Supreme Court confirms equal treatment for EU AIFs and Spanish funds

2023-05-11T12:51:00
Spain
Supreme Court rules in favor of dividend withholding tax refunds for EU Alternative Investment Funds
Supreme Court confirms equal treatment for EU AIFs and Spanish funds
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May 11, 2023


  • The Supreme Court puts an end to the discrimination of EU AIFs in its recently published judgement of April 25, 2023, in a case advised by Cuatrecasas.

  • Spanish AIFs are taxed at a 1% rate on dividends received from Spanish entities while foreign AIFs are subject to a final 19% withholding tax (that may eventually be reduced under the relevant tax treaty).

  • The Supreme Court has clarified which features a non-Spanish AIF should have in order to apply the 1% tax rate, abandoning the traditional criteria applied by the tax authorities.

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May 11, 2023