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UK & Spanish DTA

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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19th Jun 2007 10:30

Double tax relief
You can fill in form FD9 and send it to the Delegacion de Hacienda where your client has his/her fiscal domicile.
You can download it:

Then, the Spanish authorities will contact HMRC to confirm that you client is tax resident in Spain and recive relief at source from UK interest.

Along with the same form you can claim repayment of UK income tax, but you must attach original certificates of tax deductions (not photocopies).

I hope I have answered your question.


Juan Carlos Venegas
[email protected]

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19th Jun 2007 11:08

That's great - thanks very much Juan.

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