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V0097-14 20 January 2014 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rentas del capital mobiliario

Dividend tax deducted in Spain from Germany under double taxation treaty

A shareholder of a German company asks whether they can recover withholding taxes applied at source and destination on dividends. The DGT explains that the tax paid in Germany can be deducted in Spain under the double taxation treaty and the LIRPF, and requests the German authorities to refund any over-withheld amount.

The question raised

Taxation under Personal Income Tax: whether any of the two withholdings applied may be recovered.

The DGT's ruling

Dividends from German sources are taxed in Spain on a worldwide income basis and allow for a deduction for international double taxation. The deduction in Spain shall not exceed the amount that Germany could tax according to the Convention (maximum 15%). The excess withholding in Germany may be requested from the German authorities using the DBA-SPANIEN/Kapitalerträge form within one year after the end of the calendar year.

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