Status · Pillar 5, a defining decision
Moving to a company as a self-employed person in Belgium in 2026: the complete method
When should you move from sole proprietor to SRL/BV? What does it really cost? How much tax can you expect to save? The 7-step method.
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By the Finances Indépendants editorial team
Why move (or not move) to a company?
Moving to a company is the number 1 defining decision in the career of a self-employed person in Belgium. It opens the door to a profoundly different tax regime, corporate income tax at 20–25% instead of personal income tax at a 50% marginal rate, but adds fixed costs and significant administrative complexity.
Reasons to move to an SRL/BV: stable net income above €60,000–80,000, a wish to retain part of the profit in the business, plans for an IPC, plans to invest in property through the company, plans to hire, purchase of a 100% electric business vehicle.
Reasons not to: income below €60,000, unstable activity (strong seasonality, career transition), no long-term horizon (sale planned in the short term), a strong aversion to admin (an SRL/BV demands rigorous bookkeeping).
The indicative €60k–80k threshold: where does it come from?
The popular threshold of €60,000 to €80,000 of net taxable income is not a magic number but the result of a calculation balancing two forces:
- On the gain side: the gap between personal income tax (50% marginal + municipal surcharge ≈ 53.75%) and corporate income tax (20% SME or 25%). On €30,000 of excess income, a gross gain of ~€9,000 before director's remuneration and costs.
- On the cost side: recurring SRL/BV costs (accountant + CBE + annual company tax + professional liability insurance), ~€3,000 minimum, up to €5,000 for more complex structures.
At €60,000 of net income, the gross differential gain on the excess (€15k–20k) ≈ €4,500–6,000, which only just covers the recurring costs. At €80,000, the excess becomes large enough to generate €8,000–12,000 of net annual gain after costs. This inflection zone is what explains the threshold.
Sole proprietor vs SRL/BV: the figures compared
Summary comparison for a self-employed person with €100,000 of net taxable income before remuneration, in 2026:
Sole proprietor
SRL/BV (SME rate)
Basic tax regime
Personal income tax 25–50%, progressive
Corporate income tax 20% SME (on €100k)
Social security contributions
20.5% on net income
20.5% on director's remuneration
Supplementary pension
PLCI/VAPZ + POZ/CPTI
PLCI/VAPZ + IPC (more powerful)
Recurring admin cost
Accountant only ~€1,200
Accountant + CBE + liability ~€3,500
Combustion-engine business car
75% deductible
0% deductible (2026)
Electric business car
100% deductible
100% deductible (2026)
Liquidation reserve
Not available
Yes, payout at ~18%
Taking cash out
Direct (already taxed under personal income tax)
Remuneration + dividend + liquidation reserve
Estimated net annual saving*
Baseline
+ €5,000 to €12,000 depending on profile
The 7-step method for making the switch
Moving from sole proprietor to SRL/BV follows a proven method:
- Economic validation (month -2): an accountant produces a 3-year projected comparison of personal vs corporate income tax, factoring in target remuneration, IPC, business car and liquidation reserve. Go/no-go decision.
- Financial plan (month -1): the accountant drafts the mandatory financial plan (3-year forecast). This document can be invoked against you in the event of bankruptcy within the first 3 years.
- Notarial deed (month 0): a visit to the notary to sign the deed of incorporation. Cost ~€1,200–1,800.
- CBE number + Belgian Official Gazette (month 0+1): filed by the notary within 30 days. The number is active so you can open a business bank account.
- VAT number + NISSE (month 1): form 604A for VAT (4–6 weeks), and the director's affiliation with the NISSE (INASTI) through a business one-stop shop (enterprise counter).
- Transfer of the business (month 1–2): contribution in kind, sale or business lease depending on your strategy. A separate deed, with the tax optimum to be calibrated.
- Operational start-up (month 2–3): first financial year, first professional withholding tax, first IPC/PLCI contributions set up. The SRL/BV is now the sole economic entity.
A realistic timeline: 3 to 6 months
Given the administrative lead times (CBE, VAT), a clean switch takes 3 to 6 months. Many self-employed people choose 1 January as the pivot date to simplify the accounts (one full year as a sole proprietor in year N-1, a first full year as an SRL/BV in year N), which means starting the procedure as early as September of year N-1.
Phases that can run in parallel: preparing the financial plan while the notarial file is being set up. Phases that must follow one another: the VAT number after the CBE number, the business transfer after the SRL/BV's CBE number.
Costs of the switch and recurring costs
One-off set-up costs
- Notary: €1,200–1,800 incl. VAT
- Financial plan (accountant): €200–500
- CBE and publication in the Official Gazette: €100–200
- VAT number: €100–200
- Business transfer (contribution, sale): €500–2,000 depending on the route
- Chartered accountant's fees for the transition: €500–1,500
One-off total: €2,500–6,000 depending on the complexity of the business to be transferred.
