List of published territories Afghanistan, Islamic Republic of$$$Albania$$$Algeria$$$Angola$$$Antigua and Barbuda$$$Argentina$$$Armenia$$$Aruba$$$Australia$$$Austria$$$Azerbaijan$$$Bahrain$$$Barbados$$$Belarus$$$Belgium$$$Bermuda$$$Bolivia$$$Bosnia and Herzegovina$$$Botswana$$$Brazil$$$Bulgaria$$$Cabo Verde$$$Cambodia$$$Cameroon, Republic of$$$Canada$$$Caribbean Netherlands$$$Cayman Islands$$$Chad$$$Chile$$$China, People's Republic of$$$Colombia$$$Congo, Democratic Republic of the$$$Congo, Republic of$$$Costa Rica$$$Croatia$$$Curaçao$$$Cyprus$$$Czech Republic$$$Denmark$$$Dominica , Commonwealth of$$$Dominican Republic$$$Ecuador$$$Egypt$$$El Salvador$$$Equatorial Guinea$$$Estonia$$$Fiji$$$Finland$$$France$$$Gabon$$$Georgia$$$Germany$$$Ghana$$$Gibraltar$$$Greece$$$Greenland$$$Guatemala$$$Guernsey, Channel Islands$$$Guyana$$$Honduras$$$Hong Kong$$$Hungary$$$Iceland$$$India$$$Indonesia$$$Iraq$$$Ireland$$$Isle of Man$$$Israel$$$Italy$$$Ivory Coast (Côte d'Ivoire)$$$Jamaica$$$Japan$$$Jersey, Channel Islands$$$Jordan$$$Kazakhstan$$$Kenya$$$Korea, Republic of$$$Kosovo$$$Kuwait$$$Kyrgyzstan$$$Lao PDR$$$Latvia$$$Lebanon$$$Libya$$$Liechtenstein$$$Lithuania$$$Luxembourg$$$Macau$$$Macedonia$$$Madagascar$$$Malawi$$$Malaysia$$$Malta$$$Mauritius$$$Mexico$$$Moldova$$$Mongolia$$$Montenegro$$$Morocco$$$Mozambique$$$Myanmar$$$Namibia, Republic of$$$Netherlands$$$New Zealand$$$Nicaragua$$$Nigeria$$$Norway$$$Oman$$$Pakistan$$$Panama$$$Papua New Guinea$$$Paraguay$$$Peru$$$Philippines$$$Poland$$$Portugal$$$Puerto Rico$$$Qatar$$$Romania$$$Russian Federation$$$Rwanda$$$Saint Kitts and Nevis$$$Saint Lucia$$$Saudi Arabia$$$Senegal$$$Serbia$$$Singapore$$$Sint Maarten$$$Slovak Republic$$$Slovenia$$$South Africa$$$Spain$$$Sri Lanka$$$Swaziland$$$Sweden$$$Switzerland$$$Taiwan$$$Tajikistan$$$Tanzania$$$Thailand$$$Timor-Leste$$$Trinidad and Tobago$$$Tunisia$$$Turkey$$$Turkmenistan$$$Uganda$$$Ukraine$$$United Arab Emirates$$$United Kingdom$$$United States$$$Uruguay$$$Uzbekistan, Republic of$$$Venezuela$$$Vietnam$$$Zambia$$$Zimbabwe JDCN-ANSNYN$$$JDCN-89JRLJ$$$JDCN-9L9ER3$$$JDCN-89HREB$$$JDCN-89HRFR$$$JDCN-89HRGN$$$JDCN-89HRHB$$$JDCN-89HRHY$$$JDCN-89HRJM$$$JDCN-89HRKA$$$JDCN-89HRKX$$$JDCN-89HRLL$$$JDCN-89HRM9$$$JDCN-89HRMW$$$JDCN-89HRNK$$$JDCN-89HRP8$$$JDCN-89HRPV$$$JDCN-89HRQJ$$$JDCN-89HRR7$$$JDCN-89HRRU$$$JDCN-89HRSH$$$JDCN-89HRV5$$$JDCN-89HRT6$$$JDCN-89HRTT$$$JDCN-89HRUG$$$JDCN-8FWH76$$$JDCN-89HRVS$$$JDCN-89HRWF$$$JDCN-89HRYE$$$JDCN-89HRZ3$$$JDCN-89HRZQ$$$JDCN-89HS2D$$$JDCN-89HS32$$$JDCN-89HS3P$$$JDCN-89PKJ7$$$JDCN-89HTBS$$$JDCN-89HS5N$$$JDCN-89HS6B$$$JDCN-89HS6Y$$$JDCN-8V8FHF$$$JDCN-89HS7M$$$JDCN-89HS8A$$$JDCN-89HS8X$$$JDCN-89HS9L$$$JDCN-89HSA9$$$JDCN-89HSAW$$$JDCN-89HSBK$$$JDCN-89HSC8$$$JDCN-89HSCV$$$JDCN-89HSDJ$$$JDCN-89HSE7$$$JDCN-89HSEU$$$JDCN-89HSFH$$$JDCN-89HSG6$$$JDCN-89HSGT$$$JDCN-9LFTHK$$$JDCN-89HSHG$$$JDCN-89HRX4$$$JDCN-8UENHH$$$JDCN-89HSJ5$$$JDCN-89HSJS$$$JDCN-89HSKF$$$JDCN-8HLNAZ$$$JDCN-89HSL4$$$JDCN-89HSLR$$$JDCN-89HSME$$$JDCN-89HSN3$$$JDCN-89HSNQ$$$JDCN-89HSPD$$$JDCN-89HSQ2$$$JDCN-89HSQP$$$JDCN-89HSRC$$$JDCN-89HSRZ$$$JDCN-89HRXR$$$JDCN-89HSSN$$$JDCN-89HSTB$$$JDCN-89HSTY$$$JDCN-89HSUM$$$JDCN-AN9ENE$$$JDCN-89HSVA$$$JDCN-89HSVX$$$JDCN-8EGQEM$$$JDCN-89HSWL$$$JDCN-89HSX9$$$JDCN-89HSXW$$$JDCN-89HSYK$$$JDCN-89HSZ8$$$JDCN-89HSZV$$$JDCN-89HT2J$$$JDCN-89HT38$$$JDCN-89HT3V$$$JDCN-89HT4J$$$UKWE-8CEb2F$$$JDCN-89HT5U$$$JDCN-89HT6H$$$JDCN-89HT77$$$JDCN-89HT7U$$$JDCN-89HT8H$$$JDCN-89HT96$$$JDCN-8HLRL5$$$JDCN-89HT9T$$$JDCN-97XLRC$$$JDCN-89HTAG$$$JDCN-89HTB5$$$JDCN-89HTCF$$$JDCN-89HTD4$$$JDCN-89HTDR$$$JDCN-89HTEE$$$JDCN-89HTF3$$$JDCN-89HTFR$$$JDCN-89HTGE$$$JDCN-89HTH3$$$JDCN-89HTHQ$$$JDCN-89HTJD$$$JDCN-89HTK2$$$JDCN-89HTKP$$$JDCN-89HTLC$$$JDCN-89HTLZ$$$JDCN-89HTMN$$$JDCN-89HTNB$$$JDCN-89HTNY$$$JDCN-8UPFL5$$$JDCN-89HTVJ$$$JDCN-89HTW7$$$JDCN-89HTPM$$$JDCN-89HTQA$$$JDCN-89HTQX$$$JDCN-89HTRL$$$JDCN-8FWGMB$$$JDCN-89HTS9$$$JDCN-89HTSW$$$JDCN-89HTTK$$$UKWE-8CDMS7$$$JDCN-89HTUV$$$JDCN-89HTWU$$$JDCN-89HTXH$$$JDCN-89HTY6$$$JDCN-89HTZG$$$JDCN-89HU25$$$JDCN-89HU2S$$$JDCN-89HU3F$$$JDCN-8VDJC3$$$JDCN-89HU44$$$JDCN-8V8FQH$$$JDCN-89HU4R$$$JDCN-89HU5E$$$JDCN-89HU63$$$JDCN-89HU6Q$$$JDCN-89HU7D$$$JDCN-89HU82$$$JDCN-89HU8P$$$JDCN-89HU9C$$$JDCN-89HU9Z$$$JDCN-89HUAN$$$JDCN-89HUBB$$$JDCN-9LFTHP$$$JDCN-89HUBY Afghanistan$$$Barbuda$$$Herzegovina$$$Cape Verde$$$Republic of Cameroon$$$People's Republic of China$$$Peoples Republic of China$$$Democratic Republic of the Congo$$$DRC$$$Republic of Congo$$$Curacao$$$Commonwealth of Dominica$$$Channel Islands$$$Channel Islands$$$South Korea$$$Republic of Korea$$$Laos$$$Republic of Lebanon$$$The Netherlands$$$PNG$$$Russia$$$Nevis$$$St. Kitts and Nevis$$$St Kitts and Nevis$$$St. Lucia$$$St Lucia$$$St. Maarten$$$St Maarten$$$Slovakia$$$SA$$$Tobago$$$Republic of Turkey$$$UAE$$$Great Britain$$$UK$$$Britain$$$Whales$$$Northern Ireland$$$England$$$US$$$U.S.$$$U.S.A.$$$USA$$$Republic of Uruguay$$$Republic of Uzbekistan$$$Republic of Zambia

Spain Corporate - Withholding taxes

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Ordinarily, WHT is the mechanism by which the Spanish tax authorities collect the final tax levied on non-residents. In the case of resident beneficiaries, however, it is simply an advance payment of a tax that is then normally self-assessed by the resident taxpayer in the final annual tax return.

The advance payment system of WHT for resident beneficiaries referred to above also applies if non-resident companies/individuals not established in Spain sell their title to Spanish real estate. In this case, the acquirer of the real estate must levy a 19% WHT on the selling price on account of the tax chargeable to the seller on its capital gain. Other capital gains (for instance, from a sale by a non-resident of a substantial interest in a Spanish company where neither a tax treaty nor internal rules establish a tax exemption) are taxed in the hands of the non-resident transferor, but the mechanics of levying the tax are not those of a WHT. In this case, the non-resident’s tax is paid directly, through its representative or by the depositor or manager of the assets in question, if any.

The following table states the general WHT rates on income obtained by resident/non-resident companies. The most significant peculiarities regarding the rates for each type of income are stated in footnotes to the table.

