use. You will need a digital wallet (e.g. Apple Pay, Google Pay) and second, a virtual card PIN code, which you will find on the LHV mobile app or internet bank. The locations of the LHV ATMs that support contactless use can be found on our website and the mobile app.

Unfortunately, you can’t. You can only deposit money at an ATM with a physical card.

A virtual card can be used to pay on the web, in-app and everywhere contactless payments are accepted. When using contactless on a phone or watch, the virtual card must be added to a digital wallet (e.g. Apple Pay, Google Pay). When abroad, be aware that not all points of sale accept contactless payments.

There is no monthly fee for the virtual card. Ordering a new virtual card and replacing a plastic card with virtual are free of charge.

See the price list for what service charges might apply to your virtual card.

The data necessary for online purchases (the full card number, expiration month/year and CVC) can be found in the card screen in the mobile app and internet bank.

The virtual card is valid for three years. If you would like to use the card only for a brief period, you can close it over the mobile app and online bank at any time.

Unfortunately, this is not possible. The virtual card is a separate card with a new card number and PIN code.

Yes, the number of virtual cards is unlimited. We offer all of our private clients’ debit cards (other than Partner) as a virtual card.

Unfortunately, it is not possible to change the PIN code on a virtual card. If necessary, you can view it in the LHV mobile app or internet bank.

You can order the virtual ISIC card if you are enrolled in an Estonian higher education institution as either a part-time or full-time student or in other study formats (daytime, online, cyclical study among others). A student on academic leave can also order the card.

External students, interns and medical residents are not considered students for the purposes of the Universities Act and are not eligible to apply for a virtual ISIC card. Nor is it possible for international students who lack an Estonian personal identification code to apply for a virtual ISIC card through the LHV app.

This option is available to students in higher education curricula at any of the following universities:

• Institute of Theology of the Estonian Evangelical Lutheran Church
• Theological Seminary of the Union of Free Evangelical and Baptist Congregations of Estonia
• Estonian Entrepreneurship University of Applied Sciences (Mainor Business School)
• Estonian Academy of Arts
• Estonian Aviation Academy
• Estonian University of Life Sciences
• Baltic Methodist Theological Seminary
• Estonian Academy of Music and Theatre
• Estonian Business School
• Estonian Military Academy
• Pallas University of Applied Sciences
• Academy of Security Sciences
• Tallinn University of Technology
• Tallinn University of Applied Sciences
• Tallinn Health Care College
• Tallinn University
• Tartu Health Care College
• University of Tartu

No. The LHV app can be used to order and display a virtual ISIC card if you are studying in a higher education curriculum in Estonia. Once you begin studying abroad, you can submit the virtual ISIC card application through the Minu Kool environment or if your desired university is not on the list, you can email a certificate confirming your academic status to info@minukool.ee. The LHV app does not display virtual ISIC cards for students at universities abroad.

The requirements for the photo on the virtual ISIC card are set out by the Federation of Estonian Student Unions. The federation also exercises oversight over and approves the photo. Photographs attached to the virtual ISIC card application submitted by app must follow the following criteria:

• The face must be visible frontal view and comprise 70-80% of the picture height
• The photograph must be no older than three years.
• Your face must be distinguishable from the background (the face may not be in shadow, or partially covered with sunglasses, headwear, a hand or other object)

The virtual ISIC card, just like the ordinary physical ISIC card, can be used to prove student status and qualify for thousands of international discounts in Estonia and abroad.

Read more about the discounts

The virtual ISIC card cannot be used as a fare card on public transport. The virtual ISIC card is also not equipped with door key card or bank card function. The virtual ISIC card can be used to prove student status and qualify for thousands of international discounts in Estonia and abroad.

The virtual ISIC card can be closed on the Minu Kool website

1. Enter the Minu Kool environment using your ID card or bank link
2. Select “Cards“
3. Select the number of the valid card
4. Select “Deactivate”

Temporarily or permanently closed virtual ISIC cards are displayed as dimmed text in the LHV app for 30 days.

