Belgians who invest in young companies through crowdfunding enjoy tax benefits as from this week.
An investor who provides financial support to a young company (up to four years) gets a tax benefit of 30 percent (on the amount invested). He even gets a tax cut of 45 percent when it comes to micro-enterprises (with a turnover up to EUR 700,000 and 10 employees max).
The Belgian tax shelter system was introduced in 2015, and is already being used for direct investments in start-ups. As from now, people interested can enjoy the same benefits when they invest through a crowdfunding platform.
The expansion of the system has been announced quite a few times, and we already published some stories about the deal on our blog, but the crowdfunding platforms needed the approval of the federal government (notably the regulator FSMA).
A company can fetch up to 300,000 euros without a prospectus through crowdfunding (licensed platforms), if each subscriber registers for a maximum of 5,000 euros.
There’s an investment ceiling of 100,000 euros per year per taxpayer. Shares in startups must be kept for at least four years.