Why can I claim a part of the withholding tax as a non-resident?
As a non-resident taxpayer who has invested in Spanish companies and received dividends, these dividends are subject to a default withholding tax of 19% in Spain. However, tax treaty arrangements between Spain and your country of residence may entitle you to a lower withholding tax rate or even a full refund of the withheld amount.What are Double Tax Agreements and how do they work?
Double Tax Agreements (DTAs) are treaties between countries designed to prevent the double taxation of income earned in both countries. These agreements typically specify the tax rates and rules applicable to various types of income, including dividends. With a DTA between Spain and your country of residence, you can reclaim any excess withholding tax on your Spanish dividends, allowing you to receive a refund for the difference between the standard tax rate applied (usually 19%) and the lower rate stipulated by the DTA.What steps should I take to claim the difference?
Through IberianTax, you can calculate the excess withholding tax and submit your claim using the Modelo 210 form. We provide assistance and guidance throughout the entire process. To successfully obtain a refund, you must provide the following documents to the tax authorities:
- Proof of dividend income (e.g., withholding tax certificate or bank statement)
- Certificate of Tax Residency from your country of residence
- Bank account holder's certificate where the refund should be made
What is the deadline for claiming the refund?
The filing period for claiming the refund typically opens on February 1st of the year following the one in which you received the dividends and runs for 4 years from that date.
For example, if you received dividends in 2023, the filing period for claiming the refund will start on February 1st, 2024. The deadline for claiming the refund will be February 1st, 2028, as 4 years will have elapsed.