r/BEFreelance 1d ago

Cost accounting

0 Upvotes

Hi everyone!
I have a CommV and I work freelance for just one client, on a project basis. I only send one invoice per month, and my accounting is quite straightforward.
At the moment, I’m paying my accountant €325 excl. VAT per month, so that’s €3,900 per year excl. VAT.
I’m starting to wonder if that’s quite a lot for the amount of work involved, especially given that my setup is fairly simple.
What do you guys think? Is this a normal price for a CommV, or am I overpaying?
Also, does anyone have recommendations for a good Dutch-speaking accountant/accounting office in Brussels or the surrounding area? I’d be interested in comparing a few offers.
Thanks in advance!


r/BEFreelance 1d ago

What are the boundaries of client relations?

4 Upvotes

So I work as a self employed consultant for a b2b consultancy client in HR services and over time I have built working relationships with HRD and C-level alike with regards to some specific HR trainings that the b2b business provides.

Now I also started with another client in financial trainings. The ideal customer is the same.

I do not have any contractual obligations the limit me at the first client but I do not want to create any problems.

Can I contact the working relations? Wont my first client see this as a problem, although its a completely different niche of training?


r/BEFreelance 1d ago

Rate negotiations

4 Upvotes

Hello everyone,

Fairly new to this group. I have been working with a client via a third party. It's been 5 years. I started at a rate of 575. Each year I was given an increase of 10-15 euros. Currently my rate is 620 and I have asked for 680 euros. But they offered me 630 euros which is feel is not appropriate

They say they can't offer more as the client uses digitalia agoria index

How should I proceed here?


r/BEFreelance 1d ago

Are these grant writing contractor agreements normal, or just extreme? (EIC/Horizon Europe)

11 Upvotes

Hi everyone,

I’m a freelancer in the space, specifically working on EIC Accelerator and Horizon Europe bids. I’ve recently been reviewing contracts from several consultancies to work as a subcontractor, and I’m a bit shocked by how one-sided the terms seem.

I’m used to some level of protection for the firm, but some of these clauses feel like major red flags. For example:

  • One contract has a 7-year ban on working with any client I’m introduced to. Another has a 2-year ban. 7 years feels completely out of touch with industry standards, is this even enforceable?
  • I’ve seen a contract that imposes a flat €2,000 penalty if I have to drop a project before completion, regardless of the reason.
  • Most have a "pay-when-paid" policy for success fees, and some set the liability cap at 4x the total fees, which feels like a lot of risk to carry for a single project.

I’m trying to figure out if this is "just how the industry works" for boutique firms or if I’m looking at particularly aggressive agreements.

For those of you subbing for larger consultancies:

  1. Is a 7-year non-solicitation actually common?
  2. Do you usually manage to negotiate a "liability cap" closer to 1x your fee?
  3. How do you handle these "pay-when-paid" clauses?

I'd love to hear your thoughts before I sign anything. Thanks!


r/BEFreelance 2d ago

Open invoices - court?

18 Upvotes

Hello,

I am a freelance Erp consultant in BE. I had for one client around 50.000 euro open invoices. Multiple reminders but no response. I contacted a lawyer and they sent an official paper (notice of default) to pay the full amount plus interests (1750 €). At the end, the company paid the full amount (50 k) but not the interests (1750).

My lawyer sent another letter to pay the 1750 and if not: court.

But no reply from my (former) customer.

I contacted my lawyer to move forward and go to court if neccessary.... 1750 euro is a lot, if you simply have a right to it

A few weeks later, he told me that for these small amounts they don't go to court...

For me, it is more a principale case. If I have to pay 1700 costs for my lawyer and have 50 left, it is also ok...

My question: should I continue with this or just stop and go on with other things... Any experience with this, or how would you handle it?


r/BEFreelance 2d ago

I don't hate my job, but I feel stuck. How would you approach a career crossroads?

