Do you pay tax on royalties in the Netherlands?
Yes, usually. Royalties you earn from your own creative work count as Box 1 income. You pay the same tax rates on it as on a salary. On top of that, VAT depends on what the royalty is for. Your own creative work is often exempt.
Two things fall outside this. Rights you inherited are a Box 3 asset. And the "first €5,000 tax-free" rule that circulates online is Belgian, not Dutch.
Meet Leah. She moved from Ireland to Amsterdam and writes songs. She earns streaming royalties from her music and royalties from a published songbook. This year she also writes the jingle for an ad campaign. We follow her royalties through the rules below.
In short
Box 1 income. Royalties from your own work fall in Box 1, taxed at the same rates as salary.
VAT can be exempt. Composers, writers, journalists and cartoonists charge no VAT on their own creative work.
9% or 21%. Live performances keep the 9% VAT rate in 2026. Other royalties are 21%.
No Dutch withholding. No Dutch tax is withheld from individuals, but a foreign payer may withhold tax.
Inherited rights are Box 3. Rights you inherited fall in Box 3, so their royalties are not separately taxed.
Which box do royalties fall in?
Royalties from your own work fall in Box 1. That covers income you create yourself, whether you write, compose, perform or design.
Leah writes her own songs, so her streaming and songbook royalties are Box 1 income.
Inherited rights work differently. More on that in the box below. Box 1 taxes your income at progressive rates, while Box 3 taxes savings and investments.
Do you charge VAT on your royalties?
Often not, if you are a creator. Composers, writers, journalists and cartoonists are exempt from VAT on their own creative work.² You charge no VAT, and you cannot reclaim VAT on your costs.
The exemption is broad. It covers writing your own books, translating books and signing your own work. A cartoonist may take the exemption or opt out. The KOR is the small businesses scheme, a VAT exemption below €20,000 turnover a year.³
Not every rate is the same, though. Live performances keep the reduced 9% VAT rate in 2026. The government scrapped the planned rise to 21%.⁴ Other royalties sit at 21%. The table below shows which rate fits which income.
| Type of work or income | VAT rate (2026) |
|---|---|
| Your own compositions, books and articles | Exempt |
| Live performances (performing arts) | 9% |
| Copywriting, advertising and web copy, commissioned manuals | 21% |
| Merchandise and physical media, such as vinyl and CDs | 21% |
| VAT-charged turnover below €20,000 a year | Exempt under the KOR |
How does this work in practice?
You split your royalties by type, then handle income tax and VAT. Start with the box, then the VAT rate, then the KOR. We do this with you, line by line.
Take Leah again. Her song and songbook royalties are Box 1 income, so they go in her income tax return. Her composing and writing are VAT-exempt, so she charges no VAT there. The ad jingle is advertising work, so it falls under the 21% VAT rate.
Her VAT-charged turnover stays under €20,000 this year. So she can join the KOR, charge no VAT at all and skip her VAT returns.³ That leaves one income tax return to file, with her royalties in Box 1.
Registering for the KOR works forward only. Turnover already invoiced this year cannot be added retroactively. Her KOR starts before she sends the jingle invoice, so that invoice goes out without VAT. We file your income tax return as part of our tax return service.
What about royalties from abroad?
If you live in the Netherlands, your worldwide royalties are taxable here. That includes royalties from a foreign platform, publisher or collecting society. A tax treaty usually prevents you being taxed twice.
The Netherlands withholds no tax on royalties paid to you as an individual.⁵
Licensing rights to a business abroad can change where VAT is due. The place of supply is where your client is based. That decides your VAT country, so check it per client.
A foreign platform sometimes withholds tax before paying you. The tax treaty with that country caps the withholding rate. You can usually offset it against your Dutch tax.
Did you arrive in the Netherlands part way through the year? Then you count as a resident from your arrival date. We split that year for you in your first return.
“Most creators worry they have missed something. Usually it is simpler than they feared. Your own work is Box 1, and your own books and compositions are often VAT-exempt. The KOR only matters for work you would otherwise charge VAT on, like a jingle. We map it once, and it is clear from then on.”
What does this mean for you?
You now know your box, your VAT rate and whether the KOR fits. Check three things before you file. Which box your royalties belong in, whether your work is VAT-exempt and whether your VAT-charged turnover stays under €20,000.
Creators with commissioned or performance work face income tax and VAT in the same year. That combination is where mistakes happen and where we help most. For the bigger picture of how the Dutch Tax Administration taxes what you earn, start at our work and income overview. Leah files one income tax return, with no VAT returns thanks to the KOR.
1 kennisgroepen.belastingdienst.nl, Geërfde naburige rechten in Box 3 (KG:202:2022:6) · Accessed
2 belastingdienst.nl, Vrijstellingen componisten, schrijvers, cartoonisten en journalisten · Accessed
3 belastingdienst.nl, Kleineondernemersregeling (KOR) · Accessed
4 eerstekamer.nl, Wet behoud verlaagd btw-tarief op cultuur, media en sport (36.814) · Accessed
5 belastingdienst.nl, Bronbelasting op renten, royalty's en dividenden · Accessed
Common questions about royalties and tax
Do I pay tax on my royalties in the Netherlands?
Yes, usually. Royalties from your own work are Box 1 income, taxed at the normal rates. VAT depends on the type of work and is often exempt for creators.