Spain

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 their 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 their 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 DTT nor internal rules establish a tax exemption) are taxed in the non-resident transferor, but the mechanics of levying the tax are not those of a WHT. In this case, the non-resident tax is paid directly, through the non-resident’s representative or by the depositor or manager of the assets in question, if any.

The following tables sets out the general WHT rates on income obtained by resident/non-resident companies. The main characteristics of the rates for each type of income are described in the footnotes to the table. 

 

Withholding rates

 

Recipient	WHT (%)
	Dividends	Interest	Royalties
Resident companies and individuals	19 (1)	19 (2)	19 (3)
Non-resident companies and individuals without treaty	19 (4, 5)	19 (6)	(7, 8)

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. The 19% WHT rate does not apply if, inter alia, 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.
3. A 19% WHT rate is levied on income generated under royalty and technical assistance agreements that constitutes an economic activity 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 for its use.
4. Transposition of the EU Parent-Subsidiary Directive into 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) do not qualify for this exemption.
5. In accordance with Spanish internal NRIT regulations, dividends paid by Spanish tax resident subsidiary companies to their parent companies resident in other Member States of the European Union or to the PEs of the latter located in other Member States will be exempt from NRIT and therefore not subject to WHT, provided the following requirements are met:

• • That both companies are subject to, and not exempt from, any of the taxes that tax the profits of legal entities in the Member States of the European Union, mentioned in article 2.c) of the Parent-Subsidiary Directive.
  • That the distribution of profits does not result from the liquidation of the subsidiary.
  • That both companies take any of the forms provided for in the Annex to the Directive. A parent company will be considered to be an entity that holds a direct or indirect stake in the capital of another company of at least 5% uninterruptedly for at least one year.

The exemption will not be applicable when the parent company is resident for tax purposes in a tax haven or when the PE is located in a tax haven. 

6. According to internal law, interest paid to EU lenders is exempt from WHT. The exemption will not be applicable when interest is obtained through a tax haven.
7. For residents of other EU Member States or EEA countries with which there is an effective exchange of tax information, the rate is 19%.
8. 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 associates are exempt from WHT.

 

 

Recipient	WHT (%)
Non-resident companies and individuals with treaty	Dividends (1)			Interest (2)	Royalties (3)
	General	Parent-subsidiary		%	%
Country (4, 5)	%	P-S rate	Min.  Stake. %
Albania	10	5/0	10/75	0/6 [6]	0
Algeria	15	5	10	0/5 [7]	7/14[8]
Andorra	15	5	10	0/5 [9]	5
Argentina	15	10	25	0/12 [10]	5/3/10/15 [11]
Armenia	10	0 [12]	25	5	5/10 [13]
Australia	15	15	-	10	10
Austria	15	10 [14]	50	5	5
Azerbaijan	10	5	25 [15]	0/8[16]	5/10[17]
Barbados	5	0	25	0	0
Belarus	10	0/5	10[18]/10	0/5[19]	5
Belgium	15	0	25	0/10 [20]	5
Bolivia	15	10	25	0/15 [21]	0/15 [22][23]
Bosnia and Herzegovina	10	5	20	0/7 [24]	7
Brazil	15	10 [25]	25	0/10/15 [26]	10/15 [27]
Bulgaria	15	5	25	0	0
Canada	15	5/0 [28]	10/*	0/10 [29]	0/10 [22]
Cape Verde	10	0	25	0/5[30]	5
Chile	10	5	20	5/4/15 [31]	2/10 [32]
China	0/10[33]	5	25[34]	0/10[35] [36]	10
Colombia	5	0	20	0/5/10 [37]	10 [38]
Costa Rica	12	5 [39]	20	0/5 [40]	10 [41]
Croatia	15	0	25	0 [42]	0 [42]
Cuba	15	5	25	0/10 [43]	0/5 [22]
Cyprus	5	0	10	0	0
Czech Republic	15	5	25	0	0/5[22]
Dominican Republic	10	0	75	0/10[44]	10
Ecuador	15	15	-	5/0/10 [45]	5/10 [22]
Egypt	12	9	25	0/10 [46]	12
El Salvador	12	0 [47]	50	0/10 [48]	10 [49]
Estonia	15	5	25	0 [50]	0 [51]
Finland	0/15 [52]	5	10	0	0
France	15	0	10	0/10 [53]	0/5 [54]
Georgia	10	0	10	0	0
Germany	15	5	10	0	0
Greece	10	5	25	0/8 [55]	6
Hong Kong	10	0	25	0/5 [56]	5
Hungary	15	5	25	0	0
Iceland	15	5	25	0/5 [57]	5
India	15	15	-	0/15	10 [58]
Indonesia/Timor Oriental	15	10	25	0/10 [59]	10
Iran	10	5	20	0/7.5 [60]	5
Ireland	15	0	25	0	5/8/10 [61]
Israel	10	10	-	5/0/10 [62]	5/7 [63]
Italy	15	15	-	0/12 [64]	4/8 [22]
Jamaica	10	5 [65]	25	0/10 [66]	10 [65]
Japan	0/5/10[67]	0	10 [68]	0/10 [69]	0
Kazakhstan	15	5	10	0/10 [70]	10
Kuwait	5	0	10	0	5
Latvia	10	5	25	0/10 [71]	5/10% [72]
Lithuania	15	5	25	0/10 [73]	5/10 [74]
Luxembourg	15	10	25	10	10
Macedonia	15	5	10	0/5 [75]	5
Malaysia	5	0	5	0/10 [76]	5/7 [77]
Malta	5	0	25	0	0
Mexico	10	0	10/FP	0/4,9/10 [78]	0/10 [79]
Moldova	10	5/0	25/50	0/5 [80]	8
Morocco	15	10	25	10	5/10 [81]
Netherlands	15	10(Spain)/ 5(Netherlands) [82]	50 (or 25+25)	10	6
New Zealand	15	15 [83]	-	10 [84]	10 [85]
Nigeria	10	7.5 [86]	10	0/7.5 [87]	3.75/7.5 [88]
Norway	15	10	25	0/10 [89]	5
Oman	10	0	20	0/5 [90]	8
Pakistan	10	7,5/5	25/50	0/10 [91]	7,5
Panama	10	5/0 [92]	40/80 (or pension fund)	0/5 [93]	5
Paraguay	0/10[94]	5	50[95]	0/5[96]	5
Philippines	15	10	10	0/10/15 [97]	10/15/20 [98]
Poland	15	5	25	0	0/10 [22]
Portugal	15	10	25	15	5
Qatar	5	0	10/5/1[99]	0	0
Romania	5	0	10/pension plan [100]	0/3[101]	3
Russian Federation	15	10/5 [102]	Vol. Investment	0/5 [103]	5
Saudi Arabia	5	0	25	0/5 [104]	8
Senegal	10	10	-	0/10 [105]	10
Serbia	10	5 [106]	25	0/10 [107]	5/10 [108]
Singapore	5	0 [109]	10	0/5 [110]	5
Slovakia	15	5	25	0	0/5 [22]
Slovenia	15	5	25	0/5 [111]	5
South Africa	15	5	25	0/5 [112]	5
South Korea	15	10	25	10 [113]	10
Sweden	15	10	50	15	10
Switzerland	15	0 [114]	10 (or pension fund or plan)	0	0/5 [115]
Thailand	10	10 [116]	-	0/10/15 [117]	8/5/15 [118]
Trinidad and Tobago	10	5/0	25/50	0/8 [119]	5
Tunisia	15	5	50	5/10 [120]	10
Turkey	15	5	25	10/15 [121]	10
United Arab Emirates	15	5	10	0	0
United Kingdom	10	0 [122]	10 (or pension plan)	0	0
United States	0/15 [123]	5/0	10/80 [124]	0/10 [125]	0
Uruguay	5	0	75	0/10 [126]	5/10 [127]
Uzbekistan	10	5/0 [128]	25	0/5 [129]	5
Venezuela	10	0	25	0 [130]	5
Vietnam	15	7/10/5 [131]	25/50/70	0/10 [132]	5/10 [133]

Notes (not exhaustive)

The rates above are for income obtained by non-residents without PE.

The general rates in the tables above are for general guidance only and should not be treated as tax advice. The relevant convention for the avoidance of double taxation must always be checked to ensure the values are up-to-date.

The potential impact of the Multilateral Convention (MLI) to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (BEPS) has not been considered.

[1] See, generally, article 10 (2) of the relevant DTT.

[2] See, generally, article 11 (2) and (3) of the relevant DTT.

[3] See, generally, article 12 (2) of the relevant DTT.

[4] The DTT between Spain and the USSR is in force for the former member countries of the USSR, except for those with which there is already a new DTT in force and for some other country with which it has ceased to be in force and for which there is no other DTT in force at the moment.

[5] Both the Czech Republic and Slovakia are subject to the DTT with the former Czechoslovakia.

[6] The exemption applies in relation to: interest paid, received, or guaranteed by the public administrations; financial institutions; credit sales of any equipment or material, goods or service; exempt pension funds.

[7] The exemption applies in relation to: interest paid or received by certain public administrations; credit sales of goods or equipment; loans granted by banks or credit institutions.

[8] The higher rate applies for copyright, including films.

[9] The exemption applies in relation to: interest paid or received by certain public administrations.

[10] The exemption applies in relation to: interest paid or received by certain public administrations; loans concluded between States with a term equal to or greater than 5 years; credit sales of industrial, commercial or scientific equipment.

[11] The applicable rates are: 3% (news); 5% (copyright); 10% (patents, designs and models, plans, secret formulas or processes, computer programs, commercial, industrial or scientific equipment, information relating to industrial, commercial or scientific experience, provision of technical assistance services); 15% in other cases.

[12] The application of the exemption requires a minimum stake of 25% for at least the 2 years prior to the payment of the dividend, and that such dividends are not subject to income tax in the Contracting State of residence of the beneficial owner

[13] The lower rate applies for copyright, including films.

[14] The application of the 10% rate requires a minimum stake of 50% for at least one year prior to the payment of the dividend.

[15] The reduced rate applies when the beneficial owner is a company (other than a partnership) that directly holds at least 25% of the capital and has invested more than 250,000 euros or the equivalent in the company paying the dividend

[16] The exemption applies in relation to interest: a) paid or received by certain public administrations, b) paid in respect of a loan or credit owed to certain public administrations or export credit agencies, or granted, provided, guaranteed, or insured by any of the foregoing; c) the beneficial owner is a public financial institution.

[17] The reduced rate applies to royalties paid for the use of, or the right to use, computer software, patents, trademarks, designs or models, plans, secret formulas or processes, or for information concerning industrial, commercial, or scientific experience.

[18] The exemption applies if the beneficial owner is a company (other than a partnership) that directly holds at least 10 % of the capital of the company distributing the dividends, and such holding amounts to at least 1,000,000 euros.

[19] The exemption applies in relation to interest: a) paid or received by certain public administrations, b) paid in respect of a loan or credit owed to certain public administrations or export credit agencies, or granted, provided, guaranteed, or insured by any of the foregoing; c) the recipient of the interest is a financial institution; or d) the recipient is a pension fund that is tax-approved in the other State.

[20] The exemption applies in relation to: interest on trade receivables, guaranteed by certain public administrations, certain interest between banks.

[21] The exemption applies in relation to: interest paid or received by certain public administrations; loans concluded between States with a term equal to or greater than 5 years; credit sales of industrial, commercial or scientific equipment.

[22] The lower rate applies to copyrights, excluding films.

[23] Protocol 2 of the DTT contains a most-favoured-nation clause for royalties under which the applicable withholding tax may be reduced.

[24] The exemption applies in relation to: interest paid, received, or guaranteed by certain public administrations; public financial institutions; exempt pension funds.

[25] Protocol 3 of the DTT with Brazil contains a most-favoured-nation clause for dividends when there is a holding of more than 25% of the voting capital. Under this clause, the applicable withholding tax may be reduced.

[26] The exemption applies in relation to: interest paid or received by public administrations; the reduced 10% rate applies in relation to bank loans with a minimum term of 10 years to finance the acquisition of equipment and tools; For all other cases, the general rate of 15% applies.

[27] A 10% rate applies to royalty payments for copyrights, including films, and 15% for all other royalties (which logically includes trademarks). However, Protocol 4 of the DTT contains a most-favoured-nation clause for royalties under which the applicable withholding tax may be reduced.

[28] The withholding rates applicable to dividends distributed are: 15% in general; 5% if the beneficial owner is a company (other than a partnership) that directly owns at least 10% of the capital; the application of the 0% rate requires that the beneficial owner be a pension plan or a qualifying retirement plan.

[29] The interest exemption applies where the beneficial owner of the interest is a resident of the other Contracting State and operates at arm's length with the debtor of the interest; and in relation to interests guaranteed by certain public administrations related to exports.

[30] The exemption applies in relation to: interest paid, received, or guaranteed by certain public administrations or paid as a consequence of a loan or credit granted by certain public administrations ; the beneficiary are financial institutions; interest is paid as a consequence of credit sales of any equipment or material, goods or service; the beneficiary is an exempt qualifying pension fund.

[31] According to the DTT with Chile, the interest rate of 5% applies to interest on bank loans or insurance companies , interest on bonds and listed securities, and interest on the sale of machinery or equipment on credit. 15% applies in all other cases. Protocol X of the DTT contains a most-favoured-nation clause for interest, under which the applicable WHT may be lower.

[32] The lowest rate (5%) applies in relation to industrial, commercial or scientific equipment. However, Protocol X of the DTT contains a most-favoured-nation clause for royalties, under which the applicable WHT may be lower.

[33] WHT exemption applies if the beneficial owner of the dividends are certain public administrations or the Central Bank of the other Contracting State, or any entity wholly owned, directly or indirectly, by the other Contracting State.

[34] 5% WHT rate applies when the beneficial owner of the dividends is a company (other than a partnership) that directly holds at least 25 % of the capital of the company paying the dividends for a period of 365 days that includes the day the dividends are paid.

[35] WHT exemption applies to interest paid to certain public administrations, the Central Bank of the other State or any entity wholly owned, directly or indirectly, by the other Contracting State, or paid in respect of a loan guaranteed or insured by that other Contracting State, or its political subdivisions, local authorities, the Central Bank of that other Contracting State, or any entity wholly owned, directly or indirectly, by the other Contracting State.

[36] WHT exemption applies to interest paid in connection with the sale on credit of commercial or scientific equipment.

[37] According to the DTT with Colombia, the 0% rate  applies in relation to interest whose beneficiaries are certain public administrations, on credit sales of goods or equipment and on bank loans.  10% applies in other cases. Protocol VII. 2 of the DTT contains a most-favoured-nation clause for interest, under which the applicable withholding tax may be reduced.

[38] Protocol VIII. 3 of the DTT contains a most-favoured-nation clause for royalties, under which the applicable withholding tax may be reduced.

[39] Protocol XIV to the DTT contains a most-favoured-nation clause for dividends, under which the applicable withholding tax may be reduced nation.

[40] According to the DTT with Costa Rica, the 0% rate applies in relation to interest received by certain public administrations, credit sales of goods or equipment and bank loans; 5% applies in relation to interest on loans with a term equal to or greater than 5 years; and 10% in other cases. Protocol XIV of the DTT, which contains a most-favoured-nation clause for interest, under which the applicable withholding tax may be reduced.

[41] Protocol XIV to the DTT contains a most-favoured- clause for royalties, under which the applicable withholding tax may be reduced.

[42] After the expiry of the 5-year period referred to in the Protocol, all interest and royalties are exempt.

[43] The exemption applies in relation to: interest received by the Public Administration, credit sales of equipment and goods, or credits with a minimum term of 5 years.

[44] The exemption applies in relation to: interest paid, received, or guaranteed by certain public administrations or paid because of a loan or credit granted by certain public administrations; the interest is paid because of credit sales of any equipment or material, goods or service; the beneficiary is an exempt pension fund.

[45] The applicable rates are: 0% for interest on loans with a term equal to or greater than 5 years; 5% for interest on credit sales of goods or equipment, and construction, installation or assembly projects; 10% in other  cases.

[46] The exemption applies in relation to: interest received by public Administration.

[47] The exemption requires a minimum stake of 50% and that the profits of the investee have been taxed. Protocol X.1 of the DTT contains a most-favoured-nation clause for dividends, under which the applicable withholding tax may be reduced.

[48] The exemption applies in relation to: interest paid, received, or guaranteed by the Public Administration; public financial institutions; exempt pension funds . Protocol X.1 of the DTT contains a most-favoured-nation clause for interest, under which the applicable withholding tax may be reduced.

[49] Protocol X.1 of the DTT contains a most-favoured-nation clause for royalties, under which the applicable withholding tax (WHT) may be reduced.

[50] According to the DTT with Estonia, the exemption applies in relation to: interest received by certain public administrations or on loans guaranteed by certain public administrations (including public financial institutions), (unrelated) credit sales of equipment and goods; For other cases, 10% applies in principle. Protocol VII of the DTT contains a most-favoured-nation clause for interest, under which the applicable withholding tax may be reduced.

