We use cookies to deliver our online services. Details of the cookies we use and instructions on how to disable them are set out in our Cookies Policy. By using this website you agree to our use of cookies. To close this message click close.

Spanish National Court rules that Brazilian "juros" can benefit from the Spanish participation exemption regime

26 MARCH 2014

In its very recent decision issued on 27 February 2014, the Spanish High Court has ruled that the Brazilian 'juros sobre o capital' ("juros"), a hybrid instrument in the form of interest on equity, qualify for the Spanish participation exemption regime on dividends.

This decision repealed a previous resolution issued by the Spanish Administrative Court, which, following the opinion of the Spanish Tax Authorities, took the view that juros cannot benefit from such regime.

Spanish groups and foreign groups that have (or are to have) a Spanish holding company may take advantage of this decision since it will allow the repatriation of profits from Brazil to Spain without tax leakage in Spain.
Loading data