With LHV debit card, you can withdraw cash from the LHV ATMs account free of charge. For larger amounts (from 2000 €) please see the pricelist.

In case of withdrawals from the ATMs of other banks in Estonia, Great Britain and European Economic Area countries, a withdrawal fee of 1 € applies (+ 0.3% of any amount in excess of 2000 € per month). From other ATMs in another foreign country 2 € + 2.5% of the amount.

The fee for withdrawing cash with a credit card is always 2 euros + 2.5% of the amount.

The location of LHV’s ATMs can be found on our web page.

With the LHV debit card, you can also withdraw cash from a shop register while making a purchase. Take a closer look at the terms and conditions for withdrawing cash from a shop register.

Yes, LHV private clients can use their debit cards to withdraw cash at a shop's checkout while making a purchase. This service is provided, for example, by Coop Group shops and Olerex full-service stations. If you would like to withdraw cash, you must inform the cashier prior to the purchase transaction. A prerequisite for using this service is a purchase in the amount of at least 1 €, to which the merchant will add the required cash amount. With each purchase, you may withdraw cash in the amount of 5 € to 100 € (in full amounts and in 5 € increments).

The fee for withdrawing cash at a store is established by the merchant, LHV does not charge a separate fee for this service. For example, in a Coop store, the service charge is 0,69 €, In Gross shops 0.36 €, and at Olerex 0.32 €. Cash can also be withdrawn at shops abroad that offer the (cash-back) service. One should most definitely pay attention to the applicable local terms and conditions, and service fees.

You can deposit cash to your current account in our ATMs. Cash deposits are only allowed with debit cards. Please view the locations of LHV's ATMs on our website.

No cash operations are performed at the offices of LHV.

Yes, all LHV bankcards have been connected to the secure card payments service online (3D Secure). This means that online purchases with LHV bankcards include additional cover against potential card fraud. Following the entry of card data one must log into the LHV internet bank as additional identification or use the confirmation code sent to the mobile phone via SMS.

If you make a purchase in an online store that is not a party to the secure card payments online service, you will not be prompted for additional identification.

When making purchases with an LHV bankcard in an online store that has joined the secure card payments service, you may choose between two methods of identification:

Identification via internet bank
The page for logging into the internet bank opens. To log in, use the ID-card, Smart-ID or Mobile-ID solution. After identification, you will be redirected to the merchant.

Identification with a confirmation code sent by SMS
You can use it if your phone number is saved in the LHV Internet bank or mobile app for online purchases. In this case, further authentication with an ID-card, Smart-ID or Mobile-ID is not required, which is especially convenient when travelling for example.

Read more about how to tie your phone number to safe online purchases in the mobile app or internet bank.

① Log in to the internet bank. Proceed to the bankcards page and click on the button “Card data and limits”.

② In the card transactions and limits view, click on the link “Change card limits”.

③ In the window for changing the “Card transactions and limits” mark additional identification by SMS as permitted. Then enter your phone number.

You will receive a reply to your credit card application within five working days.

Interest must be paid for the used credit limit in accordance with the interest rate set forth in the agreement (amount of interest as a percentage per year). Interest shall be calculated on the basis of the actual number of days in a month and a 360-day year. Interest starts running when the interest-free period ends.

The payment date is the 10th day of each month. On that day, all the interest that has accumulated for the credit limit used until the end of the preceding month will be debited from your LHV current account.

See also: Examples of annual percentage rate of charge for cards

The automatic repayment of the credit limit is the amount that you have chosen for the repayment of credit to the bank per month. For an LHV bank card that has a credit limit (e.g. Partner Credit Card, private credit card, Gold Credit Card, Business Customer Credit Card) you can choose an automatic monthly payment in the amount of 0-100% of the credit limit. You can change the size of the repayment (0-100%) in the Internet bank whenever you want.