Withholding rates

Recipient Dividends (%) Interest (%) Royalties (%)
Resident corporations and individuals 19 (1a) 19 (2a) 19 (2b)
Non-resident corporations and individuals:      
Non-treaty 19 (3) 19 (4) 24 (1b, 5)
Treaty *:      
Albania 10 (6) 6 (10, 22) 0
Algeria 5 (7) 5 ( 8, 9, 10, 11) 7 (12)
Andorra 5 (7) 5 (8, 9) 5
Argentina 10 (106) 12 (107) 15 (108)
Armenia 10 (104) 5 10 (105)
Australia 15 10 10
Austria 10 (3, 16) 5 (4) 5 (5)
Barbados 0 (98) 0 0
Belgium 15 (3, 15, 18) 10 (4, 18, 19) 5 (5, 18)
Bolivia 10 (13, 18) 15 (8, 9, 10, 14, 18) 15 (17, 18, 20)
Bosnia 5 (21) 7 (22) 7
Brazil 10 (13, 17) 15 (9, 24, 25) 15 (17, 26)
Bulgaria 5 (3, 27) 0 (4) 0 (5)
Canada 5 (121) 10 (122) 10 (20, 28)
Chile 5 (29) 15 (17, 30) 10 (17, 31)
China 10 10 10 (32)
Colombia 5 (33) 10 (17, 34, 123) 10 (17)
Costa Rica 12 (17, 35) 10 (17, 34, 36) 10 (17)
Croatia 0 (13, 18) 0 0
Cuba 5 (13, 18) 10 (18, 37) 5 (18, 20)
Cyprus 0 (110) 0 0
Czech Republic 5 (3, 27) 0 (4) 5 (5, 38)
Dominican Republic 10 (111) 10 (112) 10
Ecuador 15 10 (39) 10 (40)
Egypt 12 (41) 10 (42) 12
El Salvador 12 (17, 43) 10 (17, 22) 10 (17)
Estonia 5 (3, 13, 17, 18) 0 (4, 9, 10, 11, 18) 0 (5, 17, 18)
Finland 10 (3, 13) 10 (4) 5 (5)
France 15 (3, 45) 10 (4, 46) 5 (5, 47)
Georgia 0 (99) 0 0
Germany 5 (3, 7, 48) 0 (4, 48) 0 (5)
Greece 5 (3, 49) 8 (4, 50) 6 (5)
Hong Kong 10 (15) 5 (59) 5
Hungary 5 (3, 13) 0 0
Iceland 5 (13, 18) 5 (9, 18) 5 (18)
India 15 15 (9, 51, 52) 10 (17, 53)
Indonesia/Timor Oriental 10 (13) 10 (9, 54, 55) 10
Iran 5 (56) 7.5 (9, 10, 11) 5
Ireland 15 (3, 18) 10 (4, 18, 55) 10 (5, 18, 57)
Israel 10 (18) 10 (9, 18, 58) 7 (18, 40)
Italy 15 (3) 12 (4, 9) 8 (5, 60)
Jamaica 5 (17, 49, 61) 10 (17, 22, 61) 10 (17, 61)
Japan 10 (23) 10 10
Kazakhstan 5 (90) 10 (8, 9, 97) 10
Kuwait 5 (84) 0 5
Latvia 5 (3, 18, 49) 10 (4, 9, 10, 17, 18, 124) 10 (5, 17, 31)
Lithuania 5 (3, 13, 18) 10 (4, 9, 10, 17, 18) 10 (5, 17, 18, 31)
Luxembourg 10 (3, 62) 10 (4, 9, 63) 10 (5, 64)
Macedonia 5 (7) 5 (65) 5
Malaysia 5 (18, 66) 10 (8, 9, 17, 18) 7 (18, 67)
Malta 5 (3, 68) 0 0
Mexico 10 (127) 10 (8, 9, 17, 51, 69, 125, 126) 10 (17, 20, 38)
Moldova 0 (70) 5 (22) 8
Morocco 10 (13) 10 10 (40)
Netherlands 15 (3, 71, 128) 10 (4) 6 (5, 72)
New Zealand 15 (17) 10 (17) 10 (17)
Nigeria 10 (17, 114, 117) 7.5 (17, 115, 117) 3.75 (17, 116, 117)
Norway 10 (13) 10 (9, 10, 55, 129) 5 (64, 73a)
Oman 0 (119, 120) 5 (9) (119) 8 (119)
Panama 5 (100, 101) 5 (10, 44) 5
Pakistan 10 (73b) 10 (8, 9, 97) 7.5
Philippines 10 (74) 15 (75) 15 (76, 130)
Poland 5 (3, 13) 0 (4) 10 (5, 20)
Portugal 10 (3, 13, 18) 15 (4, 18) 5 (5, 18)
Romania 10 (3, 13) 10 (4, 77) 10 (5)
Russian Federation 15 (18, 78) 5 (8, 9, 18, 79) 5 (18)
Saudi Arabia 5 (68) 5 (8, 9) 8
Senegal 10 10 (113) 10
Serbia 5 (17, 131) 10 (9, 17) 10 (17, 80)
Singapore 0 (102) 5 (103) 5
Slovakia 5 (3, 27) 0 (4) 5 (5, 38)
Slovenia 5 (3, 13, 18) 5 (4, 8, 9, 18) 5 (5, 18)
South Africa 5 (13, 18) 5 (18, 81) 5 (18)
South Korea 10 (13) 10 (9, 82) 10
States of the former USSR (except Russia) 18 0 5
Sweden 10 (3, 16) 15 (4) 10 (5)
Switzerland 15 (83) 0 5 (85)
Thailand 10 (17) 15 (86a) 15 (86b)
Trinidad and Tobago 0 (70, 87a) 8 (8, 9, 63, 82, 87a) 5 (87a)
Tunisia 5 (87b) 10 (88) 10
Turkey 5 (13) 15 (89) 10
United Arab Emirates 5 (9, 90) 0 0
United Kingdom 10 (3, 109) 0 0
United States 10 (13) 10 (8, 9, 65) 10 (57, 91a)
Uruguay 5 (91b) 10 (8, 9, 92) 10 (93)
Uzbekistan 5 (23) 5 (118) 5
Venezuela 0 (49) 0 (17, 94, 95) 5
Vietnam 7 (17, 18, 96) 10 (9, 17, 18, 63) 10 (17, 18, 31, 132)

Notes

The general rates in the table above are for guidance only and should not be treated as tax advice.

