Debt securities - rates, eligibility, availability of relief etc. - Spain (securities held in CBF)
Withholding Tax
| Standard rate of withholding tax: | 0% / 19% | Holding requirements / restrictions: | Yes |
1. Public and private bonds
The standard rate of withholding tax on Spanish debt securities is 19%.
2. Stripped public debt securities and zero coupon bonds
Payments made by LuxCSD on the following securities are exempt from Spanish withholding tax:
- Stripped public debt securities (with a maturity of less than, equal to or more than 12 months); and
- Zero coupon bonds with a maturity of less than 12 months.
Holding restriction:
Spanish resident individual tax payers cannot hold with LuxCSD Spanish stripped public debt securities (regardless of maturity) and zero coupon corporate debt securities with a maturity of less than 12 months. Reporting requirements:
The identity and holdings of all final beneficial owners that are Spanish resident corporate income tax payers must be disclosed and reported.
Upon receipt of the relevant SWIFT MT564 Corporate Action Notification, customers holding Spanish stripped public debt securities and/or zero coupon bonds must send a List of Spanish Beneficial Owners, containing the information in the specified format.
Further copies of the spreadsheet may be obtained by email to Cadatabase@clearstream.com, with “OCE Spanish strips and zero coupon disclosure” in the Subject line.
Duly completed spreadsheets should be emailed to CA_Bond@clearstream.com with “<respective isin code> / Spanish strips and zero coupon disclosure” in the Subject line to reach Clearstream Banking (Corporate Actions department) at the latest five calendar days after the respective maturity date, by 13:00 CET.
The information included in the final List of Spanish Beneficial Owners provided to LuxCSD must be accurate as at close of business (18:00 CET) on the relevant record date (that is, one business day before maturity date).
Important note:
Beneficial owners are responsible for complying with the above disclosure requirements. Failure to comply may be subject to the penalties prescribed by Spanish Tax Law (Ley General Tributaria). Customers holding Spanish stripped public debt securities or zero coupon bonds at maturity are deemed to accept any penalties imposed, directly by the Spanish Authorities or via LuxCSD, for failure to comply with the above disclosure requirements.
3. T-Bills
Payments made by LuxCSD on Treasury Bills (T-Bills) with a maturity of less than, equal to or more than 12 months are exempt from Spanish withholding tax. Reporting requirements:
The identity and holdings of all final beneficial owners that are Spanish resident corporate income tax payers or Spanish resident individual income tax payers must be disclosed and reported.
Upon receipt of the relevant SWIFT MT564 Corporate Action Notification, customers holding Spanish T-Bills must send a List of Spanish Beneficial Owners, containing the information in the specified format.
Further copies of the spreadsheet may be obtained by email to Cadatabase@clearstream.com, with “OCE Spanish T-Bills Disclosure” in the Subject line.
Duly completed spreadsheets should be emailed to CA_Bond@clearstream.com, with “<respective isin code> / Spanish T-Bills Disclosure” in the Subject line, to reach Clearstream Banking (Corporate Actions department) at the latest five calendar days after the respective maturity date, by 13:00 CET.
The information included in the final List of Spanish Beneficial Owners provided to LuxCSD must be accurate as at close of business (18:00 CET) on the relevant record date (that is, one business day before maturity date).
Important note:
Beneficial owners are responsible for complying with the above disclosure requirements. Failure to comply may be subject to the penalties prescribed by Spanish Tax Law (Ley General Tributaria). Customers holding Spanish T-Bills at maturity are deemed to accept any penalties imposed, directly by the Spanish Authorities or via LuxCSD, for failure to comply with the above disclosure requirements.
Availability of relief
The availability for tax relief varies according to the Spanish security type, as follows:
1. Domestic bonds subject to RD 1145/2011
Click on the image to view the diagram showing the availability of relief at source and/or reclaim of withholding tax on income from Spanish domestic bonds subject to RD 1145/2011.
| Eligible beneficial owners | Relief at Source | Immediate refund | Quick Refund | Standard Refund |
All non-residents of Spain | Yesa | Yes | Yes | Yes |
Supranational organisations recognised by Spanish law | Yesa | Yes | Yes | Yes |
Spanish resident corporate income tax payers | No | Yes | Yes | No |
a. RAS only available to LuxCSD customers holding the securities in a segregated X account (exempt account).
Relief at source of withholding tax is available only if the securities are held on behalf of final beneficial owners who are non-resident in Spain for tax purposes or supranational organisations by opening an exempt (x) account. This process allows a gross payment on pay date.
Full immediate refund of withholding tax is also available if the appropriate documentation is submitted to LuxCSD. The interest payment will be processed net on pay date. An automatic tax refund is applied after pay date.
A full quick refund is available if a relief at source or full immediate refund has not been obtained by a beneficial owner eligible for exemption.
A full standard refund is available if a full immediate or quick refund has not been obtained by a beneficial owner eligible for exemption.
The customer can reclaim withholding tax on behalf of the beneficial owner through LuxCSD by submitting the appropriate documentation.
Residents of Spain cannot apply for standard refund of withholding tax through LuxCSD.
2. Domestic Bonds not subject to RD 1145/2011
The type of tax relief (full/partial) and beneficial owner eligibility vary according to the issuance date of the security, as follows:
Click on the image to view the diagram showing the availability of relief at source and/or reclaim of withholding tax on income from Spanish domestic Bonds not subject to RD 1145/2011.
- Corporate bonds issued before 1 January 1999
- Full immediate refund is available to beneficial owners that are:
- Residents of an EU member country other than Spain, not resident in a tax haven and not retrieving the income through an intermediary resident in a tax haven;
- Foreign central banks;
- Supranational organisations recognised by Spanish law.
- Partial immediate refund is available to beneficial owners that are residents of countries that have concluded a Double Taxation Treaty (DTT) with Spain.
- Full immediate refund is available to beneficial owners that are:
- Corporate bonds issued on/after 1 January 1999 traded on the Spanish market in book entry form
- Full immediate refund is available to beneficial owners that are:
- Residents of an EU member country other than Spain, not resident in a tax haven and not retrieving the income through an intermediary resident in a tax haven;
- Spanish resident corporate income tax payers that are not retrieving the income through an intermediary resident in a tax haven;
- Supranational organisations recognised by Spanish law.
- Partial relief at source is available to beneficial owners that residents of countries that have concluded a DTT with Spain.
- Full immediate refund is available to beneficial owners that are:
| Eligible beneficial owners | Immediate refund | Quick Refund | Standard Refund |
Residents of Double Taxation Treaty countries | Yes | Yes | Yes |
Residents of EU member countries | Yes | Yes | Yes |
Foreign central banks | Yes | Yes | Yes |
Supranational organisations recognised by Spanish law | Yes | Yes | No |
Spanish resident corporate income tax payers holding corporate bonds issued after 1 January 1999 | Yes | Yes | No |
Full/partial immediate refund of withholding tax is available only if the appropriate documentation is submitted to LuxCSD.
A full/partial quick refund is available if a full immediate refund has not been obtained by the eligible beneficial owner.
A full/partial standard refund is available if a full immediate or quick refund has not been obtained by the eligible beneficial owner.
The customer can reclaim withholding tax on behalf of the beneficial owner through LuxCSD by submitting the appropriate documentation.
Residents of Spain cannot apply for standard refund of withholding tax through LuxCSD.