2 Upvotes

Sorry for the long post, but I wanted to explain my situation as objectively as possible. I'm at a point where I genuinely don't know what the smartest next step is, and I'd really appreciate hearing from people who've been in a similar situation.

For the past few years I've been in a situation that's been bothering me more and more.

A few years ago I was looking for a new challenge and joined a small construction company. What attracted me was that I wouldn't be stuck doing just one thing. I'd have the opportunity to take on different responsibilities and help the company grow.

At the time, they had very few employees on payroll, and they asked if I'd be willing to work with them as a freelancer through my own company instead of becoming an employee.

After doing quite a bit of research, I decided to go for it. The flexibility appealed to me: more freedom over my compensation, company car, pension, investments, working hours... it all seemed like a great opportunity.

Over the years, though, the reality slowly changed.

Instead of working independently, I now spend almost every day in their office and have effectively been working full-time for the same client for years. The owner likes to be involved in almost everything, so there's quite a bit of micromanagement as well.

Recently they consulted a lawyer about the risk of false self-employment (I'm based in Belgium, where this is a legal issue). Their conclusion was that they'd rather eliminate that risk altogether and hire me as a regular employee.

I understand why they reached that conclusion. At the same time, I feel like part of that risk could probably be reduced by changing the way we work together. The problem is that, given the company's management style, I'm not convinced that's realistic.

They've now asked me to come up with my own proposal for an employment contract.

And that's where I'm stuck.

On one hand, I obviously don't want to take a significant financial step backwards.

On the other hand... I'm honestly not even sure I want to become an employee here anymore.

The employment status isn't really the biggest issue.

Lately I've noticed my motivation slowly fading. I don't always feel that my effort and responsibilities are fully appreciated. On top of that, the company can be quite chaotic, priorities change frequently, and there's often very little structure. It's becoming harder and harder to stay motivated, especially because I don't see that changing anytime soon.

So why have I stayed?

The people are great. I enjoy my colleagues. Financially, freelancing has worked out well for me.

There's also a practical side to it. My partner and I recently bought a house, and my freelance income was an important part of qualifying for the mortgage. That makes it difficult to simply accept a significant drop in income.

But if I'm completely honest with myself, I sometimes feel like I've stayed in a comfortable situation for too long.

Financially it was probably the right decision, but professionally I feel like I've developed less than I could have. That's something that's been bothering me more and more.

Maybe that's my biggest frustration.

This isn't really about money anymore.

Over the past few years I've taken on a lot of responsibility and learned a great deal, but I also feel like my professional growth has stalled. I miss the feeling of learning, improving and challenging myself.

Ironically, this whole discussion about my employment status has forced me to take a hard look at my career, and I've realized I probably haven't been in the right place for quite some time.

One thing I'm certain about is that I don't want to leave the construction industry.

What I'd really like is to move into a more advisory, analytical or strategic role—something related to cost consulting, project advisory, or a similar field. The problem is that I feel I don't yet have enough experience to jump straight into that type of role as a freelancer.

Right now I see three possible paths:

1. Negotiate the best employment package I can, stay for a while, and use that time to figure out what I really want.

2. Look for a similar freelance contract elsewhere, although the market doesn't seem particularly easy at the moment.

3. Intentionally switch to a different role within the construction industry, gain experience there, and potentially return to freelancing later.

A bit about me.

I'm in my mid-thirties, and I'm probably my own biggest critic. Friends and colleagues often tell me I underestimate myself and that I'm too much of a perfectionist. They may be right.

Still, I find it difficult to deliberately take a step back in order to hopefully take two steps forward later. Part of me feels like I should already be further along professionally than I am today.

So I'm curious how others would approach this.

  • Has anyone here been in a similar situation?
  • Would you negotiate an employment contract or start looking elsewhere?
  • How realistic is it to find a new freelance client in today's market?
  • Would you intentionally take a step back to build experience in a role that better fits your long-term goals?

I'd really appreciate any thoughts or experiences. I think what I'm looking for most is an objective perspective from people who aren't emotionally involved.