The rates above are for income obtained by non-residents that is not related to any PEs that they may have in Spain.

* Aside from these tax treaties, the following tax treaties are not yet in force, as they are currently being negotiated or are not yet approved or published: Azerbaijan, Bahrain, Belarus, Cabo Verde, Montenegro, Namibia, Peru, Qatar, and Syria.

  1.  
    1. If a corporate taxpayer, as a shareholder, is entitled to a tax exemption for the avoidance of double taxation on the dividends received, no WHT is levied. As a general rule, corporate shareholders with at least a 5% interest held for at least one year may apply this tax exemption on the dividends received.
    2. For residents of other EU member states or EEA countries with which there is an effective exchange of tax information, the rate is 19%.
  2.  
    1. The 19% WHT rate does not apply if, amongst other cases, the recipient is a resident bank or savings or other financial institution subject to CIT, provided that this income is not portfolio income. In addition, no WHT is levied on interest arising between companies taxed under the tax consolidation regime.
    2. A 19% WHT rate is levied on income generated under royalty and technical assistance agreements, from leases or from the granting of rights when ownership is not transferred. A 24% rate is levied on fees received by a company for the transfer of rights to an image or consent or authorisation to its use.
  3. Implementation of the EU Parent-Subsidiary Directive in Spanish law gives EU shareholders a WHT exemption on dividends from Spanish companies, subject to compliance with certain requirements. Luxembourg recipients of income that are companies under paragraph 1 of the Protocol to the Tax Treaty with Spain (holding companies) are not allowed this exemption.
  4. The EU Interest and Royalties Directive WHT exemption for interest obtained by EU lenders is applicable when appropriate.
  5. Taxable income from supplies of services, technical assistance, or assembly/installation work under engineering contracts provided or carried out by non-resident companies with no PE in Spain does not follow the general rule for gross income. In such cases, total income can be reduced by related staff costs, certain supplies (water, electricity, telephone), and materials used for the services/work, provided that, in the case of staff costs, evidence can be furnished that they were actually taxed in Spain. According to the EU Interest and Royalties Directive, royalties paid to other EU member state associate companies are exempt from WHT.
  6. A 5% WHT is levied if the recipient is a company that holds at least 10% of the capital of the company paying the dividends; no WHT is levied if the recipient company holds at least 75% of the capital of the company paying the dividends.
  7. Levied if the recipient is a company holding at least a 10% interest in the paying company; otherwise, a 15% rate is levied.
  8. Interest paid by certain public institutions is tax exempt.
  9. Interest paid to certain public institutions is tax exempt.
  10. Interest arising from the acquisition of commercial, industrial, or scientific equipment is tax exempt.
  11. Interest paid on loans granted by a bank or other financial institution is tax exempt.
  12. For royalties for any copyright of artistic, scientific, or literary work (including cinematograph films and films or tapes for radio or television broadcasting), the rate levied is 14%.
  13. Levied if the recipient is a company holding at least a 25% interest in the paying company; otherwise, a 15% rate is levied.
  14. No WHT is levied on interest when both contracting states agree this and the loan is for no less than five years.
  15. No WHT is levied on dividends if the beneficial owner is a company (other than a partnership) that holds at least 25% of the capital of the company paying the dividends.
  16. Levied if the recipient is a company holding a direct interest of at least 50% in the paying company for at least one year; otherwise, a 15% rate is levied.
  17. A 'most-favoured nation' clause is included in the Convention or Agreement for the Avoidance of Double Taxation between this country and Spain.
  18. Reduced WHT rates or exemptions are not levied/applied if the income is paid to a company resident in a contracting state more than 50% of whose shares are directly or indirectly held by non-residents. This clause will not apply if the company can prove that it carries out important industrial or commercial activities and does not merely manage or hold shares.
  19. A tax exemption can be applied to interest on commercial loans, loans guaranteed by public bodies for the promotion of exports, and on current accounts in banks or nominative advances between banks of both contracting states.
  20. Royalties for any copyright of literary, theatrical, musical, or artistic work (with some exceptions, such as films and TV programs) are exempt from WHT.
  21. 5% WHT is levied if the recipient (beneficial owner) is the shareholder of the paying company with at least a 20% interest; otherwise, 10% WHT is levied.
  22. No WHT is levied on interest if: (i) the recipient is the other contracting state, its central bank, or its political divisions; (ii) the payer is a contracting state or its political divisions; (iii) the interest arises from a loan or credit granted or guaranteed by a contracting state or its political divisions; (iv) the recipient is a financial institution; or (v) the recipient is a pension fund qualifying for tax purposes in a contracting state and the income from such fund is tax exempt in the contracting state paying the dividend.
  23. Levied if the recipient is a company that directly holds at least 25% of the capital of the paying company; otherwise, a 10% rate is levied. However, if, under the provisions of Spanish CIT legislation and any future amendments, a company resident in Spain is not taxed by Spanish CIT on the dividends that it receives from a company resident in Uzbekistan, the 5% WHT rate shall be reduced to 0%.
  24. The maximum WHT is 10% for interest paid to financial institutions for loans and credits granted for a minimum term of ten years for the purchase of capital equipment.
  25. Interest arising from securities issued by a contracting state is exempt from WHT.
  26. A 10% WHT rate is levied on royalties for copyrights of any literary, scientific, or artistic work (including films and TV programs).
  27. Levied if the beneficial owner is a company (excluding partnerships) with at least a 25% interest in the paying company held directly or indirectly; otherwise, a 15% rate is levied.
