When Spanish companies pay dividends or Spanish banks pay interest to non-residents, IRNR is withheld at source. If your double tax treaty with Spain provides a lower rate, you may be entitled to a refund of the excess. This guide explains the withholding mechanism, treaty rates, the refund process, and when Modelo 210 must be filed.
Non-residents who hold shares in Spanish companies or deposits in Spanish banks receive investment income subject to Spanish IRNR at source. The Spanish payer — the company or bank — withholds the tax before making payment, so the investor receives a net amount. The question then arises: is that withholding at the correct rate? For investors from countries that have concluded a double tax treaty (DTT) with Spain, the treaty may cap the withholding rate at a lower level than Spain's domestic rate — meaning the investor is owed a refund of the excess tax withheld.
Claiming that refund requires filing Modelo 210. This guide explains the full mechanism: the domestic withholding rates for dividends and interest, the treaty rates for Spain's key bilateral partners, the procedural options (claiming the reduced rate before withholding or reclaiming the excess afterwards), and the 4-year window for filing refund claims.
Spanish-source investment income paid to non-residents is subject to IRNR at source. This means the Spanish payer (the company paying dividends, the bank paying interest) is legally obligated to withhold the applicable IRNR rate from the gross payment before transferring the net amount to the non-resident investor. The payer then files Modelo 216 (the withholding summary return) and remits the withheld amount to the AEAT.
This withholding mechanism serves a similar function to the 3% buyer retention on property sales: it ensures that some IRNR is captured before the foreign investor exits the Spanish tax jurisdiction. The payer is the retenedor (withholding agent) — they do not bear the tax personally, but they are liable for the correct application and payment of the withholding.
The central tension in this area arises from the difference between Spain's domestic IRNR rates and the lower rates available under Spain's bilateral double tax treaties. Spanish companies withhold at the domestic rate — typically 19% on dividends and interest for all non-residents (regardless of residency). If the investor's home country has a DTT with Spain that caps the rate at (say) 10%, the company has withheld 9% too much. The investor must actively claim the refund via Modelo 210.
The AEAT does not process refunds automatically. The investor — or their Spanish adviser — must identify the overpayment and file a Modelo 210 refund claim within the 4-year limitation period. Many investors do not know about this mechanism and permanently lose the overpaid tax.
Dividends paid by a Spanish company (SL or SA) to a non-resident shareholder are income from movable capital (rendimientos del capital mobiliario) under Spanish tax law and are subject to IRNR. The domestic withholding rates are:
| Recipient Residency | Domestic IRNR Rate on Dividends | Modelo 210 Code |
|---|---|---|
| EU / EEA resident | 19% | 06 (dividends — distribución de beneficios) |
| Non-EU / Non-EEA resident (UK, US, Israel, Switzerland, etc.) | 19% (domestic, before treaty) | 06 |
Note that unlike rental income (where non-EU residents face 24% vs EU's 19%), the domestic IRNR rate on dividends is 19% for all non-residents under current Spanish law — both EU and non-EU residents face the same domestic 19% rate. However, the treaty rates differ significantly between countries, making the treaty analysis crucial for non-EU recipients.
Dividends in the IRNR context include:
Capital gains from the sale of shares in a Spanish company are a separate income type (code 06 in Modelo 210 — capital gains from movable assets) and are not covered in this guide.
When a Spanish company pays a dividend to a non-resident shareholder, the company must:
Most Spanish companies withhold at the standard domestic rate of 19% regardless of the shareholder's nationality or treaty entitlement. The company is not obligated to research each shareholder's treaty position — that is the shareholder's responsibility. However, a company that has been formally presented with a valid fiscal residency certificate by a non-resident shareholder demonstrating a lower treaty rate may apply the treaty rate at source, thereby avoiding the need for the shareholder to file a subsequent refund claim.
The non-resident shareholder's options are:
Interest earned by non-residents on Spanish bank deposits, savings accounts, fixed-term deposits (depósitos a plazo fijo), and Spanish government or corporate bonds is subject to IRNR at source. The domestic rates are:
| Income Type | EU/EEA Resident Rate | Non-EU Resident Rate | Modelo 210 Code |
|---|---|---|---|
| Interest from Spanish banks / bonds | 19% | 24% | 07 (intereses y otros rendimientos obtenidos por la cesión a terceros de capitales propios) |
Unlike dividends (where the domestic rate is 19% for all non-residents), interest income carries different domestic rates depending on EU/EEA vs non-EU status: 19% for EU/EEA residents and 24% for non-EU residents. This distinction is relevant where the DTT interest article provides a rate different from these domestic rates.
Certain categories of interest earned by non-residents are exempt from Spanish IRNR under domestic law — most notably under the Interest & Royalties Directive regime (which applies to EU corporate groups, not individual non-residents) and under specific domestic exemptions for debt securities meeting certain criteria. For individual non-resident investors, the standard withholding applies unless a specific exemption applies. Check the AEAT's guidance on exempt interest categories if you believe your specific interest income may be within an exemption.
The most efficient approach to treaty relief is to claim it before the withholding is made — so the Spanish payer applies the treaty rate from the outset and there is no overpayment to reclaim. This requires presenting the Spanish paying company or bank with a certificate of fiscal residency (certificado de residencia fiscal) issued by the tax authority of your home country, demonstrating your treaty residency and entitlement to the reduced rate.
In practice, Spanish companies (especially smaller SLs) may not be familiar with this procedure and may continue to withhold at 19% regardless. In that case, the retrospective refund claim via Modelo 210 is the available remedy. For recurring income streams (regular dividends from an ongoing investment), establishing the treaty rate at source is worth the administrative effort.
Where the withholding has already been made at the domestic rate and exceeds the treaty rate, the non-resident must file Modelo 210 to recover the excess. The procedure is:
The following table shows the key treaty-reduced rates for dividends and interest under Spain's bilateral DTTs with its principal investor countries. Where different rates apply to qualifying corporate holdings (typically 10%+) and portfolio investments, both are shown.
| Country | Treaty Dividend Rate | Treaty Interest Rate | Domestic Dividend Rate | Domestic Interest Rate | Potential Refund on Dividends |
|---|---|---|---|---|---|
| United Kingdom | 10% (qualifying) / 15% (portfolio) | 10% | 19% | 24% | 9% (portfolio) / 4% (qualifying) |
| Germany | 5% (10%+ holding) / 15% (portfolio) | 10% | 19% | 19% | 4% (portfolio) |
| United States | 10% (10%+ holding) / 15% (portfolio) | 10% | 19% | 24% | 9% (portfolio) / 4% (10%+) |
| France | 15% | 10% | 19% | 19% | 4% (dividends) |
| Netherlands | 5% (10%+ holding) / 15% (portfolio) | 10% | 19% | 19% | 4% (portfolio dividends) |
| Israel | 10% (25%+ holding) / 15% (portfolio) | 10% | 19% | 24% | 4%–9% (dividends); 14% (interest) |
| Switzerland | 0% (25%+ holding) / 15% (portfolio) | 10% | 19% | 24% | 4% (portfolio dividends) |
| Canada | 5% (25%+ holding) / 15% (portfolio) | 10% | 19% | 24% | 4% (portfolio) |
The certificate of fiscal residency is the key document in both the advance treaty relief procedure and the retrospective refund claim. The AEAT requires proof that the non-resident was genuinely tax-resident in the treaty country for the year in which the income was received.
UK residents request a certificate of fiscal residency from HMRC. HMRC issues Form RES1 (Certificate of Residence) for this purpose. The form can be requested online through the HMRC portal (requires the taxpayer's Self Assessment registration). HMRC typically issues the certificate within 2–4 weeks. The certificate is accepted by the AEAT without apostille for most treaty purposes.
US residents and citizens request Form 6166 (Certification of US Tax Residency) from the IRS. Form 6166 is the standard US fiscal residency certificate used for treaty relief claims worldwide. It is issued by the IRS Philadelphia Service Center and can be requested by mail or through the IRS's online portal. Processing takes 4–8 weeks. The Form 6166 is accepted by the AEAT as proof of US residency for treaty purposes without apostille — though the AEAT may in some cases request an apostilled version for larger refund claims.
German residents obtain a Ansässigkeitsbescheinigung (certificate of residence for tax purposes) from their local Finanzamt (tax office). The certificate can be requested in writing or, in some cases, online through the ELSTER portal. German certificates are typically issued within 2–3 weeks.
Israeli residents obtain a fiscal residency certificate from the Israel Tax Authority (Rashut HaMisim). The certificate can be requested through the ITA's online portal or in person at a local tax office. Given the Spain-Israel DTT provisions (dividends at 10%/15%, interest at 10%), the Israeli certificate enables refund claims on both dividend and interest income withheld at higher rates.
