Favorable Tax Conditions for Copyright Income in Belgium
In Belgian law, there is a favorable tax regime for personal income resulting from the transfer or assignment of copyrights, provided that some specific conditions are met. While normal professional earnings are subject to the standard progressive tax rates (25% up to 50%), plus social security, this type of income is classified as ‘movable’ income up to €75,360 (2025), which is taxed at only 15% and not subject to social security.
How Royalty Income Deductions Affect Taxable Amounts in Belgium
In actuality, the tax burden is even lower, because the beneficiary can benefit from certain lump sum expense deductions on the royalty payments. Here are the relevant deductions for income year 2025 (tax year 2026):
| Royalty income | Expense deduction | Taxable amount | Income tax due |
| €0 – €20,100 | 50% (€10,050) | €10,050 | €1,507.5 |
| €20,100 – €40,190 | 25% (€5,022.5) | €15,067.8 | €2,260.13 |
| €40,190 – €75,360 | 0% | €35,170 | €5,275.5 |
| > €75,360 | standard progressive tax rates |
Tax Rates and Taxable Amounts for Copyright Income in Belgium
If the taxpayer receives €75,360 in royalties in 2025, he will pay a total income tax of only €9,043.13. Any payment above that threshold is considered to be professional income, taxed at the above-mentioned progressive tax rates and is liable for social security.
Who Can Benefit from Belgium’s Favorable Copyright Tax Regime?
Initially, the intention was to limit this favorable regime to income generated within a more ‘artistic’ context (e.g. writers, graphic designers, journalists, etc.). Its scope quickly became wider than that and basically extended to any type of creation that can benefit from copyright protection. This is the case if the work is: (i) ‘original’ (the expression of the author’s personal intellectual creation), and (ii) ‘materialized’ in a concrete, visible or audible form.
Some Restrictions for Accessing Belgium’s Royalty Payment Tax Scheme
In view of this, a director or manager who provides services through their own management company could potentially benefit from the royalty tax scheme, as long as they are the author of some type of copyrighted work. To avoid improper use, the tax authorities introduced some guidelines to further limit the scope. While no specific sectors or professions have been excluded, there is no exhaustive list of who is eligible nowadays, which creates uncertainty.
The beneficial regime is only accessible if you can present a ‘work of art’ certificate or can demonstrate that the copyrights have been transferred or licensed to a third party for communication to the wider public, for public performance or for reproduction. If services are rendered as well, the ratio of royalty to total remuneration must not exceed 30% (2025). Some further restrictions may apply.
TAXPATRIA® can check if your company is still eligible to implement a royalty payment scheme.