If you choose a 100% repayment, you can use the card interest-free as a daily means of payment.

If you choose a 0% repayment, you can repay the used limit in amounts and on times of your own choosing.

In case there is not enough money for the automatic repayment on your current account on the 10th day of the month, the existing amount on the account will be deducted. If you wish, you can transfer the missing amount to your credit account on your own. The missing part of the repayment will start to collect interest on the credit account.

The annual percentage rate of the private credit card is 19.15% per annum on the following example conditions: credit limit 1000 €, interest rate 18% (fixed), monthly fee of the card 1 €, interest-free period 22 days, repayment sum of 1093.42 €, assuming that the limit is used immediately, in its full amount and returned in the course of one year in equal monthly instalments.

The annual percentage rate of Partner Credit Card is 18.70% per annum on the following example conditions: credit limit 1000 €, interest rate 18% (fixed), monthly fee of the card 1 €, interest-free period 26 days, repayment sum of 1093.42 €, assuming that the limit is used immediately, in its full amount and returned in the course of one year in equal monthly instalments.

The annual percentage rate of charge of the Gold Credit Card is 15.34% on the following sample conditions: limit 1000 €, annual interest 18% (fixed), interest-free period of 36 days, repayment sum is 1081.42 €, assuming that the limit is used immediately, in its full amount and returned in the course of one year in equal monthly instalments.

The annual percentage rate of the Platinum Credit Card is 11.85% per year on the following sample conditions: limit 5000 €, annual interest rate 14% (fixed), interest-free period 35 days, repayment sum of 5316.62 €, assuming that the limit is used immediately, in its full amount and returned in the course of one year in equal monthly instalments.

You can view the card PIN code in the LHV mobile app and internet bank. Read more

PIN code can be viewed by private and business customers. If the account holder and the cardholder are different, the PIN code is visible to the cardholder if he/she has access to view his card details.

If you remember your PIN code and your PIN was blocked while you were making a purchase at card terminal using the card’s chip (i.e. the card was inserted into the terminal), it can be unblocked at any ATM – just execute one transaction (such as view balance) using the correct PIN code. If you do this at a non-LHV ATM, though, you should price in a service fee.

If your PIN code was blocked at a card terminal during a contactless payment or at an ATM, only the bank can unblock the PIN code. Contact customer support at info@lhv.ee or call 6 800 400.

If you need a new card quickly, order a virtual card. You can activate it immediately after ordering and add it to your Apple Pay or Google Pay for example. The virtual card allows you to conduct the same operations as with a plastic card: contactless payments, internet purchases, and withdraw cash.

You can change the PIN of your LHV bank card in LHV ATMs. The location of LHV’s ATMs can be found on our web page.

The PIN code of the previous card will remain valid for the renewed bank card.

If you want to use your bank card safely, we recommend doing the following.

• When paying with the card at a shop or service institution, be sure to check that the amount displayed on the payment terminal is correct before you confirm the payment. When entering your PIN, take care that it is not visible to other people; if necessary, cover the keypad with your free hand.
• When you are using the card for Internet purchases, do not enter your card number or its security code on any web page that does not seem trustworthy.
  • Before making the purchase, check the background of the seller.
  • Avoid using a public computer for online purchases.
  • Do not share your bank card numbers with anyone over fax, mail or e-mail.
  • You can block or allow online purchases with your card at any time using the LHV internet bank or mobile app. We advise you to give permission for a payment immediately before a purchase, and block payments again as soon as the transaction has been completed.
  • To protect yourself from the damages caused by possible card fraud we advise you to keep daily and monthly payment limits as low as possible.
• Your bank card is your electronic money – keep it as carefully as you would keep your cash. Only you are permitted to use the card. Never give it to anyone else.
• Learn your PIN by heart. Do not carry a copy of your PIN or keep it together with your bank card.
• If your bank card is lost or stolen, block it immediately in the internet bank or mobile app. If you happen to find your card yourself, and are convinced that no one else has had access to it in the meantime, you can reactivate the card via the internet bank or mobile app. If you are unable to find the card or cannot block it yourself, then please contact our customer support by phone at 6 800 400.

