Most common provisions of the Agreements
Distribution of tax authority in the Agreements, in general, for different types of income
Agreements. Fees
Royalties are amounts of any kind paid for the use or granting of use of a copyright in a literary, artistic or scientific work, including cinematographic films, a patent, trademark, design or model, plan or formula or secret procedure, as well as for the use or concession of use of industrial, commercial (business lease) or scientific equipment, and for information related to industrial, commercial or scientific experiences (know how).
Certain technical assistance services are included within the concept of fees in some Agreements.
With regard to royalties, the right to levy tax corresponds to the country of residence of the beneficiary; However, in general, the State of source can also tax them with a limit.
Thus, when a non-resident collects levies paid by a Spanish organisation, these may also be subject to taxation in Spain up to the limit stipulated in the relevant Agreement (normally between 5% and 10%). The specific Agreement must be consulted.