Invest in innovation. Reduce your tax.

What is the Belgian Tax Shelter?

The Tax Shelter for startups and scale-ups is a Belgian tax scheme designed to encourage private investment in young and growing companies. You subscribe to new shares or participative notes. If all conditions are met, you receive a reduction in your personal income tax.

It is not an upfront grant and it is not a guaranteed return. You become a shareholder in a company that still has to grow. The tax reduction is an advantage alongside any future investment return, but the investment risk remains.

Why do investors consider it?

You invest in the real economy

Startups and scale-ups use capital to develop products, hire people, expand internationally, or accelerate commercial growth. Your investment supports that growth phase.

The tax reduction lowers the initial cost

An eligible investment may reduce part of the amount of personal income tax. The exact percentage depends on the company category.

The scheme gives long-term investing a clear framework

The rules define the timing, documents, and minimum holding period that matter. This helps you assess an opportunity beyond its headline tax percentage. When you invest through a crowdfunding platform, the administrative tasks are taken care of for you.

How does it work?

1. You select a company eligible for the Tax Shelter.
2. You subscribe to new shares at incorporation or in an eligible capital increase.
3. You fully pay for the investment according to the issue terms.
4. The company or crowdfunding platform provides a tax certificate each year.
5. You report the amount shown on that certificate in your tax return.
6. You hold the investment for the required period.

An investment may be made directly or through a qualifying crowdfunding platform, starter fund, or financing vehicle. Lita and Spreds are crowdfunding platforms offering Tax Shelter investments.

Who can receive the benefit?

The scheme generally concerns individuals who are subject to Belgian personal income tax. Some non-residents may also qualify when at least 75% of their professional income is taxable in Belgium.

An investment made through a company is not the same as an investment made by an individual. The Tax Shelter benefit applies only to the personal income tax reduction. Company directors who invest in the company in which they directly or indirectly exercise their director activity are excluded.

Startup or scale-up?

Tax Shelter startup

A startup investment is made at incorporation or through a capital increase within the first four years after incorporation. A micro-company can provide a 45% reduction and a small company can provide a 30% reduction when all conditions are met.

Tax Shelter scale-up

A scale-up investment is made through a capital increase during the legal investment window from the fifth through the tenth year after incorporation. The rate for an eligible small growth company is 25%.

A scale-up must also meet growth criteria. These include requirements concerning the size of the team and growth in employment and/or turnover. The company must be able to demonstrate that it meets the current legal conditions.

Important limits and obligations

You can claim a maximum of €100,000 per person per year across the combined Tax Shelter startup and scale-up reductions. Married couples and legally cohabiting partners each have their own limit.

The shares must be fully paid up and held for the required period. For a startup, the relevant holding period is generally 48 months. For a scale-up, the consequences of a change can depend on the specific condition and applicable period.

Before you invest

Investing in a young company is venture capital. You can lose part or all of the amount invested. Shares in an unlisted company can also be difficult to sell. A tax reduction does not automatically make a poor investment a good one.

Review the business model, valuation, team, funding needs, shareholders’ agreement, expected liquidity, and costs. Diversify your risk and invest only an amount you can leave invested for several years.

The calculator on this page provides an indicative tax reduction. It does not assess whether an investment is suitable for you and does not calculate your personal tax return.

Frequently asked questions

Is a Tax Shelter investment a tax-free investment?

No. You are genuinely investing in shares or participative notes. The value can rise or fall and repayment of your capital is not guaranteed.

Do I always get 45% back?

No. 45% applies only to an eligible investment in a micro-company. The rate is 30% for a qualifying startup small company and 25% for an eligible scale-up.

Can I invest more than €100,000?

Yes, but only €100,000 per person per year can qualify for the combined Tax Shelter reductions.

Which documents do I need to keep?

You need the annual tax certificate. You request it from the company, or it is sent to you automatically when you invest through a crowdfunding platform. The crowdfunding platform also reports this to FPS Finance so that your tax return is already pre-filled.

Where do I report the investment?

Codes can change from one tax year to another. For the currently published return, FPS Finance refers to section X, II and codes 1318/2318, 1320/2320, and 1334/2334 depending on the rate. Always use the certificate and the latest tax-return instructions.

Can my accountant confirm whether I qualify?

Yes. Before investing, ask them to check your investor status, the company’s eligibility, and whether you pay enough personal income tax to make practical use of the benefit.

Sources and updates

This content is based on official information from the Belgian authorities:

• FPS Finance: investing in a startup or scale-up
• FPS Finance: startup companies
• FPS Finance: scale-up companies
• FPS Finance: tax rates
• Vlaanderen.be: startup Tax Shelter
• Vlaanderen.be: scale-up Tax Shelter

The rules can change. Always check the latest official information before investing.