PLCI/VAPZ 2026: the free supplementary pension for the self-employed

The PLCI (free supplementary pension for the self-employed), known as the VAPZ in Dutch, is a second-pillar pension savings scheme created by the Programme Law of 24 December 2002 and open to any self-employed person in Belgium, whether they work in their own name or through a company.

In practice, you pay a premium to an insurer each year, which gradually builds up capital. At 60 (or at the statutory retirement age), this capital is paid to you as a lump sum or an annuity, with its own tax treatment: the capital is converted into a notional annuity, taxed over 10 years.

Three features make the PLCI unique: it is excluded from the 80% rule (so it can be combined with an IPC or POZ), it is 100% deductible as a business expense (vs a 30% tax reduction for the POZ/CPTI), and it gives you a double saving, on tax and on contributions (personal income tax + NISSE contributions).

The 2026 PLCI ceiling depends on the type chosen (standard or social) and is expressed both as a percentage of net taxable professional income and as an absolute amount.

Standard PLCI (8.17%)

The standard PLCI takes 8.17% of your net taxable income: for example, on an income of €50,000, you could pay in up to €4,085 (but capped at €4,086.34). On an income of €30,000, the proportional ceiling is 30,000 × 8.17% = €2,451.

Social PLCI (9.40%)

The social PLCI takes 9.40% of net income, of which around 1.23 percentage points fund cover for incapacity for work / death / invalidity. The 2026 ceiling is €4,622.99. On top of the pension capital built up, you therefore get an income safety net if you are off work for a long period, cover that would have cost €30-60/month as separate insurance.

At 60 (or at the statutory retirement age), your PLCI capital is paid out to you. The tax at payout has three components:

• Notional annuity: the capital is not taxed at 10%. It is converted into a notional annuity of 4 to 5% of the capital depending on your age, added to your income and taxed at your marginal personal income tax rate for 10 years (13 years if the capital is received before 65), on only 80% of the capital if you remain active until the statutory age.
• NIHDI (INAMI) contribution of 3.55% (sickness and invalidity insurance).
• Solidarity contribution of 0 to 2% (depending on the total amount of capital).

The real charge therefore depends on your marginal rate during those years: it is lighter if your other retirement income is modest.

Lump sum or annuity? ~85% of self-employed people in Belgium opt for a single lump sum at payout: it offers more flexibility (buying property, passing on wealth, topping up income). A life annuity remains relevant for those who want a guaranteed monthly income.

1. Not paying in up to the ceiling without good reason. If your savings capacity allows it, reaching the ceiling every year maximises the leverage effect: every euro not paid in is a euro lost for tax purposes.
2. Choosing Branch 21 by default without comparing. Guaranteed returns in 2026 are ~1.5%. If your horizon is long and your profile can tolerate risk, a Branch 23 (or a 21/23 mix) can generate 2-4 extra percentage points of return, i.e. ~50% more final capital over 30 years.
3. Paying only in December. The growth lost over 9 months adds up. Pay at the start of the year whenever possible.
4. Forgetting to ask for the tax certificate. Certificate 281.50 is sent by your insurer in March and is essential for the deduction. Without it, you pay full personal income tax.
5. Touching the capital before 60. Barring a genuine emergency, it is the worst possible financial decision: 33% tax and loss of the accumulated savings.