Remuneration of directors
Regulations:article 13.1.e) Law IRNR
According to Spanish law, payments to managers and members of boards of directors, of boards that either representative bodies of an organisation, are understood to be obtained in Spanish territory when paid by an organisation resident in Spanish territory.
In general, double taxation treaties 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 can be taxed by the Spanish State.
Regulations:Articles 24, 25 and 26 Law IRNR
This remuneration is taxed at the current general tax rate :
- Residents EU, Iceland, Norway and, from 11-07-2021, Liechtenstein:19%
- Rest of taxpayers:24%
Deductions:The deductions allowed from the taxable income are as follows:
- Deductions for donations, under the conditions described in the Income Tax Act and in the Act on the tax regime of non-profit organisations and of tax incentives for patronage.
- Tax withholdings that have been applied on the taxpayer's income.