Spain: Digital services tax finalized, effective in January 2021

Spain: Digital services tax finalized

The tax on certain digital services was finalized with the publication of Law 4/2020 in the official bulletin on 16 October 2020.


The digital services tax has an effective date of 16 January 2021—three months after its date of publication. Read text of Ley 4/2020 (Spanish) [PDF 241 KB]

The rate of the digital services tax is 3%. In general terms, services subject to the tax include digital services developed by large multinational companies having a connection or nexus with Spain based on the existence of users located in the Spanish territory. Companies that operate globally and have a “significant digital footprint” in Spain will be subject to the digital services tax if two thresholds are satisfied (at the consolidated group level):

  • Net turnover of more than €750 million (globally)
  • Total revenues from taxable provisions of digital services in Spain of more than €3 million 

Digital services subject to the tax include:

  • Online advertising services targeted at users
  • Online intermediary services
  • Data transmission services

There are various situations when the digital services will not be taxable. 

Read an October 2020 report (Spanish) [PDF 200 KB] (English) [PDF 183 KB] prepared by the KPMG member firm in Spain

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