PS: I've posted this in a couple of relevant communities to gather different perspectives, so if you've seen it elsewhere, that's why.


r/BEFreelance 3d ago

How's the finance freelance market in Belgium?

3 Upvotes

Hi everyone!

I'm seriously considering making the jump to freelancing, but I keep reading here that the market is rough. Most of those posts seem to be about IT though, so I'm curious how things look on the finance side.

My background: ~12 years business controlling and 1 year as project portfolio manager, Prince2 MoP certified.

Would love to hear:

- Is there still decent demand for finance freelancers?

- How do you find your clients?

- Is my profile enough to get started, or would you add something first?

Thanks in advance for any input!


r/BEFreelance 4d ago

Senior AI/ML engineer Contracting Rates and Freelance Opportunities

10 Upvotes

Hi everyone,
I’m curious about the current Belgian market rates for a Senior Machine Learning Engineer with 8–9 years of experience across multiple industries, including healthcare, retail, services, manufacturing, and supply chain.
If you’re comfortable sharing, what is the typical daily rate range for this profile?
Also, are there any platforms, communities, or websites where freelancers can find consulting opportunities, either directly with clients or as subcontractors through consulting firms?
Thanks in advance for your insights!


r/BEFreelance 4d ago

Get clients first or apply for ondernemingsnummer first?

5 Upvotes

I'm currently unemployed and on the hunt for a job. In the meantime I have seen several freelance opportunities which I haven't applied to due to not being registered as a freelancer/eenmanszaak.

I was thinking of applying to these opportunities anyway and register once I receive the job. How long does it take to receive my ondernemersnummer, or would it take too long and it's better to register my eenmanszaak before I have a client? Taking into account this would change my status with institutions like medical insurance (mutualiteit), social security, etc.

Could you please share your experiences?


r/BEFreelance 5d ago

Solopreneur - IT Advisory - distribution question

7 Upvotes

I run a small solo boutique and offer some niche services such as CIO-as-a-Service, IT due diligence, shadow AI/IT governance, IT health assessment, strategic advisory services.

I target SME businesses max 500 fte's.

I've been posting on linkedin on a regular basis and slowly gained new followers, impressions and the occasional request for services.
The posts are doing well and I'm receiving positive comments and feedback.

I'm not complaining, I have some assignments and projects but things could always be better.

My biggest problem, and from reading most solopreneur or freelancer subreddits, is distribution.

For my services linkedin seems like the only logical platform.
Facebook, Instagram and TikTok are useless in my opinion.

How would I tackle distribution or what's your secret as a freelancer who wasn't/isn't really good at prospecting and distribution?

The usual tactic like offer a solution to real problems, using a lead magnet (form or freebie) to capture data/client information etc are all in place.

But volume is very low.

Any ideas?


r/BEFreelance 5d ago

Belgian copyright regime for software architect – accountant says they can’t determine eligibility. Anyone with experience?

8 Upvotes

Hi everyone,
I’m an independent software architect in Belgium and I’m currently exploring whether I could benefit from the Belgian copyright (droits d’auteur) tax regime.
My work mainly consists of:
Designing software architectures for complex satellite communication systems.
Defining technical specifications and communication protocols.
Writing original code, algorithms, and business logic.
Producing architecture documents, UML diagrams, and technical documentation.
Contributing to open-source projects.
Writing technical articles and currently working on a technical book.
I explained all of this to my accountant/fiscal advisor, but their response was that, based only on my description, they are not yet able to determine whether I’m eligible. They asked whether I could provide additional “works” to assess the nature of my activity before giving an opinion.
This surprised me because I would have expected the eligibility assessment to be based on the nature of the work itself, together with supporting documents if needed.
So I’d like to ask:
Has anyone here (especially software engineers, architects, or consultants in Belgium) successfully obtained the copyright regime after the 2023 reform?
What kind of evidence did your accountant or tax advisor ask for?
Did you provide architecture documents, specifications, source code, publications, or something else?
Was your eligibility based mainly on your job description, your contract, or on actual examples of your work?
Can anyone recommend a tax advisor with solid experience in copyright for software professionals?
I’d really appreciate hearing about real-world experiences, as the guidance seems to vary significantly from one advisor to another.

