UK & Spanish DTA | AccountingWEB

UK & Spanish DTA

My client is resident and ordinarily resident in Spain but receives some UK interest. I have read the relevant section of the DTA and it seems to suggest that the interest is taxable in both countries on the following basis:

UK - tax restricted to 12% of the gross interest
Spain - fully taxable in Spain with relief for the UK tax paid

Is this the correct interpretation as a colleague has told me I am wrong. If it is correct, how does it work in practice (ie can you ask the banks to withhold just 12% or is a repayment claim necessary)?

The dividend section seems a little more complicated and a brief explanation would be greatly appreciated.

Many thanks.

Tim Hill

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Double tax relief

jvenegas16 |


AnonymousUser |