Quick refund - eligibility, documentation, deadlines - Spanish equities (securities held in CBF)
Who can apply for a quick refund?
A quick refund of withholding tax on dividends from Spanish equities is available through LuxCSD for eligible beneficial owners, as follows:
| Eligible beneficial owners | Effective rate of tax after refund | Tax refund available a |
Residents of Double Taxation Treaty (DTT) countries | Tax treaty rate | 19% minus the tax treaty rate b |
Supranational organisations recognised as such by Spanish law | 0% | 19% |
a. Expressed as a percentage of the gross dividend 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 and residency of the beneficial owner.
Residents of Double Taxation Treaty (DTT) countries for which there is a “Petición de Reducción”
If the beneficial owner is a resident of Austria, the Netherlands, Sweden or Switzerland, the following documentation must be submitted:
- A One-Time Certificate for Spanish Equities for the first quick refund application (if not already provided), completed and duly signed by the LuxCSD customer; and
- A “Petición de Reducción” (an official tax form), available from the Spanish Tax Authorities or from the customer’s local tax authority, completed by or on behalf of the beneficial owner and its local tax authorities; and
- A Power of Attorney (if the customer or a third party is completing the “Petición de Reducción” on behalf of the beneficial owner).
- Breakdown of refund per requested tax rate either via a formatted SWIFT MT565 or Xact Web Portal, indicating:
- LuxCSD Customer account number;
- ISIN code;
- Corp ID;
- Total instructed securities quantity;
- Requested tax rate;
and for each 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//)
Residents of DTT countries that have no “Petición de Reducción”
If the beneficial owner is a resident of a DTT country for which there is no “Petición de Reducción”, the following documentation must be submitted:
- A One-Time Certificate for Spanish Equities for the first quick refund application (if not already provided), completed and duly signed by the Clearstream Banking customer; and
- A Certificate of Residence for each beneficial owner, issued by the beneficial owner's local tax authorities, it is recommended to provide it double-sided.
- Breakdown of refund per requested tax rate either via a formatted SWIFT MT565 or Xact Web Portal, indicating:
- Clearstream Customer account number;
- ISIN code;
- Corp ID;
- Total instructed securities quantity;
- Requested tax rate;
and for each 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//)
Supranational organisations
If the beneficial owner is a supranational organisation recognised by Spanish law, the following documentation must be submitted:
- A One-Time Certificate for Spanish Equities for the first quick refund application (if not already provided), completed and duly signed by the Clearstream Banking customer; and
- Breakdown of refund per requested tax rate either via a formatted SWIFT MT565 or Xact Web Portal, indicating:
- Clearstream Customer account number;
- ISIN code;
- Corp ID;
- Total instructed securities quantity;
- Requested tax rate;
and for each 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, if applicable:
- A copy of the “Convenio Constitutivo” confirming tax-exempt status.
Direct supranational customers of Clearstream Banking that want to obtain tax exemption 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 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 for 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 for 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.
Deadline for receipt of documents
Documentation for a quick refund of withholding tax on dividends from Spanish equities must be received by LuxCSD at the latest on the third calendar day of the month following the month in which the dividend payment was made, by 10:00 CET.
Important: the deadline is subject to change if the third calendar day falls on a weekend or a bank holiday. Customers are strongly recommended to refer to the prevailing deadlines specified in the SWIFT tax notification in order to avoid any rejection from LuxCSD.
Form descriptions are presented according to the procedures available for relief and/or reclaim of withholding tax on income from Spanish equities.