Spain - Dividend

Article 10. Dividends

1.  Dividends paid by a company which is a resident of one of the States to a resident of the other State may be taxed in that other State. 

2.  However, such dividends may be taxed in the State of which the company paying the dividends is a resident, and according to the law of that State, but the tax so charged shall not exceed 15 per cent of the gross amount of the dividends. 

3.  Notwithstanding the provisions of paragraph 

a  Netherlands tax on dividends paid by a company which is a resident of the Netherlands to a company the capital of which is wholly or partly divided into shares and which is a resident of Spain, shall not exceed 5 per cent of the gross amount of the dividends:

1  if the receiving company owns 50 per cent or more of the capital of the company paying the dividends, or 

2  if the receiving company owns 25 per cent or more of the capital of the company paying the dividends, provided that at last one other company which is a resident of Spain also owns 25 per cent or more of that capital; 

b  Spanish tax on dividends paid by a company which is a resident of Spain to a company the capital of which is wholly or partly divided into shares and which is a resident of the Netherlands, shall not exceed 10 per cent of the gross amount of the dividends:

1  if the receiving company owns 50 per cent or more of the capital of the company paying the dividends, or 

2  if the receiving company owns 25 per cent or more of the capital of the company paying the dividends, provided that at least one other company which is a resident of the Netherlands also owns 25 per cent or more of that capital. 

4.  The provisions of paragraphs 2 and 3 shall not affect the taxation of the company in respect of the profits out of which the dividends are paid. 

5.  The term "dividends" as used in this Article means income from shares, "jouissance" shares or "jouissance" rights, mining shares, founders' shares or other rights participating in profits and income from other corporate rights assimilated to income from shares by the taxation law of the State of which the company making the distribution is a resident. 

6.  The provisions of paragraphs 1, 2 and 3 shall not apply if the recipient of the dividends, being a resident of one of the States, has in the other State, of which the company paying the dividends is a resident, a permanent establishment with which the holding by virtue of which the dividends are paid is effectively connected. In such a case. the provisions of Article 7 shall apply. 

Protocol:

VI. Ad Articles 10, 11 and 12

Notwithstanding provisions to the contrary in the national law of either State restitution of tax levied contrary to the provisions of Articles 10, 11 and 12 shall be granted if the claim concerned has been ledged with the competent authority of the State having levied the tax within a period of two years after the expiration of the calendar year in which the tax has been levied,

VII. Ad Article 10

Notwithstanding the provisions of Article 10, paragraph 3, subparagraph b, Spanish tax on dividends as meant in that subparagraph shall not exceed 5 per cent of the gross amount of the dividends if the receiving company does not suffer company tax in the Netherlands on those dividends.

VIII. Ad Article 10

The provisions of Article 10 shall also apply to income from bonds or debentures participating in profits.