Pension
Your PLCI lump sum at retirement: how much tax, and at what age to draw it?
By the Finances Indépendants editorial teamUpdated on 4 min read
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Contents
How is the PLCI lump sum taxed?
Through a notional annuity. Tax is not taken in one go when the money is paid out: the tax authority takes a percentage of the capital, set by your age, and adds it every year to your other income in your personal income tax (IPP/PB) return, for ten or thirteen years. That amount is taxed at progressive rates, like a pension.
It is called notional because you never receive it: you got the whole capital on day one, but you declare a slice of it every year. If your contract provides for a real annuity rather than a lump sum, the amounts actually paid are declared each year and taxed on the personal income tax scale.
This regime is the counterpart of the tax break on the way in: PLCI premiums are deductible as business expenses, provided you have paid all social contributions due by the end of the year.
What percentage of the capital is added to your income, by age?
From 3.5% to 5% a year, depending on your age on the day of payout. Before 65, the notional annuity runs for 13 years; from 65, for 10 years. Paid at the statutory pension age after effective activity up to that age, only 80% of the capital counts: the rest is never taxed.
The table adds up the years: it shows what share of the capital ends up, in total, in your taxable income. The trap lies in the ages in between. Drawing at 63 means declaring a larger share than at 60, and a larger share than at 65.
The duration matters as much as the rate. A notional annuity spread over thirteen years weighs on years when you may still be working, whereas a ten-year annuity that starts at retirement usually falls on lower income. The real tax bill is therefore worked out year by year, together with your other income.
Notional annuity per year
Duration
Total share of capital declared
60
3.5%
13 years
45.5%
61 or 62
4%
13 years
52%
63 or 64
4.5%
13 years
58.5%
65 or over
5%
10 years
50%
Statutory age, still working
5% on 80% of the capital
10 years
40%
Draw your capital at 60 or wait for your pension?
The capital can be paid from age 60 if your contract allows it, or once you meet the conditions for the statutory pension, early or not, even if you keep working. Waiting until statutory age while still working cuts the declared share to 40% of the capital; leaving earlier makes it heavier.
The notional annuity is added to each year's income: it costs more while your fees remain high. So check in your contract the planned payout age and the conditions for an early payout, then compare with the date of your statutory pension. The PLCI simulator works out the tax benefit of the premiums, and the comparison PLCI or pension savings shows how the other product is taxed.
Before you sign the payout request, go through the mistakes that cost the most, because none of them can be undone once the capital has been paid:
- Assuming a one-off tax. The notional annuity comes back in every tax return for ten or thirteen years: plan for it in your advance tax payments or your tax reserve.
- Drawing at 63 or 64 without comparing. The rate goes up, the duration stays at 13 years: this is the age at which the declared share is highest.
- Stopping work just before statutory age. The 80% base generally requires effective activity up to that age; stopping early can lose it.
- Forgetting the social security deductions. They are withheld at payout, before tax, on the gross amount.
Further reading
The pages on this site that explore each of the points covered here in more depth.
- PLCI: the complete guideCeilings, premium deduction and how the contract works.
- PLCI simulatorEstimate the deductible premium and the tax saving on the way in.
- PLCI or pension savingsCompare the tax benefit and the exit taxation of both products.
- How much to save for your self-employed pensionMeasure the gap between the statutory pension and what you really need.
- Statutory pension for the self-employedStatutory age and conditions for early retirement.
Frequently asked questions
No. The capital of a PLCI is converted into a notional annuity: a percentage of the capital, from 3.5% to 5% depending on age, is added to your taxable income every year for 10 or 13 years. That annuity is taxed at progressive personal income tax rates, together with your other income for the year.
It is the amount the tax authority adds to your income every year after the capital is paid out, without you actually receiving it. It spreads the tax over ten or thirteen years instead of taking it in one go. The percentage used depends on your age on the day of payout.
Yes, from age 60 if your contract provides for it. The notional annuity is then 3.5% of the capital a year, added to your income for 13 years, or 45.5% of the capital in total. The capital can also be claimed once you meet the conditions for the statutory pension, even if you keep working.
When the capital is paid at the statutory pension age after effective activity up to that age, or as part of a full career. The notional annuity then covers only 80% of the capital, and the remaining 20% escapes tax. With the 5% rate over 10 years, the declared share falls to 40% of the capital.
They are taxed differently. A lump sum goes through the notional annuity, spread over ten or thirteen years. An annuity actually paid out is declared every year and taxed on the progressive personal income tax scale for as long as it is paid. The right choice depends on your other income in retirement and on your contract: have it worked out.
Topics covered
Topics covered: plci lump sum tax · plci notional annuity · vapz capital tax belgium · plci capital at 60 · plci capital taxed at 80% · nihdi deduction supplementary pension capital · when to draw plci capital.
Official sources
- FSMA, Quelles sont les règles fiscales applicables à une convention PLCI ?. View (new tab)(Official source, accessed on 2026-10-20)
- Wikifin (FSMA), Gros plan sur la fiscalité des pensions complémentaires pour indépendants. View (new tab)(Official source, accessed on 2026-10-20)
- FSMA, Comment les pensions complémentaires sont-elles imposées ?. View (new tab)(Official source, accessed on 2026-10-20)
- Wikifin (FSMA), La pension libre complémentaire pour travailleurs indépendants (PLCI). View (new tab)(Official source, accessed on 2026-10-20)
- NISSE, La pension libre complémentaire pour les indépendants (PLCI), c'est quoi ?. View (new tab)(Official source, accessed on 2026-10-20)
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