Taxation of investments in Spain

Form 100. Personal Income Tax Declaratio

More details at Agencia Tributaria Modelo 100.

Personal income tax taxpayers

Personal income tax taxpayers are individuals who stay more than 183 days, during the calendar year, in Spanish territory.

Deadline for filing tax returns and paying taxes

In general, tax returns in Spain must be submitted and paid between April 3 and July 1.

Income tax in Spain

Income Tax in Spain is taxed at the following rates:

• 19% for the first EUR 6,000 of taxable income.
• 21% for the following EUR 6,000 to EUR 50,000 of taxable income.
• 23% for the following EUR 50,000 to EUR 200,000 of taxable income.
• 26% for any amounts over EUR 200,000.

For general taxable income, progressive tax rates will apply.

Set-off rules for closing positions

General issues

Losses can be off-set against other income in the annual income tax declaration.

FIFO rule

The buying/selling, transitions occurs according to FIFO rule (the first purchased security is considered the first sold).

Forex operations

According to clarification V2422-20, it is not necessary to declare capital gains from either shares or currencies until the actual moment of their sale.

Two month rule

This rule prevents the loss of a security from being offset by capital gains from the same security if an investor purchases it within two months before or after the sale that caused the property loss.
However, after the subsequent sale of the remaining lots of these securities, the previous loss not taken into account under this rule can be used for offset.
The waiting rule will be 12 months instead of 2 months if you are selling and repurchasing shares that are not listed or listed on non-EU regulated/assimilated markets. The following markets are EU assimilated and therefore the 2 month rule applies:

• Australia (ASX)
• Hong Kong (SEHK)
• USA (CBOE, NYSE, Nasdaq)

Examples

The following are a number of examples that can be used for a free trial report generation. These examples are descriptions of transactions in a universal format (details), reflecting examples of requests to the General Tax Administration. In the table below, first there are links to the request page, then there is a link to the file with the initial transaction data, then there is the result of processing this data by the service. You can upload any of the following files to the system to view the result:

Dividend profit compensation

Losses from the sale of securities in the stock market can be offset against interest from accounts, dividends and bond coupons up to 25% of income.

List of cells to fill out Form 100 for investment income:

1. Cell 0328. Amount of global transactions carried out in 2023.
2. Cell 0027. Yield on deposits and financial assets in general.
3. Cell 0029. Dividends on which tax is withheld in Spain.
4. Cell 0588. Dividends subject to double taxation.
5. Cell 030. Income from transmission or amortization of Treasury Bills.
6. Cell 0031. Income from the transmission, amortization or reimbursement of other financial assets.
7. Cell 0037. Tax deductible expenses. This includes the costs of managing and storing securities.
8. Cell 0327. Capital gains and losses resulting from transactions in stocks and other instruments such as ETFs, options, futures.
9. Cells 1624, 1631 – 1654. Capital gains and losses resulting from the transfer of other assets (Options, Futures, CFDs, Forex).
10. Cells 1802 and 1803. Sold and purchased cryptocurrency.
11. Cells 1804 – 1806. Value of buying and selling cryptocurrency.

Procedure for filing a tax return

Go to the site Agencia Tributaria Renta.
Select Draft / tax return processing service (Renta WEB). Complete the identification procedure.

Let’s take the following data as an example

Stocks

Click on the button Mostrar opciones

Click on the number 1 between the arrows.

Go to page 16 / 53

F2. Ganancias y pérdidas patrimoniales derivadas de la transmisión de elementos patrimoniales (a integrar en la base imponible del ahorro) (continuación)
Click on the pencil icon next to the cell 0328 Importe global de las transmisiones efectuadas en 2023

Imputed gains and losses on shares

The following fields must be filled in:

• Issuing Entity – Entidad Emisora. As an issuer, when entering general data for all transactions, you can enter the name of the broker(s).
• Transmission value – Valor de transmisión
• Acquisition value – Valor de adquisición
• Non-attribution of losses due to repurchase of homogeneous securities - No imputación de pérdidas por recompra de valores homogéneos. Set value Marque la casilla si ha obtenido una pérdida patrimonial y ha recomprado acciones homogéneas en los dos meses anteriores o posteriores a la transmisión unchecked when declaring the imputable gain or loss.

Expenses that cannot be imputedno pueden imputarse

Alta Entidad Emisora

Derivatives (Options, Futures, CFD, Forex)

Go to page 20 / 53
F2. Ganancias y pérdidas patrimoniales derivadas de la transmisión de elementos patrimoniales (a integrar en la base imponible del ahorro) (continuación)

Click on the pencil icon next to the cell 1626. Type of asset Tipo de elemento patrimonial. Clave

In a pop-up window Tipo de elemento patrimonial select the option: Other assets not assigned to economic activities – Otros elementos patrimoniales (bienes o derechos) no afectos a actividades económicas.
Next, click on the pencil icon next to the cell 1631.
Check Transmisión intervivos onerosa (venta, permuta, etc).

Dividends

Dividends on which tax is withheld in Spain (cell 0029)

Go to page 6 / 53
B. Rendimientos del capital mobiliario
Rendimientos del capital mobiliario a integrar en la base imponible del ahorro

Click on the pencil icon next to the cell 0029.
Dividends and other income from holdings in own funds of entities - Dividendos y demás rendimientos por la participación en fondos propios de entidades

Fill in the following fields:

• Full income – Ingresos íntegros.
• Withholdings – Retenciones.
• Administration and deposit fees - Gastos de administración y depósito. Here you can include other expenses related to the brokerage account, such as custodial fees.

Dividends with international double taxation (cell 0588)

Go to page 33 / 53
M. Cálculo del impuesto y resultado de la declaración
Cuota resultante de la autoliquidación

Click on the pencil icon next to the cell 0588

Next, click on the pencil icon next to the field Income included in the savings tax base – Rentas incluidas en la base del ahorro.

Fill in the following fields:

• Reduced net income from movable capital obtained abroad included in the savings tax base - Rendimientos netos reducidos del capital mobiliario obtenidos en el extranjero incluidos en la base del ahorro.
• Tax paid abroad (*) - Impuesto satisfecho en el extranjero (*).

Fill in other income and expenses and click on Filing a tax return - Presentar declaración.

Form 720. Informative Tax Return.

Form 720 is an informative return in which a tax resident reports his or her assets outside Spain, as follows

• bank accounts
• investments
• real estates.

It must be filed by those who are tax residents of Spain and at the time of the fiscal year on December 31 and had in one of the above categories of property more than 50.000 €.
The submission period is January 1  through March 31.
The value of assets is calculated as of December 31 of the reporting year.
El valor de los activos se calcula a 31 de diciembre del año de referencia.