- Investment Funds pay tax as earnings or losses for Personal Income Tax purposes.
- This tax is not payable until disinvestment.
- The return obtained from redemption is considered capital gains and is subject to 19,5% withholding on account. For Personal Income Tax purposes, it is included in the savings tax base and is taxed at 19,5% the first 6,000 euros, 21,5% from this figure up to 50,000 euros and at 23,5% as from 50,000,01 euros.
- The earnings or losses are calculated as the difference between the return value and fund subscription value, considering that the holdings sold are the first acquired (FIFO method).
- Balance transfers from one fund to another are not subject to taxation
Depending on the country of residence, the withholding percentage to be applied will differ:
- Citizens resident in a member state of the European Union or a country that has signed a double taxation agreement with Spain with an information exchange clause: this return is exempt from taxation in Spain if residence is certified.
- Citizens resident in countries without a double taxation agreement with Spain or who do not provide proof of residency: A 19,5% withholding will be applied to the whole capital gains obtained.
Balance transfers from one fund to another are not subject to taxation, as no taxes are payable until disinvestment in the case of resident natural persons(1).
The gains and losses are included in the savings tax base for Personal Income tax purposes or in the tax base of corporate income tax.
(1) Transfers of holdings between investment funds by a legal person are subject to withholding and taxation.