The AEAT and the Treaty to Avoid the Double Taxation with the U.S. in front of the Spanish Supreme Court.

Jul 15, 2023 | AEAT, Tax Treaty, US Tax Consultants | 0 comments

The Supreme Court reprimands the Spanish Tax Agency (AEAT) for skipping double taxation agreements. It points out that what these agreements establish prevails over national legislation.

The Supreme Court puts the Tax Administration in its place for unilaterally skipping the agreements signed with other countries to avoid double taxation, prevent tax evasion, and guarantee legal security for taxpayers. In a ruling dated June 12, 2023 for which Judge Córdoba Castroverde was the rapporteur, the court states that the Administration bodies “are not competent” to prosecute the circumstances in which a tax residence certificate has been issued by another State and, therefore, they cannot dispense with its content issued by the tax authorities of a country that has a double taxation agreement with Spain.

In addition, it points out that the Administration cannot reject the content of the tax residence certificate, nor can it “unilaterally” decide that there is a residence conflict ignoring the rules provided in the double taxation agreement itself to resolve these cases.

The Supreme Court thus resolves the appeal of a citizen with tax residence in the US, a country with which Spain has a double taxation agreement since 1990, from which the Treasury claimed 3.6 million euros for personal income tax for 2008, 2009 and 2010.

Do not hesitate to contact us if you have any doubts of the Bilateral Tax Treaty with the U.S. to avoid the double taxation as well as how to apply any other treaty or agreement to reduce you tax liability in Spain and in the U.S. We have published a WithePaper with a comprehensive list and descriptions of all kinds of agreements. Please check our page on WhitePapers.


US Tax Consultants +34 915 194 392 info@ustaxconsultants.es


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