Can Hacienda See Your Upwork Income Through DAC7?

Freelancers in Spain increasingly receive income through online platforms such as Upwork. Alongside this shift, tax reporting requirements have evolved, and many users are now receiving annual DAC7 reports from the platform.

A common question follows: can Hacienda see income earned through Upwork?

In most cases, yes.

If you are a Spanish tax resident and your activity falls within the DAC7 reporting framework, Upwork may report information about your earnings to the relevant tax authorities. Understanding what is reported and how it relates to your existing tax obligations is essential for anyone working through online platforms.

What Is DAC7?

DAC7 is a European Union directive that requires certain digital platforms to collect and report information about users who generate income through their services.

The directive was introduced to improve transparency in the digital economy and to facilitate the exchange of information between tax authorities within the European Union.

The rules apply to a wide range of platforms, including:

• Freelance marketplaces
• Short-term rental platforms
• Online marketplaces
• Gig economy platforms
• Service marketplaces

Upwork is among the platforms that comply with DAC7 reporting requirements.

What Information Does Upwork Report?

The exact information reported may vary depending on the user's circumstances, but a DAC7 report typically includes:

• Full name
• Address
• Tax Identification Number (TIN)
• Country of tax residence
• Bank account information
• Total annual earnings
• Quarterly breakdown of income
• Platform fees and commissions
• Number of transactions

The example report below shows quarterly earnings, fees, taxes and transaction counts reported by Upwork for the 2025 reporting period. The report also states that the information may be shared with the tax authority of the user's country of tax residence.

Example of a DAC7 report generated by Upwork showing quarterly earnings, fees and transaction information.

How Does This Affect Spanish Tax Residents?

For Spanish tax residents, DAC7 increases the visibility of income earned through online platforms.

Information reported by Upwork may be transmitted through the DAC7 framework and made available to the Spanish tax authorities. As a result, income earned through the platform should be treated in the same way as income earned from any other business activity.

The fact that payments are processed through Upwork does not remove or reduce existing tax obligations.

Does DAC7 Create a New Tax?

No.

DAC7 is an information reporting regime rather than a tax measure.

It does not introduce a new tax, create additional tax rates, or impose separate filing requirements on freelancers.

Its purpose is to provide tax authorities with information that can be compared against existing tax declarations.

Do Autónomos Need to Declare Upwork Income?

Yes.

Income earned through Upwork remains taxable income and should be reported according to the taxpayer's circumstances.

For freelancers operating as autónomos, this generally means maintaining proper records of business activity and including platform income within their normal tax reporting process.

Upwork is only one way to find international clients. Many freelancers living in Spain also work through LinkedIn, direct outreach, professional referrals and long-term consulting relationships. See our guide on how to find remote work while living in Spain.

Depending on your circumstances, this may include quarterly income tax prepayments and VAT reporting. If you are not familiar with these obligations, see our guides on Modelo 130 and Modelo 303.

Receiving payments through a marketplace does not change the underlying nature of the income.

From a tax perspective, the relevant fact is that services were provided and compensation was received.

Why Is DAC7 Important?

The significance of DAC7 is not that it changes how income is taxed, but that it reduces the gap between platform activity and tax reporting.

Historically, tax authorities often had limited visibility into income generated through international online platforms. DAC7 was introduced to address this issue by creating a structured reporting framework across participating jurisdictions.

As a result, information reported by platforms can now be compared with information reported by taxpayers.

For individuals who already maintain accurate records and report income correctly, DAC7 generally does not change day-to-day compliance requirements.

Common Misunderstandings

"Upwork Handles Tax Reporting for Me"

Upwork's DAC7 reporting obligations do not replace a taxpayer's own reporting obligations.

The platform may report information to tax authorities, but responsibility for accurate tax declarations remains with the individual taxpayer.

"Income Received Through Upwork Is Different From Other Income"

From a tax perspective, income earned through Upwork is generally treated like income earned through any other business relationship.

The payment channel does not determine whether income is taxable.

"Receiving a DAC7 Report Means I Am Being Audited"

A DAC7 report is a standard reporting document and does not indicate the existence of an audit, investigation or tax review.

Millions of users across Europe may receive similar reports as part of the normal reporting process.

Should You Keep Your DAC7 Reports?

Yes.

DAC7 reports can be useful when reconciling annual income records and verifying the information reported by a platform.

Keeping a copy alongside invoices, accounting records and tax filings can make it easier to explain differences between:

• Gross platform earnings
• Platform fees and commissions
• Net amounts received
• Amounts reported in tax returns

Good documentation becomes especially important if the Spanish tax authorities ever request additional information about previously filed returns.

Our article on Hacienda document requests for Modelo 303 explains the types of records that may be requested during a tax review.

Good record keeping remains one of the most effective ways to avoid future administrative difficulties.

Related Guides

• How to Register as an Autónomo in Spain
• How to File Modelo 130 Yourself in Spain
• How to File Modelo 303 Yourself in Spain
• Hacienda Requested Documents for a VAT Return (Modelo 303)
• Can I Use Wise as an Autónomo in Spain?
• Can Hacienda See My Bizum Payments?
• Can Hacienda See Your PayPal Balance?
• Do You Really Need a Gestoría for 1–2 Invoices Per Month?

Final Thoughts

DAC7 has made income earned through digital platforms significantly more transparent than in previous years.

For freelancers in Spain using Upwork, the practical conclusion is straightforward: platform income should be reported accurately and supported by appropriate records.

While Upwork remains one of the largest freelance marketplaces, experienced professionals often combine platform work with direct client acquisition, LinkedIn networking and consulting engagements. Learn more in our guide on finding remote work while living in Spain.

DAC7 does not introduce new taxes or fundamentally change existing obligations. What it does change is the amount of information available to tax authorities regarding income earned through online marketplaces.

As online work continues to grow, maintaining accurate records and ensuring consistency between platform earnings and tax filings becomes increasingly important.