Frequently Asked Questions for claim a spanish tax refund

Bellow you will find FAQ’s for claim a spanish tax refund. If your question is not answered here, please contact us

Yes. The company paying the dividend has deducted from your dividend a 21%-19% withholding tax. If you are Spanish non-resident you are entitled to request partial refund or even maybe a total refund in 99,9% of the occasions.

Well, for instance, let’s say you have received dividends from Banco Santander or Inditex or Telefonica for 150.000€ in the past 4 years. Gross income is 150.000€ but you have only received in your bank account 121.500€ (net dividend). The remaining 28.500 withholding tax has been deducted from the dividend and paid to the Spanish Tax Agency on your behalf.

In the latter example, we could normally reclaim 13.500€-6.000€. It’s your money.

Yes. Spanish “statute of limitations” is 4 years. Therefore, we can go back at least 4 years. The amount to be reclaimed could be higher that you think.

Small investors receive dividends and interest subject to a 19% withholding tax. However, most bilateral tax treaties concluded by Spain provide for reduced tax rates of 15% or 10% or even 0%. For example, if you received a Dividend from Banco Santander, BBVA, Inditex, Grifols, *** you most probably have the right to claim back totally or partially the withholding tax.

Dividends are far more likely to be subject to withholding tax than interest from bank deposits or bonds, notes, etc.. However, if you are not a Spanish resident and the interest has been subject to withholding tax on interest in Spain, STR can assist you in claiming back the tax withheld (especially if you are a EU-resident).

If Spain did not charge dividends and interest with a withholding tax to non-residents it would be almost impossible to get the tax from a non-resident once the dividend or interest has been paid. To ensure collection of such tax, it is deducted from the dividend payment before it is paid to the non-resident investor.

It is normally around €600, although the final amount you receive will depend on your individual circumstances such as income received during the last 4 FY, tax rate applicable as per the Treaty, etc.

We only charge our 20% success-fee once we receive the refund from the Spanish Tax Agency.

Our clients normally choose us because:

  • We get the maximum legal tax refund.
  • We have vast experience in Spain (more than 28 years), having litigated against the Agency in real big claims.
  • We know what kind of problems the Spanish tax procedure  involves
  • We comply with Spanish tax law.
  • We use IT systems for efficiently processing reclaims and refunds.

Indeed, you can file your return yourself. The reality is though once you eventually get all your tax documents together, decipher complicated tax code and submit it after obtaining your electronic signature, you won’t be able to reponse to any of the queries of the Tax Agency.

Most likely your success options will increase with our know-how. Why not spend less time worrying about your refund and more time thinking about what you’ll spend it on by using

  • A certificate of Tax residence within the meaning of the Tax Convention.
  • The dividend statement or certificate where we can see the income received and withholding tax applied.
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