Quick refund - eligibility, documentation, deadlines - Spanish debt securities (securities held in CBF)
Who can obtain a quick refund?
Quick refund of withholding tax on interest from Spanish debt securities is available through Clearstream Banking for eligible beneficial owners (who have not obtained an immediate refund) depending on the type of the domestic Spanish debt securities as follows:
1. Domestic bonds subject to RD 1145/2011
| Eligible beneficial owners | Effective rate of tax after refund | Tax refund available a |
Non-residents of Spain | 0% | 19% |
Supranational organisations recognised by Spanish law | 0% | 19% |
Spanish resident corporate income tax payers | 0% | 19% |
a. Expressed as a percentage of the gross interest amount.
2. Domestic corporate bonds not subject to RD 1145/2011
| Eligible beneficial owners | Effective rate of tax after refund | Tax refund available a |
Residents of Double Taxation Treaty countries | Treaty rate | 19% minus the treaty rate b |
Residents of EU/EEA member countries (not Spain) | 0% | 19% |
Foreign central banks | 0% | 19% |
Supranational organisations recognised by Spanish law | 0% | 19% |
Spanish resident corporate income tax payers holding corporate bonds issued after 1 January 1999 | 0% | 19% |
a. Expressed as a percentage of the gross interest amount.
b. Amount of relief will be 0% if the DTT rate exceeds 19%.
Documentation requirements
There are different documentation requirements depending on the status of the beneficial owner and on the type of the domestic Spanish debt securities.
1. Domestic bonds subject to RD 1145/2011
- All customers holding such bonds must submit, with the first quick refund application:
- One-Time Certificate for Domestic Spanish Debt Securities.
- Customers holding such bonds on behalf of beneficial owners who are eligible for tax exemption but also on behalf of beneficial owners that are Spanish individuals or are not willing to disclose their positions must submit, in addition to the One-Time Certificate and for each quick refund application:
- Breakdown of holdings and disclosure of Spanish residents via a formatted SWIFT MT565 message or Xact Web Portal message consisting in one breakdown per tax rate and residency tax rate and residency status indicating:
- Corp ID;
- ISIN code;
- Customer account number;
- and
- for non-Spanish BOs entitled to exemption
- Total instructed securities quantity;
- Requested tax rate;
- for non-Spanish BOs entitled to exemption
- and
- for Spanish residents
- Total instructed securities quantity;
- Requested tax rate
- Full name and address of Spanish entity (field :95V::OWND//);
- Spanish entity TIN (field :95S::ALTE//TXID/);
- Two letter ISO country code of entity’s country of fiscal residence (field :94C:DOMI//);
- BO securities quantity (field :36B::OWND//);
- If the Spanish entity is the final BO or an Intermediary (field :70E::CETI// with either Final BO or Intermediary as value);
- for Spanish residents
- Breakdown of holdings and disclosure of Spanish residents via a formatted SWIFT MT565 message or Xact Web Portal message consisting in one breakdown per tax rate and residency tax rate and residency status indicating:
2. Domestic corporate bonds not subject to RD 1145/2011
- Beneficial owners resident in a DTT country or in an EU/EEA member country other than Spain and not resident in a tax haven or retrieving the income through an intermediary in a tax must submit:
- Annual certificate of residence, per beneficial owner, issued by the local tax authorities of the beneficial owner; it is recommended to provide this form double-sided; and
- Disclosure of Spanish non-residents and Spanish residents via a formatted SWIFT MT565 or Xact Web Portal consisting in one breakdown per tax rate and residency status indicating:
- Customer account number;
- ISIN code;
- Corp ID;
- Total instructed securities quantity;
- Requested tax rate;
and for each non-Spanish BO following details in BENODET sequence: - Name of the entity (field :95V::OWND//);
- Two letter ISO country code of entity’s country of fiscal residence (field :94C:DOMI//);
- BO securities quantity (field :36B::OWND//);
- Clearstream reference of the COR(field :70E::CETI//);
and/or for each Spanish BO following details in BENODET sequence: - Full name and address of Spanish entity (field :95V::OWND//);
- Spanish entity TIN (field :95S::ALTE//TXID/);
- Two letter ISO country code of entity’s country of fiscal residence (field :94C:DOMI//);
- BO securities quantity (field :36B::OWND//);
- If the Spanish entity is the final BO or an Intermediary (field :70E::CETI// with either Final BO or Intermediary as value).
