Investing through the company: what you need to know

What cash can you invest?

Not all funds in the company are immediately suitable for investment.
A simple rule of thumb: only invest the funds that you can miss for the company’s activities in the medium to long term.

What investment options are there?

There are various possibilities to invest through the company, each with its own characteristics and tax implications. Below we list the most common ones:

1. Savings and term accounts
   Very safe, low risk, but the return is lower compared to other investment options.
2. Bonds and fixed-income products
   Offer fixed interest and less risk than stocks. Suitable for stable income. Depreciations are deductible as a cost.
3. Listed shares
   Potentially higher return, but also higher risk. Diversification is crucial.
4. Real estate
   Can provide stable income (rent) and long-term value growth. Require larger amounts and active monitoring. Beware of VAT risks.
5. Art & collectibles
   Alternative investments, often illiquid, but valuable for diversification and wealth building (e.g., paintings, jewelry, watches, sculptures, special drinks…).
6. Private equity and venture capital
   High risk, potentially high return. Long investment horizon, only suitable for companies with a lot of surplus funds.
7. Insurance products (branch 21 and branch 23)
   Tax-friendly and accessible. Branch 21 offers a guaranteed return; branch 23 is linked to funds. Beware of the often high cost structure.
8. Tax Shelter
   A tax regime that provides direct tax savings while supporting the Belgian cultural sector.
9. DBI-bevek
   An investment fund specifically for companies. In principle exempt thanks to the DBI deduction, but subject to management costs.

Keep the following in mind:

In principle, all income in corporate tax – such as capital gains, dividends, and interest – is taxable. However, there are exceptions, such as the DBI exemption or dividends and capital gains from a DBI fund.

Conclusion

Investing through the company can be a valuable instrument to increase the return on surplus funds. A conscious approach is important: determine which funds are available, what amount is reasonable to invest, and choose a mix of investment forms that fits your strategy, risk profile, and tax situation.
With the right guidance from your PKF BOFIDI advisor, this can be an extra nest egg for both your company and yourself.

Feel free to contact us with all your questions about investment opportunities through your company.

This article was written by Jodie de Visch