Self-employed or independent contractor (Indépendant) setup and freelancer taxation in Belgium

Self-employed or independent contractor (Indépendant) setup and freelancer taxation in Belgium

Registration

Belgium's independent contractor registration process is simple.

Signup process:

• Select société or entreprise individuelle (an individual firm). The individual firm separates corporate and personal assets and limits bankruptcy liabilities.
• Register your firm with Banque-Carrefour des Entreprises at any Guichet d'entreprises. Bring your basic management certification, professional competency certification if you're a lawyer, doctor, or architect, professional license, and professional card if needed.
• The Guichet d'entreprises will validate these documents before registering your firm with the Banque-Carrefour des Entreprises and granting you business and establishment numbers.

Get a VAT ID number

Belgian legislation requires VAT registration for all independent contractors. VAT in Belgium is called Taxe sur la Valeur Ajoutée (TVA) in French or Belasting over de Toegevoegde Waarde (BTW) in Dutch.

If your small business’ turnover is under €25,000, you can opt for petite entreprise / kleine onderneming status. This makes you exempt from VAT but also from claiming it back.

VAT is 21% for most items. Businesses pay VAT monthly or quarterly. Some items qualify for lower rates of 12% and 6%, while a handful of items are VAT-free.

Some operations are exempt from VAT registration, therefore check with a local office. For more details, see Belgian VAT Code Article 44.

Select a VAT scheme. If your turnover reaches €750,000, you can choose a global payment or tax exemption.

To receive Form 604A, register in a Guichet d'entreprises before starting.

Submit Form 604A to the Belgian VAT Control office.

Ask a VAT Control office in your company's area where your Belgian VAT Control office is.

You can also pay the Guichet d'entreprises for VAT registration assistance

Alternatively, you can use Abillio - invoicing and tax compliance service for cross-border freelancing. In Abillio's case, you don't need to establish a legal entity or apply for VAT, with Abillio's company-as-a-service solution you can start your freelancing business right away. Register your free account here >>

Social & health insurance

Before becoming an independent contractor, you must join a social insurance firm. If you forget, the INASTI (Institut National d'Assurances Sociales pour Travailleurs Indépendants) will request a regularization. You will join the Caisse Nationale Auxiliaire pour Travailleurs Indépendants if you continue. As an independent contractor, you need this affiliation to pay your social contributions.

Health-insurance

You'll need a certificate of membership from your social insurance fund to join a collective health insurance, which involves social contributions. Your activities may require further insurances.

Register a business bank account

Company bank accounts are required. All invoices and commercial documents must have this bank account number.

Alternatively, you can use Abillio - invoicing and tax compliance service for cross-border freelancing. In Abillio's case, you don't need to register a bank account, instead, you can use your personal account. With Abillio's company-as-a-service solution you can start your freelancing business right away. Register your free account here >>

Administrative fines

Working without registration and authorization might result in legal action, punishments, and administrative fines (not cumulative). Case-specific penalties apply.  For a minor infraction, you could be fined €300 to €3000 criminally or €60 to €600 administratively.

Freelance income tax in Belgium

If you live in Belgium for more than six months (183 days) of the year and are registered with your local municipality, you are a Belgian resident. This means you must pay Belgian tax on your worldwide income.

Income tax rates for sole traders and partnerships

If you are a sole trader or in a partnership, then your profits are subject to personal income tax.

Tax-free allowance

All workers in Belgium have a personal tax-free allowance before income tax kicks in.

The tax-free allowance was €9,050 in 2022. This allowance increases depending on the number of children you have: an extra €1,650 if you have one child, €4,240 if you have two children, €9,500 if you have three children, and €15,360 if you have four children.

How to file freelance tax in Belgium

Income tax

The Belgian tax year runs from 1 January to 31 December. You will typically receive a tax return around May or June ( déclaration / aangifte ), relating to the previous year’s income. This must normally be returned by the end of June, although you will find the exact date on your tax return.

You can file your tax return by post to your local tax office (the address is on the top of your tax return) or online using an eID through the Belgian government’s tax portal, Taxonweb.

You can generally take some extra time if you use the online filing system. Non-residents file their return at the end of September or the beginning of October.

You can track the progress of your tax return through the government’s finance application, Minfin .

Combining freelance work and paid employment in Belgium

If your freelance work is in addition to paid employment, you can apply for the status of indépendant complémentaire (in French) or zelfstandige in bijberoe (in Dutch).

This means that you can pay social contributions as you earn, but with no minimum. Income tax is calculated by adding freelance income to your salary.