sep 19 2010
Spain Holding
Spanish Holding Company
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| Topic | Details |
|---|---|
| Establishing HoldCo | |
| Are advance rulings available? | Yes, but not necessary |
| Are there restrictions on activities? | No |
| Are there substance requirements? | Yes |
| Is capital duty payable? | Monetary contributions – 1%; non-monetary contributions – normally not subject to capital duty |
| Is there a special tax regime for holding companies? | Yes |
| Is there CFC or equivalent legislation? | Yes |
| Number of jurisdictions with active income tax treaties (minimum) | 76 |
| What is the effective corporate tax rate? | 30% |
| Tax Treatment of Disposal of HoldCo | |
| Is any tax payable in HoldCo country on disposal of HoldCo shares by a nonresident corporate shareholder? | Generally no |
| Tax Treatment of Payments by HoldCo | |
| Dividends: What is the (non-treaty / treaty) rate of withholding tax on dividends paid to nonresidents? | Non-treaty: 19%; treaty: 0%-19%; EU: 0% |
| Interest: Are there thin cap limits or other restrictions on interest deductibility? | Yes |
| Interest: Is interest on loans to acquire subsidiaries deductible against HoldCo’s profits? | Yes |
| Interest: What is the (non-treaty / treaty) rate of withholding tax on interest paid to nonresidents? | Non-treaty: 19%; treaty: 0%-15%; EU: 0% |
| Liquidation payments: Is there withholding tax on liquidation payments? | Yes |
| Taxation of HoldCo Income | |
| Dividends: Does the foreign subsidiary have to meet any substance requirements? | Yes |
| Dividends: Does the foreign subsidiary have to pay tax locally? | Yes |
| Dividends: How are dividends taxed? | Exempt provided that certain requirements are met |
| Dividends: What is the required holding period? | 1 year before or after dividends become receivable |
| Dividends: What is the required percentage ownership? | 5% or acquisition cost of at least EUR 6 million |
| Gains on disposal of participations: Are capital losses deductible? | Yes |
| Gains on disposal of participations: Does the foreign subsidiary have to meet any substance requirements? | Yes |
| Gains on disposal of participations: Does the foreign subsidiary have to pay tax locally? | Yes |
| Gains on disposal of participations: How are gains on the sale of a subsidiary taxed? | Exempt provided that certain requirements are met |
| Gains on disposal of participations: Is relief available for the write-down in value of subsidiaries? | Yes |
| Gains on disposal of participations: What is the required holding period? | 1 year |
| Gains on disposal of participations: What is the required percentage ownership? | 5% or acquisition cost of at least EUR 6 million |
| Is joint taxation for groups available? | Non-treaty: 0%/18%; treaty: 0%-18%; EU: 0% |
