In our earlier
Tax Alert, we reported that the Spanish Directorate General of
Taxes had published a draft resolution that provides guidelines to
determine whether a foreign entity is to be regarded as tax
transparent (entidad en régimen de atribución de
rentas constituída en el extranjero) for Spanish tax
purposes.
On 13 February 2020, the Spanish General Directorate of Taxes
published the final resolution, which is aligned with the draft
resolution published on 5 November 2019.
Key features
In line with the OECD Model Tax Convention on Income and on
Capital, the Spanish General Directorate of Taxes has established
the following features that a foreign entity must have in order to
be considered as tax transparent in Spain:
