Short answer
Below €75,000 profit: a sole proprietorship is simpler and cheaper. Around €100,000: tipping point, a BV starts to pay off. Above €120,000: a BV is clearly more advantageous. These are rules of thumb; your exact situation depends on your deductions, family situation and how you distribute profits.
1. How does taxation work?
Sole proprietorship
Everything is taxed together
- 1. Full profit = taxable income
- 2. Personal income tax: 25% to 50% (progressive)
- 3. Social contributions: ~20% on net professional income
- 4. Municipal tax: 6-9% on the personal income tax
The more you earn, the higher the percentage.
BV/SRL
Profit is split
- 1. You pay yourself a salary (personal income tax + social contributions)
- 2. Remaining profit in BV: 20% corporate tax (SME rate)
- 3. Leave profit in BV = no additional tax
- 4. Distribute dividend = 30% withholding tax (or 15% via VVPRbis after 3 years)
The advantage lies in the split: low salary + low corporate tax on the rest.
Why a €45,000 salary?
There is no legal minimum salary for a company director, but €45,000 gross per year is a common figure. Why?
- Keep the SME rate: to get the reduced 20% corporate tax rate, you must receive at least €45,000 in remuneration (or at least the company's result if lower). This includes benefits in kind (BIK): company car, home internet, mobile phone, laptop, housing provided, etc. All these benefits count towards the €45,000 threshold.
- Social rights: your pension accrual, sick pay and other social rights depend on your salary. Too low = too little protection. In a BV, this is often supplemented with an IPT (Individual Pension Commitment) that the company pays tax-deductibly
- Tax balance: higher salary = more personal income tax. Lower salary = no SME rate. €45,000 is the sweet spot
What do you keep from €45,000 gross?
Without company car
With company car
E.g. a €35,000 car via the BV (BIK ~€1,500/year)
Your gross salary decreases by the BIK amount, so your net salary is lower. But the BV pays the leasing costs, fuel and maintenance. Total purchasing power is higher.
Other benefits in kind that reduce your salary
Besides a company car, you can also declare other costs as BIK. Each BIK reduces your gross salary but you get the benefit "for free" via the BV:
Example: your mobile plan costs €15/month (€180/year). The BV pays that €180. But the tax authority only charges you €48 per year as a "benefit". So you only pay tax on that €48, not on the actual €180. For housing it works differently: the BV pays you a compensation for professional use of a room/office. That's a cost reimbursement that is not taxed.
Amounts are indicative (single, no children, average municipality). Your exact net depends on your family situation, municipality and deductions.
2. Calculation examples: how much do you keep?
Below are three scenarios. The figures are simplified to show the order of magnitude. Your exact situation depends on deductions, municipality and family situation.
€ 75.000 profit per year
Sole proprietorship sufficesSole proprietorship
BV/SRL
What if you distribute the BV profit?
A sole proprietorship is simpler and the difference is small. The extra BV costs eat up the advantage.
€ 100.000 profit per year
Tipping pointSole proprietorship
BV/SRL
What if you distribute the BV profit?
The tipping point. The BV starts to pay off, especially if you leave profit in the company for investments or pension accrual.
€ 120.000 profit per year
BV winsSole proprietorship
BV/SRL
What if you distribute the BV profit?
Clear advantage for the BV. You keep considerably more, especially if you leave profit in the company.
Figures 2026, incl. 20% corporate tax SME rate (up to €200,000 profit). Exact net: depends on municipality (6-9%), family situation and deductions. Not included: dividend distribution (30% WHT or 15% VVPRbis), IPT/group insurance. Consult your accountant for a personal calculation.
3. What people forget
Profit in the BV is not yours
It's in the company's account. Want to use it privately? Then you pay an additional 30% withholding tax on dividend distribution (or 15% via VVPRbis after waiting 3 years).
BV costs are fixed
Accountant (€1,500-3,000/year) and annual accounts (~€70/year) are due every year, even in a bad year. Notary costs (€1,000-2,000) are a one-time fee at incorporation.
Leaving profit in the BV only pays off if you do something with it
Investing in real estate, equipment or your business? Then you can extract money from your BV more cheaply than as a sole proprietor. But if the money just sits idle in the company account without a plan, you've only deferred tax, not saved it. Upon distribution, you still pay 30% (or 15% via VVPRbis).
Without a financial plan, you ultimately lose more
Many BV owners pay themselves a low salary, leave profit in the BV, but do nothing with it. Result: too little pension accrual, too few social rights in case of illness, too little private savings, and ultimately still heavily taxed upon distribution. A BV only works if you actively optimize (IPT, group insurance, liquidation reserve). If you don't? A sole proprietorship was simpler and you ended up with the same net result.
4. Rules of thumb
| Profit per year | Advice |
|---|---|
| Below €75,000 | Sole proprietorship Simpler, cheaper, the difference is too small |
| €75,000 - €100,000 | Evaluate Can pay off if you have few deductions or want to reinvest profit |
| €100,000 - €120,000 | Tipping point BV clearly starts to pay off |
| Above €120,000 | BV/SRL Clear advantage, especially with reinvestment or pension accrual |
Remember: this is purely about taxation. A BV can also make sense for other reasons (employees, large contracts, real estate). Read our guide BV or insurance: what really protects you? for the full comparison.
Want to know more?
5. Frequently asked questions
When is a BV/SRL tax-efficient?
Around €100,000 profit per year, a BV becomes fiscally interesting. Below €75,000, it usually doesn't pay off due to the extra costs. Above €120,000, the advantage is clear. (Figures 2026, SME rate 20% up to €200,000 profit.)
Is a €45,000 salary mandatory?
No, but it's fiscally optimal. With at least €45,000 in remuneration (including BIK), you get the reduced SME rate of 20% corporate tax. Without that threshold, you pay 25%. The €45,000 also includes benefits in kind: company car, mobile phone, internet, laptop.
What does a BV really cost?
Startup: €1,000-2,000 notary fees. Annually: €1,500-3,000 accountant + ~€70 filing annual accounts with the NBB. Total: count on at least €2,000-3,500 per year in fixed costs that you don't have as a sole proprietor.
How much salary should I pay myself via a BV?
At least €45,000 gross (including benefits in kind) for the SME rate. This amount also gives you sufficient social rights (pension, sick pay). Higher is possible, but personal income tax increases. Lower is also possible, but then you pay 25% corporate tax instead of 20%.
What's the difference between leaving profit in the BV and distributing dividends?
Leaving profit in the BV is untaxed (corporate tax has already been paid). With dividend distribution, you pay an additional 30% withholding tax, or 15% via VVPRbis after waiting at least 3 years. Many entrepreneurs leave profit in the BV for investments, pension accrual (IPT/group insurance) or liquidation reserve.
Is this an exact calculation?
No. These are simplified examples (2026 figures) to show the order of magnitude. Your exact situation depends on your deductions, municipality (6-9%), family situation, and how you distribute profits. Always consult your accountant for a personal calculation.