For countries that are signatories to the Hague Apostille Convention (which includes the UK, US, Germany, Israel, France, and most other OECD members), fiscal residency certificates may need to be apostilled for use in Spain. In practice, the AEAT often accepts certificates without apostille for smaller refund amounts. For larger refund claims — particularly where the AEAT issues a formal requerimiento — an apostilled certificate is advisable to avoid rejection. Check the AEAT's current requirements before filing, as practice evolves.
Royalties paid by Spanish entities to non-residents are also subject to IRNR withholding under a similar mechanism. The domestic rate is 24% (non-EU) or 19% (EU). Spain's DTTs typically cap royalties at 5%–10%, creating significant refund opportunities for intellectual property owners receiving royalty income from Spanish licensees.
The Modelo 210 code for royalties is 12 (cánones y demás regalías). The same procedural framework applies: the Spanish payer withholds at domestic rate; the non-resident can either arrange treaty rate withholding at source or file a Modelo 210 refund claim within 4 years.
| Country | Spain-Country Treaty Royalty Rate | Domestic Rate | Potential Refund Per €100,000 |
|---|---|---|---|
| UK | 5% | 19% (EU was)/24% (non-EU post-Brexit) | €14,000–€19,000 |
| Germany | 5% | 19% | €14,000 |
| US | 8% | 24% | €16,000 |
| France | 5% | 19% | €14,000 |
| Israel | 5%–7% | 24% | €17,000–€19,000 |
The following worked example illustrates the full mechanism for a non-resident claiming a dividend refund under the Spain-UK DTT.
A UK resident holds a portfolio investment in a Spanish listed company (less than 10% of the company's capital). The company pays a gross dividend of €10,000 in March 2025.
Step 1 — Withholding at source: The Spanish company withholds 19% (domestic rate) = €1,900. The UK resident receives €8,100 net.
Step 2 — Treaty analysis: The Spain-UK DTT (2013), Article 10, caps dividends at 15% for portfolio holdings (10% for holdings of at least 10% of the company's capital). The UK investor holds less than 10%, so the treaty rate is 15%.
Step 3 — Tax at treaty rate: €10,000 × 15% = €1,500
Step 4 — Refund: €1,900 (withheld) − €1,500 (treaty rate) = €400 refund
Step 5 — File Modelo 210: UK investor files Modelo 210 (code 06, devolución option) within 4 years of March 2025 (i.e., by approximately March 2029). Attaches certificate of UK fiscal residency (HMRC Form RES1) and the Spanish company's certificate of retenciones. AEAT processes and refunds €400 within 6 months.
An Israeli resident holds a fixed-term deposit at a Spanish bank (€50,000) and also owns shares in a Spanish SL. In 2024: interest received = €1,500 (gross); Spanish bank withholds 24% (non-EU rate) = €360. Dividend from SL: €5,000 (gross); SL withholds 19% = €950.
Interest — Spain-Israel DTT Article 11: treaty rate = 10%. Tax at treaty rate = €1,500 × 10% = €150. Refund = €360 − €150 = €210.
Dividend — Spain-Israel DTT Article 10: treaty rate = 15% (portfolio holding). Tax at treaty rate = €5,000 × 15% = €750. Refund = €950 − €750 = €200.
Total refund: €210 + €200 = €410. File two Modelo 210 returns (one for interest/code 07; one for dividend/code 06) with fiscal residency certificate from Israel Tax Authority.
Refund claims for excess IRNR withholding on dividends and interest must be filed within 4 years from the date on which the withholding was applied. This is the general prescription period under Article 66 LGT applied to IRNR refund rights.
| Dividend/Interest Payment Date | Withholding Date | Refund Claim Deadline | Status as at May 2026 |
|---|---|---|---|
| Any date in 2022 | 2022 | 2026 | EXPIRING — urgent action required |
| Any date in 2023 | 2023 | 2027 | OPEN |
| Any date in 2024 | 2024 | 2028 | OPEN |
| Any date in 2025 | 2025 | 2029 | OPEN |
Non-residents who have been receiving dividends from Spanish companies for several years without claiming treaty refunds should review their position immediately. Refunds for 2022 dividends are expiring throughout 2026 — the specific month depends on when in 2022 the dividend was paid.
Not every non-resident who receives Spanish dividends or interest must file Modelo 210. The filing obligation (for a refund) arises only when the withholding exceeded the correct treaty rate. There is no obligation to file if:
Where there is no overpayment and no other reporting obligation, no Modelo 210 needs to be filed. The withholding at source by the Spanish payer is treated as the final settlement of the IRNR on that income.
