Lawyers specializing in Influencers and content creators
Abogados Expertos en influencers y creadores de contenido
The sector, although simple in idea, carries a complex remuneration system for influencers and content creators in terms of contracts and agreed forms of payment. This means that the range of possibilities of tax labels for each type of remuneration makes it difficult for these influencers or content creators to frame the operations fiscally. This added to the fact that the services they provide to companies can be understood as goods in kind, and within these goods in kind there are very different categories that require a different treatment, make these operations can acquire greater difficulty.
As expert lawyers in taxation for content creators and influencers, our tax advice for this sector is given on the main issues that may arise, advising people coming from all kinds of platforms, be it Youtube, Instagram, Podcast, cryptocurrency creators, affiliate marketing, etc.
Contract review
Contract review is an essential part of ensuring that a contract defends the parties, be it the influencer, the agency or the brand. Sometimes we see abuses regarding permanence or abusive penalties. Our experience in contracting is extensive, with specific digital and international subject matter expertise to ensure the desired outcome.
Classification of income of influencers and content creators in the IRPF and Corporate Income Tax.
Most of the professionals in this sector receive some remuneration for their services in a non-monetary manner, i.e. in kind. This remuneration can be goods and/or services. It is important to bear in mind that any type of remuneration, even if it is non-monetary, will have an impact on the influencer’s or content creator’s income tax return or on the vehicle company’s corporate income tax.
It is therefore important to be able to know the tax values of these specific and varied types of remuneration, so that they can be correctly included in the tax returns.
Avoid the high tax burden generated in a short period of time.
The hype that influencers and content creators experience in terms of their income can occur in a short period of time, given that it is easy to acquire a large number of followers in the short term, which can directly or indirectly affect a sudden increase in income derived from the social networks themselves or from third party companies for which the influencers or content creators provide their promotional services.
This entails the consequences of high taxation in a short period of time if there is no correct tax advice from the beginning of this hype. This situation can be avoided by having a correct tax advice from the beginning, since it will allow us to evaluate different options to reduce the tax burden, since the advice is always easier to execute it in the present and in the future, and not when the facts have already happened.
Tax optimization and evaluation of possible changes of domicile within the national territory
The immediate consequence of obtaining a high volume of income, leads in future years that instagramers and content creators accumulate wealth to their credit, wealth that will be treated differently depending on the autonomous community in which they reside, as for example happens in Catalonia and other communities where there is a Wealth Tax that taxes the holding of wealth.
This means that there is a range of options on the different autonomous communities that practically do not apply this tax since most of them are subsidized, as is the case, for example, in the Community of Madrid. However, in order to optimize resources by moving from one autonomous community to another, one must be aware that this can only be achieved with time, since one is a resident in an autonomous community if, generally, one stays there for more than 183 days and if one has a family (in terms of partner and children) in that autonomous community.
Tax optimization and international taxation
On other occasions we find that clients require international travel, either because of their payer or because of their audience. We must be aware that this type of professionals do not need to be established in a specific city or town for the development of their professional activity, so it opens the possibility of moving the residence to other countries, as happens with Andorra or those who go to live in paradisiacal places like Bali or become digital nomads.
On the other hand, it is necessary to know the different international agreements signed with different countries to avoid double taxation, since it is increasingly common for professionals in this sector to sign promotional or marketing agreements with companies established outside the country, which may result in the obligation to pay taxes in the foreign country where the paying company resides, but also in Spain for the same income. However, should this situation arise, there are mechanisms to avoid this double taxation, which we are aware of and can apply them
State registry for audiovisual and video communication services on platforms
This registry requires all users of special relevance, both individuals and legal entities, to register in it. Its purpose is to ensure transparency in the sector and to enable the authorities to effectively monitor that all influencers comply with their legal obligations.
Because of this, it is very important to seek specialist advice. This will help to understand and comply with all regulations, thus avoiding possible penalties for non-compliance by engaging in law-breaking activities.
This ensures that influencers and other relevant users can operate safely and responsibly within the established legal framework.
