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Spain | CJEU rules Spanish withholding tax on dividends to a nonresident loss company is contrary to free movement of capital

|Tax Alerts, National/Federal Taxation, G ...|Spain, European Union
Spain, European Union

  • The Court of Justice of the European Union has ruled that Spain's imposing withholding tax on dividends paid to nonresidents in a loss-making position, while refunding domestic withholdings to resident entities in equivalent circumstances, is contrary to the free movement of capital.
  • Based on the decision, nonresident investors that have paid Spanish withholding tax will want to assess whether to f…

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