How to set up as an independent contractor in Belgium

Want to start making a living on your own terms?

Then say goodbye to the 9-to-5 grind and hello to life as an independent contractor in Belgium — where freedom, flexibility, and delicious chocolate create the perfect recipe for success.

The country’s vibrant labor market is ideal for small businesses, while its diversified economy and stable democracy mean the ease of doing business is very high.

Before you get started, though, you’ll need to understand how to become a freelancer in Belgium. This means knowing how to register your business, create compliant contracts that protect you, and collect payments from around the world.

We cover all these things in this article. We also help you navigate your tax obligations as a self-employed worker and discuss some other risks and liabilities to be aware of.

What is an independent contractor according to Belgian law?

Independent contractors are workers who provide paid services to another party. However, they are classified differently from employees and are not always entitled to the same benefits. Independent contractors are also responsible for arranging their own taxes and social contributions.

In Belgium, the key difference between a contractor and an employee is the relationship of authority. Employees are subordinates of their employer, while independent contractors are not. As a result, you’re generally considered a contractor if you:

• Determine your own work schedule

• Perform work for other companies

• Set your own rates

• Are able to delegate or subcontract work

• Set your own working hours

• Work without direction or supervision

It’s crucial to be correctly classified to avoid penalties and fines.

What is the difference between starting a business and working as an independent contractor in Belgium?

Starting a business in Belgium doesn’t necessarily mean that you’re self-employed. If you start a business, you can end up working for it as an employee.

Establishing yourself as an independent contractor, however, means that all of your income goes to you instead of a company. As a result, you’re responsible for your own taxes and social contributions (like social security payments).

Most of the time, independent contractors don’t hire their own employees — although some may take on a few as their workload grows.

What do I need to qualify as an independent contractor in Belgium?

Before you register your business as an independent contractor in Belgium, there are a few things you need to take care of. Consider the following requirements, for instance:

• You must be at least 18 years old.

• You must have no current criminal convictions.

• You must be legally capable, meaning you haven’t been declared legally incompetent.

• You can’t be legally banned from working in your profession.

• Some professions (like dieticians) require certain certifications or educational qualifications.

In addition, most jobs in the Wallonia or Brussels-Capital region of Belgium require independent contractors to take an exam proving they have basic management skills. For 26 specific roles (such as construction workers or pastry chefs), you’ll also need to show that you have certain professional skills.

The basic test has 30 questions. To help you prepare, you can check out the syllabus or take classes. If you don’t pass, you can retake the exam, but you’ll have to wait three months to do so.

If you’re permanently established in another EU country and would like to only work in Belgium as an independent contractor temporarily, you need to take an additional step. Apply for a Limosa declaration and follow any additional requirements for working in Belgium, which you can find through Be-Assist.

What do I need if I’m not a European citizen?

If you’re not a European citizen but still looking to establish yourself as an independent contractor in Belgium, start by acquiring a professional card. Make sure to apply in the region that you plan to work from. To qualify, you need to have the right of residency, which you can apply for at the consulate at the same time as your professional card.

There are some exemptions to the professional card requirement, such as if your legal partner has Belgian nationality. But in general, your application should show your business plan or some type of documentation demonstrating how your profession can contribute to Belgium’s prosperity.

Following all the rules and regulations listed here may sound complicated, but it doesn’t have to be with the help of a comprehensive global HR platform like Remote. Our in-country experts and country-specific resources can ensure you have everything you need to establish yourself as an independent contractor in Belgium.

Business registration in Belgium

To work as an independent contractor in Belgium, you’ll need to choose a legal structure for your business. Some of the most popular models include:

• Sole proprietorship (eenmanszaak/entreprise individuelle): A simple structure that is ideal for independent, individual contractors. You have full control of the enterprise, although there is no legal separation between you (the owner) and the business; you are personally responsible for all its debts and liabilities.

• Partnership (maatschap/société simple): A simple partnership agreement. Again, there is no legal separation between the individual and the business; you and your partners are personally responsible for any debts and liabilities. To mitigate this, you can create a limited partnership.

• Limited company (BV/SRL): A formal, legal entity that is separate from you, the individual. All income and losses are attributed to the company as opposed to you personally.

There are pros and cons to each structure, but most independent contractors choose the sole proprietorship model, as it is fairly simple to set up and operate.

If you opt for this structure, you will need to register with the Crossroads Bank for Enterprises (CBE). You will then be given a 10-digit company registration number.

When you register with the CBE, it will confirm that you have met many of the conditions needed to become an independent contractor (many of which we listed above). For example, you’ll want to take your test showing competence in basic management skills in the Wallonia or Brussels-Capital regions ahead of time.

Finally, you must choose and join a social insurance fund and a health insurance fund. Failure to do so can result in fines of between €500 and €2,000.

How do I get paid as an independent contractor in Belgium?

As an independent contractor, it’s up to you to handle your invoices and payment collection. Unfortunately, this means billing each client individually and collecting payment through their preferred payment method — which can be inefficient and time-consuming.

Some of the most common ways to collect payments include:

• Bank transfers

• Direct deposits

• Paper checks

• Money orders

• Virtual wallets

• Digital transfer services like PayPal and Wise

These methods all have their own pros and cons. For instance, bank and digital transfers can be pretty quick but often come with hefty service fees. And if you have clients in countries other than Belgium, the payment collection process can be even more complicated.

Alternatively, you can use a trusted solution like Remote. Our platform is a simple, secure, and reliable way to get paid quickly in euros — and with no hidden fees. Learn more about how our platform can help.

Independent contractor taxes in Belgium

As an independent contractor, you’re also responsible for paying your own taxes and social security contributions. Belgium has a progressive income tax rate that indicates how much you will owe.

