What to expect from the new Belgian government as a self-employed | 2025 Update

We are February 1st, 2025: the new government is about to be formed, and the formateur’s statement has just been made available. We break down its content for you and explain what you, as a self-employed individual – whether as a sole proprietor, in a primary or supplementary capacity, or as a self-employed person in a company – can expect from the new government. Spoiler alert: none of those changes are immediate and most should be expected in action in 2026.

If you want to read the full statement, you can find it here | Link to the formateur’s statement.

For all sole proprietors (“natural persons”)

Main specific measure: The government is introducing a tax deduction for the self-employed, allowing a first portion of profits and income (after deducting professional expenses and social contributions) to be tax-exempt. This is excellent news, as it should lower the tax burden on self-employed individuals from the very first euro earned. The precise details of this deduction have not yet been disclosed.

There will be no revision of tax brackets or rates, despite discussions about this during the negotiations.

💡 Accountable Tip: This deduction will likely apply to your net profit (revenue minus professional expenses). The advantage of professional expenses is not expected to be reduced, so make the most of it and learn more about deductible business expenses. Find all the costs you can deduct on deductibles.be

Several changes are also planned regarding advance tax payments: the introduction of a fifth payment period with a 0.5x base interest rate bonus if payments are made before February 20 of the tax year and the elimination of the tax increase for insufficient advance payments starting in 2026.

For self-employed individuals in a secondary occupation

This government agreement is clear: the Belgian state wants to recognize and better regulate the status of part-time self-employment. This is likely good news, though the concrete details remain to be defined. The formateur’s statement refers to a “reform of the status of supplementary self-employed individuals to better value this category while preventing abuse.”

For example, the agreement mentions access to pensions for supplementary self-employed workers. Currently, these individuals pay social security contributions but do not build proportional social rights. The reform aims to better acknowledge their contribution to the system: from 2026, supplementary self-employed individuals will gain access to the Free Supplementary Pension for the Self-Employed (VAPZ), a scheme currently reserved for full-time self-employed individuals.

For self-employed individuals in a company (SRL, BV, etc.)

The VVPR-bis scheme, which historically allows SMEs to distribute dividends at a reduced withholding tax rate of 15% or 20% (instead of the usual 30%), was a topic of debate during the negotiations.

The formateur’s note mentions an expansion of the taxable base for withholding tax (the tax on dividends) and the harmonization of the liquidation reserve and VVPR-bis schemes:

• For the liquidation reserve, the waiting period for reduced taxation will decrease from 5 years to 3 years, but the withholding tax rate will increase from 5% to 6.5%.
• As a result, the overall effective tax rate will rise from 13.64% to 15%, aligning with the VVPR-bis scheme.
• Early distributions within these 3 years will be subject to the standard 30% withholding tax.

This measure aims to standardize taxation on dividend distributions while limiting excessive tax advantages. If further reforms of the VVPR-bis scheme are planned, they are not detailed in this document.

Finally, the note highlights that to benefit from the reduced company tax rate, the compensation of the director will need to reach €50,000 per year, against €45,000 earlier (this amount will be indexed). It is also mentioned that a company executive will only be able to convert 20% of their gross salary into benefits in kind (company car, pension savings, meal vouchers, etc.).

Changes to pensions and investments for the self-employed

Simplification of the second pension pillar for the self-employed

The government promises a harmonization and simplification of the second pension pillar (VAPZ, IPT, CPTI), including the 80% rule. A logical and positive decision.

Specifically, the agreement mentions an increase in the maximum contribution percentage for the VAPZ from 8.17% to 8.5% starting in 2026. The same applies to the social VAPZ. It also mentions the elimination of the tax on premiums for self-employed pension contracts (CPTI).

New taxation on capital gains, including cryptocurrencies

The new Belgian government introduces a general 10% tax on capital gains, including those from cryptocurrencies, regardless if you do them on your personal name or through a limited company. Key elements of the note include:

• Not retroactive: Capital gains made before the reform takes effect will not be taxed.
• A tax-free threshold of €10,000 per year, indexed annually.
• Special treatment for large investors:
  • For holdings of at least 10%, €1 million remains tax-free.
  • Capital gains between €1 million and €5 million: 50% remains tax-free.
  • Capital gains between €5 million and €10 million: 25% remains tax-free.
  • Above €10 million, gains are fully taxed.

For cryptocurrency gains, a 10% tax will apply unless they fall under professional activity taxation. Past gains remain exempt. Losses can only be deducted within the same year (carryforward to future years is not allowed).

Additionally, stricter monitoring of cryptocurrency transactions will be implemented. Crypto accounts must be declared to the Central Contact Point (PCC) of the National Bank of Belgium, and tax authorities will have broader access to transaction data, particularly in cases of suspected tax fraud.

Expansion of the copyright tax regime to digital professions

The copyright tax regime will be expanded under the new government’s agreement.

• Digital professionals were previously excluded from this system.
• Now, works protected under Book XI, Title 6, of the Economic Law Code will qualify.
• This means that graphic designers, game developers, software creators, and digital content producers will benefit from the same tax advantages as artists and authors.

This corrects an inconsistency in the tax system and ensures digital creatives receive the same tax benefits as traditional artists. Big for IT freelancers.

Further adjustments to the deductibility of hybrid cars

The rules regarding the deductibility of car expenses will be simplified to reduce the administrative burden on businesses.

Extension of the Transition Period for hybrids

Not all workers can yet opt for a fully electric vehicle, particularly due to infrastructure constraints in urban areas, rural zones, or collective housing. Therefore, the government is maintaining tax benefits for hybrid vehicles until 2029.

New Tax Deduction Rates

• 75% until the end of 2027.
• 65% in 2028.
• 57.5% in 2029.

These rates will remain valid throughout the entire period of vehicle use by the same driver. Regarding fuel costs, the deduction will remain fixed at 50% until the end of 2027, while electricity costs will be treated the same way as those for electric cars.

An Exception for the Cleanest Hybrids

Hybrids emitting less than 50 g CO₂/km may benefit from a deduction rate higher than 75% until the end of 2027 if the calculation formula is more favorable to them.

Fight against fraud and bogus self-employment

The formateur’s statement indicates that “the fight against bogus self-employment and fake employees will be strengthened.” In practice, the exact definition of a “bogus self-employed person” remains unclear. When the status reflects a lifestyle choice, despite privileged relationships with a client, why should the State interfere in the client-supplier relationship?

This mention seems to follow what the Dutch government has started to do in their own country: could this be a major debate in 2025 in Belgium?

What happens next?

⚠️ These measures are not yet in effect, and it may take several months (or even years) before they impact your finances. For the Belgian government agreement to become effective, several steps must be completed:

1. Presentation to Parliament – The government must present its agreement to the Chamber of Representatives.
2. Confidence vote – If the government is newly formed (or significantly reshuffled), it must win the confidence vote.
3. Legislative translation – Proposals in the agreement must be turned into laws (debated and adopted by Parliament) or royal/ministerial decrees (implemented directly by the government and administration).
4. Implementation and enforcement – Once adopted, laws and measures must be published in the Belgian Official Gazette and implemented by the administration.

Questions? We’re here for you 💜

In this guide, we reviewed the key changes expected under the new government. As mentioned earlier, these changes are not set in stone. The goal of this note is to prepare you for potential developments.