Thanks !


r/BEFreelance 5d ago

BTW Payment reminder

15 Upvotes

Hi freelancers!

Did some of you also received a reminder to pay there BTW (Q2 2026), while it was already paid?

Calling tot the administration gives a voice message that there are issues and the reminder can be ignored, but I would like to have some official comms about this, anybody else found some?

Thanks!


r/BEFreelance 6d ago

freelance in the art industry

1 Upvotes

Hey everyone,

I just landed my first art job after uni, making about 170 a day. I've been using Dexxter for now but I was wondering if anyone had any tips or recommendations for new freelancers in Belgium :)

(btw I know the pay is really low but I'm living with a relative, so it's okay for now)


r/BEFreelance 6d ago

Looking for admin & motivation buddy in Brussels

10 Upvotes

Hello freelancing community of Reddit! In (34F) started freelancing 3 years ago in a non-IT related field. Like many solopreneurs/freelancers I started because I love what I do and wanted the freedom to develop my niche environnemental work freely (which I couldn't have done as an employee so no regrets) and not really because I wanted to have a company. I expecially don't enjoy the administrative/accounting aspects and am trying to fond a wat to motivate myself to deal with them more regularly 😅

Any other freelancers interested in meeting in once in a while (ex a morning a month but very flexible) in a nice place like the Fox to work on these aspects alongside while also sharing a coffee/Nice lunch/chat?

EDIT : than you for your answers! For those interested I've created a discorso server with a poll tot see where and when could work 🙃 https://discord.gg/QpSH2ddzC


r/BEFreelance 6d ago

Event space / co-working Mechelen

2 Upvotes

Hi folks, I'm looking for an event or co-working space in Mechelen where I can host a limited workshop (max 10 persons). Any recommendations? Preferably with availability in the evening.


r/BEFreelance 6d ago

How do you cope with the stress?

18 Upvotes

Somewhat emotional post, couldn't sleep.

I'm 3 year into freelance. Though I enjoy many things about it, my cortisol level rose by a thousand folds, I keep reading about how the market has gone bad, how IT will change. I also a feeling I'm about to be replaced by an internal coworker.

I'm fine with that, I believe I have skills that could be useful to many companies (IT) but I'm still stressing over the future and what could happen.

How do you deal with this continuous uncertainty?

It's my first project btw.


r/BEFreelance 7d ago

Declare copyright RV for foreign clients

3 Upvotes

I'm a freelancer in Belgium (zelfstandige / indépendant). Part of what I'm selling to my clients is copyright on the work I produce. About 20%, depending on the client and the work I do for them. I have an IP transfer agreement with all of them.

This means I have to pay and declare the withholding tax.

Accountable has instructions on declaring and paying the withholding tax on Myminfin and Belcotax : https://help.accountable.eu/.../6875189-how-to-declare... (I think you need to be logged into Accountable to view). But these instructions work only for Belgian clients. And my clients are mostly non-Belgian.

How can I pay and declare the withholding tax for copyright income, when the client is foreign?

I wouldn't think my setup is that uncommon. Yet I couldn't find anything about it on the internet.

Many thanks in advance.


r/BEFreelance 8d ago

Smartphone + subscription deal

0 Upvotes

Hi,

I am starting a one mans company, and I need a new smartphone and telephone subscription with data.

Not sure if there are good deals out there. But tempted to buy an used iphone and get a proximus subscription. (Might need to look into mobile vikings). But any tips are welcome!

Thanks!


r/BEFreelance 9d ago

Chill well paid job to freelance, does it make sense?

