Directors' remuneration
Internal regulations
Regulations: article 13.1.e) Law IRNR
In accordance with internal regulations, the remuneration of the administrators and members of the Boards of Directors, of the Boards that act in their place or of representative bodies of an entity, are understood to be 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 shares, attendance fees and other similar remuneration that the taxpayer obtains as a result of being a member of the Board of Directors of a company resident in Spain, may be subject to tax. by the Spanish State.
Taxation
Regulations: articles 24, 25 and 26 Law IRNR
These remunerations are taxed at the current general tax rate :
- 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, in the terms provided 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 would have been made on the income.