Qualified non-Spanish sovereign wealth funds are exempt from tax in Spain

The Spanish Supreme Court Confirms that non-Spanish sovereign wealth funds may be fully exempt from tax on Spanish source dividends and any other Spanish source income

April 7, 2021

Recently, and in line with a prior ruling concerning the taxation of non-Spanish pension funds, the Spanish Supreme Court confirmed that non-Spanish sovereign wealth funds should be exempt from tax on Spanish source income provided that they are objectively comparable to a Spanish sovereign wealth fund, such as the Spanish Social Security Reserve Fund.

An analysis of the ruling by the Tax Law Practice of Uría Menéndez is available here.