Spain – India Tax Treaty
The Spain-India tax treaty caps withholding on dividends at 15%, and interest at 15%. Royalties are taxed at a uniform 10% across all categories. Private pensions are taxable only in the country of residence, with no withholding at source. This is one of 40 active treaties in Spain's network and one of 48 in India's. The general dividend rate of 15% compares to a median of 15% across Spain's network and 10% across India's.
Verified data
CBDT DTAA Collection (incometaxindia.gov.in) (Treaty list verified April 2026)
Withholding Rate Summary
Source: India Treaty Reference| Income Type | Treaty Rate | Statutory Rate (India) |
|---|---|---|
| Dividends (general) Portfolio investors | 15%saves 5% | 20% |
| Dividends (qualified) Beneficial owner is a company holding >= 10% of voting stock | 15%saves 5% | 20% |
| Interest Bank interest, bonds, loans | 15%saves 5% | 20% |
| Royalties (avg) Patents, copyright, know-how, film/TV | 10% | — |
| Pensions Private pension distributions | 0% | — |
| Social Security Government social security benefits | 0% | — |
“Treaty Rate” is the maximum withholding permitted under this treaty. The actual effective rate may be lower if domestic law provides a more favorable rate independently. “Statutory Rate (India)” shows the rate that applies when no treaty benefit is claimed. Qualified dividend rate requires: Beneficial owner is a company holding >= 10% of voting stock.
Dividends
The general dividend rate of 15% applies to portfolio investors. A reduced rate of 15% is available when beneficial owner is a company holding >= 10% of voting stock. Without the treaty, the statutory withholding rate on dividends is 20%.
Source: India Treaty Reference
Interest
Interest payments (bank interest, bonds, loans) are subject to 15% withholding under this treaty, compared to the 20% statutory rate. This represents a 5% reduction from the statutory rate.
Source: India Treaty Reference
Royalties
Royalty withholding rates vary by the type of intellectual property. This treaty distinguishes 4 categories, with rates ranging from 10% to 10%.
Source: India Treaty Reference
Pensions & Social Security
Private pension distributions are taxable only in the country of residence, with no withholding at source. Government social security benefits are exempt from source-country withholding.
Source: India Treaty Reference
Comparative Context
🇪🇸Spain's Network
Among Spain's 40 active treaty partners, the 15% general dividend rate ranks 23th (median: 15%).
| Partner | Rate |
|---|---|
| Hungary | 15% |
| Indonesia | 15% |
| Ireland | 15% |
| India (this treaty) | 15% |
| Italy | 15% |
| Japan | 15% |
| South Korea | 15% |
🇮🇳India's Network
Among India's 48 active treaty partners, the 15% general dividend rate ranks 33th (median: 10%).
| Partner | Rate |
|---|---|
| Germany | 15% |
| Denmark | 15% |
| Egypt | 15% |
| Spain (this treaty) | 15% |
| United Kingdom | 15% |
| Greece | 15% |
| Indonesia | 15% |