The Financial Transaction Tax was approved on 7 October 2020, allowing Spain to tax the acquisition of listed shares issued by Spanish companies, following the trend initiated by other countries, such as France and Italy.
The Spanish FTT will be charged at a rate of 0.2% on the acquisition of listed shares issued by Spanish companies admitted to trading on a Spanish or other EU-regulated market, or on an equivalent market of a non-EU country, with a market capitalisation exceeding EUR 1 billion on 1 December of the year prior to the acquisition. It will also apply to the acquisition of shares represented by depositary receipts or acquired by e.g. exercising an option to convert convertible bonds.
For further information, please refer to our briefing.