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 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 DTT 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 main characteristics of the rates for each type of income are stated in footnotes to the table.

Withholding rates

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 DTTs, the following tax DTTs are not yet in force, as they are currently being negotiated or are not yet approved or published: , Bahrain, Belarus, Montenegro, Namibia, Peru, Syria, and Ukraine. 

Note that other DTTs, such as those with China, Japan, and Austria are currently being modified or renegotiated.

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 DTT between this country and Spain.
18. Reduced WHT rates or exemptions are not levied or applied if the income is paid to a company resident in a contracting state and more than 50% of its shares are directly or indirectly held by non-residents. This clause will not apply if the company can prove that it carries on 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. A 5% WHT is levied if the recipient (beneficial owner) is the shareholder of the paying company with at least a 20% interest; otherwise, a 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 subdivisions; (iii) the interest arises from a loan or credit granted or guaranteed by a contracting state or its political subdivisions; (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 any 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 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 rate 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, or one of its political subdivisions; (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 any copyrights of 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 or one of its political subdivisions, public bodies, or local authorities, or if the recipient is 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 subdivisions; (ii) the payer is a contracting state or its political subdivisions, (iii) the interest arises from a loan or credit granted by a contracting state or its political subdivisions, (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 subdivisions; (ii) from a resident in the other 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 any copyright of literary or artistic work (excluding films and TV programs) if the recipient is the beneficial 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 payer is a contracting state or one of its political subdivisions or local entities; (ii) the interest is paid to the other contracting state, one of its political subdivisions, or one of its local entities or bodies (including financial institutions) of such contracting state; or (iii) the recipient is 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. A 10% WHT rate is levied on all royalties due to the most-favoured-nation clause.
54. No WHT is levied on interest if the recipient is a contracting state or one of its political subdivisions, or local entities or if the recipient is the central bank or a financial institution controlled by the other contracting state, or one of its political subdivisions or 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 or one of its political subdivisions, or local authorities; (ii) the interest is paid by the contracting state in which the interest arises or by one of its political subdivisions, local authorities, or non-profit-making statutory bodies; (iii) the interest is paid in respect of a loan, debt-claim, or credit owed to, or made, provided, guaranteed, or insured by that contracting state or one of its political subdivisions, local authorities, or export facilitating agencies 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 rate is levied if the beneficial owner is a company that has directly owned at least 50% of the voting shares of the company paying the dividends for a period of six months; a 7.5% WHT rate is levied if the beneficial owner is a company that has directly owned at least 25% of the voting shares of the company paying the dividends for a period of six months.
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 paying 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 or one of its political subdivisions or local entities or on interest paid in connection with the sale on credit of merchandise or equipment to a company of a contracting state or interest paid on 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 a 10% direct interest.
85. No WHT is levied if the royalties are paid between related 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 cinematographic films and films or tapes for radio or television broadcasting); an 8% WHT is levied on financial leasing related to the use or 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 and more than 75% of its 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: (i) on a long-term loan (more than three years) to finance investment projects, (ii) to a pension fund that meets certain requirements, or (iii) in relation to a credit acquisition of merchandise, equipment, or services.
93. A 5% WHT rate is levied on royalties for any copyright of literary, artistic, or scientific work.
94. No WHT is levied 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 one of its political subdivisions; (ii) the interest is paid by a contracting state or one of its political subdivisions, (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 qualifying pension fund 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 rate 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 a qualifying public institution or interest paid to a public financial institution.
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. A 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%; or (iv) the recipient is owned (an interest of more than 25%) by residents in third countries, provided that a DTT has been signed with the country of the company paying the dividends and that this DTT 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 in either Spain or a country that has not signed a DTT 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 DTT, its central bank, or one of its political subdivisions; (ii) the payer is a contracting state or one of its political subdivisions; (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 qualifying pension fund 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 for a loan, debt-claim, or credit owed to or made, provided, guaranteed, or insured by an export financing agency of a contracting state or political subdivision, or guaranteed or insured by that state or political subdivision; (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. A 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 payer is a contracting state or one of its political subdivisions, or local collectivities; (ii) the recipient is the government of the other contracting state or one of its local collectivities or a body (including financial institutions) fully owned by such contracting state or its local collectivities; (iii) the recipient is 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. A (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. A 15% WHT is levied if the dividends are paid out of income generated, either directly or indirectly, from real property through an investment vehicle that distributes most of its income annually and whose income is tax exempt. 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 one of its political subdivisions; (ii) the payer is a contracting state or one its political subdivisions; (iii) the interest arises from a loan or credit granted or guaranteed by a contracting state or one of its political subdivisions, or export credit agencies; (iv) the interest is paid in relation to the acquisition of any equipment, goods, or services; or (v) the recipient is a qualifying pension fund 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 payer is a contracting state or one of its political divisions or (ii) the recipient is the government of the other contracting state or one of its political subdivisions or to a body (including financial institutions) fully owned by such contracting state or its political subdivisions.