Should your bank card be lost or stolen, block it immediately in the internet bank or mobile app. If you happen to find your card, and are convinced that no one else has had access to it in the meantime, you can reactivate the card via the internet bank or mobile app.

• If you are unable to find your card, or are unable to block it on your own, please let our client service know by telephoning +372 680 0400.
• If you need a new card quickly, order a virtual card. You can activate it immediately after ordering and add it to your Apple Pay or Google Pay for example. The virtual card allows you to conduct the same operations as with a plastic card: contactless payments, internet purchases, and withdraw cash.

If transactions you don’t recognize were made with your bank card, immediately block or close the card and file a request to dispute the card transaction. The bank card can be blocked or closed on the mobile app or internet Cards tab. If you need further assistance, please contact our customer support.

Card transactions can be disputed through the account statement. In the internet bank or mobile app account, identify the card transaction you wish to dispute. Bring up the details for the card transaction and select “Dispute”.

If you see transactions you don’t recognize on your bank card history, you are entitled to dispute the transaction through the bank. The time limit for doing so is 13 months for private clients and 1 month for business clients, starting from the transaction date.

Be aware! Apple Pay and Google Pay transactions cannot be disputed on the grounds of fraud as these types of transactions were authenticated in a secure manner. If you have fallen victim to fraud, notify the bank and police as soon as possible.

If it turns out that the transaction you didn’t recognize was in fact legitimate, a service fee applies for a groundless dispute – see the price list.

When you use a bank card, there may be situations where:

• you paid twice for the same purchase or the transaction amount was not correct,
• you never received the goods or service you ordered,
• the goods or services you received did not match the description,
• you have not received a refund for returned goods or cancelled service.

If such a problem comes up, first contact the merchant or service provider directly.

If you aren’t able to reach agreement with the merchant, file a card transaction dispute request as soon as possible. To do so, enter the LHV mobile app or internet bank and on the account statement, identify the card transaction you wish to dispute. Bring up the details for the card transaction and in order to file a dispute request select “Dispute”.

File the dispute request within 3 months of the date of the problematic transaction or receipt of goods/service, if it turns out the service did not match the description. It usually takes two months to process card transaction dispute requests. In exceptional cases, it may take longer to dispute the transaction, but in that case, we will keep you posted.

Fraudulent transactions that you yourself confirmed using strong authentication cannot be disputed. For example, if your card is used to make purchases on a website and you confirmed these transactions by text message or by internet bank login.

Fill in the card transaction dispute request form in the LHV mobile app or internet bank if:

• you did not receive the requested amount from the ATM;
• you made a cash deposit to your account but your account was not credited or was only partially credited.

In your account statement, identify the card transaction you wish to dispute. Bring up the details for the card transaction and select “Dispute”.

If you are unable to submit the dispute request using the mobile app or internet bank, fill in the card transaction dispute request form and email it to vaidlustused@lhv.ee.

It generally takes a few business days to dispute a cash transaction, and in more complicated cases, up to 10 banking days.

When you use Apple Pay or Google Pay, there may be situations where:

• you paid twice for the same purchase or the transaction amount was not correct,
• you never received the goods or service you ordered,
• the goods or services you received did not match the description,
• you have not received a refund for returned goods or cancelled service.

If such a problem comes up, first contact the merchant or service provider directly.

If you aren’t able to reach agreement with the merchant, file a card transaction dispute request as soon as possible. To do so, enter the LHV mobile app or internet bank and on the account statement, identify the card transaction you wish to dispute. Bring up the details for the card transaction and select “Dispute”.

