Freelancing is often idealised because many people associate it with freedom, flexibility and the chance to do work you genuinely enjoy. This is all true … to an extent. While freelancers can theoretically earn more and work from any part of the world, as somebody residing in Belgium you must remain vigilant about documentation, taxes and other bureaucratic matters.
Staying on top of these things, especially in Belgium – a country of long slow and inefficient processes – can be frustrating. Knowing how much you have to pay every quarter, whether you need to charge VAT, how much you charge, and the latest regulations are all things you need to follow in order to avoid problems with social insurance funds or tax authorities.
If you have decided to freelance in Belgium and wonder where to start, Google is often a good option. Let’s explore what are some things to look out for as a freelancer in Belgium.
Registration through a social insurance fund
As with many things, registering as a freelancer in Belgium and signing up for a value added tax (VAT) number goes through a third-party.
Firstly, you have to register at the Crossroads Bank for Enterprises (Kruisepointbanc), which gives your company a name and a company number. To do this, you have to pay about 100 euros. The tricky part is that you cannot register on your own and you have to go through a social fund, such as Liantis , Xerius or Acerta. Usually, they handle the documentation for you and provide you with your VAT number.
Having a VAT number is important, especially if you need to charge VAT on top of your fees. It also shows that you are registered at the Crossroads Bank for Enterprises and all of your work is being done in compliance with local legislation.
One thing that is useful to know is that as a freelancer you can opt to register as a small enterprise (with revenue less than 25,000 euros per year gross revenue). This allows you to not have to invoice or pay VAT. If you think that this would be the case for you, then do it.
VAT is another thing to worry about every trimester besides the social contributions.
Type of activity
Choosing the type of activity is another important dimension to consider. You can decide whether you are a freelancer full-time (main activity) or part-time (secondary activity). This would also be reflected on your quarterly social contributions.
So if you are an employee and thinking about becoming independent you need to consider the following things:
• As a self-employed freelancer you have to pay your own social contributions, charge and pay VAT and file your taxes.
• Your social contributions will depend on your income.
• If you are an independent freelancer, you have to pay a minimum of 925.59 euros If you decide to be a freelancer part-time (secondary activity), then this shows that you already benefit from social rights as an employee. Your social contributions therefore make little difference to your social security.
If your net taxable income is less than 1,922.16 euros per year, you pay no social security contributions. If you earn more than 1,922.16 euros per year, then you have to pay the same contributions as someone who is self-employed full-time (main activity), for example 20.5 percent of your next taxable income.
It is also important to ensure that your employment contract does not impose any restrictions, such as a non-compete clause. Another thing to look out for is the mandatory work hours you have to complete to be eligible for this. In this case, it equals to at least 235 working hours per quarter to be eligible for this status. Then your contributions are often considered solidarity contributions, because you are already insured based on your main occupation.
Social contributions
Joining a social insurance fund in Belgium is mandatory because you have to pay quarterly social security contributions for pension, healthcare, and family benefits. Social insurance funds are basically the organisations that help you with your registrations at the Crossroads Bank for Enterprises.
Once you sign up, you will have to make social contributions every quarter depending on your activity and income. If you are new, there are some things you can do in order to cut down on initial expenses.
For example, if you decide to register with Liantis (the social insurance fund which I am registered at) you can benefit from a reduction from your provisional contributions. What does this mean? As a newly registered full-time freelancer you can request the exception for “primostarters”.
You qualify as a primostarter if, for five years prior to start of your main self-employed activity, you were not active as a main self-employed person under Article 37 or as a collaborating spouse with maxi-status.
This means that you still have to pay social contributions, but a reduced rate of 477.98 euros per quarter.
Conclusion
Freelancing in Belgium offers independence, but it also means navigating a dense administrative system. Taxes, social contributions, and registration procedures can be overwhelming, especially if you do not know the system. However, with the right preparation – or by trial and error – these hurdles eventually become easier to manage.
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Read more about Belgium here in Dispatches’ archives.
Polya Pencheva
Polya Plamenova Pencheva is a young Bulgarian journalist based in Brussels, Belgium. Polya holds a Master's degree in journalism from Rijksuniversiteit Groningen and loves writing and telling the untold stories of interesting people. You can find her dining at cute café, shopping at markets, scouting second-hand shops or just chillin' at home with something great to read.
