General information - types of securities, deadlines, other market specifics - Spain (securities held in CBF)
This Market Taxation Guide (Spain) provides the following details:
- Reference information about all taxes applied at source, through LuxCSD and its local partners, to securities deposited in LuxCSD; and
- Instructions for obtaining immediate, quick or standard refund of withholding tax, where these are available, through LuxCSD.
Note: Relief at source is not granted by Spanish legislation. In practice, an immediate refund takes place on the interest payment date. No immediate refund is available on dividends.
Types of securities eligible in LuxCSD
The eligible securities issued in Spain are as follows:
- Domestic Bonds subject to RD 1145/2011:
- Government bonds and equivalent bonds processed by Bank of Spain;
- Generalitat de Catalunya Bonds income processed by Bolsa Barcelona;
- Basque bonds income processed by Bolsa Bilbao;
- Generalitat Valenciana Bonds income paid by Bolsa Valenciana;
- Spanish Corporate Bonds (AIAF market) issued under the scope of Law 19/2003 and Royal Decree 1065/2007;
- Treasury Bills (“T-Bills”) (regardless of the maturity);
- Stripped public debt securities (regardless of the maturity);
- Zero coupon corporate debt securities with a maturity of less than 12 months;
- Domestic Bonds not subject to RD 1145/2011:
- Preferred shares issued before 6 July 2003;
- Debt instruments issued by SPVs before 6 July 2003.
- Debt instruments issued by listed financial entities before 6 July 2003;
- Debt instruments of listed non-financial entities issued before 20 November 2005;
- Debt instruments issued by unlisted entities.
- Equities.
Types of beneficial owner
The types of eligible beneficial owner recognised for tax purposes in Spain vary according to security type, as follows:
For domestic debt securities subject to RD 1145/2011:
- All non-residents of Spain;
- Supranational organisations recognised as such by Spanish law;
- Spanish resident corporate income tax payers.
Notes:
- All Spanish resident beneficial owners are paid gross by LuxCSD on T-Bills. They must disclose their identity and holdings.
- Spanish resident individual tax payers cannot hold Spanish stripped public debt securities (regardless of the maturity) and zero coupon corporate debt securities with a maturity of less than 12 months with LuxCSD.
- LuxCSD clients can benefit from an Exemption at source by opening a segregated X account (exempt account); to be eligible, the criteria is:
Exclusively hold Spanish subject to Royal Decre 1145/2011 in the account;
and
The securities are held on behalf of final beneficial owners non-resident in Spain for tax purposes or supranational organisation recognised as such by Spanish law.
For domestic debt securities not subject to RD 1145/2011:
- Residents of Double Taxation Treaty (DTT) countries;
- Residents of EU member countries other than Spain, not retrieving the income through an intermediary resident in a tax haven;
- Supranational organisations recognised as such by Spanish law;
- Foreign central banks;
- Spanish resident corporate income tax payers (only on corporate bonds issued on/after 1 January 1999 and traded on the Spanish market in book-entry form).
For equities:
- Residents of Double Taxation Treaty (DTT) countries;
- Supranational organisations recognised as such by Spanish law.
Reporting requirements for domestic debt securities subject to RD 1145/2011
According to Spanish tax legislation, all Spanish beneficial owners (both corporations and individuals) must disclose their identity and holdings.
This disclosure must be submitted to LuxCSD and must include details as follows:
- Final beneficial owners that are Spanish residents:
If LuxCSD’s direct client is a Spanish resident and is the owner of the securities, or if all intermediaries between LuxCSD and the final Spanish beneficial owner are non-Spanish financial institutions, the disclosure of the Spanish beneficial owner must be provided to LuxCSD. - Intermediaries that are Spanish financial institutions:
If any of the intermediaries between LuxCSD and the final Spanish beneficial owner is a Spanish financial institution, the disclosure of that Spanish financial institution must be provided to LuxCSD (instead of the final beneficial owner details).
It is the responsibility of the LuxCSD client to comply with all legal and regulatory requirements imposed by Spanish tax law in respect to missing or incorrect information related to Spanish beneficial owners. Neither LuxCSD nor its local depository has any direct or indirect liabilities towards the Spanish Tax Authorities in this regard.
Deadlines for reclaiming withholding tax
Immediate refund:
The deadline for reclaiming withholding tax using the immediate refund procedure depends on the type of security and on each paying agent, as follows:
| Type of security | Deadline for receipt by LuxCSD |
Government bonds and public debt income paid by Bank of Spain | At least one business day before the respective payment, by 10:00 CET. |
Generalitat de Catalunya Bonds income paid by Bolsa Barcelona | At least one business day before the respective payment, by 10:00 CET. |
Basque bonds income paid by Bolsa Bilbao | At least one business day before the respective payment, by 10:00 CET. |
Generalitat Valenciana Bonds income paid by Bolsa Valenciana | At least one business day before the respective payment, by 10:00 CET. |
Corporate bonds subject to RD 1145/2011 income paid by BBVA | At least one business day before the respective payment, by 10:00 CET. |
Corporate bonds NOT subject to RD 1145/2011 income paid by BBVA | At least two business day before the respective payment, by 10:00 CET. |
Equities | No immediate refund available. |
Quick refund:
The deadline for reclaiming withholding tax using the quick refund procedure depends on each paying agent as follows:
| Type of security | Deadline for receipt by LuxCSD |
Government bonds and public debt income paid by Bank of Spain | At the latest, 25 calendar days (or the first business day before that if the 25th calendar day is not a business day) after the applicable payment date, by 10:00 CET. |
Generalitat de Catalunya Bonds income paid by Bolsa Barcelona | At the latest four business days before the 10th calendar day of the month following the month when the interest payment took place, by 10:00 CET. |
Basque bonds income paid by Bolsa Bilbao | At the latest four business days before the 10th calendar day of the month following the month when the interest payment took place, by 10:00 CET. |
Generalitat Valenciana Bonds income paid by Bolsa Valenciana | At the latest four business days before the 10th calendar day of the month following the month when the interest payment took place, by 10:00 CET. |
Corporate bonds subject to RD 1145/2011 income paid by BBVA | At the latest, four business days before the 10th calendar day of the month following the month in which the interest payment took place, by 10:00 CET. |
Corporate bonds NOT subject to RD 1145/2011 income paid by BBVA | At the latest, on the last business day of the month in which the interest payment took place, by 10:00 CET. |
Equities | At the latest, on the second business day of the month following the month in which the dividend payment was made, by 10:00 CET. |
Standard refund:
Statutory deadline for reclaiming withholding tax
The statutory deadline for reclaiming withholding tax using the standard refund procedure is four years following the income/redemption payment date.
Important note: Due to the provisions of the Orden Ministerial EHA/3316/2010 of 17 December 2010, reclaims of tax withheld over any interest or dividend paid in a given year cannot be submitted to the Spanish Tax Authorities before 1 February of the following year. For example: if the income were paid in January 2021, the standard refund application can be filed with the Spanish Tax Authorities as of February 2022.
Therefore, standard refund requests must be addressed to LuxCSD only from 1 February of the year following the year of income payment. Any request received before that date will be rejected.
LuxCSD deadline for standard refund applications
The deadline by which LuxCSD must receive the documentation for application for a standard refund of withholding tax is at the latest three months before the statutory deadline. All refund applications received after this deadline will be processed by LuxCSD on a "best efforts" basis. However, in such cases, LuxCSD accepts no responsibility for forms that have not reached the Spanish Tax Authorities by the date considered being the statute of limitations deadline.
Furthermore, LuxCSD will apply an extra charge for applications received less than three months before the statutory deadline.
Fees charged for a tax reclaim
In addition to the standard fee charged by LuxCSD per reclaim form (as detailed in the LuxCSD International Fee Schedule), the fees charged by the local custodian for handling tax refund requests for a client will be passed on by LuxCSD to the client.
When are refunds received?
Quick refund:
The estimated time for receiving a quick refund is the end of the month following the quick refund deadline.
Standard refund:
The estimated time for receiving a refund is 18 months from the date of receipt by the Spanish Tax Authorities. This timing can vary depending on when the application is filed and on the complexity of the information supplied in the reclaim form.
Notes on tax reclaims
Clients warrant the completeness and accuracy of the information they supply to LuxCSD.
With respect to tax reclaims in general, clients are reminded that LuxCSD accepts no responsibility for their acceptance or non-acceptance by the tax authorities of the respective country. It is the client's responsibility to determine any entitlement to a refund of tax withheld, to complete the forms required correctly, and to calculate the amount due. LuxCSD is under no obligation to carry out any investigation in respect of such information.
Market specifics
The following details are specific to the Spanish market.
Issuance of a Spanish attestation (“Attestation”)
The issuance of an Attestation can be requested by clients who wish to obtain a standard refund of withholding tax directly with the Spanish tax authorities (STA). The Attestation is delivered only if the beneficial owner was taxed on income payment.
The Attestation is issued by the custodian, Clearstream Banking AG. It provides evidence that tax was withheld at source for a past taxable income payment and includes:
- The position held by LuxCSD on behalf of the beneficial owner
- The amount of the net dividend/interest credited to LuxCSD together with the tax withheld at source
Important note: The attestation does not replace the full chain of credit advices. It cannot be considered as a credit advice of payment from LuxCSD to the client. If required, a LuxCSD credit advice must be requested separately.
Due to the provisions of the Orden Ministerial EHA/3316/2010 of 17 December 2010 mentioned in the “Statutory deadline for reclaiming withholding tax” section above, Attestation requests must be addressed to LuxCSD only from 1 February of the year following the year of income payment. Any request received before that date will be rejected.
Attestation request
Requests must be sent to the dedicated email address: es_attestations@clearstream.com.
Clients must use the dedicated template and confirm in their email the mailing address where the original documents are requested to be sent to. All fields of the template must be completed.
Upon receipt and after verification of the submitted details, LuxCSD will issue the relevant Attestation.
The Attestations are sent in paper form (by DHL) to the address mentioned in the email request. An electronic copy can be exceptionally provided if requested.
An Attestation is issued at the earliest expediency, that is, it may take more than 25 calendar days from the date that such valid request is received by LuxCSD.
Important note: Clearstream Banking AG and LuxCSD will not assist further in the process of refund requests directly to the Spanish Tax Authorities and accept no responsibility for their acceptance or non-acceptance by these Authorities.