The policies and measures of national governments in Europe are compared in tables on book market support, private sector sponsorship, social security and self-employed artists. All tables are based on chapters from the Compendium country profiles.
Funding and support
Measures to support book markets in Europe
For more information see chapters 3.5 Cultural and creative industries and 4.1.4 Tax laws of the individual country profiles.
Legend:
| √ | = Yes |
| X | = No |
| N/A | = information not available |
| Countries* | % VAT For printed books** | % VAT For E-books** | % VATGeneral level** | Fixed Book Price | Direct public funding to book publishers |
|---|---|---|---|---|---|
| Albania | 0% | 0% | 20% | x | x |
| Armenia | 20% | N/A | 20% | x | x |
| Austria | 10% | 20% | 20% | √ | √ |
| Azerbaijan | 18% | N/A | 18% | x | √ |
| Belgium | 6% | 21% | 21% | x | x |
| Bosnia & Herzegovina | 17% | N/A | 17% | x | √ |
| Bulgaria | 20% | 20% | 20% | √ | √ |
| Canada | 0% | 5% | 5% | x | √ |
| Croatia | 5% | 25% | 25% | √ | √ |
| Cyprus | 5% | 19% | 19% | x | x |
| Czech Republic | 10-21% | 21% | 21% | x | x |
| Denmark | 25% | 25% | 25% | √ | √ |
| Estonia | 9% | 20% | 20% | x | √ |
| Finland | 10% | 24% | 24% | x | x |
| France | 5.5% | 5.5% | 20% | √ | x |
| Georgia | 18% | N/A | 18% | x | √ |
| Germany | 7% | 19% | 19% | √ | x |
| Greece | 6% | 24% | 24% | √ | √ |
| Hungary | 5% | 27% | 27% | √ | x |
| Ireland | 0% | 23% | 23% | x | √ |
| Italy | 4% | 4% | 22% | √ | x |
| Latvia | 12% | 21% | 21% | x | √ |
| Lithuania | 9% | 21% | 21% | x | √ |
| FYR of Macedonia | 5% | N/A | 18% | x | √ |
| Malta | 5% | 18% | 18% | x | x |
| Moldova | 0% | N/A | 20% | √ | x |
| Monaco | 5.5% | 5.5% | 19.6% | √ | x |
| Netherlands | 6% | 21% | 21% | √ | x |
| Norway | 0% | 25% | 25% | √ | x |
| Poland | 5% | 23% | 23% | x | x |
| Portugal | 6% | 23% | 23% | √ | x |
| Romania | 5% | 19% | 19% | x | √ |
| Russia | 10% | 18% | 18% | x | √ |
| San Marino | 0%*** | 0%*** | 0%**** | x | √ |
| Serbia | 10% | 10% | 20% | x | √ |
| Slovakia | 10% | 20% | 20% | x | √ |
| Slovenia | 9.5% | 22% | 22% | x | √ |
| Spain | 4% | 21% | 21% | √ | √ |
| Sweden | 6% | 25% | 25% | x | √ |
| Switzerland | 2.5% | 8% | 8% | x | x |
| UK | 0% | 20% | 20% | x | N/A |
| Ukraine | 0% | 0% | 20% | x | √ |
Notes:
| * | No data available for Holy See and Liechtenstein due to the special nature of this country. |
| ** | Reduced VAT of 10% is applied to educational literature and Latvian literature. |
| *** | 0% on books published in San Marino; 2% on books imported by the shopkeeper, included in the cover price. |
| **** | San Marino has no VAT regime on goods and services; indirect taxation is levied on imported goods at an average rate of 17%. |
Source:
Compendium of Cultural Policies and Trends in Europe, 20th edition, 2018.
