What does a developer really cost you in 2026?

Since the tax reform of 2026, part of your developers’ salary can be taxed at 15% instead of the usual progressive income tax rates. Here’s what that actually means for the cost of your tech teams, and who it really applies to.

Ordinary salary taxed at up to (~)53.5%

In Belgium, ordinary professional pay is subject to the progressive personal income tax rates, with a marginal rate of (~)53.5% kicking in from EUR 51,070 (amount indexed for the income year 2026 – assessment year 2027) of taxable income. For an experienced tech profile, that marginal rate therefore applies quickly to a significant part of their salary. It’s that gap (between ordinary professional taxation and the 15% rate on movable income) that makes the copyright regime particularly appealing wherever it applies.

The return of copyright changes the game for IT

As from 1 January 2026, income linked to software can once again qualify for the copyright tax regime, a regime the IT sector had been excluded from since 2022. Qualifying income is taxed as movable income at a 15% rate, significantly lower than the marginal rate applicable to professional income.

This regime isn’t simply a tax rate change applied to the whole salary though. It applies specifically to income derived from the assignment or licensing of copyright in an original work (code, an application, a module, a script) created by the employee. It’s a distinct pay component that needs to be structured contractually, not a wholesale substitute for salary.

What this actually changes for your teams

Three concrete points shape this change: who can benefit and within what limits, how the calculation has shifted since the end of the lump-sum cost deduction, and how this pay component sits alongside ordinary salary.

Who’s covered, and within what limit

The regime covers software developers, software architects, IT consultants creating original code, and more broadly tech companies whose solutions are intended to be marketed or used by third parties. However, it stays capped at:

• a maximum of EUR 77,220 per year (the amount indexed for income year 2026), both as an average over the previous four years and as an absolute annual amount. In case this threshold is exceeded, either the entire amount of the income concerned or only the portion exceeding the threshold will be taxed as ordinary professional income.
• a maximum of 30% of the taxpayer’s total remuneration, where the assignment of the rights comes with a professional service.

The calculation has changed with the end of the lump-sum cost deduction

From 1 January 2026, beneficiaries of the copyright tax regime can no longer use the lump-sum cost deduction that was previously available (which is now reserved exclusively for holders of an arts work certificate). Only actual expenses, properly substantiated and documented, remain deductible. Despite this change, the regime may still offer a significant tax benefit, considering the substantial difference in tax treatment between copyright income taxed at 15%, and ordinary professional income subject to a marginal tax rate of up to (~)53.5%. The practical benefit of the regime has to be assessed on a case-by-case basis, taking into account each individual’s situation, including the amount of remuneration received and the level of actual deductible expenses incurred.

A pay component, not a replacement

From the employer’s perspective, the question is not “should I replace my developers’ salaries with copyright income?”. That’s not how the regime works. It’s more about identifying the share of their work that genuinely corresponds to creating an original work assigned to the company and structuring that share specifically, alongside ordinary professional pay for the remainder of the activities.

A regime that must be secured, not improvised

Structuring part of a remuneration package as copyright income requires a valid contractual assignment of the rights and solid documentation demonstrating the originality of the work produced. An inadequately documented implementation may expose both the company and the employee to a reclassification following a tax audit.

We can assist tech companies with assessing the eligibility of their teams, designing and implementing copyright-based remuneration policies, and, where needed, obtaining a tax ruling that secures the company’s position for several years.

FAQ

What does the reform change in practice for companies and developers in terms of cost?

The reintegration of software into the copyright regime allows companies, provided certain conditions are met, to remunerate part of a developer’s creative work in the form of copyright income. Such income is taxed at 15%, rather than at the progressive tax rates applicable to professional income up to a marginal rate of (~)53.5%. In addition, copyright income is in principle not subject to social security contributions. This can reduce the employer’s payroll costs through savings on employer social security contributions (approximately 27.5%) while increasing the employee’s net pay. For the same gross remuneration, this favourable tax treatment will indeed result in a higher net income for the employee.

Are all of my developers eligible?

No. The regime requires the existence of an original work protected by copyright. The rights also need to be actually assigned or licensed to a third party, for the purposes of communication to the public, performance, public display or reproduction, and that assignment or license has to be set out contractually. Purely internal development work with no formal assignment of rights, or work that isn’t genuinely original, doesn’t meet the applicable conditions.

What portion of remuneration can qualify as copyright income?

Up to EUR 77,220 per year (the amount indexed for income year 2026), with an additional cap of 30% of total remuneration where the assignment of rights comes with the provision of a professional service.

Is there a risk if the regime is wrongly applied?

Yes. An inadequately documented implementation of the regime may result in the income being reclassified as professional income following a tax audit. A clear contractual assignment and a solid supporting documentation file are therefore essential.

Where should you start to assess whether this regime is worthwhile for your company?

The first step is to conduct an eligibility assessment of your developers and IT consultants, followed by a financial analysis taking into account, for each individual, the amount of remuneration that may qualify as copyright income and the level of their actual deductible expenses.