Tax breaks abroad and tax agreements · Personal · Spain

Deduction for taxation abroad

A deduction is allowed to avoid double taxation for foreign income and capital gains taxed by Spanish personal income tax, calculated as the lowest of the following amounts:

The foreign tax actually paid on income from a foreign source, on the basis of a tax of an identical or similar nature to the Spanish IRPF or IRNR.
The result of applying the effective average rate of personal income tax to income from a foreign source taxed abroad.

Any foreign tax withheld (or paid) may be subject to this deduction; however, if a Double Taxation Agreement (CDI) is applicable, its conditions must be taken into account when determining the method for calculating the deduction and making the calculation.

Double Taxation Agreements

Spain has signed Double Taxation Agreements with numerous countries to avoid double taxation and prevent tax evasion related to income and wealth taxes.

The countries are as follows:

Europe and Central Asia: Albania, Andorra, Armenia, Austria, Azerbaijan, Belarus, Belgium, Bosnia and Herzegovina, Bulgaria, Croatia, Cyprus, Czech Republic, Estonia, Finland, former USSR States, France, Georgia, Germany, Greece, Hungary, Iceland, Italy, Kazakhstan, Latvia, Lithuania, Luxembourg, Macedonia, Malta, Moldova, Netherlands, Norway, Poland, Portugal, Romania, Russian Federation, Serbia, Slovak Republic, Slovenia, Sweden, Switzerland, Turkey, Ukraine and Uzbekistan.

North, Central and South America: Argentina, Barbados, Bolivia, Brazil, Canada, Chile, Colombia, Costa Rica, Cuba, Dominican Republic, Ecuador, El Salvador, Jamaica, Mexico, Panama, Trinidad and Tobago, United States, Uruguay and Venezuela.

Africa and the Middle East: Algeria, Cape Verde, Egypt, Israel, Kuwait, Morocco, Oman, Qatar, Saudi Arabia, Senegal, Tunisia and United Arab Emirates.

Asia-Pacific: Australia, China, People's Republic, East Timor, Hong Kong, India, Indonesia, Iran, Japan, Malaysia, New Zealand, Pakistan, Philippines, Singapore, South Africa, South Korea, Thailand and Vietnam.