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Probably you started recording videos for YouTube and you are now asking yourself how much you would pay in taxes if you become a Spanish YouTuber. In this article, we show you all the details you need to consider before registering and later while developing your activity.

Increasingly, people share their hobbies or even their own life experiences using personal blogs or platforms such as YouTube. Most people end up putting their publications on pause, resulting in fewer user impacts and follow up.

But in other cases, the public’s interest in what they say or show makes the followers multiply by thousands, and the visits to the channels reach millions. 

It is in these cases that companies related to the topic of the channel offer compensation for inserting advertising or even for testing or using their products. If you find yourself in this situation and you live in Spain, read on!

Registration to become a Spanish YouTuber

On this specific issue, the Binding Consultation of the General Directorate of Taxes V0117-19 states:

“…the yields obtained by the provision of advertising services using the cession of spaces for advertising insertions in a YouTube channel constitute returns of economic activities…”

You must register in the Tax Agency and Social Security since you receive income from economic activities. Specifically, you must register in these two activities if you are a Spanish YouTuber:

– When receiving advertising revenue: Advertising, public relations and similar services (business activity heading 844)

– When uploading videos to the network: Production of cinematographic films (including videos), (business activity heading 961.1)

What taxes affect a Spanish YouTuber?

1. Personal income tax (IRPF)

Include your YouTube ad revenue in your income tax return. You should include that as income from economic activities using the direct estimation method (from your income, we subtract expenses) to calculate the taxable performance. 

That is, we are interested in reducing income with all deductible expenses so that the taxation becomes lower. But be careful what we consider deductible expenses!

What is a deductible expense in Spain?

For an expense to be deductible, it must meet the following requirements:

1. Principle of correlation with income. 

You prove the expenses incurred in the activity’s development and that they are related to obtaining the income.

2. Temporary imputation. 

The expenses must be included in the records books and conveniently justified.

Consumption expenses are not tax deductible.

As examples of specific deductible expenses for a Spanish YouTuber, we can cite:

1. All related to the design or postproduction of the videos, if it is outsourced services.

2. The acquisition of apps, video games or products that are analyzed in the videos.

3. The Internet connection fee.

4. The amortization of the following investment assets:

– computers and equipment used for the development of the activity,

– video cameras, microphones and other accessories you may need for the execution of the recordings.

Tax benefit when you start as a Spanish YouTuber

First two years of business qualify for a 20% reduction in taxes. Let’s see an example:

If in 2022 you started the activity and get a return of € 40,000 (income minus expenses) you will only pay € 32,000, and if in 2023 your yields amount to 60,000, you will only pay € 48,000.

Since the activity of advertising services is a business activity, you do not include withholding in your invoices. Therefore, you will have an obligation to submit quarterly payment form 130 on account, paying 20% of your accumulated net return.

2. VAT

You must invoice for advertising services. That’s an activity subject to VAT. So in your invoices to publishing companies you must apply 21% VAT. The VAT you charge your customers will be reduced by applying the following formula:

VAT charged (income invoices)—VAT supported (expense invoices)

= VAT you have to pay quarterly

That is the most challenging part of registering as a Spanish YouTuber. It’s not that complicated, is it? The main thing is to pay attention to details.

If you see you need help, contact us. We have a team of tax advisors, and we develop our platform to cover everything for the activity of YouTuber in Spain.

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