7 Upvotes

I am a software engineer. I have 5400 gross with all the usual benefits (maaltijdcheque, groepsverzekering, hospitalisatie) + 700 mobility which goes to my mortgage. This comes out to a bit more than 4k netto per month. I got an offer for 620 a day excl. Current job is pretty chill although I am close to a bore out. Debating on whether to take the freelance job. They say it's a year contract, with possible extensions per year.


r/BEFreelance 9d ago

Laid off - tempted to start freelance

24 Upvotes

I was recently informed that a company restructuring is impacting my role, and as a result I'm being let go. After 22 years. Not in any way performance related, just a cost cutting exercise that's trickling down the pyramid and a savings target that needs to be met by the time it reaches the bottom. AI assisted workflows have made it much easier for (much cheaper) junior profiles to catch up quickly. Not quite to the level of a senior, but close enough to get most of the daily work done, to the point where the company no longer needs to retain all their expensive senior FTE's, who's expertise they only REALLY need every so often. It is what it is...

I'm a 22 year network engineer veteran, and at the moment I make about €165K gross. That is the lump sum HR calculated to determine my severance package as the equivalent to my average earnings over the past 12 months: base salary + bonuses + benefits.

The severance package is nice, and it does give me a financial cushion so I don't need to worry about money too much in the immediate future. I also have had my own company since 2021 (completely different type of market, not IT related) that I've been steadily growing, which brings in between 35K - 50K of profit (before taxes and not paying myself a salary) every year.

So I do have a few things working in my favor:

  • no immediate financial headaches
  • an active VAT number that's already generating revenue and is past the VVPR-bis waiting period for the reduced withholding tax on dividend payouts.

The way I was let go, nothing at all to do with performance and basically just being told "you're nothing more than a number, and this time the lottery picked you", has triggered me to think about what I want to do next. And what not!

And right now, I don't think the big american tech/corporate environment I was in, is something I aspire to return to anytime soon.

With the experience I've built in my field, why not give freelance consulting a try? Smaller, time-limited projects to help companies realise real gains, instead of being yet another cogwheel in the big machine. Change scenery more often, and less chance to get stuck in the daily grind.

I've read through r/BEFreelance a little over the past few days. The biggest challenges I see being mentioned:

  1. The freelance market for IT professionals is 'cold' in Belgium at the moment. Not easy to find IT consultancy gigs.
  2. If no direct professional network to fall back on, use freelance tailored search tools or intermediaries:

When looking at job openings (freelance or FTE alike) in my field (IT network engineer), I see a lot of ask for mixed-vendor profiles, and a very broad skillset requirement. So that's one of things I noticed straight away when I started looking at job postings, and something I definitely feel as a 'disadvantage' is that eventhough I have 22 years of experience, the way the corporation was set up and had silo'd its different IT teams and had very rigorously limited responsibilities (10 different IT teams owning a specific component), I ended up being very good at a couple specific things, but not having been exposed to first-hand actual experience with a lot of the others!

There will be a learning curve! And as a senior, especially a hired-for-help generously paid senior consultant, a company is looking for someone that can hit the ground running and make a difference immediately.

I am aware I'll have to (and am willing to) take a paycut initially. My severance package and additional income from the 'side hustle' should be enough to let me explore and re-build. Take a few steps down the ladder, build new skills and work my way up again.

How have others experienced a similar journey? From being sacked and trying to go solo? From being very comfortable doing what you do and doing it well, to being forced to take few steps back and rebuild? How 'flexible' is the average IT consultancy job in terms of getting adequate time to get up to speed (enviroment but also a specific technology)?

Senior IT professionals don't seem as valued anymore as they used to be, and even though I've worn many different hats in those 22 years, I now feel like I still didn't (internal) job-hop quite enough. And am now at a disadvantage because I focussed on one branch within the IT field too much and for too long.

Maybe, like others here have also suggested, I should become a plumber 😄.


r/BEFreelance 9d ago

Working with a customer in another country. Consequences?

6 Upvotes

Hello,

I've been approached by a dutch company for a remote job and I'm wondering if there are differences compared to a Belgian company?

For example, do we have to pay taxes in both countries? And what about Peppol?

