73,743 Belgian companies closed financial year 2024 with negative equity: they owe more than they own. That is 13.1 percent of all companies that filed annual accounts. We analysed the 564,007 filings by sector, province, age and size, and followed the 2019 companies for five years.
What negative equity means
Equity is what remains when you subtract all debts from the assets. When it is negative, past losses exceed the capital and reserves combined. For a creditor this means that if the company were wound up today, there would not be enough to pay everyone.
It is not yet a bankruptcy. A young company may lose money on purpose to grow, and a subordinated loan from the director can protect the other creditors. When it is a red flag and how the Belgian alarm bell procedure works is explained in negative equity: what it means.
The share falls, the number rises
| Financial year | Companies | Negative equity | Share |
|---|---|---|---|
| 2013 | 321,536 | 47,467 | 14.8% |
| 2016 | 370,674 | 53,375 | 14.4% |
| 2019 | 434,801 | 63,020 | 14.5% |
| 2020 | 461,529 | 66,008 | 14.3% |
| 2021 | 491,702 | 66,812 | 13.6% |
| 2022 | 516,353 | 69,310 | 13.4% |
| 2023 | 543,455 | 72,306 | 13.3% |
| 2024 | 564,007 | 73,743 | 13.1% |
| 2025 (provisional) | 545,865 | 68,456 | 12.5% |
The share stayed around 14.5 percent until 2020 and has fallen slightly every year since. The number of companies in deficit still grew, because the number of companies has risen by 75 percent since 2013. Financial year 2025 is not complete yet: filings for that year are still coming in, and late filers are more often in trouble.
Most deficits are small. Half of the companies with negative equity have a deficit below 38,234 euros. Added up, they still reach 24.5 billion euros, and 3,075 companies have a deficit of more than one million euros.
By sector: hairdressers and hospitality on top
| Sector (NACE) | Companies | Negative equity |
|---|---|---|
| Other services (hairdressing, beauty, laundries) | 8,268 | 27.1% |
| Hospitality | 25,902 | 25.9% |
| Arts, entertainment and recreation | 7,264 | 21.1% |
| Education | 2,785 | 17.6% |
| Trade and car repair | 76,276 | 16.4% |
| Real estate | 24,038 | 16.3% |
| Transport and storage | 13,693 | 13.0% |
| Manufacturing | 29,966 | 12.5% |
| Administrative and support services | 26,376 | 12.4% |
| Construction | 69,881 | 9.9% |
| Information and communication | 32,323 | 9.9% |
| Professional, consulting and technical services | 102,933 | 7.8% |
| Financial services and holdings | 23,933 | 6.0% |
| Health and social work | 22,611 | 4.2% |
At a finer level a few activities stand out. In other personal services, mainly hairdressers and beauty salons, 29.9 percent of companies have negative equity. It is 27.8 percent for hotels and other accommodation, 25.6 percent for restaurants and bars and 25.1 percent for sports and recreation businesses. In retail the share is 18.1 percent.
These sectors have a lot in common: many small businesses, rented premises, staff to pay every month and few fixed assets to act as a buffer. The covid years and high energy prices also hit them hard. If you work with restaurants or bars, the guide to financial red flags in hospitality helps you read their accounts.
At the other end are the professions with low fixed costs and clients who pay for advice: accountants and lawyers (3.2 percent) and doctors, dentists and physiotherapists (3.5 percent).
By province: Brussels on top, West Flanders at the bottom
| Province | Companies | Negative equity |
|---|---|---|
| Brussels-Capital Region | 73,908 | 18.7% |
| Walloon Brabant | 28,686 | 16.4% |
| Hainaut | 39,044 | 15.1% |
| Luxembourg | 8,042 | 14.8% |
| Liège | 40,684 | 14.3% |
| Namur | 18,761 | 14.1% |
| Antwerp | 105,196 | 12.9% |
| Flemish Brabant | 63,678 | 12.3% |
| Limburg | 44,883 | 10.4% |
| East Flanders | 76,166 | 9.7% |
| West Flanders | 64,956 | 9.4% |
In Brussels almost one company in five has negative equity, twice as many as in West and East Flanders. Part of the gap comes from the sector mix: Brussels has a lot of hospitality and small retail. Companies that only have their registered office in Brussels may also play a role.
Young and small companies score worse
| Company age | Negative equity |
|---|---|
| Under 2 years | 13.6% |
| 2 to 5 years | 15.1% |
| 5 to 10 years | 14.2% |
| 10 to 20 years | 12.8% |
| Over 20 years | 11.3% |
| Employees according to the accounts | Negative equity |
|---|---|
| None or not reported | 14.0% |
| 1 to 9 | 10.6% |
| 10 to 49 | 7.5% |
| 50 to 249 | 6.5% |
| 250 or more | 3.7% |
The risk peaks for companies 2 to 5 years old: the start-up capital is used up and the first losses are on the balance sheet. The larger the company, the lower the share. Among companies with 250 or more employees, only 3.7 percent have negative equity.
The legal form says something too. Companies still registered as a BVBA/SPRL in the Crossroads Bank for Enterprises have negative equity in 24.5 percent of cases, against 12.0 percent for the BV/SRL and 11.1 percent for the NV/SA. Since 1 January 2024 every BVBA is a BV by law. Those that never updated their articles of association are often companies where little still happens.
The strongest signal remains profit. Of the companies that closed financial year 2024 with a loss, 34.6 percent have negative equity. Among profitable companies it is 4.8 percent.
What happens five years later
We followed the 63,020 companies that closed financial year 2019 with negative equity through to financial year 2024.
| Situation in 2024 | Companies | Share |
|---|---|---|
| Still negative equity | 28,467 | 45% |
| Equity positive again | 19,875 | 32% |
| Ceased to exist | 11,982 | 19% |
| Still active, no 2024 accounts | 2,696 | 4% |
Almost half still have a deficit five years later. Negative equity is rarely a temporary dip. A third manage to turn things around, usually by making a profit or through a capital increase.
One in five has ceased to exist. For just over half of them (6,417 companies) that was through bankruptcy, for 4,200 through a closed liquidation. For comparison: of the companies with positive equity in 2019, 9 percent had ceased to exist. Negative equity therefore doubles the chance that your customer is gone within five years.
Method and sources
- Source: the annual accounts that Belgian companies filed with the Central Balance Sheet Office of the National Bank of Belgium, processed by Jaarrekening.be. Data as of 29 October 2026.
- Financial year: the year in which the financial year ends. For each company we use the most recent filing for that year.
- Equity: the equity heading on the balance sheet (codes 10/15).
- Population: all companies. Non-profit associations, foundations, co-owners' associations and foreign entities are not included.
- Province: based on the postcode of the registered office in the Crossroads Bank for Enterprises (KBO/BCE).
- Sector: the main activity under NACE-BEL 2008 in the KBO. It is unknown for 95,708 companies; they count in the totals, not in the sector table.
- Age: the start date in the KBO. Employees: the number reported in the accounts themselves. Micro companies often do not report it.
- Ceased to exist: no accounts for 2024 and a legal status in the KBO that is no longer active, such as bankruptcy, a closed liquidation or a merger.
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