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V4069-15 17 December 2015 · SG de Fiscalidad Internacional Criterion in force
IRNR · residencia fiscal

No imputation of real estate income for family housing attributed to children and former spouse, and withholding tax on bank interest under the Convention shall not exceed 5%

A taxpayer relocating to Saudi Arabia inquires about the taxation of their marital home in Spain and the interest from their bank accounts. The DGT determines that there is no imputation of income for the housing and that bank interest is subject to a maximum rate of 5% according to the Convention.

The question raised

Question raised: The inquirer requests information regarding the taxation of what was their marital home, the use and enjoyment of which corresponds to their former spouse and minor children, as well as the returns from bank accounts in Spain and the applicable withholding tax percentage on said returns.

The DGT's ruling

The imputation of real estate income is not applicable for the family home whose use is attributed to the children and the spouse with whom they remain. Regarding interest on deposits in Spain, the Convention allows taxation in Spain at a rate that shall not exceed 5% of the gross amount. However, if the domestic Non-Resident Income Tax (IRNR) regulations are applied without the Convention, the rate would be 19.5%.

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