Which countries does Spain have a double taxation agreement in 2021?

Los convenios de doble imposición o CDI, o tratados de doble imposición, son los tratados más complejos a nivel internacional. No son impuestos, sino que regulan la forma de aplicarlos (los CDI son tratados internacionales que contienen, en particular, medidas para evitar y/o eliminar la doble imposición).

Departamento de Comunicación

Date 22/02/2021

Double taxation agreements or DTA, or double taxation treaties are the most complex taxes at the international level. They are not taxes, they regulate the way taxes are applied ( DTA are international treaties containing, in particular measures to prevent and / or eliminate double taxation ).

So, in this article, we discuss the double taxation agreement and tell you which countries signed this agreement with Spain in 2021.

What is a DTA?


Double Taxation Agreements (DTA) are bilateral treaties between two or more jurisdictions or countries to to prevent or minimize territorial double taxation of the same income by the two countries.  The main purpose of DTA is to establish the operation and rules for not having to pay the same tax twice in the same period, when income is subject to the tax system of one country due to it having been obtained in that country, but it has been obtained by a citizen of another country and vice versa; that is, they are aimed to divide the right of taxation between the contracting countries or jurisdictions, to avoid differences, to ensure taxpayers' equal rights and security, and to prevent evasion of taxation.

A double taxation agreement is a contract that is signed with different countries. If we talk about Spain, a double taxation agreement is signed by the Foreign Office also called Ministry of Foreign Affairs (cabinet minister or the prime minister representing their country.) 

Tax benefits under DTA for payments can take place in two ways. On the one hand, there can be an exemption from tax payments or a reduced tax rate on respective payments. On the other hand, there can be a refund of deducted withholding payments.

There are two types of double taxation agreements. One is double jurisdictional taxation and double economic taxation. In jurisdictional double taxation agreement, the tax is applied to two countries according to both parties' domestic laws, so they have the same transactions, income, and jurisdictions respective aspects.

Types of double taxation agreements: 

·      Bilateral agreements:  These are signed by two countries in order to avoid double taxation and prevent tax evasion. Mainly, they affect income taxes (residents and non-residents) and wealth, as well as the regulations on information with respect to income earned abroad. They also prevent money laundering in tax havens.

·      Multilateral agreements: These are signed with multinational organizations such as the European Union, which essentially affect taxes on commercial transactions.

·      Agreements signed with international organizations:  These are not purely double taxation agreements, but include applicable tax regulations.

How does double taxation agreement occur? 

A double tax agreement has the aim to provide support for both country's residents. The residents of each country can freely transact or trade with each other. It also benefits the countries by enhancing international trade or saying that cross-border transactions.

The countries who sign these agreements can freely do business between them.

Given the global village the world has become, double taxation is counterproductive and discourages investment flows.


Double taxation agreement signed by Spain in 2021

Spain signs a double tax agreement with more than 80 countries in 2021. According to the Anti Money-Laundering Law and Mutual Legal Assistance Law, Spain quickly shares the tax matter information. There is no restriction access to the information related to the bank's tax purposes.

Besides the double tax treaties, Spain has also signed numerous protocols of exchange of information with offshore jurisdictions, in order to avoid the tax fraud. Every year, Spain is exchanging lists with taxpayers with the treaty countries. 

This treaty helps the taxpayers to avoid double taxes when they deal with the transaction with Spain and another sign country. Spain's double tax agreement also includes some forms that help the taxpayers qualify at reduced rates like royalties, capital gains, and dividends. 

Spain has signed double tax treaties with 90 countries all over the world and, according to these treaties, certain types of incomes, such as dividends, capital gains and royalties, are exempt from taxation or benefit from low rates of taxes.

Here is the list of countries that have signed the double taxation agreement with Spain in 2021:

  1. Albania
  2. France
  3. Oman
  4. Algeria
  5. Georgia
  6. Pakistan
  7. Andorra
  8. Argentina
  9. Armenia
  10. Germany
  11. Greece
  12. Hong Kong
  13. Panama
  14. Philippines
  15. Poland
  16. Australia
  17. Austria
  18. Barbados
  19. Hungary
  20. Iceland
  21. India
  22. Portugal
  23. Qatar
  24. Romania
  25. Belgium
  26. Bolivia
  27. Bosnia and Herzegovina
  28. Indonesia
  29. Iran
  30. Ireland
  31. Russian Federation
  32. Saudi Arabia
  33. Senegal
  34. Brazil
  35. Bulgaria
  36. Canada
  37. Israel
  38. Italy
  39. Jamaica
  40. Serbia
  41. Singapore
  42. Slovak Republic
  43. Chile
  44. China
  45. Colombia
  46. Japan
  47. Kazakhstan
  48. Kuwait
  49. Slovenia
  50. South Africa
  51. South Korea, Republic of
  52. Costa Rica
  53. Croatia
  54. Cuba
  55. Latvia
  56. Lithuania
  57. Luxembourg
  58. Sweden
  59. Switzerland
  60. Thailand
  61. Cyprus
  62. Czech Republic
  63. Dominican Republic
  64. Macedonia
  65. Malaysia
  66. Malta
  67. Trinidad and Tobago
  68. Tunisia
  69. Turkey
  70. East Timor
  71. Ecuador
  72. Egypt
  73. Mexico
  74. Moldova
  75. Morocco
  76. United Arab Emirates
  77. United Kingdom
  78. United States
  79. El Salvador
  80. Estonia
  81. Finland
  82. Netherlands
  83. New Zealand
  84. Nigeria
  85. Uruguay
  86. Uzbekistan
  87. Venezuela
  88. The former States of the USSR
  89. Norway
  90. Vietnam

 What is the OECD double tax treaty model?

Double tax treaties signed in Spain follow the OECD model. This means that all the agreements have to respect a certain structure. Thus, in a given Spanish double tax agreement, investors will find the rules established between two countries on specific tax matters, as follows:

• the scope of the double tax treaty and the taxes applicable in the two contracting states;

• the types of entities to which the respective double tax treaty is applicable (both natural persons and legal entities);

• the general definitions, describing what a permanent establishment is, what is a tax resident and others;

• the taxation of income, which can refer to income obtained from immovable property, from business activities, dividends, interest, royalties, employment, pensions and other types of income;

• the main legal methods through which the contracting states participate in eliminating double taxation; • the obligations of each country

This website uses first and third party cookies in order to improve our services and collect information about your interaction with the website. If you click “agree” or continue browsing, we will regard this as your approval of the use and installation on your desktop or device. Find more information in our cookies policy. cookies policy.