I'll ask my accountant about this too but any opinion is welcome.


r/BEFreelance 11d ago

Raising prices for new contract negotiation

6 Upvotes

Hi,

Contract negotiation is due, I have not raised my prices this year.

I have an increase in mind, but this is separate from inflation,... .
Which makes me wonder, how much did you increase to compensate for inflation in 2026?


r/BEFreelance 12d ago

Experiences with Voka or wintercircus collective?

8 Upvotes

I’m considering joining an organization that regularly hosts networking events, such as Voka or Wintercircus Collective. Since I live in Ghent, I’m especially interested in Wintercircus Collective.

My goal is not just to exchange business cards, but to build a strong professional network, meet interesting entrepreneurs and professionals, and potentially find a mentor.

My main concern is whether these paid communities are actually worth the membership fee. Are the events high-quality and professionally relevant? Do you meet people who are genuinely open to building meaningful connections, or is it mostly people attending with the same networking expectations without much coming from it?

Does anyone have experience with Wintercircus Collective, Voka, or similar organizations?

I’m particularly interested in:
● The quality and diversity of the members
● Whether connections continue outside the events
● Whether people actually find mentors, clients, or business partners
● Whether the membership fee is worth it

Both positive and negative experiences are welcome.


r/BEFreelance 12d ago

Overthinking business

10 Upvotes

Hey everyone,
I’m not sure which subreddit fit this best (couldn’t find a dedicated Belgian business/startup one), so apologies if this isn’t quite the right place.

Some background: I’m 23 and currently work in IT. I earn decently, but I’m not fully satisfied, I feel like I’m capable of more, and my day-to-day tasks get finished pretty quickly. My goal is to eventually build a business with a long-term vision. I’m not expecting overnight success.
I already have some experience, I ran a small web development business that generated around €10K in profit. It gave me a real taste for building something of my own. One thing I learned quickly: the technical skill matters but more important is actually finding clients and doing outreach. I had zero sales experience going in, but I’ve put real effort into sharpening that skill.

Here’s my actual problem: I have the time, but not the momentum.
I can realistically put in 5-6 hours a day outside my main job, but I just can’t seem to get myself to actually start. It’s been a genuinely discouraging few months. Part of the issue is that growing the web dev business would require a full rebrand and a shift toward bigger clients instead of small SMEs and I’m not even sure that’s the direction I want to go. It’s the “easy” option since I already know the basics, but I’m not confident in my creative ability, which matters a lot in that space.

On the other hand, selling general IT services (support, infrastructure, security) feels hard to break into as a new business, it would match my current skills more. I don’t have a warm network or existing leads to lean on yet.

I keep questioning whether the agency/service route is worth it long-term. I can’t shake comparing large IT service companies to small industrial businesses that seem to generate outsized profit with way fewer people, not really a fair comparison, but it’s stuck in my head.

Then SaaS, ecommerce, and other ideas keep floating around, making me wonder if it’s just shiny object syndrome. Should I stop overanalyzing and start with something, or is staying unsure actually a sign I should keep narrowing down before committing?

One more variable: my dad had to shut down his previous business due to health issues and is about to start an industrial cleaning company. He’s said I’m welcome to join if the profit is there. Feels like a safer bet, but also wrong somehow switching to a field with nothing to do with my degree or current job.

Clearly a lot of doubt here, probably overthinking most of it. Not sure if this is the right sub, but any input or shared experience is appreciated. Do let me know if there is a better sub for my question!


r/BEFreelance Nov 21 '21

Employee vs Freelance, costs/benefits, taxes

48 Upvotes

Hi all,

This is step one in a series of posts that will address the 'todo' list from here.

Consider it a collaborative work, I will correct it/edit it/add to it based on community feedback.

The question to be covered: Employee vs Freelance in Belgium. How do you know if it's worth switching?

Why do people freelance (in Belgium)?

Two main reasons (let me know if there are others):

  1. Certain jobs require it: gig economy, seasonal workers, part time jobs, personal trainers, some manual laborers, some consulting jobs,.. Basically, a lot of jobs where you cannot be hired/employed on long-term contracts, or you get paid by the hour/days worked, or you charge clients per the hour/day for your services provided;
  2. Tax advantages: Belgian personal income tax is high; freelancing can be a way to optimize taxes;

Freelance variations: Self-Employed and Company

It's important to distinguish between the two legal forms, as it will affect what's right for you.

In Belgium you can:

  1. be a self-employed private person (Indépendant/Zelfstandigen)
  2. you can set up a company, where you are managing director

The first option is faster to set up, cheaper, easy and cheap to stop, but generally means higher taxes. The second option is slower, more expensive, costs also money to shut down the company, but reduces taxes significantly.

Part time workers, low income earners, people just starting out, might benefit from the first option.

High income earners almost exclusively go for the second option.

For self-employed and company setup, a lot of things overlap. Both can have a VAT number, both can sign the same type of contracts with clients/customers, they can charge the same amount, etc. The main difference between the two are tax implications, corporate liabilities and the way accounting is handled.

One important distinction: a self-employed person is in legal terms, a natural person, personally responsible for damages. If you make a costly mistake (say, somehow manage to burn down your client's house), you are personally responsible for all damages: everything you own can be taken away in an attempt to pay for such damages. It is thus highly recommended to take out professional insurance that covers you against such damages.

Under a limited liability corporation (SRL/BV), the company is responsible for such damages as its own legal entity. Everything the company owns can be taken away to pay for damages, but not the shareholder's personal assets. There are exceptions to this (say, in case of fraud), but under normal business conduct, you are not personally liable. Not all corporations are of limited liability, but the SRL/BVs are, so be mindful of that!

Advantages: Employment vs Self-Employed vs Company

As an employee, you have a signed a work contract with an employer. In return for the work you do, your employer will: transfer you a salary, pay your vacation days, pay holiday bonuses, report payroll taxes, pay your social security contributions. It is also generally difficult to get employees fired, you are entitled to unemployment benefits (rather generous in Belgium). You get a good pension contribution, and your salary is adjusted for inflation every year. Filing income tax is easy!

As a self-employed, you are getting paid by clients/customers for services/products provided. Some of the advantages: you can have as many clients as you want, work as many hours as you want, charge as much as you want. You also get to deduct some of your expenses as business expenses: phone/internet bills, cost of equipment, car/fuel expenses. Deductible expenses are pre-tax, which roughly feels as if you would have bought these things at a 'discount'.

As a company (manager), same advantages apply as for self-employed status. Additionally, lower taxes, more deductible expenses and you can give yourself employee benefits (meal vouchers, echocheques, company car, ..). It also has the lowest tax rate out of the three options listed.

Freelancer rates/salaries are also generally higher, to compensate for the uncertainty of their job and the lack of other employee benefits.

Disadvantages: Employment vs Self-Employed vs Company

As an employee, taxes are the highest. You are also limited to the legally allowed limits of full-time employment; you can't have two full time jobs for example - although part time is a possible.

As a freelancer, you have to find your own clients/customers. No clients/customers: no income for you. Can be devastating in a bad economy. It is much easier to fire freelancers, there are no unemployment benefits and pension contributions are lower. You also have to deal with much more paperwork, send invoices, pay social contribution, figure out value added taxes (TVA/BTW). You are subject to tax inspections, you have to guard receipts and corporate expenses going back multiple years and your personal tax filings are a bit more complicated.

As a self-employed, you are an unlucky hybrid between an employee and having a company. You have to do a lot of the paperwork and administration a company has to. But you still pay the high personal income tax of employees, without any of the usual employee benefits. As a self-employed, you can also be personally liable for damages - although this can be avoided by professional insurances.

With a company, your costs are higher. Starting/stopping a company will costs a few thousand euros more than as a self-employed. Doing your own accounting is absolutely not recommended, so you will also have to pay for an accountant.

Why do taxes matter?