[51] Under the DTT with Estonia, the lowest rate (5%) applies in relation to the use or concession of use of industrial, commercial or scientific equipment, and other royalties are taxed at 10%.  Protocol VIII of the DTT contains a most-favoured-nation clause for royalties, under which the applicable withholding tax may be reduced.

[52] Exemption is applicable if the beneficial owner of the dividends is a pension scheme which is a resident of the other Contracting State.

[53] The exemption applies in relation to: interest paid by certain public administrations, by a company within the framework of an industrial or commercial activity, on credit sales of equipment, on loans from credit institutions.

[54] The royalty exemption applies to copyright in a literary or artistic work (excluding cinematographic films and recorded sound or visual works), and, under Protocol 10, to royalties paid for the use or concession of use of containers, ships or aircraft bareboat, exploited in international traffic.

[55] The exemption applies in relation to: interest paid or received by certain public administrations; loans concluded between States.

[56] The exemption applies in relation to: interest paid, received, or guaranteed by Public Administration; financial institutions; Exempt pension funds.

[57] The exemption applies in relation to: interest received by certain public administrations.

[58] According to the 1993 DTT with India, royalties for the use or concession of use of industrial, commercial or scientific equipment are taxed at 10%, while all other royalties, and all technical services, are taxed at 20%. Protocol 7 of the DTT contains a most-favoured-nation clause for royalties and technical services under which the applicable withholding tax may be reduced.

[59] The exemption applies in relation to: interest received by certain public administrations.

[60] The exemption applies in relation to: interest received by certain public administrations, credit sales of equipment and goods, bank loans.

[61] The applicable rates are: 5% (copyright on literary, theatrical, musical or artistic works); 8% (cinematographic films or films, tapes and other means of transmission or reproduction of image or sound; industrial, commercial or scientific equipment; and copyright on scientific works); 10% in all other cases.

[62] The applicable rates are: 0% (interest on loans granted or guaranteed by certain public administrations); 5% (credit sales of equipment and goods, bank loans); 10% in all other cases.

[63] The lower rate applies to copyright, including films, and industrial, commercial, or scientific equipment.

[64] The exemption applies in relation to: interest paid or received by certain public administrations; loans concluded between States.

[65] Protocol II of the DTT includes a most-favoured-nation clause regarding dividends and royalties, under which the applicable withholding tax may be reduced.

[66] The exemption applies in relation to: interest paid, received, or guaranteed by certain public administrations; public financial institutions; exempt pension funds. Protocol II of the DTT contains a most-favoured-nation clause regarding interest, under which the applicable withholding tax may be reduced.

[67] 10% WHT will be applicable in those cases in which dividends are deductible in determining the taxable income of the company paying the dividends. In other cases, the applicable WHT will be 5%. Dividends paid to a recognised pension fund that meets certain requirements may be exempt.

[68]Exemption applies when a company that has directly or indirectly held at least 10 % of the voting rights in the company paying the dividends for a twelve-month period that includes the date on which entitlement to the dividends is determined (for the purpose of calculating this period, changes in ownership resulting directly from a corporate restructuring, such as a merger or demerger, of the company that is the beneficial owner or the payer of the dividends will not be taken into account).

[69] Interest determined by reference to the income, sales, rentals, profits, or other cash flows of the debtor or of a related party, to changes in the value of property of the debtor or a related party, or to dividends, distributions within a partnership, or similar payments made by the debtor or a related party, or other similar types of interest originating from a Contracting State will be subject to a 10% withholding tax. All other types of interest will be exempt from withholding tax.

[70] The exemption applies in relation to: interest paid, received, or guaranteed by certain public administrations and public financial institutions.

[71] According to the DTT with Latvia, the exemption applies in relation to: interest received or guaranteed by certain public administrations (including public financial institutions), (unrelated) credit sales of equipment and goods. Other interest would in principle be taxed at the general rate of 10%. Protocol VIII of the DTT contains a most-favoured-nation clause for interest, under which the applicable withholding tax may be reduced.

[72] According to the DTT, a 5% rate % applies in relation to industrial, commercial or scientific equipment, and 10% in all other cases. However, Protocol IX of the DTT contains a most-favoured-nation clause for royalties, under which the applicable withholding tax may be reduced.

