Expertise
Advisor for management companies
Studies show that increasing numbers of management companies are being set up in Belgium each year. They're especially popular among IT specialists, engineers, translators, real estate experts and senior executives.
Despite their popularity, tax authorities often look closely at management companies, viewing them as potential tax avoidance vehicles. What’s more, owners may be at risk of being accused of ‘false self-employment’. These potential pitfalls make getting expert advice crucial when setting up and running your management company.
Limitation of liability
One of the main reasons business owners choose management companies is to protect their personal assets. The structure creates a legal buffer between you and the operating company, though it doesn't completely eliminate directors' liability.
Our legal experts are happy to assess whether this approach provides the protection you need in your specific situation. Sometimes, additional insurance for specific liability risks may be advisable.
Management company
Reducing the tax burden
For most, taxation remains the primary motivation for setting up a management company. The math is compelling: personal income tax can reach 50% on earnings above €40,000, while corporate tax rates are much lower (20% on the first €100,000 and 25% above that since 2020). This difference can lead to significant savings when you invoice through a management company.
To make the most of these tax benefits, you’ll need a consistent approach to how you take money out of the company. If your lifestyle requires higher personal income, we can help design a strategy to extract money from your company in the most tax-efficient way—whether through salary, dividends, copyright payments, or expense reimbursements.
Management company
Another benefit is the ability to create a ‘liquidation reserve’ or to use the ‘VVPR bis scheme,’ which can reduce the tax on dividends from the standard 30% down to just 10-15%.
Personal wealth planning
If you can afford to leave money in your management company instead of taking it all as personal income, it can become a powerful tool for wealth-building. For example, you could reinvest within the company and grow your assets over time. Some entrepreneurs even transform their management company into a family holding company, allowing accumulated wealth to pass smoothly to the next generation.
Management company
A major advantage here is avoiding the ‘double taxation’ that happens when taking money out of a company and then passing it on later. Plus, when the next generation receives shares through gifts or inheritance, these are often taxed more favourably than if they received the actual assets directly. Our wealth planning experts are happy to guide you through these options based on your personal circumstances.
Learn more about our services
We love to help you.
Subscribe to our newsletter