close
Share with your friends

Spain: Draft bill for financial transactions tax

Spain and financial transactions tax

The Ministry of Finance has published text of a draft bill for a financial transactions tax.

1000

Related content

Background

The proposed legislation reflects efforts already under way in 10 EU countries, and  since 2013, under the enhanced cooperation procedure, there has been an intention to introduce this tax on an EU-wide basis. The Spanish government, thus, has moved to introduce this tax unilaterally, on a national level notwithstanding the ultimate objective of establishing a harmonised tax at the EU level. 

In Spain, the draft bill would be processed as a draft law, and the necessary parliamentary majority must be obtained for its approval. Accordingly, the viability of the legislative proposal will depend on the minority Spanish government’s capacity to reach a cross-party consensus.

Overview

The proposed financial transactions tax in Spain is structured along the same lines as those introduced in other EU countries (in particular, France and Italy), thereby effectively contributing to the relative coordination of these taxes at the EU level. However, the proposed Spanish tax is not identical to its French or Italian counterparts because of certain variations in treatment. 

The tax would be imposed on financial transactions (commonly known as the “Tobin Tax”), and specifically would apply for transfers of shares in large, listed Spanish companies.

As proposed, it would be neither a "bank levy" on banking business and bank deposits, nor a tax levied on the gross margins, profits or remuneration of banking activity. Rather, the new tax would be levied on a majority of transactions concerning the purchase or acquisition of shares in large, listed Spanish companies, anywhere in the world, and imposed at a rate of 0.2% of the acquisition price.

The tax would be paid by the entities participating in the markets and not the purchasers of securities.

According to Ministry of Finance, this new tax would be expected to raise approximately €850 million per year.  

 

Read a November 2018 report [PDF 98 KB] prepared by the KPMG member firm in Spain

© 2019 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us

 

Want to do business with KPMG?

 

loading image Request for proposal