Spain: Spanish tax reform - progressive withholding tax rate decrease introduced by Law 26/2014

The new Spanish Law 26/2014 of 27 November 2014 has been published in the Spanish official Gazette (Boletín Oficial del Estedo) on 28 November 2014.

Effective

1 January 2015

the new Law introduces changes to the Spanish Individual Income Tax Law (LIRPF), the Spanish Corporate Income Tax Law (LIS) and the Spanish Non-resident Income Tax Law (LIRNR).

Impact on customers

The main change introduced by Law 26/2014 is a progressive decrease of the general withholding tax rates from 21% to 19%, as stated below:

Spanish general withholding tax rates (Debt and Equities)

Important note: For the time being, the withholding tax rate applicable to interests and dividends distributed by Public or Private companies issued by the Autonomous Community of Navarra will remain at 20%.

The lists of “Double Taxation Treaties concluded by Spain and currently in force” for bonds and equities will be updated on 1 January 2015.

Further information

For further information, customers may contact the Clearstream Banking¹ Tax Help Desk or Clearstream Banking Client Services or their Relationship Officer.

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1. Clearstream Banking refers collectively to Clearstream Banking AG, registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500, and Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248.