How does carrying forward business losses work?

If you are self-employed and your activity made a loss, that loss can still count for tax purposes. Under certain conditions, you can carry it forward and deduct it from your income in the following years.

What is a business loss?

A business loss occurs when the expenses of your activity exceed its income over a year. It can come from:

• a commercial business;
• an agricultural or forestry operation;
• a liberal profession (for example a lawyer, doctor, architect or independent consultant).

Losses from other types of income, such as rental income, cannot be carried forward in this way.

What are the conditions?

To carry forward a loss, several conditions must be met:

• Regular accounting: the loss must result from properly kept accounts. A simple record of income and expenses is not enough.
• A personal loss: you can only deduct losses you made yourself in your own activity.
• An unused loss: the loss is first offset against your other income in the same year (for example a salary). Only the remaining part can be carried forward.

How long can a loss be carried forward?

• Losses made from 2017 onwards can be carried forward for up to 17 years.
• Losses made before 2017 can be carried forward with no time limit.

Example

In 2023, your self-employed activity makes a loss of €20,000. In the same year, you also earn a salary of €8,000.

• The loss is first offset against your salary: €20,000 − €8,000 = €12,000.
• The remaining €12,000 can be carried forward to the following years.
• In 2024, you can deduct all or part of this €12,000 from your income. Any unused part can be carried forward again.

Updated on: 22/10/2026