Immediate refund - eligibility, documentation, deadlines - Spanish debt securities (securities held in CBF)
Who can obtain an immediate refund?
Immediate refund of withholding tax on interest from Spanish debt securities is available through LuxCSD 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 owners | Rate applicable at source |
Non-residents of Spain | 0% |
Supranational organisations recognised by Spanish law | 0% |
Spanish resident corporate income tax payers | 0% |
2. Domestic corporate bonds not subject to RD 1145/2011
| Eligible beneficial owners | Rate applicable at source |
Residents of Double Taxation Treaty countries | 19% minus the treaty rate |
Residents of EU/EEA member countries (not Spain) | 0% |
Foreign central banks | 0% |
Supranational organisations recognised by Spanish law | 0% |
Spanish resident corporate income tax payers holding corporate bonds issued after 1 January 1999 | 0% |
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.
Important note: as of 1 January 2022 disclosure of resident entities and /or non-resident beneficial owners must be provided via formatted SWIFT MT565 or Xact web portal. Disclosures via BO upload for immediate refund will be automatically rejected.
1. Domestic bonds subject to RD 1145/2011
- All customers holding such bonds must submit, before the first impacted interest payment:
- 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 before each impacted interest payment:
- 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:
- Customer account number;
- ISIN code;
- Corp ID;
- 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:
- 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
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 resident in a tax haven 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
- Breakdown of holdings 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;
- Total instructed securities quantity;
- Corp ID;
- ISIN code;
- 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//);
- LuxCSD reference of the COR(field :70E::CETI//);
- for each non-Spanish BO following details in BENODET sequence:
- and/or
- for each Spanish BO following details in BENODET sequence:
- Full name and address of Spanish entity (field :95V::OWND//);
- If the Spanish entity is the final BO or an Intermediary (field :70E::CETI// with either Final BO or Intermediary as value).;
- BO securities quantity (field :36B::OWND//);
- Two letter ISO country code of entity’s country of fiscal residence (field :94C:DOMI//);
- Spanish entity TIN (field :95S::ALTE//TXID/);
- for each Spanish BO following details in BENODET sequence:
3. Supranational organisations
If the beneficial owner is a supranational organisation recognised by Spanish law, the following documentation must be submitted:
- 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 LuxCSD who want to obtain tax exemption on interest from 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 LuxCSD 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.
Tax-exemption as per “consultation” list
For the standing instruction, the customer is required to submit, once and before the first income payment, 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 before the first income payment or 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:
- 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 LuxCSD who want to obtain tax exemption on interest from 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 LuxCSD by the deadlines set for the respective income payment.
For the standing instruction, the customer is required to submit, once and before the first income payment, 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 immediate refund of withholding tax on interest from Spanish debt securities must be received by LuxCSD by the following deadlines, depending on the different paying agents:
| Type of security | Deadline for receipt by LuxCSD |
Government bonds and public debt income paid by Bank of Spain | At least one business day before the respective payment, by 10:00 CET. |
Generalitat de Catalunya Bonds income paid by Bolsa Barcelona | At least one business day before the respective payment, by 10:00 CET. |
Basque bonds income paid by Bolsa Bilbao | At least one business day before the respective payment, by 10:00 CET. |
Generalitat Valenciana Bonds income paid by Bolsa Valenciana | At least one business day before the respective payment, by 10:00 CET. |
Corporate bonds subject to RD 1145/2011 income processed by BBVA | At least one business day before the respective payment, by 10:00 CET. |
Corporate bonds not subject to RD 1145/2011 income processed by BBVA | At least two business days before the respective payment, by 10:00 CET. |
Important note:
If any instruction, tax certification or amendment is received after these deadlines, the customer’s entire application for immediate refund will be rejected, with the possibility to be processed via the quick refund.