114. A 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, or one of its political subdivisions, or local entities, the central bank, or a financial institution controlled by the other contracting state.
116. A 7.5% WHT rate 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 declares that dividends, interest, or royalties from a Nigerian source are tax exempt, or limits 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 automatically applies 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 one of its political subdivisions; (ii) the payer is a contracting state or one of its political subdivisions; or (iii) the interest arises from a loan or credit granted by a contracting state or one of its political subdivisions.
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 contracting state has generated its income from a jurisdiction that does not have a DTT 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 of the paying company; otherwise, a 10% rate is levied.
121. A 5% WHT rate is levied if the beneficial owner is a company that directly holds at least 10% of the capital of 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 is not taxable in the first 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 does 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 a company's capital stock.
     2. Interest arising in Spain and paid to a resident of Canada is only taxable in Canada if it is paid in respect for 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 is only taxable in Spain if it is paid for a loan, debt-claim, or credit owed to or made, provided, guaranteed, or insured by Spain or one of its political subdivisions, local authority, or export financing agencies, provided that the loan, debt claim, or credit is for exports.
123. A 5% WHT is levied on interest received by assurance institutions.
124. A 5% WHT is levied on interest received by or paid to banks.
125. Interest paid on loans granted (three years) by public institutions is tax exempt.
126. Interest paid by pension funds is tax exempt.
127. No WHT is levied on dividends when they are paid to a shareholder (whose capital is totally or partially divided into shares or equity holdings) with at least a 10% direct interest or if the recipient is a pension fund.
128. 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%.
129. No WHT is levied if the interest is paid on a long-term loan (more than five years).
130. A 10% WHT rate is levied if royalties are paid by a company registered with the Philippine Board of Investments.
131. Levied if the recipient is a company holding at least a 25% interest in the paying company; otherwise, a 10% rate is levied.
132. A 5% WHT rate 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).
133. No WHT is levied on dividends when: (i) the recipient is a shareholder (whose capital is totally or partially divided into shares or equity holdings) with at least a 10% direct interest; (ii) the recipient is the contracting state, or one of its political subdivisions, local authorities or a statutory bodies, or an entity wholly owned by the contracting state or authority, provided that it directly holds at least 5% of the capital; or (iii) the payer is a company substantially and regularly traded on a stock exchange and the beneficial owner directly holds at least 1% of the capital.
134. A 'most-favoured nation' clause is included in the DTT between Brazil and Spain if Brazil signs an agreement with another non Ibero-American nation. This clause only applies to dividends and royalties paid from Brazil to Spain.
135. A 5% WHT rate is levied if the recipient is a company holding at least a 10% of the voting rights of the paying company; otherwise, a 15% rate is levied.
136. A 5% WHT rate is levied if the beneficial owner is a company that directly holds at least 10% of the voting rights of the paying company; otherwise, a 15% rate is levied.
137. Provided that certain requirements are met, no WHT is levied on dividends when the recipient has been a shareholder with at least an 80% interest during the last 12 months.
138. Contingent interest from the United States may be taxed in the United States, but if the beneficial owner is resident in Spain for tax purposes, WHT may be limited to 10%. Interest corresponding to residual participation on investments backed by mortgages on real estate may be subject to United States' domestic WHT.
139. A 5% WHT rate is levied if the beneficial owner is a company that directly holds at least 25 percent of the capital of the company paying the dividends and which has invested more than two hundred and fifty thousand (250,000) euros, or the equivalent amount in any other currency, in the company paying the dividends. Otherwise, a 10% rate is levied.
140. No WHT is levied on interest if the recipient is the beneficial owner and it is: (i) the other contracting state, its central bank, or its political subdivisions or local entities; (ii) the payer is a contracting state or its political subdivisions or local entities, (iii) the interest arises from a loan or credit granted by a contracting state, its political subdivisions, local entities or export credit agency or it is granted, guaranteed or insured by them, or (iv) the recipient is a public financial institution. An 8% WHT rate is levied if the beneficial owner is a resident of the other Contracting State.
141. A 5% WHT rate is levied if the beneficiary owner is resident in the other State and the gross amount of the fees paid for the use or concession of use of computer programs, patents, trademarks, designs, plans, secret formulas or procedures, or for information relating to industrial, commercial or scientific experience. Otherwise, if the beneficiary owner is resident in the other State a 10% rate is levied
142. No WHT is levied on interest if the recipient of the other Contracting State is the beneficial owner and: (i) it is the other Contracting State, its Central Bank, or one of its political subdivisions, local; (ii) the payer is a contracting state or one of its political subdivisions or local entities or public organisms; (iii) the interest arises from a loan or credit granted or guaranteed by a contracting state　or one of its political subdivisions, or export credit agencies or granted, guaranteed or insured by any of them; (iv) the recipient is a financial institution; (v) the interest is paid in relation to the credit acquisition of any equipment, goods, or services; or (v) the recipient is a qualifying pension fund in a contracting state and the income from such fund is tax exempt in the contracting state paying the dividend.

     Otherwise, the WHT rate is 5% provided that the beneficial owner is a resident of the other Contracting State.

143. A 5% WHT rate is levied if the beneficial owner is a resident of the other Contracting State.

144. No WHT is levied on dividends when the recipient is the beneficial owner and :
     1. It is a company resident in the other Contracting State which holds, directly or indirectly and for more than one year, at least 10 percent of the capital of the company paying the dividends.
     2. It is a pension plan resident in the other Contracting State.
     3. Otherwise, a 5% is levied if the recipient is the beneficial owner
145. If the recipient is the beneficial owner and resident in the other Contracting State, a 3% WHT will be levied (0% in case interest is exempt according to internal law) No WHT will be levied if the recipient is the beneficial owner and is the other Contracting State, or one of its political subdivisions or administrative-territorial units, or a body, bank or institution of that State, political subdivision or administrative-territorial unit, or if the credits of a resident of the other Contracting State are guaranteed , insured or financed by a financial institution totally or partially owned by that other State.