  28. A reduced WHT rate is only levied if the income is taxed in Canada; otherwise, the general rate is levied.
  29. Levied if the recipient is a company with at least a 20% interest in the paying company held directly or indirectly; otherwise, a 10% rate is levied.
  30. Interest arising from bank or insurance company loans, bonds, some securities that are regularly negotiated on stock markets, and credit sales of industrial equipment are taxed at a 5% tax rate.
  31. A 5% WHT rate is levied on royalties for the use of industrial, commercial, or scientific equipment.
  32. A 6% WHT is levied on gross royalties for the use of industrial, commercial, or scientific equipment.
  33. A 0% WHT rate is levied if the recipient is a company with at least a 20% interest in the paying company held directly or indirectly.
  34. No WHT is levied if: (i) the beneficiary is a contracting state, one of its political subdivisions or one of its local entities; (ii) interest is paid in connection with the sale on credit of merchandise or equipment to a company of a contracting state; or (iii) interest is paid on a loan granted by a bank or financial institution resident in a contracting state.
  35. A 5% WHT is levied if the beneficial owner is a company that directly holds at least 20% of the capital of the company paying the dividends.
  36. 5% WHT is levied if the interest is paid on a long-term loan (more than five years).
  37. No WHT is levied if: (i) the beneficiary is a contracting state, one of its political subdivisions or one of its local entities; (ii) interest is paid in connection with the sale on credit of merchandise or equipment to a company of a contracting state; or (iii) interest is paid on a long-term loan (five or more years) granted by a bank or financial institution resident in a contracting state.
  38. Royalties for copyrights of any literary, theatrical, musical, or artistic work, excluding films and TV programs, are tax exempt if the recipient is resident in the other contracting state and taxed on such income in such state.
  39. A 5% WHT rate is levied on interest arising from the sale of industrial, commercial, or scientific equipment, the sale of merchandise from one business to another business, or the financing of construction, installation or assembly works. No WHT is levied if the interest is paid on a long term loan (more than five years) or if the interest is paid to the other contracting state or one of its political subdivisions or a financial institution totally owned by the other contracting state or one of its political subdivisions.
  40. A 5% WHT rate is levied on royalties for copyrights of any literary, theatrical, musical, or artistic work (excluding films and TV programs).
  41. A 9% WHT rate is levied on the gross amount of the dividends if the beneficiary owner is a company (other than a partnership) that has at least a 25% direct interest in the company paying the dividends.
  42. WHT is not levied on interest if the recipient is a contracting state, one of its political subdivisions, or one of its public bodies or local authorities, or if the interest is paid to the Central Bank of the other contracting state.
  43. No WHT is levied if the recipient is a company with at least a 50% direct interest in the company paying the dividends, provided that the dividends are distributed from profits taxed in Spain.
  44. No WHT is levied on interest if: (i) the recipient is the other contracting state, its central bank, or its political divisions; (ii) the payer is a contracting state or its political divisions, (iii) the interest arises from a loan or credit granted by a contracting state or its political divisions, (iv) the recipient is a qualifying financial institution; or (v) the recipient is a pension fund qualifying for tax purposes in a contracting state and the income from such fund is tax exempt in the contracting state paying the dividend.
  45. No WHT is levied if the French company has at least a 10% direct interest in the company distributing the dividend.
  46. No WHT is levied if the French company receives interest (i) from the other contracting state or any of its political divisions; (ii) from a resident in theother contracting state from an underlying commercial or industrial activity; (iii) in connection with a credit sale of industrial, commercial, or scientific equipment; or (iv) for a loan granted by a financial institution.
  47. No WHT is levied on royalties on copyright of any literary or artistic work (excluding films and TV programs) if the recipient is the beneficiary owner or royalties paid for the use or licensing of containers and bare hull vessels or aircraft used in international trade.
  48. Dividends and interest may be taxed at source under domestic law when (i) they are generated from any right (including credits) that allows for shares in profits (such as shares, bonds, or participating loans) and (ii) they are tax deductible for the debtor. Notwithstanding, WHT may not exceed 15% when the beneficial owner is tax resident in the other contracting state.
  49. Levied if the recipient is a company with at least a 25% direct interest in the paying company; otherwise, a 10% rate is levied.
  50. No WHT is levied on interest if: (i) the interest is paid by a contracting state, one of its political subdivisions, or one of its local entities; (ii) the interest is paid to the other contracting state, one of its political subdivisions, or one of its local entities or to a body (including financial institutions) of such contracting state; or (iii) the interest is paid to another body (including financial institutions) in relation to loans granted by virtue of an agreement between both contracting states.
  51. No WHT is levied on interest paid to the Central Bank of the other contracting state.
  52. No WHT is levied on interest paid to companies in the other contracting state if the operation that generates the debt has been authorised by the government of the state where the company paying the interest is resident.
  53. The 10% WHT rate will be applicable to all royalties due to the most favoured nation clause.
  54. No WHT is levied on interest if the recipient is a contracting state, one of its political subdivisions, or one of its local entities or if the interest is paid to the Central Bank or a financial institution controlled by the other contracting state, its political subdivisions, or its local entities.
  55. No WHT is levied on interest arising from the credit sale of industrial, commercial, or scientific equipment.
  56. Levied if the recipient is a company with at least a 20% interest in the paying company; otherwise, a 10% rate is levied.
  57. Royalties for copyright on literary, theatrical, musical, or artistic work are taxed at a 5% WHT rate. Royalties on films or other means of audio or video transmission, for the use or right to use industrial, commercial, or scientific equipment, or on scientific works or under agreements between both states are taxed at an 8% rate.
