Tax
Regime
8
68
STRUCTURE ORGANISATION AND OPERATION
OF THE SPANISH SECURITIES MARKET
A. Resident investors
INDIVIDUAL INCOME TAX (IRPF)
The tax regulations for financial instruments are
set out in Law 35/2006 on Personal Income Tax and in
the regulations approved by Royal Decree 439/2007.
Two tax regimes have been in place since Ja-
nuary 1, 2013 for gains from the same of financial
assets. Gains generated over a period of a year or less
are subject to the marginal Personal Income Tax rate
(between 24% and 52%, while those generated over
periods of more than a year are taxed as if they were
savings income at a rate of between 21% and 27%.
This dual tax regime was implemented on the publica-
tion of Law 16/2012 on tax measures aimed at shoring
up public finances and boosting economic growth.
YIELDS ON SECURITIES INVESTMENTS
1. Yield from transfer to third parties of own capital:
Integrated into savings income and taxed at a rate of
21% for the first €6,000, 25% up to €24,000, and
27% for amounts over €24,000, and in parallel a
withholding rate of 21%, except for:
• Public debt assets: Treasury bills are not subject to
a tax withholding. The transfer, redemption, repay-
ment, exchange or conversion of government bonds
is not subject to withholding tax.
• Debt assets and private fixed income: The transfer,
redemption or repayment of bonds and mortgage se-
curities are not subject to withholding tax.
2. Yield obtained from participating in funds of any
type of institution (dividends, premium for attending
a shareholders’ meeting and participating in the pro-
fits of any institution, share issue premium or parti-
cipations and reductions in capital): Integrated into
savings income and taxed at a rate of 21% for the
first €6,000, 25% up to €24,000, and 27% for amou-
nts over €24,000, and in parallel a withholding rate
of 21%, except for:
• Dividends and participating in profits have an annual
tax exemption limit of €1,500. This tax benefit is not
applied when it involves the same shares bought
and sold two months before or after the dividend
payment.
• Capital reductions: when the purpose of the reduc-
tion is to return contributions to shareholders, the
amount returned will reduce the value of the purcha-
se of the shares concerned until their cancellation. If
the amount exceeds the value of the purchase, this
amount will be taxed as a yield on investment secu-
rities not subject to withholding tax. Regarding re-
ductions in capital that do not represent a cancella-
tion of unpaid capital (that part not disbursed in the
subscription of shares charged to reserves), or which
comes from undistributed dividends, the amounts
received will be taxed as a yield on investment se-
curities, in principle subject to withholding tax.
CAPITAL GAINS FROM THE TRANSFER OF SHARES
Capital gains from the sale of shares generated du-
ring a period of a year or less are taxed at the marginal
Personal Income Tax rate of between 24% and 52%.
When the capital gains have been generated during pe-
riods of more than a year, they are integrated in to savings
income and taxed at a rate of 21% for the first €6,000,
25% up to €24,000, and 27% for amounts over €24,000.
No withholdings are made on capital gains.
There is a temporary regime for the amount of
capital gains derived from elements acquired before
December 31, 1994. A capital gain generated before
January 20, 2006 can benefit from the tax regime of de-
preciation/amortisation coefficients (25% for each year
exceeding two until December 31, 1996).
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