Be aware! Apple Pay and Google Pay transactions cannot be disputed on the grounds of fraud as these types of transactions were authenticated in a secure manner. If you have fallen victim to fraud, notify the bank and police as soon as possible.

Purchases of many goods and services have been disrupted because of the coronavirus outbreak and related restrictions. There may be an increased need to dispute card transactions if:

• the product or service did not arrive by the promised date;
• the product or service ordered did not match the description;
• you have not received a refund for returned goods or cancelled service;
• the service provider has gone bankrupt.

For matters related to compensation for cancelled services and travel fares, please contact the merchant first. Only service providers can cancel purchases and in that case there is no need to dispute the transaction through the bank. Some merchants are also prepared to offer alternatives (such as gift certificates or vouchers).

If agreement has been reached with a merchant to cancel the card transaction, please give the merchant 15 days to follow through. In the current situation, the volumes of pending cancelled transactions are extraordinary and it will take merchants more time than usual.

If you decided not to go on a trip, your card transactions related to flights and hotels are unfortunately not subject to compensation. The merchant has fulfilled its end of the transaction and you are unfortunately not entitled to a refund if you decided to cancel. This applies to airlines, hotels and other businesses who have performed their obligations as regards providing service.

You have the right to dispute a card transaction if you cancelled the reservation that were known to you at the time of purchase but the refund has not taken place within 15 days.

If the restrictions established under a state of emergency prevented you from using services provided by the merchant, you are not entitled to dispute the card transaction because the merchant has fulfilled its end of the transaction.

You have the right to dispute a card transaction if you cancelled the reservation that were known to you at the time of purchase but the refund has not taken place within 15 days.

The penalty cannot be disputed if the hotel was open and the service was available. You can cancel the hotel booking pursuant to the hotel’s cancellation terms or try to reach a separate agreement with the hotel.

Unfortunately you are not eligible to dispute a card transaction related to a service that you did not use unless the merchant allowed this at the time of purchase.

If the goods and services are no longer offered, you are entitled to a refund. This is also the case if the merchant cancels the transaction due to government restrictions, insolvency or other exceptional circumstances.

You are not entitled to dispute a card transaction if the transaction was covered by insurance.

Yes, this kind of card transaction can be disputed. If the services are altered or postponed, you are entitled to a refund if the new dates do not work for you. You can decline the proposed alternatives unless this is excluded by terms of service you accepted at the time you purchased the service.

If you bought a travel package, see the terms for the specific package as presented to you at the time of the purchase. That will show whether you are entitled to dispute part or all of the transaction amount.

If you booked each service separately (put together your own package), each merchant’s cancellation terms apply separately to each component.

Yes, this kind of card transaction can be disputed. If the service is cancelled, you have the right to a refund if the alternative solution is not suitable for you, unless the merchant is entitled to offer alternatives and informed you of this at the time you made the purchase.

Yes, you can, because the customer and the merchant have agreed to the new terms of the same purchase transaction.

Unfortunately, additional expenditures and other monetary losses cannot be included in claim.

Yes, this kind of card transaction can be disputed. The merchant is responsible for getting the order to the customer by the promised date.

To make an LHV contactless payment with your smartwatch, you need the LHV bankcard and a smartwatch which supports contactless payments:

• [Apple Watch](https://support.apple.com/en-gb/HT201239#stores}
• nutikell Garmin
• nutikell Fitbit

Paying with a smartwatch is simple, contactless and quick. You can pay for your purchases at any point of sale which accepts contactless payments. Standard contactless payment limits apply to these payments, equivalent to those of your bank card.

If you wish to make a payment with:

• Apple Watch, double press on the side button and position your watch above the terminal.
• Garmin or Fitbit watch, press and hold the central operation button of the smartwatch or the menu, and tap the Wallet icon. Then choose the card for making the purchase and position your watch above the terminal.

