Investment Funds in dollars and pounds

Y Return on investment funds:

• It is considered capital gains and calculated as the difference between the surrender value and subscription cost. It is assumed that the units sold are the first to be acquired (FIFO method.
• Only taxed at the time of surrender. Transfers of the balance to another fund are not taxable, except in the case of non-resident investors.

The tax treatment depends on where the investor has their tax residence:

Non-residents in Spain (IRNR)

The tax withholding will depend on the country of residence:

• Citizens resident in a member state of the European Union or a country that has signed a double taxation convention with Spain with a clause on information exchange: This return is exempt from tax in Spain if residence is certified.
• Residents in countries which have not signed a double taxation agreement with Spain or do not submit a tax residence certificate will be subject to 19,5% tax withholding.

Residents in Spain (IRPF)

• The return obtained from the surrender is considered capital gains and is subject to withholding on account at 20%. For personal income tax purposes, it is included in the savings tax base. The first 6,000 euros are taxed at 19,5%, up to 50,000 euros at 21,5% and as from 50,000 euros at 23,5%.