Company registration in Belgium

Transportation

If you use a vehicle that belongs to your company, you are considered to receive a benefit in this way. This benefit is usually defined as an income of around €1,000. From this amount you will pay tax as an individual, regardless of the mileage and the mark of the car and the company will deduct all the costs of maintaining the car from your taxes.

Real estate

A Belgian company can purchase real estate without restrictions. Registration fees and notary costs are tax deductible in the year the property is acquired, and the cost of the premises itself is also deductible.

If you live in a house or appartment, that is owned by a company, this is also considered as a benefit. However, the quantification of this benefit is very small because it is calculated according to the so-called “cadastral income”. “Cadastral income” is a long outdated rent from 1975 (yes, yes – 1975). The nuances of Belgian law allow you to organize a real estate transaction so that all the major costs of acquisition and maintenance of the object is borne by the company (and write it off as expenses), and in 20 years the property passes into the ownership of the owner of the company.

If you as an individual sell the house you live in, you will not have to pay capital gains tax. The next house can also be sold tax-free, as long as this does not happen before 5 years. Otherwise, the capital gains tax will be 16.5%. However, even then, you will be able to take advantage of numerous tax deductions, so generally the actual tax will be much less.

Life insurance

In Belgium, it is possible to buy solid insurance at the expense of the company if the director of such a company is the owner. The amounts of the insurance premiums in this case are tax deductible for the company. When the director reaches the age of 60 or 65 (and in some cases earlier), the company pays the full amount of the insurance to the director and only then a 16.5% tax is paid on the amount of the insurance.