What taxation applies to bonds in Spain?

Are you considering investing in securities issued by a Spanish company? Before anything else, we recommend that you look into the applicable tax treaties. Perfect timing—that’s exactly what this article is about! Discover everything you need to know about taxation in Spain.

🔎 Find out more:

• Mastering the taxation of your responsible investments
• What is the tax treatment for investments in France?
• What taxation applies to investments in Poland?
• What taxation applies to investments in Luxembourg?

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How will my income be taxed?

Spanish tax resident

As a Spanish investor participating in a project issued by a Spanish company, your tax situation is the simplest. Your income is taxed in your country at the following rates:

• 19% (up to €6,000);
• 21% (from €6,001 to €50,000);
• 23% (above €50,000).

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Non-Spanish tax resident

When you invest in a project led by a foreign company, your financial income is always taxed in your country of residence, but it may also be subject to withholding tax in the country where the issuing company is based. For Spanish investments, this is the case. Without any action on your part, your interest will therefore be subject to double taxation by default.

Fortunately, this can be avoided. To be exempt from Spanish withholding tax on your interest income, you simply need to prove that your financial income is already taxed in your country of residence.

To do so, the Spanish tax authorities require a Tax Residence Certificate (TRC) signed by your local tax office.

Good to know

• Your TRC is valid for 1 year for all your foreign-source financial income payments.
• It is important to submit it before your first interest payment.
• It must be renewed each year as long as you receive foreign-source financial income.

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Spain has signed double taxation treaties with 103 countries. We encourage you to check whether a treaty exists between Spain and your country of residence. If, unfortunately, no treaty exists, Spain will tax your income at 19%, in addition to the taxes applied in your country of residence.

French tax resident

If you submit your French Tax Residence Certificate, your income will not be subject to withholding tax in Spain. You will only be taxed at source in France at:

• 30% if you do not qualify for an exemption;
• 17.2% (CSG-CRDS only).

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Without your French TRC, you will be subject to double taxation. If you do not benefit from a tax credit, the total withholding will be 49% (30% in France and 19% in Spain).

However, if you benefit from a tax credit (applicable rate of 8.99%), your total income tax withholding will amount to 40.01%.

Italian tax resident

If you provide your Tax Residence Certificate, your income will not be subject to withholding tax in Spain. You will therefore receive your gross interest directly and will simply need to declare and pay the full 26% tax rate applicable to Italian tax residents on foreign bonds.

On the other hand, without this document, your income will be subject to:

• 19% withholding tax in Spain;
• 26% tax in Italy.

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Dutch tax resident

As a Dutch investor, you are responsible for declaring your income to your national tax authorities. To avoid double taxation, make sure to request your Tax Residence Certificate from the Belastingdienst or via a Woonplaatsverklaring.

If you invest in a project issued by a Spanish company without providing this document, your income will be subject to 19% withholding tax in Spain.

How do I obtain my Tax Residence Certificate (TRC)?

As a French tax resident, obtaining your TRC involves 3 steps:

1. Download your pre-filled TRC from your personal account.
2. Send it to your tax office via the secure messaging service on your profile at impots.gouv.fr.
3. Once signed by the tax office, upload it to your Enerfip account.

If you are a tax resident of another country, please contact your local tax office directly.

Where can I find my Tax Residence Certificate on Enerfip?

Your signed Tax Residence Certificate is available in the “Documents” section of your account.

If it is still being validated, you can access it under “Tax status”, within the “My account” section, by clicking on your first name in the top left corner.

Now you’re fully up to speed on the taxation of securities issued by a Spanish company!

If you’re interested and would like to invest in our projects, head over to our catalogue.

If you need any additional information, feel free to contact our Investor Relations team by booking an appointment online, by phone at +33 (0)4 119 341 11, or by email at [email protected].

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