Recurring annual costs
- Accountant's fees: €1,800–3,500 a year
- Filing annual accounts with the CBE: ~€150 a year
- Annual tax on companies: €871 (sometimes waived in the 1st year)
- Professional liability insurance: €300–1,200 a year depending on profession
- Registered address service, business bank account, miscellaneous: €200–500 a year
Annual total: €3,000–5,500 a year minimum, excluding the IPC. See the SRL/BV guide.
The 4 mistakes that ruin a move to a company
Four mistakes come up again and again in poorly calibrated switches:
- Moving too early: below €60,000 of net income, the recurring costs cancel out the corporate income tax advantage. “I'm anticipating growth” generally does not hold up in the first year if the growth is slow to come.
- Director's remuneration below €50,000: loss of the 20% SME rate on the whole first band. Typical extra cost: €3,000–5,000 a year. See the SRL/BV guide.
- No IPC in the 1st year: every year without a contracted IPC means €5,000–15,000 of corporate income tax deduction lost. The IPC is the key lever of moving to a company.
- A poorly handled business transfer: a badly valued contribution or a sale at an undervalued price can be reclassified by the tax authorities as an abnormal benefit or disguised income. The deed should be done at the notary with a chartered accountant, never “lightly”.
Sources
- Code of Companies and Associations (CCA), Law of 23 March 2019, SRL/BV reform. View (new tab)(Official source, 2019-03-23)
- FPS Finance, Article 215 of the Income Tax Code, 2026 corporate income tax rates and SME conditions. View (new tab)(Official source, 2025)
- NISSE (INASTI / RSVZ), Affiliation as self-employed (main occupation), company director. View (new tab)(Official source, 2025-12)
- FPS Economy, CBE, Setting up a company and the mandatory financial plan. View (new tab)(Official source, 2026-01)
Key figures 2026
Moving to a company in a few numbers
- €60k–80k
Indicative net income threshold for making the move
Indicative estimate · 2026
- 3–6 months
Typical time for a clean switch
Indicative estimate · 2026
- €5k–12k
Typical net annual saving after the switch
Indicative estimate · 2026
Moving to a company FAQ
Frequently asked questions about moving to a company
The indicative threshold for choosing between sole proprietor and SRL/BV is between €60,000 and €80,000 of annual net taxable income. Above that, the gap between the marginal personal income tax rate (50% + municipal surcharge ≈ 53.75%) and corporate income tax (20% SME or 25% standard) creates leverage worth several thousand euros a year, to be weighed against the recurring SRL/BV costs (~€3,000 a year minimum). Below €60,000, the move rarely pays off. Between €60k and €80k, a personalised calculation with a broker + accountant is required.
No. Since the Code of Companies and Associations of 23 March 2019, there is no longer any statutory minimum capital. You must, however, file a financial plan (3-year forecast) that demonstrates the viability of your project and “sufficient” starting equity for the first 3 months of activity. The notary and the chartered accountant assess what is sufficient, typically €5,000 to €15,000 for a service business.
Allow 3 to 6 months between the decision and being fully operational: 1–2 months to prepare the financial plan and choose the notary, 1 month for signing the deed and getting the CBE number, 1–2 months for an active VAT number and the business transfer. During this period, you remain a sole proprietor. The official switch happens on a pivot date you choose (often 1 January of the following year to simplify the accounts).
You keep your sole-proprietor CBE number as long as you use it (for example if you keep a residual activity alongside the SRL/BV, which is rare). Otherwise, you ask the CBE to deregister it after you cease that activity. The SRL/BV receives its own separate CBE number. The two numbers can legally coexist, but this complicates the accounts, so most self-employed people deregister the old one once the switch is complete.
There are three transfer routes: (1) a contribution in kind to the SRL/BV's capital: tax neutrality is possible under the contribution-merger regime, but the procedure is heavy (company auditor); (2) a sale for consideration: the SRL/BV buys your business and you receive taxable capital, but often at favourable rates (professional capital gains regime); (3) a business lease: you lease the business to the SRL/BV, and the rental income is taxed as movable income (30%). The choice depends on the value of the business and your wealth strategy.
Not necessarily. In an SRL/BV, you receive director's remuneration (typically €50,000–60,000 a year) subject to standard personal income tax. The surplus profit stays in the company, taxed at corporate income tax rates (20–25%) instead of your marginal personal income tax rate (50%). On €30,000 of additional profit, the corporate vs personal income tax saving reaches €7,500–9,000 a year. Combined with the IPC, electric car and liquidation reserve levers, the typical net annual gain of a worthwhile switch is €5,000 to €12,000.
Yes, but it is cumbersome. Leaving an SRL/BV means either a dissolution with liquidation (a formal procedure, ~€2,000–5,000 in costs) or a sale/transfer of the shares. The capital taken out is taxed again (withholding tax on movable income on accumulated profits). Before going back to being a sole proprietor, check whether it would make more sense simply to scale down the activity in the SRL/BV or put it on hold, solutions that are often cheaper than a dissolution.
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