Beneficial owners eligible for tax exemption - Spanish debt securities (securities held in CBF)

30.10.2020

The following types of beneficial owner are recognised for tax purposes in Spain depending on the type of debt securities:

1. Domestic bonds subject to RD 1145/2011

  • Non-residents of Spain;
  • Supranational organisations;
  • Spanish resident corporate income tax payers.

2. Domestic corporate bonds not subject to RD 1145/2011

  • Residents of Double Taxation Treaty countries;
  • Residents of EU/EEA member countries (not Spain);
  • Foreign central banks;
  • Supranational organisations recognised by Spanish law;
  • Spanish resident corporate income tax payers holding corporate bonds issued after 1 January 1999.

Non-residents of Spain

For income and redemption on debt securities subject to RD 1145/2011, a refund of withholding tax is available to beneficial owners that are not resident in Spain for tax purposes as follows:

  • A full immediate refund;
  • A full quick refund, if a full immediate refund has not been obtained.

The customer can reclaim withholding tax on behalf of the beneficial owner through Clearstream Banking by submitting the appropriate documentation.

Supranational organisations

A refund of withholding tax on all domestic debt securities is available to beneficial owners that are supranational organisations recognised as such by the Spanish law as follows:

  • A full immediate refund;
  • A full quick refund, if a full immediate refund has not been obtained.

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 obtain tax exemption on income from all categories of Spanish domestic debt securities 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 respective income payment.

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.

Residents of Double Taxation Treaty (DTT) countries

A refund of withholding tax on corporate bonds not subject to RD 1145/2011 is available to beneficial owners that are residents of a country that has concluded a Double Taxation Treaty with Spain as follows:

  • A partial immediate refund;
  • A partial quick refund, if a partial immediate refund has not been obtained.

The customer can reclaim withholding tax on behalf of the beneficial owner through Clearstream Banking by submitting the appropriate documentation.

Residents of EU/EEA member countries (not Spain)

A refund of withholding tax on corporate bonds not subject to RD 1145/2011 is available, according to Spanish legislation, to beneficial owners that are:

  • Residents of EU/EEA member countries other than Spain; and
  • Not resident in a tax haven; and
  • Not retrieving the income through an intermediary resident in a tax haven.

Refunds are available as follows:

  • A full immediate refund;
  • A full quick refund, if a full immediate refund has not been obtained.

The customer can reclaim withholding tax on behalf of the beneficial owner through Clearstream Banking by submitting the appropriate documentation.

Foreign central banks

A refund of withholding tax on all domestic debt securities is available to beneficial owners that are foreign central banks as follows:

  • A full immediate refund;
  • A full quick refund, if a full immediate refund has not been obtained.

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 obtain tax exemption on income from all categories of Spanish domestic debt securities may apply for a standing instruction provided that the customer:

  • Has the status of a central bank (not in Spain); 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 respective income payment.

Spanish resident corporations

A refund of withholding tax is available, according to Spanish legislation, to beneficial owners that are Spanish resident corporate income tax payers on the following domestic debt securities:

  • Domestic Bonds subject to RD 1145/2011; and
  • Domestic Corporate Bonds not subject to RD 1145/2011 and issued after 1 January 1999.

Refunds are available as follows:

  • A full immediate refund;
  • A full quick refund, if a full immediate refund has not been obtained.

Residents of Spain cannot apply for a standard refund of withholding tax through Clearstream Banking.

The customer can reclaim withholding tax on behalf of the beneficial owner through Clearstream Banking by submitting the appropriate documentation.