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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).

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 yearly basis through the controversial form, at the risk of having serious consequences and penalties.

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 it was transferred, regardless of whether such a rise actually took place according to the real transaction conditions.

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”.

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.