Private sector sponsorship: laws, schemes and targets
For more information see chapters 1.3.3 Public cultural institutions, 4.1.4. Tax laws and 7.3 Private funding of the individual country profiles.
| Country | Main law which outlines tax deductions to private sponsors of arts and culture | Government schemes to promote business sponsorship in the arts and culture | Main sectors attracting private sponsorship | Estimated value of private sponsorship generated per year |
|---|---|---|---|---|
| Albania | Law on Sponsorship , (2003) | NO | Performing arts | Information not available |
| Armenia | No tax benefits relating to cultural patronage | A state commission can exempt certain programmes from paying taxes | Music, mass culture and show business | Information not available |
| Austria | Sponsors’ Ordinance (1987) + regional legislation (tax breaks) | Some Regions (Länder) and cities offer special public contributions / services | Fine arts, performing arts and music | 50m EUR (2013) = 1.94% of the overall public cultural funding |
| Azerbaijan | The Law of the Republic of Azerbaijan “On Grants” (1998) | Projects launched by the Ministry of Culture and Tourism to attract private sponsorship | Cultural heritage, performing arts, cultural industries | Information not available |
| Belgium (Flanders) | No legal provision for corporate tax deductions of cult. investments | PPP programme (attractive for commercially profitable projects) | Concerts and festivals of classical music, art exhibitions | 89m EUR (2011) |
| Belgium Francophone | No legal provision for corporate tax deductions of cult. investments | "Promethea" Association (linking the cultural and the economic world, mainly through sponsorship) | Information not available | Information not available |
| Bulgaria | Corporate Income Tax Act (2002): deductions increased from 5% to 10%. | No | Popular music concerts, literary publications, festivals, theatre performances | Information not available |
| Canada | Canadian Film or Video Production Tax Credit (CPTC) and Canadian Film or Video Production Services Tax Credit (PSTC). | Federal subsidies to arts projects often serve to lever private investment. | Media, libraries, heritage institutions, performing arts | CAD 155m (2003-04) corporate, foundation and individual support for 198 performing arts companies and 113 public museums / art galleries |
| Croatia | Law on Capital Gains Tax (NN 177/04) and Law on Direct Taxes (NN 177/04): Donations of more than 2% of the annual income need Ministry of Culture certificate | NO | Concerts, festivals, art exhibitions | ca. 4m € (2013 CiV survey) |
| Czech Rep. | Act No. 586/1992: Business entities can deduct the value of a donation for cultural purposes from their tax base if the value of the donation is at least 2 000 CZK. | NO | Film, contemporary arts | Information not available |
| Denmark | Act nr. 1389 (2004): max. 25% of the donation deductible | NO | Museums, art and music festivals | Information not available |
| Estonia | Income Tax Act ( 1999): companies can deduct up to 3% - individuals up to 5% - from their taxable income for donations to non-profit organisations or 10% of last profits | NO | Private business sector has not yet shown any major interest in sponsoring culture | 0.13m EUR (2012) |
| Finland | Income Tax Act: corporate donations for the arts, science or the preservation of Finnish cultural heritage tax deductable within certain minimum and maximum limits | No policies to encourage business sponsorship | Business sponsorship: visual art (art museums, main exhibitions), music (classical and popular, events) music theatre (operas, musicals). | 17.4m EUR (2008) |
| France | Law on the Development of Sponsorship • 1987 Mécenat Law • 2003 | Projects launched by the Ministry of Culture to attract private sponsorship | Music, Museums / Exhibitions, performing arts | According to ADMICAL, around 494m EUR corporate cultural invest-ments through corporate sponsorship |
| Georgia | No law to support private sponsorship of culture and the arts | NO | Theaters, festivals, and cultural heritage. | Information not available |
| Germany | Directive of the Ministry of Finance (BMF-Sponsoring-Erlass 1998): Series of tax breaks | Incentives mainly on the local government level | Fine arts and music | 350m EUR (2010) |
| Greece | Law 3525/2007 : tax exemptions | Central bureau to certify bona fide causes of cultural sponsoring proposals | Music and arts | Information not available |
| Hungary | Non-Profit Act (CLVI/1997): Up to 150% of donations to "Public Benefit Organisations" tax-deductible (limit: 20% of a company's tax base); up to 30% of personal taxes can be deducted for charitable purposes | Performing Arts Law (2008) provided extra state support for theatres, symphony orchestras and dance groups | Performing arts and classical music, large festivals, fine arts, film | 4,3bn HUF = 16.5m EUR |
| Ireland | Tax Consolidation Act (1997): Tax breaks to encourage business sponsorship | Arts2Business Programmes; Arts Sponsor of the Year Award | Information not available | 3.9m EUR (2010); Deloitte survey: 12% of cult. institutions' turnover from private/corporate sponsorship |
| Italy | Law 342/2000: deduction of donations and sponsorship | Reshaping and extension of tax reliefs for donations and sponsorship and for investments in the cinema industry as well as through the institute of "concessions" | Cultural heritage, musical and performing arts, exhibitions and cultural events. | 391m EUR (2011) |
| Latvia | Law on Enterprise Income Tax (1995): Tax Rebate of 85% for amounts donated to budget institutions (companies with functions delegated by the Ministry of Culture), as well as to foundations / societies registered in Latvia. | Costs of corporate social infrastructure facilities (education, culture, sports etc.) can be tax-deducted, if service fees are lower than market prices, or free of charge | Information not available | Information not available |
| Lithuania | Law on Charities and Promotion (1993 amended in 2011): defines administrative procedures of promotion, rights of donors & recipients, tax exemptions, control and accounting of donations and relief | "Maecenas of the Year" award introduced by the Ministry of Culture in 2010. | Theatre, Music, festivals | Information not available |
| Luxembourg | Article 112, Income Tax Law (L.I.R., 1967): Exemptions for donations to bodies recognized to be of public interest | NO | Public events (festivals), heritage | Information not available |
| FYR of Macedonia | Law on Sponsorhip and Donations (2007):Encourages individuals and companies to sponsor activities that are in the public interest (incl. arts and culture). Companies obtain reductions if they donate more than 5% of their total income . | NO | Popular music and folk concerts | Estimate: From January 2007 - June 2008, 2.5m EUR donated from the private sector (incl. for culture), reduction of ca. 50% in 2009 |
| Malta | Corporate financial assistance to recognised non-profit organisations and / or to the Arts Fund eligible for tax deductions (2008) | Information not available | Cultural events, festivals | Information not available |
| Moldova | Law on Philanthropy and Sponsorship (2002): stipulates some tax deductions and state support for activities of philanthropy bodies, but without clear conditions | NO | Performing Arts, Cultural Events, Festivals. | Information not available |
| Monaco | Sovereign Edict N° 9 267 (1988): authorises tax deductions on sponsorship from corporate taxable income | Information not available | Opera, Ballet and Philharmonic Orchestra | Information not available |
| Netherlands | Gift and Inheritance Tax Act (2012) covers a number of aspects of fiscal law in order to make "giving to culture" fiscally attractive. The act also introduces a new multiplier of 125% which applies to donations made to cultural institutions. Additionally there exist different tax incentive schemes relevant for the arts, media and heritage | Cultural Sponsorship Code (1990): Defines rules for sponsors and beneficiaries and sets framework for sponsorship agreements. Cultural Entrepreneurship Programme 2012-2016 (Ministry of Education, Culture & Science) supports entrepreneurial efforts of cultural organisations and producers (coaching, advice, supervision etc.) to find alternative funding. | Fine arts and music | 287m EUR (2011) |
| Norway | Tax legislation in Norway provides no specific incentives for private sector investment in culture | NO | Festivals, theatres and orchestras | 65.78m EUR (2006) |
| Poland | Income Tax Act (1993, amendments 2003): Deductions of donations up to 10% (legal persons) or 6% (individuals). Law on income tax of individuals (2007) simplifies deduction procedure of 1% of annual income tax for donations to public benefit organisations | Cultural Sponsoring Code (2011): A set of rules for both sides. The code has no legal force, it acts as guidance and its usage is completely voluntary | Cultural institutions, large scale performances, film productions | Information not available |
| Portugal | Statute of Patronage (Law 74/99): regulates different types of patronage and sponsorship and increases available tax incentives (the highest level for long term contracts). Law 52A/2006 limits fiscal benefits to donations to public & non-profit sectors Law on Sponsorship and Donations • 1999 | No | Music, fine arts, large scale events | Information not available |
| Russia | Law on Charity and Charitable Organisations (1995); Law on Formation and Use of Endowment by Non-commercial Organisations (2006) – some amendments to actual legislation are planned | Special agreements between State administration and private corporations | Large-scale and fashionable events, festivals, exhibitions, well-known ‘labels’ in culture and the arts | Information not available |
| San Marino | Tax Law n. 91 of 1984 w. subsequent amendments: donations of individuals to culture are included in deductible liabilities | There are no specific policies or laws encouraging private individuals to invest in the cultural sector | Concerts, music and dance festivals, art exhibitions, performing arts, literature, cultural heritage | 150 000 EUR (2008) |
| Serbia | Corporate Tax Law: permits deductions on income tax for cultural activities. | NO | Cultural centres, theatres, festivals, events | No information available. |
| Slovakia | Direct allocation of 2% from the individual income tax rate and corporate income tax to registered NGOs active in the arts and heritage | NO | Concerts, heritage, festivals (film, music…), film production, music & theatre performances, art exhibitions | Information not available |
| Slovenia | Corporate Income Tax Act: 0.3% deduction for donations to various good causes and also a special deduction for culture of 0.2% of taxable income, with the possibility of averaging over a three year period. | NO | Cultural centres, events and festivals | No information available |
| Spain | Tax Exemptions Act for Non-profit Organisations and on Sponsorship (2002) : Income tax exemption for donations to non-profit bodies and public administration | NO | Classical music and painting | 45.1m EUR |
| Sweden | No law to encourage private sponsorship of culture and the arts | Culture and Business Forum | ca. 50% of funds go to museums and art galleries, the rest to theatre and dance. | SEK 93bn (2002) |
| Switzerland | Donations / contribu-tions in the form of sponsorship are tax deductible (10% of net profits on federal level + specific regulations in the Cantons, e.g. tax deduction up to 100% in the Canton of Basel. | NO, except on the local level | Companies corporate identity to be promoted via their own concerts/theatre tours or through projects developed with artists / cultural institutions | 300-500m CHF |
| Turkey | Law 5228 on Incentives for Cultural Investment and Enterprises (2006): A range of benefits, mostly under control of the Ministry of Culture & Tourism | Some incentives on the local level, mainly in Istanbul, or for specific events | Heritage, art exhibitions and museums, festivals, film | Information not available |
| Ukraine | Law on Charity and Charitable Foundations (1997) includes also private cultural sponsorship | Agreements and memoranda between the Ministry of Culture and private companies or funds | Concerts and festivals, arts exhibitions, visual art, theatre | Information not available |
| UK | Review of Charity Tax Law introduced major simplifications and improvements to the treatment of gifts to charities including a tax efficient way to donate shares. Goals were to encourage private support of charities, among them many UK arts organisations, and to complement public money given to the arts, museums and heritage | Business Sponsorship Incentive Scheme Arts & Business (A&B) advocates the mutual benefits of partnership between the private sector and the arts. There are a number of schemes to encourage public-private partnerships using tax relief. | Exhibitions, dance, music, theatre, festivals, heritage | 816m EUR (2009) |
Sources:
Council of Europe/ERICarts, Compendium of Cultural Policies and Trends in Europe, 19th edition, 2017, and national sources. In most cases, figures include contributions from foundations and other private donors. This overview has been updated with the support of Causales (Annual of Cultural Brands).
Social security laws and measures to support self-employed artists
For more information see chapter 4.1.3 Social security frameworks of the individual country profiles.
