Spain and the United States signed a protocol amending the Double Taxation Convention between the two countries


On January 14, 2012, Mr. Montoro, the Spanish Minister of Finance, and Mr Alan Solomont, Ambassador of the United States of America in Spain have signed a Protocol amending the Double Taxation Convention 1990.

The main amendments introduced are as follows:

  • Taxation exclusively in the State of residence of the recipient, usually in cases of dividends, interest, royalties and capital gains from transfer of shares, from non-real estate, as well as distributions of profits by non- real estate branches. In the case of dividends, the relief at source is conditional on (i) a minimum of 80% of the voting rights in the twelve months prior to the distribution of dividends, and (ii) comply with certain conditions regarding the limitation of benefits clause. Failing that, the withholding will be 5% for legal persons who are the beneficial owners of the dividend and have owned at least 10% of the voting rights, and 15% for other cases.
  • Introduction of a new Article 17 on the limitation of benefits, more complete, which seeks to ensure that the Convention only have effects for residents of Spain or the United States, and new provisions on arbitration as a method of conflict resolution interpretation of the Convention, and information exchange.

The effective implementation of these provisions will be held at 3 months of exchange of instruments of ratification by both countries.


  • Share in LikendIn
  • Share in Facebook
Related practice areas
Related partners