Dividend/Scrip Dividend Scheme
Spanish Tax Information
What is Spanish withholding tax?
Spanish withholding tax at a rate of 21% will be deducted in Spain when dividends are paid on your Santander shares. In addition, if you are resident for tax purposes in the United Kingdom, in general you will be subject to UK income tax or corporation tax on the dividends. This is charged on the gross amount of dividend paid on the shares rather than the net amount received after any Spanish withholding tax has been deducted.
Further information can be found here.
Can I reclaim Spanish withholding tax?
Please click here (PDF 332 Kb) for guidance on the options for reclaiming withholding tax. We would advise you to seek professional advice on this matter if you are in any doubt as to your position.
I am a UK taxpayer, do I have to pay Spanish tax?
Yes, because your Santander CDIs represent an entitlement to shares in a company that is registered in Spain, and the dividends that the company pays on these are subject to Spanish withholding tax.
Please contact your own professional adviser who should be able to provide you with more detail on these issues.
Click here for guidance on Spanish tax formalities when selling Santander shares.
Do I have any Spanish tax obligations as a Santander shareholder and resident of the UK?
Please click here for more information about your tax obligations as a UK Santander shareholder on receipt of standard cash and scrip dividend payments as well as on sale or gift of Santander shares.