Remuneration of directors

Internal regulations

Regulations: article 13.1.e) Law IRNR

Pursuant to internal regulations, the remuneration of directors and members of the Boards of Directors, of the Boards that act in their place or of representative bodies of an entity, are deemed to have been obtained in Spanish territory when they are paid by an entity resident in Spanish territory.

Agreement

In general, the Conventions to avoid double taxation provide that the participations, attendance fees and other similar remuneration that the taxpayer obtains as a result of being a member of a Board of Directors of a company resident in Spain, may be subject to taxation by the Spanish State.

Taxation

Regulations: Articles 24, 25 and 26 Law IRNR

These remunerations are taxed at the general tax rate in force:

• Residents EU , Iceland, Norway and, since 07-11-2021, Liechtenstein: 19%
• Rest of taxpayers: 24%

Deductions: Only the following may be deducted from the tax rate:

• Deductions for donations, under the terms provided for in the Personal Income Tax Law and in the Law on the tax regime of non-profit entities and tax incentives for patronage.
• The withholdings that have been made on income.