Skip to content
Back to index
V0593-15 16 February 2015 · SG de Fiscalidad Internacional Criterion in force
IRNR · crowdlending

Interest payments to EU investors may be exempt if payment mediation criteria are met

A peer-to-peer lending platform queries whether it must withhold tax on interest paid to EU-based investors. The DGT states that if the platform acts solely as a payment mediator, it bears no responsibility; however, if certain conditions are not met, it becomes liable for compliance obligations.

The question raised

In relation to the payment of interest in favor of investors who are tax residents in the EU, the following is consulted:

The DGT's ruling

The interest paid to EU investors for the assignment of credits constitutes income from movable capital obtained in Spain, but is exempt from withholding tax pursuant to the TRLIRNR. The platform shall not be the subject liable for withholding or filing returns if it acts merely as a payment intermediary, provided that the borrower identifies the recipient, quantifies the income, and provides the funds. If these requirements are not met, the platform shall be responsible for formal obligations, such as the negative return and the annual summary.

Book your free first meeting