  58. A 5% WHT rate is levied on interest arising from the sale of industrial, commercial, or scientific equipment, the sale of merchandise from one business to another business, or loans granted by a financial institution.
  59. No WHT is levied on interest if the beneficial owner of the interest is a resident of the other contracting state and: (i) the beneficial owner of the interest is that contracting state, its central bank, a political subdivision, or a local authority; (ii) the interest is paid by the contracting state in which the interest arises or by a political subdivision, a local authority, or non-profit-making statutory body thereof; (iii) the interest is paid in respect of a loan, debt-claim, or credit that is owed to, or made, provided, guaranteed, or insured by that contracting state or a political subdivision, a local authority, or an export facilitating agency thereof; (iv) the beneficial owner of the interest is a financial institution; or (v) the beneficial owner of the interest is a qualifying pension fund and the income of that fund is generally exempt from tax in that other contracting state.
  60. A 4% WHT rate is levied on royalties for copyright on literary, theatrical, musical, or artistic work (excluding films and TV programs).
  61. Reduced WHT rates are not levied when more than 75% of the shares of the recipient company resident in a contracting state are owned, directly or indirectly, by non-residents and the income generated by the paying company is not taxed in its country of residence.
  62. Levied if the recipient is a company with at least a 25% interest in the paying company; otherwise, a 15% rate is levied.
  63. No WHT is levied on interest arising from a loan guaranteed by a contracting state.
  64. Consideration received for waiving, either totally or partially, the use or right to use goods or rights is considered to be a royalty.
  65. No WHT is levied on interest paid in connection with the sale on credit of merchandise or equipment to a company of a contracting state or on interest paid on a long-term loan (five or more years) granted by a bank or credit institution resident in a contracting state.
  66. No WHT is levied if the recipient is a company with at least a 5% direct interest in the paying company.
  67. A 5% WHT rate is levied on royalties for technical services.
  68. No WHT is levied on dividends paid to a shareholder resident in the other contracting state of the company distributing the dividend with at least a 25% interest.
  69. Due to the application of the most favoured nation clause, a 5% WHT rate is levied on certain interest, such as that received by a bank (beneficial owner).
  70. Levied if the recipient is a company with at least a 50% direct interest in the paying company. A 5% WHT rate is levied if the recipient is a shareholder with at least a 25% direct interest; otherwise, a 10% rate is levied. WHT is reduced to 5% if the recipient company is not taxed in the Netherlands for this dividend.
  71. WHT is reduced to 10% if the recipient is a Dutch company with at least a 50% direct interest in the paying company or if the recipient holds 25% of its capital and another Dutch company holds at least the other 25%.
  72. No WHT is levied on capital gains from sales of assets/rights when they are considered to be a royalty.
  73.  
    1. No WHT is levied on fees paid for the use or licensing of containers and bare hull vessels or aircraft used in international trade.
    2. A 5% WHT is levied if the beneficial owner is a company that has owned directly, during a period of six months, at least 50% of voting shares of the company paying the dividends; a 7.5% WHT is levied if the beneficial owner is a company that has owned directly, during a period of six months, at least 25% of voting shares of the company paying the dividends.
  74. Levied if the recipient is a shareholder of the paying company holding voting rights with at least a 10% direct interest; otherwise, a 15% rate is levied.
  75. A 10% WHT rate is levied on interest paid for bonds or similar securities generally offered to investors and related to transfers of industrial, commercial, or scientific equipment. No WHT is levied on interest from bonds or similar securities issued by the state or a local entity or from loans given or guaranteed by either of the two contracting states, Central Banks, or financial institutions as agreed between the contracting states.
  76. A 20% WHT rate is levied on royalties for films or audio or TV tapes.
  77. No WHT is levied on interest from loans granted or guaranteed by a contracting state.
  78. If the recipient has invested more than EUR 100,000 in the company that pays the dividend or the dividend is tax exempt in its country of residence, the WHT rate levied is 10%. If both of these requirements are fulfilled, the rate applicable is 5%.
  79. Interest on loans with a maturity period of over seven years is tax exempt.
  80. A 10% WHT rate is levied on any patents, trademarks, designs or models, plans, secret formulae, or processes and computer software, or for the use of, or the right to use, industrial, commercial, or scientific equipment, or for information concerning industrial, commercial, or scientific experiences. A 5% WHT rate is levied on any copyright of literary, artistic, or scientific work, excluding computer software and including cinematographic films or tapes used for radio or television broadcasting.
  81. No WHT is levied on interest paid to a contracting state, one of its political subdivisions, or one of its local entities or interest paid in connection with the sale on credit of merchandise or equipment to a company of a contracting state or interest paid on any long-term loan (seven years minimum) granted by a bank resident in a contracting state.
  82. No WHT is levied on interest arising from the credit sale of industrial, commercial, or scientific equipment or merchandise.
  83. No WHT is levied on dividends when they are paid to a shareholder with at least a 10% interest held for at least one year, provided that the company distributing the dividends is effectively taxed.
  84. No WHT is levied on dividends when they are paid to a shareholder with at least 10% direct interest.
  85. No WHT is levied if the royalties are paid between associated companies, affiliated by at least a 25% direct interest held for at least two years or both held by a third company with at least a 25% interest in both companies held for at least two years, and CIT is levied on all of the companies.
  86.  
    1. A 10% WHT rate is levied on interest received by financial and insurance entities. No WHT is levied on interest from loans granted by the government, Central Bank, or certain institutions.
    2. A 5% WHT rate is levied on royalties for any copyright of literary, artistic, theatrical, musical, or scientific work (excluding cinematograph films and films or tapes for radio or television broadcasting); an 8% WHT is levied on financial leasing related with the use or the right to use industrial, commercial, or scientific equipment.