When using Garmin Pay, you can pay for your purchases with the LHV cards in your daily use.

To configure the new means of payment:

• Download the Garmin Connect app in your phone and link it to your smartwatch.
• Accept Garmin Pay’s Terms of Use and choose a four-number password.
• Add your LHV bank card to Wallet.

When using Fitbit Pay, you can pay for your purchases with the LHV cards in your daily use.

To configure the new means of payment:

• Download the Fitbit app in your phone and link it to your smartwatch.
• Accept the Fitbit Pay Terms of Service and choose a four-number password.
• Add your LHV bank card to Wallet.

If you wish to suspend or permanently terminate the use of the smartwatch payment option, open the app linked to your smartwatch in your phone and remove the LHV bank card from Wallet. Should you need help, please do not hesitate to contact our customer support at the e-mail address info@lhv.ee or the telephone number 6 800 400.

Smartwatch payment is safe, as it uses a number linked with the smartwatch and a unique transaction code for each purchase transaction. Your card data will never be stored in your device or the service provider’s servers. Similarly, your card number will not be forwarded to the merchant during your purchase. Therefore, feel safe with your smartwatch payment.

The average life expectancy in Estonia is 77.8 years old. Pension age begins at 63 for men and 62.5 for women. In reality, people sometimes retire earlier; the average retirement age being 59.6. Most people who retire before the official retirement age are unemployed, who then receive a proportionally smaller pension.

There are about 400,000 old age pensioners, out of whom 16.4% are working.

While people are now working because they want to, in the future it will be inevitable as the retirement age will be pushed to an even later time. Starting in 2016, both women and men will be able to retire at 63 and from 2026, at 65. According to the estimates of researchers, the retirement age should rise to 69 by 2060, to ensure the functioning of the pension system.

It’s possible to retire in terms of the second pillar five years before the state pension age as of January 2021. Disabled persons who cannot work have also been equalised with persons who have attained retirement age.

20% income tax must be paid when money is withdrawn from the second pillar before retirement age.

The payout of the money saved in the second pillar as a lump sum after retirement age is attained is subject to 10% income tax. However, if you enter into a lifelong pension agreement with an insurer in retirement age, the payouts made under the agreement are not subject to income tax. The same applies if you enter into an agreement for a specified term with an insurer, the term of which equals at least the number of average years left to live published by Statistics Estonia, or if a fund pension agreement (the pension is paid straight from the fund) with at least the aforementioned term is entered into.

Lower income tax rates of 10% and 0% are applied in the third pillar as of January 2021 on similar conditions as described for the second pillar above. 20% income tax must also be paid on the payouts made before retirement age.

Payments affecting the calculation of yearly (up to 6,000 euros per year) tax-free income:

• State pensions (I pillar);
• Payments made from the III pillar before retirement age, that are subject to income tax at the rate of 20%. As well as payments made to the heirs.

Payments not affecting the calculation of yearly (up to 6,000 euros per year) tax-free income:

• Payments made from the II pillar, that have been taxed with income tax rate of 20% or 10%.
• Payments made from the III pillar, that have been taxed with income tax rate of 10%.

Income tax is withheld upon the making of a payout.

Successors can choose whether to withdraw the accumulated money at once or to inherit the fund units. Depending on the age of the successor, income tax must be paid at the rate of either 20% or 10%. Upon the inheritance of fund units, the units obtained via inheritance are transferred to the pension account(s) of the successor(s) and a more favourable income tax rate (10% or 0%) may also be applied when they reach retirement age.

The fund units of both the second and third pillar are held in a pension account. You can view the status of your pension account in the LHV pension web at www.lhv.ee/pension, in the Minu Pension mobile app, in a suitable Internet bank or under My Account in the Pension Centre.

You can also view the status of your LHV pension in all other Internet banks that you use every day or online at Pensionikeskus.ee.

Transfers of assets from insurance to fund or from fund to insurance should be started with an insurance company.

