Individual - Foreign tax relief and tax treaties

Last reviewed - 30 June 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 Pakistan
Algeria France Panama
Andorra Georgia Philippines
Argentina Germany Poland
Armenia Greece Portugal
Australia Hong Kong Qatar
Austria Hungary Romania
Azerbaijan Iceland Russian Federation
Barbados India Saudi Arabia
Belarus Indonesia Senegal
Belgium Iran Serbia
Bolivia Ireland Singapore
Bosnia and Herzegovina Israel Slovak Republic
Brazil Italy Slovenia
Bulgaria Jamaica South Africa
Canada Japan South Korea, Republic of
Cape Verde Kazakhstan Sweden
Chile Kuwait Switzerland
China, People's Republic of Latvia Sweden
Colombia Lithuania Thailand
Costa Rica Luxembourg Trinidad and Tobago
Croatia Macedonia Tunisia
Cuba Malaysia Turkey
Cyprus Malta United Arab Emirates
Czech Republic Mexico United Kingdom
Dominican Republic Moldova United States
East Timor Morocco Uruguay
Ecuador Netherlands Uzbekistan
Egypt New Zealand Venezuela
El Salvador Nigeria Vietnam
Estonia Norway
Finland Oman