[73] The exemption applies in relation to: interest received or guaranteed by certain public administrations (including public financial institutions), (unrelated) credit sales of equipment and goods. Protocol VIII of the DTT contains a most-favoured-nation clause for interest, under which the applicable withholding tax may be reduced.

[74] The lower rate applies in relation to industrial, commercial or scientific equipment. Protocol IX of the DTT contains a most-favoured-nation for royalties, under which the applicable withholding tax may be reduced.

[75] The exemption applies in relation to credit sales of equipment and goods; bank loans with a minimum term of 5 years.

[76] The exemption applies in relation to: interest received by certain public administrations. Protocol 3 of the DTT contains a most-favoured-nation clause for interest, under which the applicable withholding tax may be reduced.

[77] The highest rate is that applicable to royalties; the lowest rate applies to technical services.

[78] According to the 2017 Protocol amending the DTT with Mexico, the following withholding rates apply: 0% in relation to interest paid or received by certain public administrations, interest on loans for a term of more than or equal to 3 years guaranteed by certain public administrations related to exports, and interest received by exempt pension funds; 4.9% for interest received by banks or financial institutions or insurance institutions, and interest on bonds and other listed credit instruments; and 10% on a residual basis. Clause 6 of the DTT Protocol contains a most-favoured-nation clause for interest, under which the applicable withholding tax may be reduced.

[79] The lower rate applies to copyright, excluding films. Clause 6 of the DTT Protocol contains a most-favoured-nation for royalties, under which the applicable withholding tax may be reduced.

[80] The exemption applies in relation to: interest paid, received, or guaranteed by certain public administrations; public financial institutions; exempt pension funds.

[81] The lowest rate applies in relation to copyright, excluding films; The highest rate applies to patents, designs, drawings, secret formulas or processes, trademarks, films, information relating to experiments, technical or economic studies, agricultural, industrial, port, commercial or scientific equipment.

[82] What the reference in the table means in the case of the DTT with the Netherlands is that when it is the Netherlands that applies the DTT, it can withhold up to 5% if the stake  held  is equal to or greater than 50% (although this percentage may be reached jointly by two companies resident in Spain, holding at least 25% each); while when it is Spain that applies the DTT, it can withhold up to 10% if the stake held is equal to or greater than 50% (although this percentage may be reached jointly by two companies resident in the Netherlands, holding at least 25% each)

[83] Protocol IV of the DTT contains a most-favoured-nation clause for dividends under which the applicable withholding tax may be reduced.

[84] Protocol IV of the DTT contains a most-favoured-nation clause for interest under which the applicable withholding tax may be reduced.

[85] Protocol IV of the DTT contains a most-favoured-nation clause for royalties under which the applicable withholding tax may be reduced.

[86] Protocol III of the DTT contains a most-favoured-nation clause for dividends under which the applicable withholding tax may be reduced.

[87] The exemption applies in relation to: interest paid to certain public administrations (including public financial institutions). Protocol III of the DTT contains a most-favoured-nation clause for interest under which the applicable withholding tax may be reduced.

[88] The  7.5% rate applies when the recipient of the royalties is a company; in other cases, 3.75%  applies. Protocol III of the DTT contains a most-favoured-nation clause for royalties under which the applicable withholding tax may be reduced.

[89] The exemption applies in relation to: interest paid, received, or guaranteed by the Public Administration; long-term loans (minimum 5 years) granted by financial institutions; sale of equipment on credit.

[90] The exemption applies in relation to interest paid to certain public administrations.

[91] The exemption applies in relation to: interest paid, received, or guaranteed by certain public administrations and public financial institutions.

[92] The withholding rates applicable to dividends distributed are: 10% in general; the application of the 5% rate requires a stake of more than 40%; the application of the 0% rate requires a stake of more than 80% and the fulfilment of a series of conditions, or that it is a pension fund. See Article 10 of the DTT.

[93] The exemption applies in relation to: interest paid, received, or guaranteed by the Public Administration; public financial institutions; sale on credit of any equipment, goods or service; exempt pension funds.

[94] Exemption applies if the beneficial owner is a pension fund resident in the other Contracting State. 10% of the gross amount of the dividends in all other cases if the minimum stake requirement is not met.

