Copyright in 2026: What Tax Changes Are on the Horizon?
July 2026 - With the Program Law of May 30, 2026, the federal government is (once again) tinkering with the tax framework for copyrights. In particular, the elimination of the increased flat-rate expense deduction will be felt by those who currently receive or pay out copyright income. Although this will increase the tax burden, the system will remain a fiscally attractive option in the future.
End of the Increased Flat-Rate Expense Deduction
Through 2025, rights holders under the preferential copyright regime were able to benefit from a flat-rate expense deduction of 50% and 25%. Thanks to this arrangement, the final tax burden remained limited to approximately 7.5% in certain situations.
This will change as of January 1, 2026. The legislature is abolishing the increased flat-rate expense deduction for all beneficiaries, except for individuals who hold a work of art certificate. They will retain the existing arrangement. In practice, this means that income from copyrights will henceforth, in principle, be fully subject to a 15% withholding tax, without the application of the former flat-rate expense deduction.
However, the tax benefit does not disappear entirely. Even without the flat-rate expense deduction, the tax on copyright income generally remains lower than if the same compensation were taxed as professional income, including the social security contributions due.
Tax Burden Increases, Benefit Remains
The preferential 15% withholding tax rate will remain in effect for royalties that fall within the statutory ceiling. For the 2026 tax year, that indexed maximum amount is 77,220 euros. The main consequences:
· in many cases, the effective tax burden will rise from approximately 7.5% to 15%
· the new rules apply to royalties paid out in the 2026 tax year
· despite the change, this form of compensation often remains more advantageous than traditional professional compensation
Do rights holders need to take any action?
For many people who receive copyright royalties, little will change in the short term. Nevertheless, it is worth checking whether additional optimizations are possible. Consider, for example, the following points:
· investigate whether a work of art certificate can be requested and submitted to the party withholding the withholding tax
· verify whether actual professional expenses can be documented and claimed
Those who choose to prove actual expenses would be wise to carefully retain all relevant supporting documents. After all, the final tax settlement will not take place until the personal income tax return for the 2026 tax year, which is filed in 2027. At that point, it will become clear which method ultimately proves to be the most advantageous.
There are also significant changes for payers
It is not only recipients of royalties who are affected by the new regulations. Employers and clients who pay such royalties will also have to adjust their administrative processes.
Future withholding tax returns must take into account the elimination of the flat-rate expense allowance. In addition, clear communication is essential. After all, employees who receive part of their compensation through royalties may see a lower net amount on their pay stubs starting with the June or July 2026 payroll.
What does this mean for IT professionals?
It is noteworthy that the planned reinstatement of copyright protection for certain IT roles remains in place. According to the current draft bill, computer programs would once again fall explicitly within the scope of the law. As a result, the following roles, among others, could once again be eligible:
· front-end developers
· back-end developers
· full-stack developers
· functional analysts
· technical analysts
In late May 2026, the federal government confirmed its intention to implement this expansion. It is not yet clear exactly when it will take effect or whether transitional measures will be put in place. What is certain, however, is that under the revised regime, these IT roles will also no longer be able to take advantage of the increased flat-rate expense allowance.
