Pension Agreement for the Self-Employed

Voluntary participation

• The self-employed, the assisting spouse and the helper (excluding managers).

General finances

• A pension capital (system of capitalisation) based on the investment of deposits by the person concerned and increased by the investment returns.

Contribution payments

• Minimum contribution (EUR 100 per year) and maximum contribution rate of 8.17% of professional income with an absolute maximum of EUR 3,291.30 (in 2021).
• For schemes with a solidarity system (providing additional benefits in case of e.g. temporary incapacity for work, sickness, death): minimum contribution (EUR 100) and maximum contribution rate of 9.40% of professional income with an absolute maximum of EUR 3,786.81 (in 2021).

Incentive strategy

• Contributions are fully tax-deductible (within the 80% rule).

• The person can conclude an ‘ordinary’ or ‘social’ pension agreement with a pension institution of the person’s choice.
• The ‘Financial Services and Market Authority’ (FSMA) monitors pension institutions' compliance with social legislation as well as the financial health and appropriate organisa-tion of pension funds.

• The payment of the supplementary pension is linked to the statutory retirement pension or is claimable, at the earliest, at the age of 60 years.
• No premature surrender possible except if reserves are to be transferred to a new pension institution or if construction plans are to be realised.

Pension payments

• The payments can be made via a one-time lump sum with a one-off capital payment, or life-long annuities with a periodic interest rate.
• Pension payments supplement those of the VAPZ.

Taxation and social security contributions

• Tax advantage through deduction premiums (max. 30%); one-off taxation of capital at a lower rate (at pensionable age/early retirement/death: 10%); withholding of health care and solidary contributions, municipal surcharges.