The New Tax treaty between the United Kingdom and Spain

The current Tax Treaty is dated of October 21st, 1975 and was amended in 1993, so the new Tax Treaty will replace it in order to modernise the tax framework of the relationship between both countries, as has long been requested from business communities of both Contracting States.
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The most relevant changes introduced by the new Tax Treaty are included in the present document. However, we can highlight the interests’ and royalties’ withholding tax rates, which have been reduced to 0%, the dividend withholding tax rate, which has been reduced to 10% for portfolio investors and to 0% in case of direct investors and pension schemes.