Individual - Foreign tax relief and tax treaties

Last reviewed - 04 February 2021

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