The money will be deposited during the month of September.* We recommend you double check the account number in the Estonian Funded Pension Registry → My Account → My details

The money will be deposited to the bank account of the private individual who submitted the application. The money may arrive in several payments. For extra information, visit Estonian Funded Pension Registry FAQs.

*If you've submitted the application for leaving the II pillar before 31.03.2021, the money will be deposited during the month of September.

Contributions to the second pension pillar are calculated on the income taxable in Estonia. If you do not have income taxable with social tax, no contributions are made to the second pillar and you will accrue no “debt”. It is not possible to make contributions to the second pillar at your own initiative.

Pension collection is a long process that may cover several decades, depending on the age of the individual. Contributing towards your pension is just like a marathon: it does not matter how fast you were in the first could of hundred metres. With your pension, it is important to follow the long-term rate of return figures, for instance, over a period of 10 years or from the time the pension system was set up. Brief, temporary concessions in yields do not affect the end result much.

As of 1 August 2011, pension contributions can be directed to a new pension fund on an ongoing basis and the money already accumulated can be moved from one fund to another three times each year. When the application to transfer the accumulated funds, i.e., the application to exchange units at the latest:

• on 30 November, the exchange is effected on the workday following 1 January;
• on 31 March, the exchange is effected on the workday following 1 May;
• on 31 July, the exchange is effected on 1 September or the following working day.

No. In previous years, gifts were handed out for enrolment with a pension fund; however, the law now plainly states in black and white that the choice of a pension fund may not be influenced by any benefits. Likewise, the bank must not make loan interest dependable on the choice of the pension fund (subsection 14 (5-1) of the Funded Pensions Act). If this happens, you should stand up for your rights and notify the Financial Supervision Authority about the situation.

Saving in the second pillar will be voluntary as of January 2021 and you can withdraw the money saved in the second pillar before you attain retirement age. However, you must keep in mind that you can only withdraw the total amount as a lump sum, you must pay 20% of income tax on the sum and you cannot start saving in the second pillar again before 10 years have passed.

Those who have already attained retirement age or are close to it and want to withdraw the saved money immediately can do so by paying income tax at the rate of 10% or not paying any at all.

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Saving in the second pillar will be voluntary as of January 2021. It’s possible to exit the second pillar (by withdrawing the money as a lump sum before retirement age and paying 20% income tax on the amount) or by stopping making payments. If you exit the pillar or stop payments, you cannot start saving in the second pillar again before 10 years have passed. Read about all of your options regarding the money saved in the second pillar.

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The state suspended the contributions made to the second pillar on account of social tax (4%) from 1 July 2020 to 31 August 2021. In October 2020, everyone who had subscribed for the second pillar could decide whether or not to stop making the 2% contributions from their salaries. If the relevant application was submitted, the payment of the 2% contributions stopped from 1 December 2020 to 31 August 2021.

The 4% will be compensated to the people who continued making their 2% contributions at the time when the 4% contribution on account of social tax was not made. The state will make additional transfers to the second pillars of these people from 2023–2024. The size of the compensated amount depends on how much the person themselves contributed to their second pillar during the temporary suspension of contributions: the amount paid to everyone’s second pillar is twice the amount they paid themselves during this time.

If the average yield of second pillar pension funds is positive from 1 July 2020 to 31 December 2022, the amount transferred from the state budget to the second pillar of everyone who continued making contributions will also increase by the average yield.

Compensation does not depend on whether the person works in 2023 and 2024 and makes contributions to the second pillar. If they are not on the labour market at the time, but made the 2% contributions from their salary during the temporary suspension of contributions, they will receive compensation according to the contributions they made.

If a person decides to leave the second pillar with their money in 2021 or 2022, the 4% contributions that were not paid to them in the meantime will be paid out to them with the second pillar money. Yield is not calculated in this case.

Reorganisation of the second pillar of funded pension. Read more