Taxation of real estate crowdfunding transactions in Spain

The taxation of income from real estate crowdfunding investments in Spain depends on the investor's country of tax residence. This article provides information for French tax investors as well as foreign investors (EU/EEA and non-EU/EEA).

French tax residents

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

• A 19% withholding tax by the Spanish tax authoritiesif the issuing company is Spanish.
• A withholding tax by the French tax authorities, equivalent to 30% of the interest received if the investor is subject tothe single flat-rate levy (PFU), except exceptions (those exempt from income tax or cross-border residents).

The tax treaty between France and Spainprevents double taxation. To benefit from this, investors are required to prove that they are resident in France by providing a tax residence certificate. The procedure for avoiding double taxation is as follows: https://raizers.com/fiscalite-crowdfunding-immobilier-espagne/. If this certificate is not provided, a rate of 19% will be applied in addition to the flat tax on interest payments.

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

Whether for individuals or legal entities, interest received is subject to a 19% withholding tax in Spain .

Investors must then contact their national tax authorities to ascertain the reporting requirements and any tax treaties that may apply.

Non-EU/EEA foreign residents

Whether for individuals or legal entities, interest received is taxed in Spain at a rate of 24%.

Each investor should consult their tax authorities regarding their tax return and check whether any tax credits or bilateral agreements apply.

For investors whose tax residence is in Switzerland, in accordance with Article 11 of the tax treaty between Switzerland and Spain, the transmission of a tax residence certificate will avoid double taxation. If this certificate is not sent to us, the 24% rate will be applied to the interest payment.

If you have any questions about this article or about taxation in general, please feel free to send your query to [email protected].