8/13/2023 0 Comments Spanish financial transaction tax![]() ![]() However, Spain has one of the most extensive double-taxation treaty networks in the world, which reduces or eliminates the Spanish withholding tax rate on such types of income. The Spanish payer of such amounts is liable for withholding this tax on behalf of the non-resident recipient before the Spanish tax authorities. ![]() The rate of withholding tax depends on the nature of the income (for instance, as a general rule, the 19% applies to interest and dividends regardless of the residence of the non-resident) and on the tax residence of the non-resident (for instance, the 19% applies to residents of the European Union (EU) or the European Economic Area (EEA), while the 24% withholding rate applies to other non-residents of the EU or the EEA). In general terms, a 19% / 24% withholding tax rate would apply to non-residents who obtain Spanish source dividends, interest payments, rents, royalties or management fees (among other kinds of income). Non-residents not acting through a permanent establishment can also be subject to taxation in Spain under the Non-Residents Income Tax (NRIT) Act. Both corporate income tax (CIT) and personal income tax (PIT) are state-level taxes, although Spanish regions can regulate certain aspects of the PIT, such as rates and deductions. ![]() Spain imposes corporate and personal income tax on its residents, including permanent establishments in Spain of non-resident companies, on a worldwide basis for any type of income (e.g., interest, dividends, lease income, capital gains, etc.). In any case, and as a general overview, duties and special levies trigger in return of a public service or benefit, such as the parking rate or garbage rate. Additionally, Spanish taxes can be broken down into three groups: taxes, duties and special levies. Spanish taxes can be levied at a national (state), regional (autonomous region) or local (town hall or municipal authorities) level. ![]()
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