| Country | Social Security Laws / Comprehensive Public Schemes | Tax Measures Income Taks Deductions | Tax Measures Income Averaging | Unemployment Assistance | Pension Supplements |
|---|---|---|---|---|---|
| Albania | No law for self-employed artists. | No | No | No | Yes |
| Armenia | No law for self-employed artists. | No | No | No | Yes |
| Austria | Law on Social Security for Artists (2001) | Yes | Yes | Yes * | Yes |
| Azerbaijan | No law for self-employed artists. | No | No | Yes | Yes |
| Belgium | July 2003 new measures to improve the social security system for artists were passed. | No | No | Yes | Yes |
| Bulgaria | Ordinance on Social Security of Persons who Practice a Liberal Profession and of the Bulgarian Citizens Working Abroad (2000) | Yes | Yes | Yes | Yes |
| Canada | Status of the Artist Act (1995) | Yes | No | No | Yes |
| Croatia | Rights of Self-Employed Artists and Promotion of Cultural and Artistic Work (1996, amended 2000) | Yes | No | No | Yes |
| Denmark | No law for self-employed artists. | No | No | No | No |
| Estonia | Act on Creative Artists and Creative Artists' Unions (2004) | Yes | Yes | Yes | No |
| Finland | Act on the Pensions of Artists and Some Particular Groups of Short -Time Workers (1985, basically not for self-employed artists, who are expected to start working as entrepreneurs and register for the respective pension scheme). | Yes | Yes | Yes** | Yes*** |
| France | Social Security Scheme for Self-Employed Artists (1977) | Yes | Yes | No | Yes |
| Georgia | Law on Art Workers and Art Unions, Article 8, paragraph 2 | No | No | No | Yes |
| Germany | Artists' Social Insurance Act (1981) | Yes | Yes | No | Yes |
| Greece | No law for self-employed artists. | Yes | No | No | Yes |
| Holy See | No law for self-employed artists. | No | No | Yes | Yes |
| Hungary | The EKHO law ( Act CXX/1995 ). | Yes | No | No | Yes |
| Ireland | No law for self-employed artists. | Yes | No | Yes | No |
| Italy | No law for self-employed artists. | No | No | No | No |
| Latvia | In 2004 a Law was adopted on "Long-service pensions for performing artists employed by state and local government professional orchestras, choirs, concert organizations, circuses and theatres". | Yes**** | No | No | No |
| Liechtenstein | No law for self-employed artists. | No | No | No | No |
| Lithuania | The Law on the Status of Art Creators and their Organizations (2004) | No | No | No | Yes |
| FYR of | Law on Culture (1998) | Yes | Yes | No | Yes |
| Macedonia | |||||
| Malta | No law for self-employed artists. | No | No | No | No |
| Moldova | No law for self-employed artists. | No | No | No | No |
| Monaco | No law for self-employed artists. | No | No | No | No |
| Netherlands | Artists Income Scheme Act (1998) | No | Yes | Yes | No |
| Norway | No law for self-employed artists. | No | No | Yes | No |
| Poland | No law for self-employed artists. | Yes | No | No | Yes |
| Portugal | No law for self-employed artists. | No | No | No | No |
| Romania | No law for self-employed artists. | No | No | No | No |
| Russia | No law for self-employed artists. | Yes | Yes | No | Yes |
| San Marino | No law for self-employed artists. | No | No | No | No |
| Serbia | Law on the Rights of Self-employed Artists (1993, amended 1998) . | Yes | No | No | Yes |
| Slovakia | No law for self-employed artists. | Yes***** | Yes | No | No |
| Slovenia | There are some specific measures for self-employed artists. | Yes | No | No | Yes |
| Spain | No law for self-employed artists. | Yes | Yes | No | No |
| Sweden | No law for self-employed artists. | Yes | Yes | No | Yes |
| Switzerland | No law for self-employed artists. | No | No | Yes | No |
| Ukraine | No law for self-employed artists. | No | No | No | Yes |
| UK | No law for self-employed artists. | Yes | Yes | No | No |
Notes:
| * | Voluntary for freelance and self-employed persons in Austria; since 2008 the artists social insurance contains also health and accidents. |
| ** | But self-employed artists or grant receivers have had problems in proving their unemployment status. |
| *** | There is an extraordinary pension system for artists and journalists; the pension is given selectively and must be applied. |
| **** | The income tax excludes expenses that are connected with the creation and publication of art works if the author receives payment for his work. |
| ***** | Flat expenses 40% of income (copyright royalties). |
Source:
Compendium of Cultural Policies and Trends in Europe, 20th edition, 2018.
Self-employed authors/artists and VAT in Europe
For more information see chapter 4.1.4 Tax laws of the individual country profiles.