Yes, if your home country has a DTT with Spain that caps dividends at a lower rate. For example, if you are a UK resident, the Spain-UK DTT caps portfolio dividends at 15% — meaning 4% (€400 per €10,000 dividend) is reclaimable. If you are a US resident, the treaty rate is also 15% (or 10% for qualifying holdings). File Modelo 210 within 4 years of the dividend date with your fiscal residency certificate to claim the refund. The process typically takes 6–12 months from filing to receiving the refund.
It depends on your residency and treaty. For EU residents, the domestic interest rate is 19% — which equals the EU/EEA domestic rate, so no refund arises unless your treaty caps interest at below 19%. For non-EU residents (UK, US, Israel), the domestic rate is 24% — which is higher than most treaty rates (typically 10–15%). In those cases, a significant portion of the withholding may be reclaimable. For an Israeli resident receiving €10,000 in interest from a Spanish bank at 24% (€2,400 withheld), the Spain-Israel treaty rate of 10% means €1,400 is refundable. File Modelo 210 (code 07) within 4 years.
Look up the double tax treaty between Spain and your country of tax residence. The AEAT's website publishes Spain's DTT network; the full text of each treaty is available on the Spanish Official Gazette (BOE) website. The relevant articles are typically Article 10 (dividends), Article 11 (interest), and Article 12 (royalties). Each article specifies the maximum rate Spain may charge. If the treaty is complex or you are uncertain which rate applies to your specific situation (the rates often differ for portfolio holdings vs substantial holdings), consult a Spanish tax adviser who specialises in DTT claims.
If there is no applicable DTT, the domestic IRNR rate applies in full: 19% on dividends for all non-residents; 19% (EU/EEA) or 24% (non-EU) on interest. There is no treaty mechanism to claim a lower rate. The domestic rate is your final Spanish tax cost on that income. Your home country may still provide its own domestic relief for foreign tax paid (a foreign tax credit or deduction under its domestic law), but this does not affect the Spanish side of the equation.
Yes. Provide the Spanish company with a valid fiscal residency certificate from your home country tax authority, formally requesting application of the treaty withholding rate. The company is not legally obligated to do so (the obligation to ensure correct withholding is, technically, the investor's responsibility), but many companies — particularly listed companies with experience of international shareholders — will accommodate the request. If the company cannot or will not apply the treaty rate, you continue to claim retrospective refunds via Modelo 210 for each year. Both approaches achieve the same economic result; the proactive approach is more efficient for recurring income.
The standard documentation set for a Modelo 210 dividend refund claim includes: (1) completed Modelo 210 form (electronic submission via AEAT Sede Electrónica); (2) certificate of fiscal residency from your home country tax authority (HMRC Form RES1 for UK, IRS Form 6166 for US, Ansässigkeitsbescheinigung for Germany, ITA certificate for Israel, etc.) for the year of the dividend; (3) the Spanish company's certificate of retenciones (certificate of withholdings) showing the gross dividend paid and the amount withheld; (4) copy of the brokerage statement or payment advice confirming receipt of the dividend. The AEAT may request any of these via a formal requerimiento; having them prepared in advance avoids delays.
When you hold Spanish listed shares through a foreign broker (e.g., a UK brokerage account), the dividend withholding chain is: Spanish company → paying agent / Iberclear (Spain's central securities depository) → your broker → you. The withholding is applied at the Spanish end before the dividend reaches your broker. Your broker passes on the net dividend after deducting any further home-country withholding applicable. To claim the Spanish IRNR treaty refund, you need documentation from your broker confirming the gross Spanish dividend and the Spanish tax withheld. Your broker should provide an annual tax statement (or certificate of withholdings) that includes this information. Use this as the basis for your Modelo 210 refund claim.
There is no legal minimum — any amount of over-withheld IRNR is refundable via Modelo 210, regardless of size. The practical consideration is whether the administrative cost of the filing process (professional fees, certificate procurement time, waiting period) exceeds the refund value. For very small amounts (e.g., €50 or less), the administrative overhead may not be worth it. For refunds in the hundreds or thousands of euros, filing is clearly worthwhile. For investors with recurring Spanish income who expect to file refund claims each year, establishing a streamlined process (regular fiscal residency certificate renewal, consistent record-keeping) reduces the per-claim cost significantly.
Jacob Salama (Colegiado nº 11.294 ICAMálaga) advises non-resident investors from the UK, Germany, the US, Israel, and beyond on IRNR withholding refund claims, treaty relief applications, fiscal residency certificates, and Modelo 210 filings for dividend and interest income. Book a call to assess your refund position.