Individual - Foreign tax relief and tax treaties

Last reviewed - 16 July 2020

Foreign tax relief

A deduction for the avoidance of double taxation is allowed for foreign-source income and capital gains taxed by Spanish PIT, calculated as the lesser of:

  • The actual foreign tax paid on the foreign-source income, by reason of a tax identical or analogous in its nature to Spanish PIT or NRIT.
  • The result of applying the average effective PIT rate to the foreign-source income taxed abroad.

Any foreign tax withheld (or paid) may be eligible for this deduction; however, if a DTT is applicable, its terms should be taken into account when determining the method to calculate the deduction and making the calculation.

Double taxation treaties (DTTs)

Countries with which Spain currently has DTTs:

Albania France Oman
Algeria Georgia Pakistan
Andorra Germany Panama
Argentina Greece Philippines
Armenia Hong Kong Poland
Australia Hungary Portugal
Austria Iceland Qatar
Barbados India Romania
Belgium Indonesia Russian Federation
Bolivia Iran Saudi Arabia
Bosnia and Herzegovina Ireland Senegal
Brazil Israel Serbia
Bulgaria Italy Singapore
Canada Jamaica Slovak Republic
Chile Japan Slovenia
China, People's Republic of Kazakhstan South Africa
Colombia Kuwait South Korea, Republic of
Costa Rica Latvia Sweden
Croatia Lithuania Switzerland
Cuba Luxembourg Thailand
Cyprus Macedonia Trinidad and Tobago
Czech Republic Malaysia Tunisia
Dominican Republic Malta Turkey
East Timor Mexico United Arab Emirates
Ecuador Moldova United Kingdom
Egypt Morocco United States
El Salvador Netherlands Uruguay
Estonia New Zealand Uzbekistan
Finland Nigeria Venezuela
Former States of USSR Norway Vietnam