Standard refund - eligibility, documentation, deadlines - Spanish equities

15.08.2019

Who can apply for a standard refund?

A standard refund of withholding tax on dividends from Spanish equities is available through Clearstream Banking for beneficial owners who did not obtain a quick refund, as follows:

Eligible beneficial ownersEffective rate of tax
after refund		Tax refund
available a
Residents of Double Taxation Treaty (DTT) countriesTax treaty rate19% minus
the tax treaty rate b
Supranational organisations recognised as such by Spanish law0%19%
EU/EEA pension funds0%19%
EU/EEA Collective Investment Vehicles (CIVs)1%18%

a. Expressed as a percentage of the gross dividend amount.
b. Amount of relief will be 0% if the DTT rate exceeds 19%.

Important note:

Customers are reminded that all standard refund applications depend on the final approval of the Spanish Tax Authorities and that Clearstream Banking accepts no responsibility for their acceptance or non-acceptance by the respective authorities.

Documentation requirements

To apply for a standard refund of withholding tax on dividends from Spanish equities, the following documentation must be submitted to Clearstream Banking for all types of eligible beneficial owner:

  • A one-time Power of Attorney, granting:

    Either:
    • To Clearstream Banking the right to process the reclaim with, and to collect the taxes from, the Spanish Tax Authorities on behalf of the final beneficial owner. This Power of Attorney does not need to be notarised or apostilled.

      Note: In addition, Clearstream Banking will provide a Power of Attorney, notarised and apostilled, granting to BBVA the right to process the reclaim with, and collect the taxes withheld in excess from, the Spanish Tax Authorities and issuing companies on Clearstream Banking's behalf.

    Or:
     
    • To BBVA the right to process the reclaim with, and collect the taxes withheld in excess from, the Spanish Tax Authorities and issuing companies on behalf of the final beneficial owner. This Power of Attorney must be notarised and apostilled according to the Hague Convention of 5 October 1961.

Additional documentation must be submitted to Clearstream Banking, depending on the status and residency of the final beneficial owner, as follows:

Residents of countries for which there is a “Petición de Devolución” (Austria, the Netherlands, Sweden, Switzerland or the United Kingdom to reclaim tax withheld on dividends paid prior to 12 June 2014 and Germany to reclaim tax withheld on dividends paid prior to 1 January 2013):

  • A “Petición de Devolución”
    An official tax form, available from the Spanish Tax Authorities or from the customer’s local tax authority, and to be completed by or on behalf of the beneficial owner and by the beneficial owner's local tax authorities; and
  • A Power of Attorney (if the customer or a third party is completing the “Petición de Devolución” on behalf of the beneficial owner).
  • Breakdown of refund
    • via a duly completed spreadsheet, password-protected, by email to taxspainrefunds@clearstream.com, with the password and the customer instruction to use the spreadsheet for quick or standard refund sent separately via CreationOnline or SWIFT free-format message.
      The CreationOnline or SWIFT free-format message must, in either case, include the following details:
      Attention: PTS Tax Services
      Market: Spain
      Type of refund: Quick or Standard
      Please find hereafter the password to open our breakdown spreadsheet sent to your attention by email on (date and time) from the email address (email address of the sender)
      Password:

Residents of Double Taxation Treaty (DTT) countries that have no “Petición de Devolución”:

  • A Certificate of Residence issued by the local tax authorities of the beneficial owner, it is recommended to provide it double-sided; and
  • Breakdown of refund
    • via a duly completed spreadsheet, password-protected, by email to taxspainrefunds@clearstream.com, with the password and the customer instruction to use the spreadsheet for quick or standard refund sent separately via Xact Web Portal, CreationOnline or SWIFT free-format message.
      The CreationOnline or SWIFT free-format message must, in either case, include the following details:
      Attention: PTS Tax Services
      Market: Spain
      Type of refund: Quick or Standard
      Please find hereafter the password to open our breakdown spreadsheet sent to your attention by email on (date and time) from the email address (email address of the sender)
      Password:

Supranational organisations recognised by Spanish law:

  • Breakdown of refund
    • via a duly completed spreadsheet, password-protected, by email to taxspainrefunds@clearstream.com, with the password and the customer instruction to use the spreadsheet for quick or standard refund sent separately via Xact Web Portal, CreationOnline or SWIFT free-format message.
      The CreationOnline or SWIFT free-format message must, in either case, include the following details:
      Attention: PTS Tax Services
      Market: Spain
      Type of refund: Quick or Standard
      Please find hereafter the password to open our breakdown spreadsheet sent to your attention by email on (date and time) from the email address (email address of the sender)
      Password:

and, if applicable:

  • A copy of the “Convenio Constitutivo” confirming tax-exempt status.

EU/EEA pension funds/plans:

  • An ANNEX VI, signed by the representative of the EU/EEA pension fund/plan, certifying that the fund fulfils all the legal requirements published in Article 14.1.k of the Non Resident Income Tax Law;

    ANNEX VI, which must be used for this purpose (replacing the usual certificate of residence), is officially published in Orden Ministerial EHA/3316/2010 and cannot be changed.
  • Breakdown of refund
    • via a duly completed spreadsheet, password-protected, by email to taxspainrefunds@clearstream.com, with the password and the customer instruction to use the spreadsheet for quick or standard refund sent separately via Xact Web Portal, CreationOnline or SWIFT free-format message.
      The CreationOnline or SWIFT free-format message must, in either case, include the following details:
      Attention: PTS Tax Services
      Market: Spain
      Type of refund: Quick or Standard
      Please find hereafter the password to open our breakdown spreadsheet sent to your attention by email on (date and time) from the email address (email address of the sender)
      Password:

EU/EEA Collective Investment Vehicles (CIVs):

  • A Statement for EU/EEA CIVs

    A certificate (replacing the usual certificate of residence) issued by the competent authority of the EU/EEA member country of origin of the final beneficial owner (CIV), stating that it fulfils the conditions laid down in Directive 2009/65/EC of the European Parliament and of the Council of 13 July 2009.

    Member States shall designate the competent authorities in charge of signing the above-mentioned certificates in accordance with the previsions described in the Article 97 of the above mentioned Directive: “The competent authorities shall be public authorities or bodies appointed by public authorities.”
  • Breakdown of refund
    • via a duly completed spreadsheet, password-protected, by email to taxspainrefunds@clearstream.com, with the password and the customer instruction to use the spreadsheet for quick or standard refund sent separately via Xact Web Portal, CreationOnline or SWIFT free-format message.
      The CreationOnline or SWIFT free-format message must, in either case, include the following details:
      Attention: PTS Tax Services
      Market: Spain
      Type of refund: Quick or Standard
      Please find hereafter the password to open our breakdown spreadsheet sent to your attention by email on (date and time) from the email address (email address of the sender)
      Password:

Form descriptions are presented according to the procedures available for relief and/or reclaim of withholding tax on income from Spanish equities.

Deadline for receipt of documents

The statutory deadline for reclaiming withholding tax using the standard refund procedure is four years following the dividend payment date.

Important note:

Reclaims of tax withheld on dividend paid as of 1 January may not be submitted to the Spanish Tax Authorities before the month of February of the year following the year in which the dividend payment was made.

The deadline by which Clearstream Banking must receive the documentation for an application is at the latest three months before the statutory deadline.

When are refunds received?

The estimated time for receiving a standard refund is eighteen months from the date of receipt by the Spanish Tax Authorities. This timing can vary depending on when the application is filed and on the complexity of the information supplied in the reclaim form.

Notes on tax reclaims

Customers warrant the completeness and accuracy of the information they supply to Clearstream Banking.

With respect to tax reclaims in general, customers are reminded that Clearstream Banking accepts no responsibility for their acceptance or non-acceptance by the tax authorities of the respective country. It is the customer's responsibility to determine any entitlement to a refund of tax withheld, to complete the forms required correctly, and to calculate the amount due. Clearstream Banking is under no obligation to carry out any investigation in respect of such information.

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