The new reality of digital nomads and their tax implications are beginning to be reflected in the rulings issued by the Directorate General for Taxation. An example of this is the binding consultation of 18 January 2022 (V0066-2022). This ruling is not groundbreaking in this area, but it clearly sets out the standards established by the OECD on this type of worker and the analysis of the potential risk of permanent establishment (hereinafter PE) that this entails for their employer companies. The facts of the case A UK national was working for a UK-based company in which he performed high-ran ..read more

The controversial reporting form and the penalties and consequences for failure to comply with or for late filing, have been declared contrary to the principle of free movement of the capital laid down on the TFUE according to the judgement of the European Court of Justice issued the 27th January 2022. The form 720 was first introduced in 2012, along with the Spanish tax amnesty of the same year, aiming to make more urgent the disclosure of concealed assets, normally deposited at foreign entities. For that purpose, the Spanish legislator imposed the obligation of reporting assets abroad on ye ..read more

Landmark judgment from Constitutional Court declaring unconstitutional and therefore null and void the system for calculating the tax base for municipal capital gains tax (In Spanish “Impuesto sobre el Incremento de Valor de Terrenos de Naturaleza Urbana or “IIVTNU” by its acronym). When a person sells, inherits or is gifted real estate in Spain, it is assumed that the value of the land rose during the time it was owned and so the taxpayer must pay a tax on the ‘capital gain’. The articles on the capital gains tax law declared null and void assumed there was always a rise in land value when i ..read more

The repercussions of the draft bill for the facilitation of the ecosystem of emerging enterprises. Within the context of a globalised and interdependent economy, and with the aim of making the country more competitive within the startup ecosystem, Spain has published a Draft Bill for the facilitation of the ecosystem of emerging enterprises, commonly referred to as the “Startup Bill“. Although this is subject to possible amendments during the various phases prior to being passed by parliament, it includes far-reaching changes with regard to matters of taxation an ..read more

In February 2021, the Spanish tax agency launched a campaign to request information to collect data on potential DST taxpayers. The purpose of the campaign is to request precise information on the nature of services provided by digital companies, the turnover related to those services, and even the details of the recipients of those services.  The Spanish tax authority aims to have a reliable estimate of corporations liable to DST and of the expected tax collection that according to internal sources, will be higher than the DST collected in France. Background The Spanish DST, effective a ..read more

The new reality of digital nomads and their tax implications are beginning to be reflected in the rulings issued by the Directorate General for Taxation. An example of this is the binding consultation of 18 January 2022 (V0066-2022). This ruling is not groundbreaking in this area, but it clearly sets out the standards established by the OECD on this type of worker and the analysis of the potential risk of permanent establishment (hereinafter PE) that this entails for their employer companies. The facts of the case A UK national was working for a UK-based company in which he performed high-ran ..read more

The controversial reporting form and the penalties and consequences for failure to comply with or for late filing, have been declared contrary to the principle of free movement of the capital laid down on the TFUE according to the judgement of the European Court of Justice issued the 27th January 2022. The form 720 was first introduced in 2012, along with the Spanish tax amnesty of the same year, aiming to make more urgent the disclosure of concealed assets, normally deposited at foreign entities. For that purpose, the Spanish legislator imposed the obligation of reporting assets abroad on ye ..read more

Landmark judgment from Constitutional Court declaring unconstitutional and therefore null and void the system for calculating the tax base for municipal capital gains tax (In Spanish “Impuesto sobre el Incremento de Valor de Terrenos de Naturaleza Urbana or “IIVTNU” by its acronym). When a person sells, inherits or is gifted real estate in Spain, it is assumed that the value of the land rose during the time it was owned and so the taxpayer must pay a tax on the ‘capital gain’. The articles on the capital gains tax law declared null and void assumed there was always a rise in land value when i ..read more

The repercussions of the draft bill for the facilitation of the ecosystem of emerging enterprises. Within the context of a globalised and interdependent economy, and with the aim of making the country more competitive within the startup ecosystem, Spain has published a Draft Bill for the facilitation of the ecosystem of emerging enterprises, commonly referred to as the “Startup Bill“. Although this is subject to possible amendments during the various phases prior to being passed by parliament, it includes far-reaching changes with regard to matters of taxation an ..read more

In February 2021, the Spanish tax agency launched a campaign to request information to collect data on potential DST taxpayers. The purpose of the campaign is to request precise information on the nature of services provided by digital companies, the turnover related to those services, and even the details of the recipients of those services.  The Spanish tax authority aims to have a reliable estimate of corporations liable to DST and of the expected tax collection that according to internal sources, will be higher than the DST collected in France. Background The Spanish DST, effective a ..read more