[95]5% of the gross amount of the dividends, if the beneficial owner is a company that directly holds at least 50 % of the capital of the company paying the dividends for a period of 365 days that includes the day of the dividend payment (for the purpose of calculating this period, changes in ownership resulting directly from a corporate reorganization, such as a merger or demerger, of the company holding the shares or paying the dividends will not be taken into account).

[96] The exemption applies in relation to: interest paid, received, or guaranteed by the public administrations or paid because of a loan or credit granted by the public administrations or export credit agencies;  interest is paid because of credit sales of any equipment, goods or service; the beneficiary is a financial institution or a qualifying pension fund.

[97] The applicable rates are: 0% (public debt, interest or guaranteed by the Public Administration); 10% (sale on credit of equipment, bonds, debentures or similar securities); 15% in other cases

[98] The 10% rate applies to royalties paid by a company registered with the Philippine Investment Council; 20% in relation to films; 15% in other cases.

[99] Exemption will apply if:

1. a) The beneficial owner of the dividends is a company that directly holds at least 10 % of the capital of the company paying the dividends.
2. b) The beneficial owner of the dividends are certain public administrations, or a qualifying public entity that directly holds at least 5 % of the capital of the company paying the dividends; or
3. c) The company paying the dividends is one whose shares are substantially and regularly traded on a stock exchange and the beneficial owner of the dividends holds at least 1 % of the company paying the dividends.

[100] The exemption applies if the beneficial owner is:

1. a) a company resident in the other Contracting State that directly or indirectly holds, for more than one year, at least 10 percent of the capital of the company paying the dividends.
2. b) a pension plan resident in the other Contracting State.

[101] Exemption applies when the recipient and beneficial owner are certain public administrations, or an agency, bank, or institution of that State, political subdivision, or local authority, or if the debts of a resident of the other Contracting State are guaranteed, insured, or financed by a financial institution owned, wholly or partly, by that other State. If interest arising in one Contracting State is exempt from taxation in that State, it will also be exempt from withholding.

[102] The application of the reduced rate does not require the existence of a minimum shareholding percentage but a certain minimum investment volume. See Article 10 of the DTT.

[103] The exemption applies in relation to: interest paid or received by certain public administrations and long-term loans (minimum 7 years) granted by financial institutions.

[104] The exemption applies in relation to: interest paid or received by certain public administrations (including public financial institutions).

[105] The exemption applies in relation to: interest paid or received by certain public administrations.

[106] Protocol II of the DTT contains a most-favoured-nation clause for dividends, under which the applicable withholding tax may be reduced.

[107] The exemption applies in relation to: interest received by certain public administrations (including public financial institutions). Protocol II of the DTT contains a most-favoured-nation clause for interest, under which the applicable withholding tax may be reduced.

[108] The lower rate applies for copyright, including film; The highest rate applies to patents, trademarks, designs, plans, secret formulas or processes, and software, equipment, information relating to industrial, commercial or scientific experiences. Protocol II of the DTT contains a most-favoured-nation clause for royalties, under which the applicable withholding tax may be reduced.

[109] See art. 10 DTT special regime applicable to REIT-SOCIMI type entities.

[110] The exemption applies in relation to: interest paid, received, or guaranteed by certain public administrations; financial institutions; exempt pension funds; Government of Singapore Investment Corporation Pte. Ltd.

[111] The exemption applies in relation to: interest paid or received by certain public administrations.

[112] The exemption applies in relation to: interest received by certain public administrations; sale of goods or equipment on credit; long-term loans (minimum 7 years) granted by financial institutions.

[113] The exemption applies in relation to: interest received or guaranteed by certain public administrations; credit sales of equipment and goods.

[114] The application of the 0% rate requires dividends to be paid to a recognised fund or pension plan. See art. 10 of the DTT.

[115] The withholding tax rate applicable to royalties is 5% in general; however, royalties paid between associated companies are not subject to taxation in the State of source (see Article 12.7 of the DTT)

[116] Protocol VII of the DTT contains a  most-favoured-nation clause for the taxation of remittances from PEs referred to in Article 10.5 of the DTT, under which the applicable withholding tax may be reduced.

[117] The applicable rates are: 0% (interest received by certain public administrations); 10% (interest received by financial institutions, including insurance companies); 15% in other cases.

[118] The applicable rates are: 5% (copyright, excluding films and video/audio tapes); 8% ("financial leasing" relating to the use or concession of use of industrial, commercial or scientific equipment); 15% in other cases.