Figures for 2018 (in %)
VAT-Rates on the Earnings from the Creative Works of Self-Employed Authors and Visual Artists in Europe (2017 in %)
Abbreviation:
| EX = | Exempt from VAT (In several countries, earnings up to a certain threshold may be exempt from VAT) |
| Country | Standard VAT Rate | Works/Services of Writers, Composers | Works/Services of Visual Artists | Remarks / Exceptions |
|---|---|---|---|---|
| Albania | 20 | 20 | 20 | |
| Armenia | 20 | 20 | 20 | |
| Austria | 20 | 10 / 20* | 10 | *For non-literary texts. |
| Azerbaijan | 18 | 18 | 18 | |
| Belgium | 21 | 6 | 6 | Performing arts: 6% or EX |
| Bulgaria | 20 | 20 | 20 | |
| Canada | 5 | 5* | 5* | *Federal Goods and Service Tax (GST) standard rate of 5%. GST paid only on goods or services needed to produce works for sale or to run a business can be deducted. |
| Croatia | 25 | 25 | 25 | |
| Cyprus | 19 | 19 | 19 | |
| Czech Republic | 21 | 21 | 21 | |
| Denmark | 25 | EX | EX/5* | *Reduction of the regular rate. |
| Estonia | 20 | 20 | 20 | |
| Finland | 24 | EX* | 8 | *Income generated from individual authors rights. |
| France | 20 | 5.5* | 5.5* | *With option for EX |
| Georgia | 18 | 18 | 18 | |
| Germany | 19 | 7* | 7* | *For works protected by authors rights. Option for EX if turnover below 17 500 EUR in previous year |
| Greece | 24 | 13 | 13 | |
| Hungary | 27 | 5* / 25 | 25** | * Artistic and literary creations. ** Out of scope for occasional sales. |
| Ireland | 23 | 23* | 13.5** | *Allowances for authors contracts. **"Parking rate". |
| Iceland | 24.5 | 14 | 14 | |
| Italy | 22 | 22 | 10 / 20* | *"Occasional sales". |
| Latvia | 21 | EX * | EX* | *Income generated from individual authors rights. |
| Lithuania | 21 | 15* | 15* | *For works protected by authors rights, performers etc. |
| Luxembourg | 17 | 3 | 8 | |
| FYR Macedonia | 18 | 18 | 18 | VAT will be reduced to 10% in the near future. |
| Malta | 18 | 5 | 18 | |
| Moldova | 20* | EX | EX | Since 2002, 20% VAT on the extra-budgetary income of cultural institutions (e.g. leasing premises) |
| Netherlands | 21 | EX* / 6 | 6 **/ 21 | *EX: artists' services. **Artist's first sales. |
| Norway | 25 | EX | EX | Option / restricted to specific professional activities. |
| Poland | 23 | EX* / 7**/ 23 *** | 7**/ 23 *** | *EX: some artistic services (Art. 9, VAT code). **Artistic work, publications. ***Trade w. other goods. |
| Portugal | 23 | EX* / 5**/ 23 *** | 5**/ 23 *** | *EX: some artistic services (Art. 9, VAT code). **Artistic work, publications. ***Trade w. other goods. |
| Romania | 19 | 19* | 19 | *No special provisions for artists. Reduced rate of 7% for sales of books and periodicals |
| Russia | 18 | 18* | 18 | *No special provisions for artists. Reduced rate of 10% for sales of books and periodicals with cultural or educational content |
| San Marino | 0 | 0 | 0 | These performances are not subject to any indirect tax such as VAT |
| Serbia | 20 | 20 * | 20 * | *VAT on turnover up to 25 000 EUR (optional on turnover up to 12 500 EUR). |
| Slovakia | 20 | 20* | 20* | *Compulsory VAT on turnover above ca. 45 000 EUR (1.5 million SKK) within 12 moths. (Optional VAT on turnover up to 45 000 EUR) |
| Slovenia | 22 | 9.5* | 9.5 | * + performing artists, e.g. actors, singers, dancers… Option for EX if expected turnover is below 25 000 EUR. |
| Spain | 21 | EX* | EX/7* | *EX for professional services of artists/authors (Art. 20.1.26 VAT Act); sales of works of art subject to tax. |
| Sweden | 25 | 6 | 12* | *VAT optional up to sales of 300 000 SEK p.a. |
| Switzerland | 8 | EX* | EX* | *With option for a reduced VAT rate of 2.5%. |
| Ukraine | 20 | 20 | 20 | Reduction for books foreseen in 2007 Budget Law and prolonged up to 2015. |
| United Kingdom | 20 | 20* | 20 | Allowances for authors contracts. |
Sources:
Compendium of Cultural Policies and Trends in Europe, 20th edition 2018, based on data provided in the country profiles (chapter 5).
Additional material:
ERICarts Institute: The Status of Artists in Europe. European Parliament, 2006.
Judith Staines: Tax and Social Security: a basic guide for artists and cultural operators in Europe. IETM, 2004
ERICarts Institute: Creative Europe. On the Governance and Management of Artistic Creativity in Europe. Arcult Media, Bonn, 2002.