A client of mine has moved his family to Spain & is commuting to a UK job. He has a large shareholding in a UK company & receives high divs. He's thinking of moving permanently to Spain & becoming resident there & has asked what tax rate he would pay in Spain on his UK divs - does anybody know? Had one response from a spanish accountant who said 18% which is unexpectedly low - is he right?
A Wells
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Spanish tax on overseas dividends
I think the 18% refers to the current rate on capital gains. Most forms of income, including overseas dividends, are taxed progressively as income at 5 rates. The lowest is currently 15% on taxable income i.e. after deductions and allowances, rising to 45% on taxable income in excess of €46K.
David Cook
Spain Accounting
www.spainaccounting.com