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On 15 October 2020, the Spanish parliament approved the introduction of a financial transaction tax (Act 5/2020). This financial transaction tax (FTT) enters into force on 16 January 2021.

What is the scope of this tax?

This new tax is similar to the financial transaction tax in force in France. It applies to any acquisition for consideration of the listed shares of Spanish companies with a market capitalisation of over EUR 1 billion.

This tax also applies to the acquisition of shares received as a result of the conversion of bonds, and the acquisition of shares represented by investment certificates.

In 2021, 56 Spanish shares will be subject to this tax.

However, this tax does not apply to acquisitions in the primary market (new shares issues) or to any sales transactions for shares.

Who is subject to this tax?

This tax applies to all investors, irrespective of their country of residence or where the transaction is executed.

How is this tax calculated?

The tax is charged at 0.2% of the acquisition price (excluding any fees related to the acquisition).

How will this affect you as a Banque de Luxembourg client?

The tax will be automatically calculated and levied by the Bank at the time the transaction is executed.

Should you (without the Bank’s intervention) acquire any shares subject to this new tax for consideration, in particular by transfer of shares, please inform us so that we can make the necessary deduction.

Situation as at 11/01/2020.

For more information on the impact of this new tax: draw on the expertise of our estate planning specialists

Bernard Goffaux
Head of Estate Planning
Marie Breels
Operational Taxation
Bernard Goffaux
Head of Estate Planning
Christophe Delanghe
Senior Estate Planner