Spain | Spanish High Court grants dividend withholding taxt refunds to European non-UCITs funds

The High Court prevents the unequal treatment of dividends paid to Spanish and European non-UCITS investment funds.

Spain | Spanish High Court grants dividend withholding taxt refunds to European non-UCITs funds
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October 28, 2021

> Resident investment funds are taxed at a fixed rate of 1%. Therefore, withholding taxes levied at higher rates for non-resident funds (up to 21%) are against the free movement of capital.

> This is the first Spanish case in which European investment funds that are not covered by Directive 2009/65/EC (“UGTS Directive”) are granted a withholding tax refund to be treated like Spanish resident investment funds.

> The procedure has been led by Cuatrecasas’ tax and tax litigation teams

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October 28, 2021