Every taxpayer in Belgium pays personal income tax: a tax on your taxable annual income. As a self-employed person, you are taxed on your salary as well as on the income from your self-employed activity. If you have a one-man business, you declare that income via the personal income tax return.
Please note that this article provides general guidance only. Tax rules may vary depending on your individual situation. When in doubt, ask your Tax Coach.
This article covers how personal income tax is calculated, what social security contributions apply, and how VAT works for self-employed people in Belgium.
Your taxes are calculated based on your net income: the sum of your earnings minus your professional expenses. Since some self-employed people also have a salaried job as a secondary occupation, the net income from that job is added to the net income from your business.
Personal income tax applies to your total net income in brackets. A different tax rate applies to each bracket.
In income year 2024 (assessment year 2025), the tax brackets are as follows:
Income bracket | Tax rate |
From 0 to 15,820 euros | 25% |
From 15,820 to 27,920 euros | 40% |
From 27,920 to 48,320 euros | 45% |
From 48,320 euros | 50% |
Good to know: part of your net income is never taxed. That is the tax-free sum. That amount depends on a number of factors, but for tax year 2024 it is at least 10,570 euros. The tax authorities first deduct that amount from your net income before determining which tax brackets apply.
Example
If your net income from your job and your secondary profession together amounts to 30,000 euros, the tax authorities will first deduct at least 10,570 euros (the tax-free allowance). The remaining 19,430 euros are then taxed in the following brackets:
15,820 euros of the 19,430 is taxed at 25% (tax of 3,955 euros)
The remaining 3,610 euros falls into the second bracket at 40% (tax of 1,444 euros)
You pay a combined 5,399 euros in taxes on your net income of 30,000 euros, leaving you with 24,601 euros.
Something less straightforward: you are taxed once more on your taxes. This applies whether you are self-employed in a secondary occupation or an employee. Your municipality also levies a tax on the personal income tax you owe. Each municipality sets its own rate.
The net income from your secondary occupation is added on top of the net income from your main job. There is a fairly good chance that the extra income you earn pushes you into one of the higher tax brackets. As a result, the net profit from your sideline can be as low as 50% of what your clients pay you.
Besides personal income tax, you also pay social security contributions:
The rate of social contributions is the same as for the self-employed in a main occupation: 20.5%.
However, there are a number of differences:
If you earn less than 1,881.76 euros, you can apply for an exemption from social security contributions.
The social contributions of the self-employed in a secondary occupation are so-called "solidarity" contributions. You will rarely or never be able to draw social security benefits from these. Your social rights are covered by your main profession, for example as an employee, civil servant, pensioner, or job seeker.
As a self-employed person in a secondary occupation, you are not entitled to a start-up discount on your social security contributions.
And do not forget VAT:
Paying VAT is part of being self-employed in most cases. If you are VAT-liable, you charge VAT on your sales invoices and pay that VAT back to the government at the end of each quarter. The advantage: you can also deduct the VAT you pay on your purchases, provided you hold a VAT invoice and the purchases are professional expenses.
As with social security contributions, you can also apply for a VAT exemption for your secondary profession. You can opt for this if your annual turnover is less than 25,000 euros.
Key takeaways
As a self-employed person in Belgium, you pay personal income tax on your total net income (salary plus business income), calculated in progressive brackets from 25% to 50%.
A tax-free sum of at least 10,570 euros (tax year 2024) is deducted before the brackets apply.
Social security contributions are set at 20.5%, with specific rules for secondary occupations, including a possible exemption below 1,881.76 euros.
If your annual turnover is below 25,000 euros, you can apply for a VAT exemption.
Start as Self-employed in Belgium
Thinking about starting as a self-employed professional in Belgium? Join our free group coaching "Start as Self-Employed in Belgium", once a month on Wednesday at 12:00 CET.
We will guide you through how to get started, the different types of self-employment, your obligations, and much more. We will also answer all your questions in a live Q&A session.
Sounds good? Save your spot now. 😊
Need help? Chat with us or email support@accountable.eu, we're happy to help.