Specifically, the new law would extend the obligation to finance European audiovisual production to providers offering services in Spain even if they are not physically present in the country. According to the draft law, platforms with a turnover of more than EUR 50 million generated from services in Spain would be required to allocate 5 percent of these revenues to finance European audiovisual works or as a contribution to the Cinematography Protection Fund.
A total of 70 percent of the amount must be allocated to fund audiovisual works by independent producers, and a minimum of 40 percent must be used to fund independent films in any of Spain’s official languages, added the draft. In addition, platforms earning less than EUR 50 million would be required to fund the rights to finished European productions, with at least 70 percent allocated to independent producers.
The move comes as the Spanish government is preparing to bring in a 3 percent tax on the digital revenues of large internet firms at the start of next year. The aim is to raise some EUR 1.2 billion a year from taxing online advertising, platforms and sales of user data by companies with global revenues above EUR 750 million that bring in a minimum of EUR 3 million in digital services revenue in Spain.
