Deduct interest
100 %

Good news, generally, interest is fiscally deductible.
When it is linked to your freelance activity, interest is deductible.
That said, there are 2 exceptions:
1 / excessive interest: for self-employed persons interest paid on advances by entrepreneurs, shareholders, their spouses or underage children is rejected (i) insofar as they exceed the market interest rate, or (ii) because the 1/1 ratio is exceeded.
The 1/1 ratio means that the interest-bearing loan cannot exceed the sum of:
• taxable reserves at the start of the taxable period;
• paid-in capital at the end of the tax period.
2 / Thin Cap: For companies, the credit on loans that exceed the debt or equity ratio of 1/5 is rejected if this surplus exceeds the total amount of the loans by the following amounts times 5:
• taxable reserves at the start of the taxable period;
• the paid-in capital at the end of this period.
Finally, no VAT is charged on interest, so it does not count.
⚠️ Since the 2020 tax year (i.e. taxable period from 1 January 2019) the administration has issued new rules regarding the deduction of interest.
The new rules now limit the tax deduction for 'increased financing costs' to the highest of the following two limits:
• 3 million euros (minimum threshold);
• 30% of the (fiscal) EBITDA.
So watch out for business groups and consolidated balance sheets ...
Would you prefer tips that are tailored to your professional situation? We can do that too for you!
These expenses might be relevant too
Phone & Internet
The tax authorities know that you use your phone for both your private and professional life, which is why they will impose a maximum tolerance of 75% VAT deductibility. For the...
Know more100 %


Taxes & insurance
Do you work from home? You can deduct a part of this cost in proportion to the part you use for professional purposes. The deductibility depends on the square meters that are...
Know more100 %


Interest and banking fees
The banking fees you pay for your professional bank account are 100% deductible. After all, you need the account to do your professional activity. It's essential when you run a...
Know more100 %

tailored to your job
We'll send 3 tips you did not know you needed