  87.  
    1. Reduced WHT rates or exemptions are not levied/applied if the income is paid to a company resident in a contracting state more than 75% of whose shares are directly or indirectly held by non-residents and such income is not subject to taxation in such contracting state.
    2. Levied if the recipient is a shareholder of the paying company with at least a 50% interest; otherwise, a 15% rate is levied.
  88. A 5% WHT rate is levied for long-term loans (more than seven years).
  89. The WHT rate is 10% if the interest arises from a loan granted by a bank or is related to a credit acquisition of merchandise or equipment.
  90. Levied if the recipient is a shareholder of the paying company with at least a 10% interest; otherwise, a 15% rate is levied.
  91.  
    1. No WHT is levied on royalties paid for the use or licensing of containers used in international trade.
    2. No WHT is levied on dividends when they are paid to a company holding at least a 75% direct interest in the paying company.
  92. No WHT is levied if the interest is paid on a long-term loan (more than three years) to finance investment projects if the interest is paid to a pension fund that meets certain requirements or if the interest is paid in relation to a credit acquisition of merchandise, equipment, or services.
  93. A 5% WHT is levied on royalties for any copyright of literary, artistic, or scientific work.
  94. No WHT will be applicable on any interest due to the application of the most favoured nation clause.
  95. No WHT is levied on interest if: (i) the recipient is the other contracting state, its central bank, or its political divisions; (ii) the interest is paid by one contracting state or its political divisions, (iii) the interest arises from a loan or credit granted or guaranteed by a contracting state to promote exports and development, (iv) the recipient is a pension fund qualifying for tax purposes in a contracting state and the income generated from the fund is tax exempt in the contracting state paying the dividend, or (v) the interest is paid in relation to the credit acquisition of industrial, commercial, or scientific equipment.
  96. Levied if the recipient is a shareholder of the paying company with at least a 50% interest. A 5% WHT is levied if the recipient is a company with at least a 70% interest. A 10% WHT rate is levied if the recipient is a company with at least a 25% direct interest; otherwise, a 15% rate is levied.
  97. No WHT is levied on interest arising from loans granted or guaranteed by qualifying public institution or interest paid to public financial institutions.
  98. No WHT is levied if the recipient is a company (other than a partnership) with at least a 25% direct interest in the paying company; otherwise, a 5% rate is levied.
  99. No WHT is levied if the recipient is a company with at least a 10% direct interest in the paying company; otherwise, a 10% rate is levied.
  100. 5% WHT rate is levied if the recipient (excluding partnerships) is a shareholder with at least a 40% direct interest in the paying company; otherwise, a 10% rate is levied. No WHT is levied if the recipient is a shareholder with at least an 80% direct interest in the paying company, and (i) its shares are listed on a stock exchange, (ii) the recipient is at least 50% owned by residents from either of the two countries, (iii) the recipient is owned by shareholders resident for tax purposes in third countries by a proportion of less than 25%, and (iv) the recipient is owned (an interest of more than 25%) by residents in third countries, provided that a tax treaty for the avoidance of double taxation has been signed with the country of the company paying the dividends and that this tax treaty establishes the same or more favourable conditions. No WHT is levied for dividends paid to pension funds.
  101. Reduced rates/exemptions are not applicable when a Panama tax-resident company pays dividends, interest, or royalties to a Spanish tax resident and such income has been obtained either in Spain or in a country that has not signed a tax treaty for the avoidance of double taxation with Spain.
  102. Levied if the recipient is a company (excluding partnerships) with at least a 10% direct interest in the paying company; otherwise, a 5% rate is levied. In the case of distributions made out of a real estate investment trust, 5% is levied if the beneficial owner holds, directly or indirectly, less than 10% of the value of the capital in such trust.
  103. No WHT is levied on interest if: (i) the recipient is a contracting state of the treaty, its central bank, or its political divisions; (ii) the payer is a contracting state or its political divisions; (iii) the payer is a financial institution of a contracting state and interest is paid to a financial institution of the other contracting state; (iv) the recipient is a pension fund qualifying for tax purposes in a contracting state and the income from such fund is tax exempt in the contracting state paying the dividend; (v) the interest is paid in respect of a loan, debt-claim, or credit that is owed to, made, provided, guaranteed, or insured by an export financing agency of a contracting state or political division, or guaranteed or insured by that state or political division; (vi) the recipient is an institution wholly or mainly owned by a contracting state as may be agreed from time to time between the competent authorities; or (vii) the recipient is the government of Singapore Investment Corporation Pte Ltd.
  104. No WHT is levied on dividends if the beneficial owner is a company resident in the other contracting state whose capital is wholly or partly divided into shares and it has held at least 25% of the capital of the company paying the dividends for at least two years before the date of such payment and such dividends are not subject to profit tax in the other contracting state.
  105. 5% WHT rate is levied on royalties paid for the use of, or the right to use, any copyright of literary, artistic, or scientific work, including cinematographic films or films and tapes used for radio or television broadcasting.
  106. Levied if the recipient is a company with at least a 25% direct interest in the paying company; otherwise, a 15% rate is levied.
  107. No WHT is levied on interest if: (i) the interest is paid by a contracting state, one of its political subdivisions, or one of its local collectivities; (ii) the interest is paid to the government of the other contracting state or one of its local collectivities or to a body (including financial institutions) fully owned by such contracting state or its local collectivities; (iii) the interest is paid to another body (including financial institutions) in relation to loans granted under an agreement signed between both contracting states for a term of at least five years; or (iv) the interest is paid in relation to the acquisition of industrial, commercial, or scientific equipment.
