Spain and Germany sign new Double Taxation Treaty

06 Aug Spain and Germany sign new Double Taxation Treaty

Spain and Germany have ratified the treaty to avoid double taxation and prevent tax evasion in respect of taxes on income and on capital. The treaty comes into force on  18th October 2012 and is applicable from 1^st of January 2013.

Capital represented by real estate can be taxed in both states while the owner is resident in one of them. This provision is also applicable to the shares in a company, whose 50% or more of the total assets is real estate, or bonds or shares which are giving the owner the right to enjoy any real estate property in the other State.