Spain
The High Court prevents the unequal treatment of dividends paid to Spanish and European non-UCITS investment funds.
> Resident investment funds are taxed at a fixed rate of 1%. Therefore, withholding taxes levied at higher rates for non-resident funds (up to 21%) are against the free movement of capital.
> This is the first Spanish case in which European investment funds that are not covered by Directive 2009/65/EC (“UGTS Directive”) are granted a withholding tax refund to be treated like Spanish resident investment funds.
> The procedure has been led by Cuatrecasas’ tax and tax litigation teams