Spanish tax reforms aid issuers and investors

Non-EU investors in Spanish bonds will no longer have to pay tax on coupons under new legislation designed to stamp out offshore tax havens. Hardeep Dhillon reports

A change in Spanish law is expected to increase the number of investors outside the European Union investing in Spanish-issued bonds and, according to corporate treasurers, make it easier and cheaper for Spanish companies to issue domestically.

The change in withholding tax legislation means that the majority of non-EU investors are now exempt from paying withholding tax on Spanish bond issues. Previously, all non-European Union investors had to pay Spanish withholding tax on any interest they