Royalties Tax in the Netherlands

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 often applies to what you invoice. How much depends on what the royalty is for.

Two things fall outside this. Rights you inherited or hold passively are a Box 3 asset. Passively held rights are ones you did not create yourself. 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. Last year she also wrote the jingle for an ad campaign. We follow her royalties through the rules below.

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. She pays income tax on them at the normal rates, the same as someone on a salary.

Rights you did not create yourself 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.

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. The KOR is the small businesses scheme, a VAT exemption below €20,000 turnover a year.

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 she adds 21% VAT to that invoice.

Her total 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.

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 takes no withholding tax on royalties paid to you as an individual. The 2021 conditional withholding tax targets payments between companies in low-tax countries, not creators.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.

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 turnover stays under €20,000.

Most creators face income tax and VAT in the same year. That combination is where mistakes happen and where we help most. We file both returns with you as part of our tax return service and get your royalties right the first time. And if you want the bigger picture of how the Belastingdienst 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.