What is the interest withholding rate between Germany and Spain?
The Germany-Spain tax treaty reduces the withholding rate on interest payments to 0%. This means interest paid between residents of these two countries is exempt from withholding tax at source. This is particularly beneficial for cross-border debt financing and bank deposits. The 0% rate still requires proper documentation — it does not apply automatically. Interest is fully exempt — Germany has 27 such treaties in its network.
Network Comparison
Germany
Rank 7 of 49 active treaties (lowest rate = #1)
Lower rates with: Cyprus (0%), Czech Republic (0%), Denmark (0%)
Higher rates with: Finland (0%), France (0%), United Kingdom (0%)
Spain
Rank 3 of 40 active treaties (lowest rate = #1)
Lower rates with: Switzerland (0%), Czech Republic (0%)
Higher rates with: France (0%), United Kingdom (0%), Hungary (0%)