Measures to avoid double taxation
Deduction of the net income tax contribution
Regulations: Art. 91.9 Law Personal Income Tax
The tax or levy actually paid abroad due to the distribution of dividends or participation in profits will be deductible from the net amount of Personal Income Tax , whether in accordance with an agreement to avoid double taxation. or in accordance with the internal legislation of the country or territory in question, in the part that corresponds to the positive income included in the tax base.
This deduction may be made, even when the taxes or levies correspond to tax periods other than the one in which the inclusion was made, without its amount exceeding the full amount that in Spain would be payable for the positive income included in the tax base.
Under no circumstances will taxes paid in countries or territories classified as non-cooperative jurisdictions be deducted.
This deduction may not exceed the full amount that in Spain would be payable for the positive income imputed to the tax base.
The amount that, in accordance with the above, is deductible must be recorded in box  of the declaration.
Remember: Dividends or shares in profits are not included in the taxpayer's tax base in the part that corresponds to the positive income that has been imputed and that the same positive income can only be attributed to a single time, regardless of the form. and the entity in which it manifests itself.
Transmission of his participation by the taxpayer
Regulations: Art. 91.10 Law Personal Income Tax
To determine the capital gain or loss derived from the transfer of shares, direct or indirect, in non-resident entities whose income has been imputed, the Law provides for the application of specific valuation rules analogous to those usable in the case of transfer of shares. of companies that were taxed as assets [article 35.1.c) of the consolidated text of the Personal Income Tax Law , approved by Royal Legislative Decree 3/2004, of March 5, in force as of March 31 December 2006], with the exception that the imputed and undistributed social benefits referred to in the Law in the case of holding companies must be understood to be replaced in this case by the positive income imputed in the tax base.
In accordance with the above, from the transfer of participations, direct or indirect, in non-resident entities whose income has been imputed, the gain or loss will be computed by the difference between the acquisition and ownership value and the transfer value. of those.
For this purpose, the acquisition and ownership value will be estimated to consist of:
(+) The price or amount paid for its acquisition.
(+) The amount of social benefits that, without effective distribution, would have been obtained by the non-resident company during the tax periods in which the taxpayer would have included in its tax base positive income from its participation in it.
For its part, the transfer value to be computed will be, at least, the theoretical value resulting from the last closed balance sheet, once the net book value of the assets has been replaced by the value they would have for Wealth Tax purposes, or by their market value. market if it were lower.