3. Supranational organisations
If the beneficial owner is a supranational organisation recognised by Spanish law, the following documentation must be submitted in order to recover the full amount of tax withheld at source:
- A Swift message with the name, address, the applicable rate of withholding tax, the nominal holding and the net tax amount to be refunded for each final beneficial owner being a supranational organisation;
and, if applicable:
- A copy of the “Convenio Constitutivo” confirming tax-exempt status.
Direct supranational customers of Clearstream Banking who want to recover the full amount of tax withheld at source on interest from Spanish domestic debt securities may benefit from a standing instruction through the first quick refund application, 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 quick refund application.
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.
Tax-exemption as per “consultation” list
For the standing instruction, the customer is required to submit, once and with the first quick refund application, the following documentation:
- Spanish Securities - Standing Instruction for International or Supranational Organisations and Central Banks
certifying, among other things, that the customer holds the Spanish securities exclusively as proprietary assets.
Note: The “consultation” list is not exhaustive. It includes a certain number of entities for which the Spanish Tax Authorities have confirmed tax-exempt status, not all supranational organisations recognised by Spanish law.
Tax-exemption based on a “Convenio Constitutivo”
For the standing instruction, the customer is required to submit, once and with the first quick refund application, the following documentation:
- Spanish Securities - Standing Instruction for International or Supranational Organisations and Central Banks
certifying, among other things, that the customer holds the Spanish securities exclusively as proprietary assets; and - A copy of the “Convenio Constitutivo” confirming tax-exempt status.
4. Foreign central banks
If the beneficial owner is a foreign central bank, the following documentation must be submitted in order to recover the full amount of tax withheld at source:
- A SWIFT message with the name, address, the applicable rate of withholding tax, the nominal holding and the net tax amount to be refunded for each final beneficial owner being a central bank (not in Spain);
and, upon request:
- A copy of the By-laws or any other official document proving central bank status.
Direct foreign central bank customers of Clearstream Banking who want to recover the full amount of tax withheld at source on interest from Spanish domestic debt securities may benefit from a standing instruction through the first quick refund application, 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.
For the standing instruction, the customer is required to submit, once and with the first quick refund application, the following documentation:
- Spanish Securities - Standing Instruction for International or Supranational Organisations and Central Banks
certifying, among other things, that the customer holds the Spanish securities exclusively as proprietary assets; and, upon request: - A copy of the By-laws or any other official document proving central bank status.
Form descriptions are presented according to the procedures available for relief and/or reclaim of withholding tax on income from Spanish debt securities.
Deadlines for receipt of documents
Documentation for a quick refund of withholding tax on interest from Spanish debt securities must be received by Clearstream Banking by the following deadlines, depending on the type of security and the different paying agents:
| Type of security | Deadline for receipt by Clearstream Banking |
Government bonds and public debt income paid by Bank of Spain | At the latest 25 calendar days (or the first business day before that if the 25th calendar day is not a business day) after the applicable payment date, by 10:00 CET. |
Generalitat de Catalunya Bonds income paid by Bolsa Barcelona | At the latest four business days before the 10th calendar day of the month following the month when the interest payment took place, by 10:00 CET. |
Basque bonds income paid by Bolsa Bilbao | At the latest four business days before the 10th calendar day of the month following the month when the interest payment took place, by 10:00 CET. |
Generalitat Valenciana Bonds income paid by Bolsa Valenciana | At the latest four business days before the 10th calendar day of the month following the month when the interest payment took place, by 10:00 CET. |
Corporate bonds subject to RD 1145/2011 income processed by BBVA | At the latest four business days before the 10th calendar day of the month following the month when the interest payment took place, by 10:00 CET. |
Corporate bonds not subject to RD 1145/2011 income processed by BBVA | At the latest the last business day of the month when the interest payment took place, by 10:00 CET. |
When are refunds received?
The estimated time for receiving a quick refund is the tenth calendar day of the month following the quick refund deadline.