Are you an entrepreneurial student? Become a ‘student-entrepreneur’!

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Are you an enterprising student dreaming of starting your own business? Have you already started a successful side hustle and want to make it official? Do you want to combine entrepreneurship with your studies? Then the status of student-entrepreneur is definitely something for you.

What is the student-entrepreneur status?

The status of student-entrepreneur exists for students who want to start their own business. The fiscal and social benefits associated with this status make it easier for young entrepreneurs to combine their studies with self-employment.

Advantages of the student-entrepreneur status

1. Reduced social contributions

Unlike a 'regular' self-employed person, as a student entrepreneur, you pay less in social contributions. This makes it financially feasible to start a business while still studying.

• Is your net annual income* as a student entrepreneur less than €8,504.44? Then you can apply for an exemption, meaning you don’t have to pay any social contributions at all.
  
• Is your net annual income more than €8,504.44 and less than €17,008.88? Then you pay 20.5% in social contributions on the part that exceeds €8,504.44. De maximum contribution is €435.85 per quarter.
  
• If you exceed the threshold of €17,008.88, you pay the same social contributions as a self-employed person in a main occupation, which corresponds to about 20.5% of your net income. The minimum contribution is €96.44 per quarter.

*Your net annual income is your earnings for a full year, minus all professional expenses such as business expenses and social contributions.

2. Continued child benefit payments

As a student entrepreneur, you retain the right to child benefits or "Het Groeipakket" as long as you do not exceed the thresholds below:

• Do you live in Flanders? You retain the right to child benefits or the Growth Package as long as your net annual income as a self-employed student is less than €17,008.88.
• Do you live in Brussels? Then your net annual income must not exceed €8,504.44.

3. Tax-free up to €10,570

As a student entrepreneur, you pay no taxes if you stay below the tax-free sum of €10,910.

⚠️ Note that this sum (like your social contributions) refers to your net annual income, i.e. your gross income minus all your professional expenses. It’s therefore important to declare all your business expenses to keep your net taxable income low and consequently pay little to no taxes on the income from your (student) entrepreneurial activity.

What if you earn more than €10,910? Then you’re taxed according to Belgium’s progressive personal income tax rates. The tax impact increases the more you earn.

4. Deductible business expenses

What’s the best way to keep your net annual income low and avoid high social contributions and taxes? Make sure to declare your business expenses.

Buying a new computer or smartphone for your self-employed activity? Or a new office chair, reading lamp, or software subscription? All purchases that have a clear link to your professional activity are tax-deductible. Some purchases are 100% tax-deductible, while others (e.g. mixed professional/private expenses) are partially deductible. You can read more about deductible business expenses here.

💡Accountable tip: Don't want to miss opportunities to lower your taxable income and pay less in tax as a result? Then definitely check out Deductibles.be and discover more than 115 recommended business expenses for self-employed people in Belgium.

5. Skill building that’s good for your CV

As a student entrepreneur, you develop real-life business skills and gain lots of valuable knowledge. Running your own business can contribute to your personal development and shows that you can work independently. These are qualities that will look great on your CV or LinkedIn profile.

What are the conditions for obtaining student-entrepreneur status?

Not everyone is eligible for the advantageous student-entrepreneur status. There are several cumulative conditions you need to meet to benefit from this favourable regime:

• You’re between 18 and 25 years old.
• You actively attend a recognised educational institution with the aim of obtaining a qualification recognised in Belgium.
• You are enrolled for at least 27 credits or 17 hours of classes per week.
• You carry out an independent professional activity, without being employed (i.e. having a student job).

Other requirements for student entrepreneurs

As a student entrepreneur, you enjoy a number of benefits, including reduced social contributions, but you still have to go through the same red tape as a 'regular' self-employed person.

• Official registration as self-employed with the Crossroads Bank for Enterprises (€109)
• Apply for your VAT number, even if you’re not subject to VAT (around €70)
• You also need to join a social insurance fund and keep accurate accounting records.

💡Sound complicated? It's not that bad actually, and we’re happy to help you on your way: Become self-employed in 5 steps!

Starting as a student entrepreneur: a good idea?

There are many advantages to the status of student-entrepreneur, especially if your business remains small and your income is relatively limited. As long as you keep an eye on the income thresholds, your personal income tax and social contributions are low, and your parents don’t lose the right to child benefits.

There’s quite a bit of administration involved in the status of student-entrepreneur. But at Accountable, we do everything we can to make your accounting and taxes child's play.

Download the app, try it for free and discover how we do it!

Author - Valesca Wilms

As content marketing lead at Accountable Belgium, Valesca writes about freelancing, self-employment, and taxes based on her own experience as a freelancer.

Who is Valesca ?