Spain – United Kingdom Tax Treaty
The Spain-United Kingdom tax treaty caps withholding on dividends at 15% for portfolio investors and 10% for qualifying direct investment, with interest payments fully exempt at 0%. Royalties are taxed at a uniform 0% 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 54 in United Kingdom's. The general dividend rate of 15% compares to a median of 15% across Spain's network and 15% across United Kingdom's.
Verified data
Agencia Estatal de Administracion Tributaria (agenciatributaria.es) - Double Taxation Conventions (Treaty list verified April 2026. Rates from individual treaty texts (Articles 10-12).)
Withholding Rate Summary
Source: Spain Treaty Reference| Income Type | Treaty Rate | Statutory Rate (Spain) |
|---|---|---|
| Dividends (general) Portfolio investors | 15%saves 4% | 19% |
| Dividends (qualified) Beneficial owner is a company holding >= 10% of voting stock | 10%saves 9% | 19% |
| Interest Bank interest, bonds, loans | 0%saves 19% | 19% |
| Royalties (avg) Patents, copyright, know-how, film/TV | 0% | — |
| 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 (Spain)” 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 10% is available when beneficial owner is a company holding >= 10% of voting stock. Without the treaty, the statutory withholding rate on dividends is 19%.
Source: Spain Treaty Reference
Interest
Interest payments (bank interest, bonds, loans) are subject to 0% withholding under this treaty, compared to the 19% statutory rate. Interest is fully exempt from source-country withholding under this treaty.
Source: Spain Treaty Reference
Royalties
Royalty withholding rates vary by the type of intellectual property. This treaty distinguishes 4 categories, with rates ranging from 0% to 0%.
Source: Spain 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: Spain Treaty Reference
Comparative Context
🇪🇸Spain's Network
Among Spain's 40 active treaty partners, the 15% general dividend rate ranks 19th (median: 15%).
| Partner | Rate |
|---|---|
| Denmark | 15% |
| Finland | 15% |
| France | 15% |
| United Kingdom (this treaty) | 15% |
| Hungary | 15% |
| Indonesia | 15% |
| Ireland | 15% |
🇬🇧United Kingdom's Network
Among United Kingdom's 54 active treaty partners, the 15% general dividend rate ranks 22th (median: 15%).
| Partner | Rate |
|---|---|
| Denmark | 15% |
| Estonia | 15% |
| Egypt | 15% |
| Spain (this treaty) | 15% |
| Finland | 15% |
| France | 15% |
| Greece | 15% |