France-Spain Tax Convention 1995: article-by-article guide 2026

The France-Spain Double Tax Convention 1995 is the legal foundation for every cross-border tax relationship between the two countries. For French nationals resident in Spain, understanding its provisions is not academic — it determines whether French pension withholding is stopped, whether dividends are taxed once or twice, and how the Spanish IRPF return correctly reflects French income.

The Convention: key facts

Full name: Convention between the Government of the French Republic and the Kingdom of Spain for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and wealth.

Signed: 10 October 1995, Madrid
In force: 1 July 1997
Published in Spain: Boletín Oficial del Estado no. 140, 12 June 1997 (BOE-A-1997-12729)
Structure: 33 articles + Protocol
Covered taxes: French IR, IS, taxe sur les salaires, IFI; Spanish IRPF, IS, IRNR, IP

Complete income attribution table

Art. 10 — Dividends: the 15% cap and how to claim it

How the withholding works

When a French SA or SAS distributes dividends to a Spanish resident shareholder:

1. French domestic withholding on dividends paid to non-resident individuals: 12.8% since 1 January 2018 (BOFiP BOI-RPPM-RCM-30-30-10-20)
2. Convention 1995 Art. 10 cap: 15% (so the 12.8% domestic rate is actually below the treaty cap)

In practice, individual French shareholders in Spain are rarely over-withheld since 12.8% < 15%. However:

• The withheld 12.8% is a French tax credit for Spanish IRPF purposes (Art. 24), even if below 15%
• Non-residents pay no French social levies on dividends (DGFiP)
• Corporate shareholders may face different rates

Special case: companies holding at least 10%

Dividends paid to a Spanish company subject to corporate tax that holds a substantial participation, at least 10% of the capital directly or indirectly, are taxable only in Spain (Art. 10 §2b and §4b).

Claiming the Convention rate: Formulaire 5000

For dividend income where French default withholding was applied at a rate above the Convention cap, or to obtain prospective reduced withholding:

1. Download Form 5000 from DGFiP (impots.gouv.fr)
2. Fill boxes I, II and III: your identity, Spanish address and the income concerned
3. Spanish tax authority: it fills box IV, certifying your Spanish tax residence
4. Submit to French source: send to the French company or its paying bank before dividend payment
5. Excess withholding: if too much was withheld, recover it by credit through the paying institution or by refund from the French Treasury

Art. 11: Interest, up to 10% under the treaty

Art. 11 lets France tax interest paid to a Spanish resident, but the tax cannot exceed 10% of the gross amount. Interest is taxable only in Spain in the cases of Art. 11 §3: interest paid by the French State or its territorial authorities, between enterprises in the course of a commercial activity, on credit sales of industrial, commercial or scientific equipment, or on loans granted by a credit institution.

Under French domestic rules, the DGFiP applies no compulsory levy to interest from current or savings accounts paid to non-residents, unless they live in a non-cooperative State or territory (ETNC).

How to apply: give your French bank Form 5000 each year (appendix 5002 for interest). The interest is declared in Spain in the savings income base, with credit for any French tax paid (Art. 24 §2a).

Art. 12: Royalties, up to 5% under the treaty

Royalties arising in France and paid to a Spanish resident are taxable in Spain, but France may levy a withholding of up to 5% of the gross amount if the recipient is the beneficial owner (Art. 12 §2a). Payments for copyright on literary or artistic works (excluding films and recorded sound or visual works) are taxable only in Spain (Art. 12 §2b). To have the treaty rate applied, give the French payer Form 5000 with appendix 5003.

Art. 13 — Capital gains: the critical immoveable property distinction

§1 — French real estate gains: taxed in France

Capital gains from the sale of immoveable property (real estate) located in France are taxable in France (where the property is located). French non-resident CGT rules apply (typically 19% for EU residents + 7.5% De Ruyter Prélèvement de Solidarité on the gain). The Spanish IRPF credits the French tax paid (Art. 24).