As in most countries, Belgian sole proprietors pay personal income tax on their business profits. Therefore, you do not need to fill out a separate tax return. You will receive your return in either May or June and will then have two months to submit it.

In addition to paying taxes to the federal government, you need to pay a municipal tax. This rate varies depending on where you are based but is usually around 7%. You will also need to make social security contributions to your social insurance fund (these rates are set by the tax authority).

You need to start making social security contributions within 90 days of beginning work as an independent contractor in Belgium. You can get benefits like disability insurance, sickness insurance, and family allowances from your social security.

In general, independent contractors pay less social security than employees, but with this comes fewer rights. In Belgium, however, you can pay more voluntarily if you want to receive more benefits.

After your first three years, you can start paying your taxes in advance, depending on your expected income.

On the plus side, you can claim full or partial tax deductions on your business expenses, such as:

• Office or studio costs

• Equipment and tools

• Business travel

• Insurance

• Professional services and fees

Note that if you practice a so-called liberal profession (such as medicine, engineering, or law), you can opt for a fixed-rate deduction (usually around 30%) on your income for all your business expenses.

VAT information for independent contractors in Belgium

When you first set up your business, you must check if the goods or services you provide are liable for VAT (TVA/BTW) in Belgium. In the likely event they are, you will need to apply for a VAT number, charge VAT on your clients’ invoices, and file VAT returns.

Belgium has a standard VAT rate of 21%, although some goods and services are charged at the lower rates of 12% and 6%. Some goods and services are entirely exempt from VAT.

If your annual turnover is less than €25,000, you do not need to charge or pay VAT. Note, too, that when dealing with clients outside of Belgium, the rules are slightly different.

Liability considerations for independent contractors in Belgium

As a sole proprietor, you are personally liable for finance and tax debts, which means your private assets can be forcibly used to settle your business debts. Many independent contractors purchase liability insurance to help mitigate this risk.

It’s also important to cover yourself when drafting and signing agreements with clients. Remote’s legal experts can provide you with fully compliant contract templates for both Belgian and international clients.

Accounting requirements for independent contractors in Belgium

As a sole proprietor, you do not need to publish financial statements each year. However, you do need to keep records of your accounts, including all your client invoices and business purchases.

You can either manage these records yourself or hire a bookkeeper or accountant. Or use Remote’s Contractor Management Platform, a simple way to manage your records and get paid as an independent contractor in any currency you want.

The dangers of contractor misclassification in Belgium

As we’ve mentioned, independent contractors are classified differently than employees. Many of the protections and benefits employees enjoy don’t typically apply to contractors.

As a result, companies may deliberately misclassify you to circumvent their legal obligations, while at other times, it may happen accidentally. Whether it’s intentional or not, misclassification can result in penalties and fines for both you and your client.

As an independent contractor, you can work with your clients to ensure this doesn’t happen. Discuss your role and responsibilities with them, and review the working arrangement regularly.

If your working relationship changes over time and you become more integrated into a client’s company, you can ask to be converted into an employee.

How do I ask the company I’m working with to convert me to an employee in Belgium?

At the end of 2022, there were over 1.25 million self-employed people working in Belgium. If you want to become one of them while continuing to work for your current employer, here are a few ways to get the process going:

Open a dialogue with your client and carefully discuss the risks and benefits of moving to an employer-employee relationship. In particular, be clear about how it can benefit both parties — not just you.

You can even suggest the help of a third-party solution, such as Remote, to ease the transition. Our global employment services help both parties stay compliant by taking care of key HR functions (like payroll management and benefits administration) in line with Belgian law.

4 ways Remote makes life easier for contractors and their clients

As you can see, there’s a lot to take on board when setting up as an independent contractor. Remote can help you with many of these challenges, allowing you to focus on growing your business and delivering to your clients. Here’s how:

1. International payments in countries around the world

Navigating all of your clients’ different invoicing, approvals, and payment systems can be complicated and time-consuming. And manual methods of invoicing and collecting payments can increase the risk of fees, errors, and delays.

Remote gives you access to a highly secure, streamlined dashboard that makes invoice management and international payments cost-effective and efficient. You can use our platform to get paid in euros hassle-free, without any hidden fees.

2. Localized in-app contracts and advice

When you draft agreements and contracts for your clients, you run the risk of non-compliance with local labor laws — especially when working with international clients. Remote offers localized contracts tailored to Belgian laws, ensuring that you stay compliant. Our legal experts can also provide guidance on complex issues, such as local classification and intellectual property protections.

3. Invoicing automation

With Remote, you no longer need to rely on spreadsheets and other manual tools to invoice for payments; we remove many of the inaccuracies and delays caused by archaic processes and manual management. Our platform lets you create invoices, submit them for approval, and subsequently get paid in your local currency without needing to switch to any other tool or software.

4. Tax management

Tax management is notoriously complex work. Remote helps you quickly and efficiently deal with tax management by compiling data about your income based on your invoices and payments received.

Set up as a contractor in Belgium today

Having the freedom and flexibility to work on your own terms is liberating. But your administrative responsibilities can distract you from what you really want to be doing: helping your clients, delivering great work, and collecting invoices.

By using a stable, trusted platform like Remote, you can manage these obligations quickly and efficiently, allowing you to focus on your business goals. Specifically, we can help you:

• Avoid intermediary fees and delays with international client payments

• Draft compliant contracts for Belgian and foreign clients

• Enhance your invoice management and avoid manual processes

• Comply with local labor laws regarding work practices

Our platform makes it quick, simple, and seamless to get started as an independent contractor. Learn more about how our expertise can save you time and resources, and get started today.