Beneficial owners eligible for tax relief - Spanish equities (securities held in CBF)
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.
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.
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.
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
A full quick refund is not available to EU/EEA pension funds.
A full standard refund of withholding tax on dividends from Spanish equities is available to a beneficial owner that is an EU/EEA pension fund.
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)
EU/EEA CIVs may obtain a reduced rate of 1% upon decision of the Spanish tax authorities. For this reason a quick refund is not available.
A standard refund of withholding tax on dividends from Spanish equities is available to a beneficial owner that is an EU/EEA CIV.
The customer can reclaim withholding tax on behalf of the beneficial owner through Clearstream Banking by submitting the appropriate documentation.