In Spain income from movable capital or income from capital to dry, are monitored so that up to 6,000 euros earnings taxed at 19% and from that amount the percentage rises to 21%. Dividends represent an exception to this rule. Taxation of dividends differs to foster long-term taxpayer investment and, above all, give priority to small investors. Thus, capital obtained via dividends is exempt from tax up to 1,500 euros. However dividends paid by companies whose head office is outside Spain have 2 retentions: La of the Spanish Hacienda, which nowadays is 19%, both for companies outside and within Spain. Of foreign finance, where the percentage varies from one country to another. Both deductions are made on the gross amount, i.e., if the investor gets 1,000 euros in dividends, the Spanish tax withheld you a total of 190 euros (19% of 1,000 euros) and the foreign finance (assuming that the rate of withholding tax is 20%) you It will retain $ 200 (20% of $ 1,000).

Therefore, the investor account 610 euros shall be paid. However, some or even all of the retention of foreign finances can recover, to make the Declaration of income, depending on the type of retention which administers the foreign finance. Let’s look at the following examples for a dividend of 1,000 euros, obtained abroad: for a rate of withholding tax of 15%, we can recover the entire retained by the foreign finance, i.e., 150 euros (15% of $ 1,000). For a rate of 19%, we will also recover the totality of retained by the foreign finance, i.e., 190 EUR (19% of 1,000 euros). Finally, for a rate of 30%, we will recover part of retained by the foreign finance, until reaching the rate of withholding tax of the Spanish Hacienda, i.e. 190 EUR (19% of 1,000 euros).