Taxation of Real Estate Crowdfunding Transactions in Spain

French tax residents

As a French tax resident investing in a Spanish project, interest is subject to:

• A 19% withholding tax levied by the Spanish tax authorities ifthe issuing company is Spanish
• A withholding tax imposed by the French tax authorities, equal to 31.4% of the gross interest received if the investor is subject to the single flat-rate withholding tax (PFU), except in certain cases (those exempt from income tax or cross-border residents).

The tax treaty between France and Spain helps prevent double taxation. To this end, investors are required to prove that they are residents of France by providing a certificate of tax residency. The procedure for avoiding double taxation is: https://raizers.com/fiscalite-crowdfunding-immobilier-espagne/. If this certificate is not provided to us, a 19% tax rate will be applied in addition to the flat tax on interest payments.

Foreign residents of the European Union (EU) or the European Economic Area (EEA)

Whether for individuals or corporations, interest income is subject to a 19% withholding tax in Spain .

Investors should then contact their national tax authority to confirm the reporting requirements and any applicable tax treaties.

Non-EU/EEA Foreign Residents

Whether for individuals or corporations, interest income is taxed in Spain at a rate of 24 percent.

Each investor should consult their tax authority regarding filing requirements and verify whether any tax credits or bilateral agreements apply.

For investors who are tax residents of Switzerland, in accordance with Article 11 of the tax treaty between Switzerland and Spain, providing a tax residency certificate will prevent double taxation. If this certificate is not provided to us, the 24% tax rate will be applied to the interest payment.

If you have any questions about this article or any tax-related inquiries, please feel free to send your inquiry to contact@raizers.com.

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