Standard refund - eligibility, documentation, deadlines - Spanish debt securities

15.08.2019

Who can apply for a standard refund?

A standard refund of withholding tax on interest from Spanish debt securities is available through Clearstream Banking for beneficial owners depending on the type of the domestic Spanish debt securities, as follows:

1. Domestic bonds subject to RD 1145/2011:

Eligible beneficial ownersEffective rate of tax
after refund		Tax
refund available a
Non-residents of Spain0%19%
Supranational organisations recognised by Spanish law0%19%

a. Expressed as a percentage of the gross interest amount.

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

Eligible beneficial ownersEffective rate of tax
after refund		Tax
refund available a
Residents of Double Taxation Treaty countriesTreaty rate19% minus
the treaty rate b
Residents of EU/EEA member countries (not Spain)0%19%
Foreign central banks0%19%
Supranational organisations recognised by Spanish law0%19%

a. Expressed as a percentage of the gross interest amount.
b. Amount of relief will be 0% if the DTT rate exceeds 19%.

Important note:

Customers are reminded that all standard refund applications depend on the final approval of the Spanish Tax Authorities and that Clearstream Banking accepts no responsibility for their acceptance or non-acceptance by the respective authorities.

Documentation requirements

To apply for a standard refund of withholding tax on interest from Spanish debt securities, the following documentation must be submitted to Clearstream Banking, depending on the type of security and on the status and residence of the final beneficial owner, as follows:

Domestic bonds subject to RD 1145/2011

  • Non-residents of Spain:
    • Certificate of Residence issued by the beneficial owner's local tax authorities, it is recommended to provide this form double-sided;
    • Breakdown of refund
      • via a duly completed spreadsheet, password-protected, by email to taxspainrefunds@clearstream.com, with the password and the customer instruction to use the spreadsheet for quick or standard refund sent separately via Xact Web Portal, CreationOnline or SWIFT free-format message.
        The CreationOnline or SWIFT free-format message must, in either case, include the following details:
        Attention: PTS Tax Services
        Market: Spain
        Type of refund: Quick or Standard
        Please find hereafter the password to open our breakdown spreadsheet sent to your attention by email on (date and time) from the email address (email address of the sender)
        Password:
  • Supranational organisations recognised by Spanish law:
    • Breakdown of refund
      • via a duly completed spreadsheet, password-protected, by email to taxspainrefunds@clearstream.com, with the password and the customer instruction to use the spreadsheet for quick or standard refund sent separately via Xact Web Portal, CreationOnline or SWIFT free-format message.
        The CreationOnline or SWIFT free-format message must, in either case, include the following details:
        Attention: PTS Tax Services
        Market: Spain
        Type of refund: Quick or Standard
        Please find hereafter the password to open our breakdown spreadsheet sent to your attention by email on (date and time) from the email address (email address of the sender)
        Password:
  • Copy of the “Convenio Constitutivo” confirming tax-exempt status (if applicable).

Domestic bonds not subject to RD 1145/2011

  • Residents of DTT countries and/or EU/EEA member countries:
    • Certificate of Residence issued by the local tax authorities of the beneficial owner, it is recommended to provide this form double-sided;
    • Breakdown of refund
      • via a duly completed spreadsheet, password-protected, by email to taxspainrefunds@clearstream.com, with the password and the customer instruction to use the spreadsheet for quick or standard refund sent separately via Xact Web Portal, CreationOnline or SWIFT free-format message.
        The CreationOnline or SWIFT free-format message must, in either case, include the following details:
        Attention: PTS Tax Services
        Market: Spain
        Type of refund: Quick or Standard
        Please find hereafter the password to open our breakdown spreadsheet sent to your attention by email on (date and time) from the email address (email address of the sender)
        Password:
  • Supranational organisations recognised by Spanish law:
    • Breakdown of refund
      • via a duly completed spreadsheet, password-protected, by email to taxspainrefunds@clearstream.com, with the password and the customer instruction to use the spreadsheet for quick or standard refund sent separately via Xact Web Portal, CreationOnline or SWIFT free-format message.
        The CreationOnline or SWIFT free-format message must, in either case, include the following details:
        Attention: PTS Tax Services
        Market: Spain
        Type of refund: Quick or Standard
        Please find hereafter the password to open our breakdown spreadsheet sent to your attention by email on (date and time) from the email address (email address of the sender)
        Password:

  • Copy of the “Convenio Constitutivo” confirming tax-exempt status (if applicable).

  • Foreign central banks:
    • Certificate of Residence issued by the local tax authorities of the beneficial owner, to be provided only once (according to the Orden Ministerial EHA73316/2010) with the first standard refund application, it is recommended to provide this form double-sided;
    • Breakdown of refund
      • via a duly completed spreadsheet, password-protected, by email to taxspainrefunds@clearstream.com, with the password and the customer instruction to use the spreadsheet for quick or standard refund sent separately via Xact Web Portal, CreationOnline or SWIFT free-format message.
        The CreationOnline or SWIFT free-format message must, in either case, include the following details:
        Attention: PTS Tax Services
        Market: Spain
        Type of refund: Quick or Standard
        Please find hereafter the password to open our breakdown spreadsheet sent to your attention by email on (date and time) from the email address (email address of the sender)
        Password:
    • Copy of the By-laws or any other official document proving the central bank status (upon request).

Form descriptions are presented according to the procedures available for relief and/or reclaim of withholding tax on income from Spanish debt securities.

Deadline for receipt of documents

The statutory deadline for reclaiming withholding tax using the standard refund procedure is four years following the income/redemption payment date.

Important note:

Reclaims of tax withheld on interest paid as of 1 January may not be submitted to the Spanish Tax Authorities before the month of February of the year following the year in which the interest payment was made.

The deadline by which Clearstream Banking must receive the documentation for an application is at the latest three months before the statutory deadline.

When are refunds received?

The estimated time for receiving a standard refund is eighteen months from the date of receipt by the Spanish Tax Authorities. This timing can vary depending on when the application is filed and on the complexity of the information supplied in the reclaim form.

Notes on tax reclaims

Customers warrant the completeness and accuracy of the information they supply to Clearstream Banking.

With respect to tax reclaims in general, customers are reminded that Clearstream Banking accepts no responsibility for their acceptance or non-acceptance by the tax authorities of the respective country. It is the customer's responsibility to determine any entitlement to a refund of tax withheld, to complete the forms required correctly, and to calculate the amount due. Clearstream Banking is under no obligation to carry out any investigation in respect of such information.

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