Beneficial owners eligible for tax relief - Spanish equities
The following types of beneficial owner are recognised in Spain as eligible for obtaining tax relief on dividends:
- Residents of Double Taxation Treaty (DTT) countries;
- Supranational organisations recognised as such by Spanish law;
- EU/EEA pension funds/plans;
- EU/EEA Collective Investment Vehicles (CIVs).
Residents of Double Taxation Treaty (DTT) countries
A quick refund of withholding tax on dividends from Spanish equities is available to beneficial owners resident of a country that has concluded a Double Taxation Treaty (DTT) with Spain.
A standard refund is available if a quick refund has not been obtained by the beneficial owner.
The customer can reclaim withholding tax on behalf of the beneficial owner through Clearstream Banking by submitting the appropriate documentation.
Supranational organisations
A full quick refund of withholding tax on dividends from Spanish equities is available to a beneficial owner that is a supranational organisation recognised as such by the Spanish law.
A full standard refund is available if a quick refund has not been obtained by the supranational organisation.
The customer can reclaim withholding tax on behalf of the beneficial owner through Clearstream Banking by submitting the appropriate documentation.
Standing instruction available for own accounts
Direct customers of Clearstream Banking that want to apply for a full quick refund on dividends from Spanish equities may apply for a standing instruction provided that the customer:
- Has the status of a supranational organisation; and
- Holds the Spanish securities for itself as sole beneficial owner; and
- Submits the required certification to Clearstream Banking by the deadlines set for the quick refund.
The documentation requirements vary depending on whether the supranational organisation:
- Is included in the “consultation” list confirmed by the Spanish Tax Authorities; or
- Has signed a “Convenio Constitutivo” with Spain.
EU/EEA pension funds and pension plans
A full standard refund of withholding tax on dividends from Spanish equities is available to a beneficial owner that is a pension fund or pension plan if it is equivalent to those covered in the text of the Funds and Pension plans Act, approved by RD 1/2002, 29 November, and provided that the pension fund/plan:
- Has the unique goal of providing complementary benefits related to retirement, death, invalidity or dependence according to article 8.6 of the above mentioned RLD; and
- Fiscally identifies any corporate contributions that could be made to the plan by the employer that are irrevocably transmitted to the individual beneficiary; and
- Has no permanent establishment in Spain; and
- Is resident in an EU/EEA member country; and
- Is elegible to benefit under a Double Taxation Treaty (DTT) between its country of residence and Spain.
The customer can reclaim withholding tax on behalf of the beneficial owner through Clearstream Banking by submitting the appropriate documentation.
EU/EEA Collective Investment Vehicles (CIVs)
A standard refund of withholding tax on dividends from Spanish equities is available to a beneficial owner that is a CIV if it is regulated under European Directive 2009/65/CE and provided that:
- The CIV has no permanent establishment in Spain; and
- The CIV is resident in an EU/EEA member country; and
- A Double Taxation Treaty (DTT) is in force between the country of residence of the CIV and Spain.
The customer can reclaim withholding tax on behalf of the beneficial owner through Clearstream Banking by submitting the appropriate documentation.