§1.b: Shares in real estate-heavy companies

Gains from selling shares in companies whose assets consist principally of immoveable property in France are also taxable in France (real estate situs rule). This prevents avoidance through corporate wrappers.

§5: Other securities, taxed in Spain only

Capital gains from selling shares, SAS/SA/SARL participations (that are not principally real estate), French mutual funds (OPCVM), and most other securities are taxable only in Spain (Art. 13 §5). The exception besides real estate companies (§1.b) is a substantial holding: if you held, alone or with related persons, at least 25% of the capital or of the profit rights at any time in the 12 months before the sale, France may also tax the gain (§2.a) and Spain credits the French tax (Art. 24.2.a). Spain taxes these gains in the savings base at 19% to 30% (Arts. 66 and 76 LIRPF).

Art. 18 vs Art. 19 — Pensions: the most important distinction

For retired French nationals in Spain, the Art. 18/19 distinction determines thousands of euros of annual tax.

Art. 18 — Private employment pensions

Scope: pensions and similar remuneration from private employment — CNAV (pension from private sector INPS equivalent), AGIRC-ARRCO complementary pension, company pension plans (PEE, PERCO, retraite supplémentaire), Préfon (for some private sector arrangements).

Rule: taxable exclusively in Spain (the resident’s State).

Practical action:

1. Obtain AEAT fiscal residence certificate
2. Send to Assurance Retraite / CNAV and to AGIRC-ARRCO (or your managing fund)
3. Request removal of French IR withholding (retenue à la source)
4. Confirm application in writing from the pension provider

Art. 19 — Public service pensions

Scope: remuneration (including pensions) paid by France, French local authorities (collectivités territoriales), or French public law entities to individuals for services rendered to France in the exercise of governmental functions. Covers: all État civil servants (fonctionnaires d’État), military (Armée française), national police (Police Nationale, Gendarmerie), public school teachers and professors, magistrature, French diplomatic service.

Rule: taxable exclusively in France, regardless of residence. France retains full taxing rights.

Practical consequence: French withholds continue. Spain exempts the pension but may take it into account for the rate on your other income (Art. 24.2.c). Do not attempt to credit French withholding: there is no double tax, only France has the right.

How to know if your pension is Art. 18 or Art. 19

Key question: Was your employer private or public?

Art. 23: IFI and French real estate patrimony

Art. 23 of the Convention assigns taxation of immoveable property patrimony to the State where the property is located. This means:

• French real estate owned by a Spanish resident remains in the French IFI base
• No Convention relief from IFI for Spanish residents on French property
• IFI threshold: €1.3M net French real estate assets
• Annual IFI return: CERFA 2042 IFI, filed with the SIPNR

The IFI base for non-residents includes:

• Directly owned properties in France
• SCI shares proportional to French real estate content
• SCPI units proportional to French real estate content
• Usufruct and other real property rights over French property

Art. 24 credit method: eliminating double taxation in IRPF

Spain eliminates double taxation on French-source income that France may tax via the credit method (Art. 24.2.a); income that only France may tax, such as Art. 19 public service pensions, is exempt with progression (Art. 24.2.c). For credited income, in your Spanish IRPF return:

Step 1: Include French-source income in the appropriate income base (general or savings)
Step 2: Calculate the Spanish IRPF on that income at the applicable rate
Step 3: Calculate the French tax paid on that income
Step 4: Credit: deduct the lesser of (a) French tax paid and (b) Spanish IRPF attributable to that income

Credit cannot exceed: the fraction of Spanish IRPF corresponding to the French-source income
Credit cannot create a refund: if French tax > Spanish IRPF on that income, the excess is lost

Complete worked example: rental income from French property

Practical guide: key actions for French residents in Spain

Checklist for each French income stream

This document is for informational purposes only. It does not constitute tax or legal advice. The rules described reflect the Convention 1995 as of 2026 and should be verified with qualified advisers before taking any action. (Confirm Art. 10 §2b zero-rate conditions for qualifying corporate holdings, and DGFiP classification of assurance-vie returns under Convention 1995, with a qualified specialist).