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Double Taxation Avoidance Agreement: DGT doctrinal evolution

How the DGT's position on this topic has evolved, and the rulings it rests on.

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How the DGT's position has evolved

Settled doctrine High confidence 10 rulings · 2015–2026

Current position

The international double taxation deduction is limited by the amount that the Double Taxation Avoidance Agreement allows to be taxed in the country of origin. It is not possible to deduct, through article 31 of the LIS (Corporate Income Tax Law), the excess withholding that exceeds the limits established in the international treaty. In the case of entities under the income attribution regime, the benefits of the agreement apply directly to the partners, provided they are the beneficial owners.

The DGT's position remains constant in applying the limits of the agreements over domestic regulations. The doctrine confirms that the excess tax withheld abroad above what was agreed in the treaty is not deductible in Spain. Recent rulings have specified the application of these limits in tax transparency structures and entities under the income attribution regime.

Turning points

  1. V2436-22

    Clarifies that the excess withholding over what is stipulated in the Agreement does not allow for the application of article 31 of the LIS.

  2. V1827-24

    Establishes that in entities under the income attribution regime, the benefits of the agreement apply directly to the beneficial owner partners.

Analysis based on 9 of 10 rulings with a stated position. Updated 29 September 2026.

Rulings on this topic

14
V5112-26 3 Jul 2026

No retention obligation in Spain for Saudi workers serving in Spain

SG de Fiscalidad Internacional
rentas del trabajoobligación de retenerconvenio para evitar la doble imposiciónempleador formalestablecimiento permanente LGT — Ley 58/2003 General Tributaria art. 35LGT — Ley 58/2003 General Tributaria art. 88
Affects CompanyExpat · Non-residentIndividual
V2436-22 25 Nov 2022

Foreign tax excess over treaty amount not deductible

SG de Impuestos sobre las Personas Jurídicas
doble imposición internacionalcuota íntegraconvenio para evitar la doble imposicióngasto deduciblebase imponible LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 31
Affects CompanyExpat · Non-residentIndividual
V4259-16 5 Oct 2016

The international double taxation deduction is considered at 20% for interest according to the Convention with Brazil

SG de Impuestos sobre las Personas Jurídicas
doble imposición internacionaldeducción por doble imposiciónrentas obtenidas en el extranjeroconvenio para evitar la doble imposicióncuota íntegra LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 29.1LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 31
Affects CompanyExpat · Non-residentIndividual
V2417-15 30 Jul 2015

Deduction for international double taxation possible if conditions met

SG de Impuestos sobre las Personas Jurídicas
doble imposición internacionaldeducción por doble imposiciónimpuesto de naturaleza análogacuota íntegraconvenio para evitar la doble imposición TRLIS — RDLeg 4/2004 (derogado por la Ley 27/2014) art. 31Convenio Hispano-Marroquí para evitar la doble imposición
Affects CompanyExpat · Non-residentIndividual

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