Measures to support the self-employed and SME’s

On April 11, the Council of Ministers approved a preliminary draft law designed to support the self-employed and small businesses. This text, still subject to parliamentary approval, is part of the government’s desire to strengthen the competitiveness of SMEs while encouraging long-term investment. Here are the six key measures in the bill.

Starting with the 2026 tax year, the tax credit for equity contributions will increase from 10% to 20%, with a ceiling increased to €7,500 (instead of €3,750). This measure aims to encourage self-employed people to strengthen their capital. This applies to those who are self-employed as a primary or secondary occupation, including those under a flat-rate scheme. To qualify, the increase in equity must exceed that observed over the previous three years, except for starters (less than 3 years of activity).

As of January 1, 2026, the withholding tax applied upon liquidation will be increased from 5% to 6.5%. In return, the waiting period to benefit from the reduced rate will be reduced from 5 to 3 years. Distributions made before this deadline will still be taxed at 30%. A transitional regime will allow companies to liquidate existing reserves within the new 3-year period, but at the rate of 6.5%.
The advantageous tax regime for Sicav-RDT will be regulated from 2026 through two mechanisms:

• A separate contribution of 5% on capital gains (excluding dividends),
• A strengthened condition for deducting withholding tax: payment of a minimum remuneration of €50,000 to an active manager (with a maximum of 20% ATN).
  For large companies, investment thresholds will also be imposed (minimum stake of €2.5 million).

A new INAMI contribution of 30% is planned for compensation paid during the two months following the guaranteed salary. However, SMEs (fewer than 50 employees) will be exempt from this additional charge.

From July 2025, self-employed people who continue to work after the statutory retirement age will continue to generate pension rights, provided they are not already receiving a full pension. They will remain subject to the usual contributions and will be able to opt out if they wish.

The government plans to structurally reduce employer contributions by €1 billion by 2029. This will focus on two areas: supporting employment through a reduction in contributions on low and medium wages, and capping contributions on high wages to encourage the hiring of qualified professionals.