  108. (i) 3% WHT is levied on royalties paid for the use of, or the right to use, news; (ii) 5% WHT is levied on royalties paid for the use of, or the right to use, copyright on literary, theatrical, musical, or artistic works; and (iii) 10% WHT is levied on royalties paid for the use of, or the right to use, patents, designs, models, plans, secret formulae, processes or computer software, or for the use of, or the right to use, industrial, commercial, or scientific equipment or for information concerning industrial, commercial, or scientific experiences or technical assistance services.
  109. 15% WHT is levied if the dividends are paid out of income generated, either directly or indirectly, from immovable property through an investment vehicle that distributes most of its income annually and whose income is tax exempt. In addition, no WHT is levied if the recipient is a company that directly or indirectly holds at least a 10% interest in the paying company or if the recipient is a pension plan of the other contracting state.
  110. Levied if the recipient is a company with at least a 10% direct interest in the paying company; otherwise, a 5% rate is levied.
  111. No WHT is levied on dividends if the beneficial owner is a company (excluding unlimited liability companies) that directly holds at least 75% of the capital of the company paying the dividends.
  112. No WHT is levied on interest if: (i) the recipient is the other contracting state, its central bank, or its political divisions; (ii) the payer is a contracting state or its political divisions; (iii) the interest arises from a loan or credit granted or guaranteed by a contracting state, its political divisions, or an export credit agency; (iv) the interest is paid in relation to the acquisition of any equipment, goods, or services; or (v) the recipient is a pension fund qualifying for tax purposes in a contracting state and the income from such fund is tax exempt in the contracting state paying the dividend.
  113. No WHT is levied on interest if: (i) the interest is paid by a contracting state or one of its political divisions or (ii) the interest is paid to the government of the other contracting state or one of its political divisions or to a body (including financial institutions) fully owned by such contracting state or its political divisions.
  114. 7.5% WHT rate is levied if the recipient is a company (other than a partnership) that directly holds at least 10% of the capital of the company paying the dividend.
  115. No WHT is levied on interest if the recipient is the beneficial owner and it is the government of the other contracting state, one of its political subdivisions, one of its local entities, the Central Bank, or a financial institution controlled by the other contracting state.
  116. 7.5% WHT is levied on royalties if the recipient is a company.
  117. If under any agreement or arrangement between Nigeria and a member state of the OECD Nigeria declared exempt from taxation the dividends, interest, or royalties from a Nigerian source, or limited the tax charged in Nigeria on such dividends, interest, and royalties at rates below those established in the DTT with Spain, such exemption or lower rate shall automatically apply to dividends, interest, or royalties from the Nigerian source beneficially owned by a Spanish resident.
  118. No WHT is levied on interest if: (i) the recipient is the other contracting state, its central bank, or its political divisions; (ii) the payer is a contracting state or its political divisions; or (iii) the interest arises from a loan or credit granted by a contracting state or its political divisions.
  119. The provision in this article shall not apply if: (i) a company of a contracting state paying dividends, interest, or royalties to a company resident in the other state has generated its income from a jurisdiction that does not have a double taxation agreement with that other contracting state; and (ii) that income is exempt from or not subject to tax in the first contracting state.
  120. No WHT is levied if the beneficial owner is a company that directly holds at least 20% of the capital in the paying company; otherwise, a 10% rate is levied.
  121. 5% rate is applicable if the beneficial owner is a company that directly holds at least 10% of the capital in the paying company; otherwise, a 15% rate is levied.
  122. Notwithstanding:
    1. Interest arising in a contracting state and paid to a resident of the other contracting state shall not be taxable in the first-mentioned contracting state if the beneficial owner of the interest is a resident of the other contracting state and is dealing at arm’s length with the payer. This shall not apply where all or any portion of the interest is paid or payable on an obligation that is contingent or dependent on the use of or production from property or is computed by reference to revenue, profit, cash flow, commodity price, or any other similar criterion or by reference to dividends paid or payable to shareholders of any class of shares of the capital stock of a company.
    2. Interest arising in Spain and paid to a resident of Canada shall be taxable only in Canada if it is paid in respect of a loan made, guaranteed, or insured, or a credit extended, guaranteed, or insured by Export Development Canada.
    3. Interest arising in Canada and paid to a resident of Spain shall be taxable only in Spain if it is paid in respect of a loan, debt-claim, or credit that is owed to or made, provided, guaranteed, or insured by Spain or a political subdivision, local authority, or export financing agency thereof, provided the loan, debt claim, or credit is in respect of exports.
  1. 5% WHT is levied on interest received by assurance institutions.
  2. 5% WHT is levied on interest received by banks or paid to banks.
  3. Interest paid on loans granted (three years) by public institutions are tax exempt.
  4. Interest paid by pension funds is tax exempt.
  5. No WHT is levied on dividends when they are paid to a shareholder (whose capital is totally or partially divided into shares or participations) with at least 10% direct interest or if the recipient is a pension fund.
  6. WHT is reduced to 5% if the recipient is a Spanish company with at least a 50% direct interest in the paying company or if the recipient holds 25% of its capital and another Spanish company holds at least the other 25%.
  7. No WHT is levied if the interest is paid on a long-term loan (more than five years).
  8. A 10% WHT rate if royalties are paid by a company registered with the Philippine Board of Investments.
  9. Levied if the recipient is a company holding at least a 25% interest in the paying company; otherwise, a 10% rate is levied.
  10. 5% WHT is levied on royalties paid for the use of, or the right to use, patents, designs, models, plans, secret formulae, processes, and industrial or scientific experiences (not commercial).

Last Reviewed - 21 December 2017

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