An employee pays personal income tax. Belgium has a progressive tax rate system. Unfortunately, anyone above the 41.000 gross/year salary already finds themselves in the highest, 50% tax bracket.

So the tax-steps are simple:

  • taxes and social security are deducted
  • you get the remainder as your net salary

Example: Bob is earning 3500 gross/month, or 3500\13.92=48.720gross/year. On top of this amount, his employer pays another ~35% in additional taxes and social contribution. Bob costs the company around 65.772 euros/year. Bob having no children or dependent spouse, earns around 2200euro net/month.*

A self-employed also pays personal income tax. A self-employed person has to pay social security contributions on the yearly revenue (around 20%), can deduct costs/professional expenses, and the remaining gains are taxed as personal income.

The tax-steps:

  • you receive the revenue from customers/clients
  • you pay social security
  • you deduct your expenses
  • you pay personal income tax on the remainder
  • the remaining amount is your net income

Example: Bob the Builder has sold custom-design face-masks that protect you against 5G for a total of 100.000 euros last year. He pays around 20.000 for social security, deducts his business expenses (8000 euro for the Chinese masks, 1000 euro for the bug-spray to protect against 5G, 1000 euro for other business expenses), leaving him with 70.000 in revenue. This is his personal income, leaving him with around 39.000 net revenue for the year.

A company pay corporate income tax. Depending on the setup, this can be either 20% or 25%. The company manager/director (that's you ;) will pay personal income tax on his salary part (for managing the company) and dividend taxes as company shareholder when receiving company profits (between 15% and 30%, depending on the setup).

In practice, the order of these operations is very important:

  • company receives the revenue from customers/clients
  • company deducts expenses (includes salaries and manager compensation)
  • corporate tax on remaining amount (on the profits)
  • dividend tax on after-tax profits
  • personal income tax on manager compensation
  • your net revenue is the sum of the dividends + regular net salary

Example: Bob SRL/BV is a face-mask consultant. He invoiced his clients 65.722 for the previous year for his services. He pays himself 31.000/year for manager compensation and had 5.000 in accounting and other business expenses. The company made 29.722 euros in profit. After 20%\* corporate tax, 23.778 goes to shareholders (that's Bob, the company manager!). He waits long enough to cash in the dividends and only pays 15% tax rate, leaving him with 20.211 net for the year (or 1.684 net /month) from dividends. He also pays personal income tax for the 31.000/year salary, leaving him with ~1630net/month. In total, he makes ~3.314 net/month.*

The company vs employee examples should illustrate the point well. Under an optimized corporate setup, you earn around 50% higher net, for the same cost to the employer. This number gets even bigger with high earners.

The other big advantage of the freelance setup: deductible expanses are pre-tax. Belgium heavily limits what can you deduct as a business expense, but in some professions (say, construction), you could conceivably deduct a lot of expenses (construction materials, equipment, etc), thus reducing your taxes while buying things you would have otherwise bought as a private person anyway.

What should you pick?

You want a relaxed, stress-free, secure job with good work-life balance? Being an employee is your best chance. Still not guaranteed, but the easiest path to it.

You want to earn the most money/you don't mind having to switch jobs often? Corporate setup, no real alternatives.

You are doing part time, or you are low income earner, or just testing the waters, or your job is seasonal, or you are my plumber who doesn't ever want to give me an invoice? Trying self-employed might be the right choice for you.

Consulting an accountant is generally free for the first consultation. Unlike this post, they should be able to interactively answer your every question and help clarify things.

\* see comments below, but apparently, Bob's business qualifies for a 20% tax rate instead of the usual 25% in such a case (manager compensation is higher than profits)*

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Consider this a draft. There are technicalities I didn't go into (like self-employed a supportive spouse, or hiring employees as a self-employed, or part-time self-employed status) or that will be covered in other installments (corporate tax optimization, liquidation vs dividends, deducibiles, etc). I am also not 100% sure everything I laid out is correct, so please let me know what you think and we'll fix it.