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In Spain, withholding taxes apply in a number of cases. This means that the person making a payment must withhold a percentage of that payment to pay it directly to the tax authorities by submitting a prescribed form. The taxpayer may, of course, set off this withholding tax on his (final) declaration. Brief information is shown below. If you want more information, please ask us.
For information on dividend withholding tax, please refer to the relevant information page about dividends.
When renting business space, the tenant must withhold a withholding tax of 19% when making rental payments. There are exceptions, this depends on the specific situation of the landlord. This is usually aware of this and will ensure correct application. In case of doubt, it is of course advisable to consult an advisor.
The landlords specify the deduction on the monthly invoices. It turns out exactly what amount should be paid to the landlord and what amount should be paid to the tax authorities (by the SME on a quarterly basis and the Grootbedrijf on a monthly basis).
In case of interest payments, Spanish banks keep 19% withholding tax. This can be set off against the annual returns.
In the event that non-residents present a certificate of residency from their country of residence, the bank will not deduct any withholding tax on interest payments on ordinary payment accounts. Interest tax is withheld from interest payments on deposits and other special accounts.
Self-employed persons must also specify a withholding tax on invoices to companies. The customer pays the invoice after deduction of the 15% withholding tax to the supplier, and the withholding tax on quarterly (SME) or monthly basis (Grootbedrijf) to the tax authorities by means of the appropriate declaration forms.
There are also a few exceptions here. Some professions do not have a deduction obligation and self-employed persons can apply 7% for the first 2 years instead of 19%.
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