13 Ways to Take Money Out of Your Company

The brackets are progressive, which means that you pay a higher percentage only on the amount in that bracket, the more you earn.

There is also a tax-free allowance of €10,570, which is added to the first bracket. Depending on your situation, like how many kids you have, that allowance increases.

So, do you earn €30,000?

The difference between your tax-free allowance and €15,820 is taxed at 25%.

From €15,820 to €27,920 is taxed at 40%, and so on…

This is how you want to look at the brackets:

The moment you enter a new bracket, look for ways that have a lower tax rate than the rate of that bracket.

So let’s say you enter the second bracket. Instead of accepting the 40% on every euro that is in that bracket, take a look at the list below.

If you find something that has a lower rate, and you are eligible for it, you could consider that instead of a wage increase.

Always make sure that you are eligible before implementing. Talk to an accountant or a firm that specializes in tax optimization to verify or conduct the required research.

1. Wage (50%)

One straightforward way is through wages. Wages are subject to personal income tax, ranging from 25% to 50% based on progressive tax brackets. While taxes are unavoidable, structuring wages wisely within a tax bracket that aligns with your lifestyle needs can be beneficial.

2. Net Compensation (0%)

Certain expenses can be reimbursed tax-free. Known as net compensation, this includes necessary business expenses covered personally, such as mileage. It’s a way to extract funds without increasing your taxable income.

Summary:

• Expenses paid privately
• Strict regulation
• Business expenses
• Business trips:
  • €20.8/day
  • Min 6h on the road
  • Max 16 days per month
  • Can’t combine with Meal Vouchers

3. Meal Vouchers (Approx. 35%)

Meal vouchers provide a small but consistent tax-efficient withdrawal. The company can cover €6.91 per working day, with €2 deductible.

Summary:

• Max €8 per working day
• You pay €1.09 yourself
• Only €6.91 by company
• Of which €2 deductible
• The remaining €4.91 is a Non-Deductible Expense, which means you pay company tax on it.
• €100 => €65

4. Second Pillar Pension (Approx. 20%)

Contributing to a second-pillar pension plan reduces immediate tax liabilities and secures a future income stream. If managed correctly, this plan can serve as a long-term, tax-optimized investing route, especially if it’s allowed to grow over time.

Summary:

• Company pension plans
• Like IPT (NL) / EIP (FR)
• Long term, unless used for real estate investments.
• €100 => €80
• Some companies have the option to invest in ETFs within the IPT / EIP.

5. Liquidation Reserves (31.6%)

Liquidation reserves can be retained profits, held in reserve, and withdrawn at a lower rate after five years, effectively reducing tax impacts compared to dividends.

Summary:

• After company tax
  • So it’s 20 or 25%, then 10% and then 5%
  • Total = 31.6% (with 20% company tax)
• Duration is 5 years (wait time)
• Inflation kills the wait period, solutions:
  • DBI = risk increase company tax
  • Branche 6
• €100 => €68.4

6. Dividends (44%)

Dividends are taxed after company taxes, typically at 44%, making them relatively less attractive. However, they offer a straightforward way to profit from retained earnings if other options are maximized.

Summary:

• After company tax
  • So it’s 20% or 25%, then 30%
  • Total = 44%
• Immediately available
• Expensive
• €100 => €56

 7. Dividends VVPR Bis (32%)

For small companies, the VVPR Bis dividends are taxed at a reduced rate of 32%. This offers significant savings for smaller firms that meet specific eligibility criteria.

Summary:

• After company tax
  • So it’s 20% or 25%, then 15%
  • Total = 32%
• Immediately available
• Age company must be 3+
• Beneficial
• €100 => €68

8. Warrants (Approx. 30%)

Warrants offer a flexible approach to extract funds over time. But they are also very complex to set up.

Summary:

• Before company tax!
• Immediately available (after 12 months)
• No age restrictions
• Type of “bonus” on top of your wage
• Complex
• Beneficial (especially when company tax is 25%)
• €100 => €70

9. Reconstitution Loan (Approx. 20%)

A reconstitution loan allows you to use gross revenue to buy real estate privately.

Summary:

• Pension plans as a collateral
• Buy real estate privately
• Pay with gross revenue from your company
• Funds + real estate + rent + tax reductions
• Complex

10. Share Transactions (0%)

This is an appealing option when your business gains value over time.

Summary:

• Company needs to be valuable to others
• 0% when you own the shares of your company privately

11. Copyrights (7.5% – 15%)

Copyright income, relevant for creatives, is taxed at reduced rates from 7.5% to 15%. This option suits those whose work includes intellectual property like books, media, or digital assets.

• Creation like photo, video, books, art, etc.
• Strict
• Under pressure

12. Current Account (30%)

Using your current account enables your company to borrow funds from you. While it’s an option, it may come with a 30% tax and needs a well-managed balance sheet to remain beneficial.

Summary:

• Debt you or your company has
• Only beneficial when your company has the debt
• Depends on Equity
• 2024 = 8.02%
• Beneficial when you have too much savings and don’t want to invest

13. Renting Property (Approx. 30%)

If you own a property and rent it partly to your business, the rental income can be advantageous.

Summary:

• Rent a part of your home to your company
• Calculated based on a formula
• €100 => €70