Spain

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: