Global

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  • Service: Tax, International Corporate Tax, International Executive Services, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 10/19/2012

Spain - Tax treaty with Germany enters into force 

October 19: A new income tax treaty between Spain and Germany entered into force on 18 October 2012, and the treaty provisions are effective 1 January 2013.

A Protocol is included with the treaty.


The Spain-Germany income tax treaty includes:


  • A reduced withholding tax rate on dividends. The withholding tax rate is 5% on dividends (reduced from the previous withholding tax rate of 10%) if the recipient of the dividend holds at least 10% of the capital of the company distributing the dividend (formerly a 25% capital requirement).
  • Provisions providing that interest or royalties arising in one country and paid to a resident of the other country are generally taxable in that other country.
  • Special rules for the taxation of capital gains for the transfer of shares of a company whose holdings are comprised of more than 50% of real estate located in the other country.
  • Limitation of benefits (limitación de beneficios) provision.

Read the Spain-Germany income tax treaty (Spanish) [PDF 339 KB] as published in the Boletín Oficial on 30 July 2012.


Read a September 2012 report (Spanish) [PDF 191 KB] prepared by the KPMG member firm in Spain: Boletín de Fiscalidad Internacional




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