[119] The exemption applies in relation to: interest paid, received, or guaranteed by public administrations; public financial institutions; exempt pension funds; sale on credit of any equipment or material, goods or service.

[120] The 5% rate applies in the case of interest on loans with a duration of more than 7 years.

[121] The 10% rate applies in relation to: bank loans; sale of goods or equipment on credit.

[122] The withholding rates applicable to dividends distributed are: 10% in general (see art. 10 of the DTT special regime applicable to REIT-SOCIMI type entities). The application of the 0% rate requires a participation of more than 10%, or that it is a pension plan.

[123] Exemption applies if:(a) the beneficial owner of the dividends is a pension fund resident in the other Contracting State that is generally exempt from tax or subject to tax at a zero rate; and (b) such dividends are not derived from the conduct of a trade or business by the pension fund or through an associated enterprise.

[124] WHT will be 5 % if the beneficial owner is a company that directly holds at least 10 % of the voting stock of the company paying the dividends.

Exemption applies if the beneficial owner is a company that is a resident of the other Contracting State and that has owned, directly or indirectly through one or more residents of either Contracting State, shares representing 80 % or more of the voting power of the company paying the dividends for a 12-month period ending on the date on which entitlement to the dividend is determined and:

(a) satisfies the conditions of subparagraph 2(c) of Article 17 (Limitation on Benefits).

(b) satisfies the conditions of subparagraph 2(e) of Article 17, provided that the company meets the requirements described in paragraph 4 of that Article with respect to the dividends,

(c) is entitled to the benefits of the Convention with respect to the dividends under paragraph 3 of Article 17; or

(d) has been granted the benefits of the Convention under paragraph 7 of Article 17 with respect to this paragraph.

[125] (a) Interest arising in the United States that is contingent interest and cannot be considered portfolio interest under U.S. domestic law may be taxed in the United States, but if the beneficial owner of such interest is a resident of Spain, the tax on such interest will be limited to 10 % of the gross amount thereof; and

(b) Interest that constitutes excess inclusion with respect to a residual interest in a Real Estate Mortgage Investment Conduit (“REMIC”) may be taxed in the United States in accordance with its domestic law.

In other cases, exemption is applicable.

[126] The exemption applies in relation to: interest paid, received, granted, or guaranteed by certain public administrations; long-term loans (minimum 3 years) granted by financial institutions; sale on credit of any equipment, goods or service; exempt pension funds (FP).

[127] The 5% rate applies to copyright, including films; in other cases, 10% applies.

[128] Under Protocol III, the dividend withholding tax rate of 5% (applicable if the beneficial owner of dividends is a company, other than a partnership, which directly owns at least 25% of the capital of the company paying the dividends) will be reduced to 0% when dividends received by a company resident in Spain from a company resident in Uzbekistan are not subject to corporate income tax Spanish.

[129] The exemption applies in relation to: interest paid, received, or guaranteed by certain public administrations.

 [130] According to the DTT with Venezuela, the exemption applies in relation to: interest paid, received, granted, or guaranteed by the General Government; exempt pension funds; sale on credit of industrial, commercial or scientific equipment; the  4.95% rate applies when the beneficial owner is a financial institution; and in other cases 10% applies in principle. Protocol VII of the DTT, contains a most-favoured-nation clause for interest, under which the applicable withholding tax may be reduced.

[131] According to the DTT with Vietnam, if the beneficial owner is a company (other than a partnership) that directly owns at least 50% of the capital of the company paying the dividends, the withholding tax rate applicable to dividends is 7%; if the beneficial owner is a company (other than a partnership) that directly owns at least 25% but less than 50% of the capital of the company paying the dividends, the rate will be 10%; and in all other cases, 15% will apply (stakes of up to 25%, or of any percentage provided that it is held by a partnership or natural persons).

However, Protocol VI of the DTT with Vietnam contains a most-favoured-nation clause for dividends, under which the applicable withholding tax may be reduced.

[132] The exemption applies in relation to: interest received or guaranteed by certain public administrations (including public financial institutions). Protocol VI of the DTT contains a most-favoured-nation clause for interest, under which the applicable withholding tax may be reduced.

[133] According to the DTT with Vietnam, the withholding tax rate for royalties in the country of source may not exceed 10%. However, Protocol VI of the DTT contains a most-favoured-nation clause for royalties, under which the applicable withholding tax may be reduced.