Investment income

If no Agreement exists, how do non-resident individuals who obtain investment income in Spanish territory, such as dividends or interest, pay taxes in Spain?

In general, non-residents who obtain interest or dividends in Spanish territory must pay tax at the rate in force in the year in which the income has accrued (see chart).

In general, the gross tax base is the whole amount received.

However, in the case of taxpayers resident in another European Union member state, in relation to incomes obtained from 1 January 2010, and those resident in Iceland and Norway in relation to incomes obtained from 1 January 2015, they will be able to deduct the expenses provided for in the Personal Income Tax Act for the determination of the gross tax base, provided that it is certified that they are directly related to the incomes.

Year of accrual2003-20062007-20092010-20112012-201420152016 and following
Tax rate 15% 18% 19% 21% Until 11-07-2015:
20%
From 12-07-2015:
19.50%
19%

However, in that area there exist a number of exemptions, including the following:

  • Public Debt Interest .
  • Interest received by residents in other states of the European Union.
  • Interest of non-residents' accounts.
  • Dividends obtained from 1 January 2007 until 31 December 2014 by individuals living in another European Union member state or in countries or territories with which there is effective exchange of tax information, with the limit of 1,500 euros, which will apply to all incomes obtained during the calendar year.This exemption does not apply if the dividends are obtained via countries or territories classified as tax havens.(This exemption has been eliminated from 1 January 2015).