Germany

This Convention applies to persons resident in one or both Contracting States.

(1). This Convention applies to income and property taxes payable by each of the Contracting States, or their ‘Länder’, political subdivisions, authorities or local administrations, whatever the system of their levy.

(2). Income and property taxes are defined as taxes on all income or property, any part thereof, including taxes on profits resulting from the disposal of movable or immovable property; taxes on the amount of wages or salaries paid by enterprises (not including social security contributions), as well as taxes on capital gains.

(3). The current taxes to which this Convention specifically applies are:

1. In the German Federal Republic:

(a) personal income tax;

(b) corporation tax;

(c) the property tax;

(d) Industrial and Commercial Holdings Tax

(hereinafter referred to as ‘German tax’).

2. In Spain:

(a) the General Personal Income Tax;

(b) the General Income Tax on Companies and Other Legal Entities, including the special charge of 4 per 100 established by Article 104 of Law 41/1964 of 11 June;

(c) the following taxes on account: the Territorial Contribution on Rustic and Pecuaria Wealth, the Territorial Contribution on Urban Wealth, the Income Tax on Personal Work, the Income Tax on Capital and the Tax on Commercial and Industrial Activities and Benefits;

(d) in Fernando Poo, Rio Muni, Sahara and Ifni, income taxes (on income from work and wealth) and corporate profits;

(e) With regard to undertakings governed by the Act of 25 December 1958 which are engaged in the investigation and exploitation of hydrocarbons, the area fee, the gross product tax and the special tax on the profits of such companies, in addition to the other taxes listed in this article;

(f) local taxes on income or wealth (hereinafter referred to as the Spanish tax).

(4). This Convention shall also apply to future taxes of an identical or similar nature which are added to or replaced by existing taxes. At the beginning of each year, the competent authorities of the Contracting States shall notify each other of any significant changes made to their respective tax laws.

(5). The provisions of this Convention relating to income taxation on profits also apply to the German tax on industrial and commercial holdings which are calculated on a basis other than income or wealth.

(1). This Convention, unless otherwise interpreted:

(a) the term ‘Federal Republic’ means the Federal Republic of Germany, and when used geographically, the territory in which the Basic Law of the Federal Republic of Germany applies;

(b) the term ‘Spain’ means the Spanish State, and when used geographically, Peninsular Spain, Balearic Islands and Canary Islands, Spanish squares and provinces in Africa and Equatorial Guinea, formed by the territories of Rio Muni and Fernando Poo, these two self-determination territories;

(c) the words ‘one Contracting State’ and ‘the other Contracting State’ mean the Federal Republic or Spain, as derived from the text;

(d) the term ‘tax’ means ‘German tax’ or ‘Spanish tax’, as inferred from the text;

(e) the term ‘person’ includes natural persons and companies;

(f) the term ‘company’ means any legal person or any entity that is considered a legal person for tax purposes;

(g) the terms ‘undertaking of one Contracting State’ and ‘undertaking of the other Contracting State’ mean an undertaking operated by a resident of Spain and an undertaking operated by a resident of the Federal Republic, as provided for in the text;

(h) the expression ‘place of effective management of an undertaking’ means the place where the general address centre of the undertaking is located; if the place of effective management of a undertaking is on board a ship, it shall be deemed to be in the Contracting State where the base port of the ship is, or if there is no such base port, in the Contracting State where the person operating the vessel resides;

(i) the term ‘competent authority’ means, in the case of the Federal Republic, the Federal Minister of Finance, and in the case of Spain, the Minister of Finance, the Director General of Direct Taxes or any other authority to which the Minister delegates.

(2). For the purposes of the application of this Convention by a Contracting State, any expression not otherwise defined shall, unless the text requires a different interpretation, have the meaning attributed to it by the law of that Contracting State concerning taxes which are the subject of this Convention.

(1). For the purposes of this Convention, “resident of a Contracting State” means any person who, under the law of that State, is subject to taxation in that State by reason of his domicile, residence, address or any other criterion of a similar nature.

(2). Where, under the provisions of paragraph 1, a natural person is resident in both Contracting States, the case shall be settled in accordance with the following rules:

(a) This person shall be considered a resident of the Contracting State where he or she has a permanent dwelling at his or her disposal. If you have permanent housing at your disposal in both Contracting States, you will be considered a resident of the Contracting State with which you have closer personal and economic relations (centre of vital interests).

(b) If the Contracting State in which that person has the centre of his or her vital interests cannot be determined, or if he or she does not have permanent housing at his or her disposal in any of the Contracting States, he or she shall be considered a resident of the Contracting State in which he or she habitually lives.

(c) If he lives habitually in both Contracting States or does not live in either Contracting State, he or she shall be considered a resident of the Contracting State of which he or she is a national.

(d) If he is a national of both Contracting States or is not a national of either Contracting State, the competent authorities of the Contracting States shall decide the case by mutual agreement.

(3). Where, under the provisions of paragraph 1, a corporation is resident of both Contracting States, it shall be considered a resident of the Contracting State in which its place of effective management is located. If the place of place of effective management cannot be determined, the company shall be considered a resident of the Contracting State in which it was incorporated.

(4). For the purposes of Articles 5 to 22, the members of the companies of persons, as regards the taxation of the income derived from those companies or of the assets they hold through them, are considered residents of the Contracting State in which the company's effective head office is located. Such income or property, as long as it is not subject to taxation in the latter State, may be taxed in the other State,

(1). The term ‘permanent establishment’ means a fixed place of business in which an undertaking carries out all or part of its activity.

(2). The term ‘permanent establishment’ includes, in particular:

(a) the head offices;

(b) branches;

(c) offices;

(d) factories;

(e) workshops;

(f) mines, quarries or any other place of extraction of natural resources;

(g) construction or assembly works lasting more than 12 months.

(3). The term ‘permanent establishment’ does not include:

(a) the use of installations for the sole purpose of storing, displaying or delivering goods or goods belonging to the undertaking;

(b) the maintenance of a warehouse of goods or goods belonging to the undertaking for the sole purpose of storing, displaying or delivering them;

(c) the maintenance of a deposit of goods or goods belonging to the undertaking for the sole purpose of their processing by another undertaking;

(d) the maintenance of a fixed place of business for the sole purpose of buying goods or goods or collecting information by another undertaking;

(e) the maintenance of a fixed place of business for the sole purpose of advertising, providing information, carrying out scientific research or carrying out other similar activities which are preparatory or auxiliary in nature, provided that such activities are carried out for the undertaking itself.

(4). A person acting in a Contracting State on behalf of an undertaking of the other Contracting State, except in the case of an independent agent covered by paragraph (5), is deemed to constitute a permanent establishment in the State first mentioned if he has and habitually exercises in that State powers to conclude contracts on behalf of the Enterprise, unless his activities are limited to the purchase of goods or goods for the Enterprise.

(5). An enterprise of one Contracting State is not considered to have a permanent establishment in the other Contracting State merely because it carries out activities in that other State through a broker, a general commissioner or any other mediator enjoying an independent status, provided that these persons act within the ordinary framework of their activity.

(6). The fact that a company resident of a Contracting State controls or is controlled by a company resident of the other Contracting State or that carries out activities in that other State (whether by permanent establishment or otherwise) does not in itself make any of these Societies permanent establishment of the other State.

(1). Income from immovable property may be taxed in the Contracting State in which such property is situated.

(2). The term ‘real property’ shall be defined in accordance with the law of the Contracting State in which the property is situated. In any event, this term includes accessories, livestock and equipment used on agricultural and forestry holdings; the rights to which the provisions of private law relating to territorial property, the use of immovable property and the right to receive variable or fixed fees for the exploitation or concession of the exploitation of mineral deposits, sources or other land wealth apply. Ships, vessels and aircraft are not considered real property.

(3). The provisions of paragraph 1 apply to income derived from the direct use, lease or any other form of exploitation of immovable property.

(4). The provisions of paragraphs 1 and 3 also apply to income derived from the immovable property of the Enterprises and from immovable property used for the exercise of professional services.

(1). The profits of an enterprise in one Contracting State may be taxed in that State only, unless the enterprise carries out operations in the other State through a permanent establishment located in that State. If it does so, the profits of the company may be taxed in the other State, but only to the extent that they can be attributed to the permanent establishment.

(2). Where an Enterprise of one Contracting State engages in business in the other Contracting State by means of a permanent establishment situated therein, in each Contracting State the profits it would obtain from the permanent establishment if it were a separate undertaking carrying out the same or similar activities, under the same or similar conditions, and dealt entirely independently with the enterprise of which it is a permanent establishment.

(3). For the purpose of determining the benefit of the permanent establishment, the deduction of expenses incurred for the purposes of the permanent establishment, including management and general administrative expenses for the same purposes, shall be permitted, whether incurred in the State in which the permanent establishment is located or elsewhere.

(4). As long as it is customary in a Contracting State to determine profits attributable to permanent establishments on the basis of a sharing of the total profits of the Enterprise among its various parties, the provisions of paragraph 2 shall not prevent that Contracting State from determining taxable profits in this manner; however, the method of distribution adopted shall be such that the result obtained is in accordance with the principles set forth in this article.

(5). No benefit shall be attributed to a permanent establishment merely because it buys goods or goods for the Enterprise.

(6). For the purposes of the preceding paragraphs, the profits attributable to the permanent establishment shall be calculated each year by the same method, unless there are valid and sufficient grounds for proceeding in another form.

(7). Where profits include income covered separately by other articles of this Convention, the provisions of those articles shall not be affected by those of this Article.

Profits from operating ships or aircraft in international traffic may be taxed only in the Contracting State in which the effective head office of the company is located.

When

(a) an undertaking of a Contracting State participates, directly or indirectly, in the direction, control or capital of an undertaking of the other Contracting State; or

(b) the same persons participate, directly or indirectly, in the direction, control or capital of an undertaking of one Contracting State and of an undertaking of the other Contracting State,

and, in either case, the two companies are, in their commercial or financial relations, bound by terms, accepted or imposed, which differ from those to be agreed by independent undertakings, the profits which one of the companies would have obtained if these conditions did not exist and which in fact did not occur because of them, may be included in the profits of that undertaking and subject to taxation accordingly.

(1). Dividends paid by a company resident of one Contracting State to a resident of the other Contracting State may be taxed in the latter State.

(2). However, such dividends may be taxed in the Contracting State in which the company paying the dividends resides and in accordance with the law of that State, but the tax thus required may not exceed the amount of

(a) 10 per cent of the gross amount of dividends, if the benefit is a company (excluding companies of persons) holding at least 25 per cent of the capital of the company that pays the dividends, or if the dividends come from the distribution of the profits of a company of persons;

(b) 15 per 100 of the gross amount of dividends, in all other cases.

This paragraph does not affect the company's taxation of profits from which dividends are paid.

(3). Notwithstanding the provisions of paragraph 2, the German tax on dividends paid to a company resident in Spain by a company resident in the Federal Republic, provided that the first company holds, directly or indirectly, at least 25 per 100 of the capital of the second company, may not exceed 25 per 100 of the gross amount of such dividends, whereas in the German company tax there is for profits distributed a rate lower than that applicable to undistributed profits and the difference between these two rates is at least 20 units. Where the difference between these two rates is at least 10 units and less than 20 units, the German tax on such dividends may not exceed 15 per 100 of the gross amount of such dividends.

(4). The term ‘dividends’, used in this Article, refers to the income from shares, shares or vouchers, parts of mines, shares of founders or other rights, except credit rights, which permit participation in profits, as well as income from other social shares assimilated to the income of shares by the tax legislation of the State in which the distribution company resides. It also covers income earned by a partner (not participating in the company's capital), distributions of profits made by companies of persons to their members, and income from certificates of investment funds.

(5). The provisions of paragraphs 1 to 3 do not apply if the dividend beneficiary, resident of one Contracting State, has in the other Contracting State of which the corporation paying the dividends is resident, a permanent establishment with which the share generated by the dividends is effectively linked. In this case, the provisions of Article 7 apply.

(6). Where a company resident of one Contracting State obtains profits or income from the other Contracting State, that other State may not levy any tax on dividends paid by the company to persons who are not residents of the latter State, nor subject the undistributed profits of the company to a tax on them, even if dividends paid or profits not distributed consist, in whole or in part, of profits or income from that other State.

(1). Interest from one Contracting State paid to a resident of the other Contracting State may be taxed in the latter State.

(2). However, these interests may be taxed in the Contracting State from which they come and in accordance with the law of that State, but the tax thus required may not exceed 10 per cent of the gross amount of interest.

(3). Interest from Spain and paid to the Deutsche Bundesbank or Kreditanstalt für Wiederaufbatui of the Federal Republic are exempt from the Spanish tax.

(4). The term ‘interest’, used in this article, includes the income from public debt, bonds or bonds, with or without mortgage guarantee and entitled or not to participate in profits, and from loans of any kind, as well as any other income that the tax legislation of the State from which the interest derives assimilates to the income from the amounts lent.

(5). The provisions of paragraph 1 do not apply if the beneficiary of the Interests, resident of one Contracting State, has in the other Contracting State from which the interest is derived, a permanent establishment with which the claim generated by the interest is effectively linked. In this case, the provisions of article 7 apply.

(6). Interests are considered to come from a Contracting State where the debtor is the State itself, one of its political subdivisions, one of its local authorities or administrations or a resident thereof. However, where the debtor of interest, whether or not it is resident of a Contracting State, has a permanent establishment in a Contracting State in respect of which the debt giving rise to the interest has been incurred and this establishment supports the payment thereof, the interest shall be deemed to have come from the Contracting State in which the permanent establishment is located.

(7). Where, due to special relationships between the debtor and the beneficiary of the interest or between each of them and any other person, the amount of interest paid, taking into account the claim for which it is paid, exceeds the amount that would have been agreed by the debtor and the beneficiary in the absence of such relations, the provisions of this Article shall apply only to the latter amount. In this case, the excess may be imposed in accordance with the law of each Contracting State, taking into account the other provisions of this Convention.

(1). Fees from one Contracting State paid to a resident of the other Contracting State may be taxed in the latter State.

(2). However, these fees may be taxed in the Contracting State from which they come and in accordance with the law of that State, but the tax thus required may not exceed 5 per 100 of the gross amount of the fees.

(3). The term 'royalties', used in this article, includes quantities of any kind paid for the use or granting of copyright on literary, artistic or scientific works, including cinematographic films; patents, trademarks or trade marks, designs, plans, formulas or secret procedures, as well as for the use or granting of use of industrial, commercial or scientific equipment, and amounts paid for information relating to industrial, commercial or scientific experience.

(4). The provisions of paragraph 1 do not apply if the beneficiary of the royalties, resident of one Contracting State, has in the other Contracting State from which the royalties come, a permanent establishment with which the right or ownership for which the royalties are paid is effectively linked. In this case, the provisions of article 7 apply.

(5). The fees are considered to come from a Contracting State where the debtor is the State itself, one of its political subdivisions, one of its local authorities or a resident thereof. However, where the debtor of the royalties, whether or not he is resident of a Contracting State, has in a Contracting State a permanent establishment in respect of which the obligation to pay the royalties has been entered into and this establishment supports the payment of the royalties, the fees shall be deemed to be from the Contracting State in which the permanent establishment is located.

(6). Where, due to special relations between the debtor and the beneficiary of the royalties or between each of them and any other person, the amount of the fees paid, in view of the use, right or information for which they are paid, exceeds the amount that would have been agreed by the debtor and the beneficiary in the absence of such relationships, the provisions of this Article shall apply only to the latter amount. In this case, the excess may be imposed in accordance with the law of each Contracting State, taking into account the other provisions of this Convention.

(1). Profits arising from the disposal of immovable property, as defined in article 6, paragraph 2, may be taxed in the Contracting State in which they are located.

(2). Gains from the disposal of movable property forming part of the assets of a permanent establishment held by an enterprise of one Contracting State in the other Contracting State, or from movable property belonging to a fixed basis held by a resident of one Contracting State in the other Contracting State for the provision of professional services, including gains arising from the disposal of the permanent establishment (only or with the enterprise as a whole) or from the fixed base, may be taxed in that other State. However, gains arising from the disposal of movable property referred to in article 22, paragraph 3, may be taxed only in the Contracting State to which, under that article, the right to tax them belongs.

(3). Profits arising from the disposal of any property other than those referred to in paragraphs 1 and 2 may be taxed only in the Contracting State in which the transferor resides.

(1). Income obtained by a resident of a Contracting State through the provision of professional services or the pursuit of other independent activities of a similar nature may only be taxed in that State unless such resident habitually has a fixed basis in the other Contracting State for the pursuit of his activity. If it has such a fixed base, such income may be taxed in the other State, but only to the extent that it is appropriate to attribute it to the fixed base.

(2). The term "professional services" includes, in particular, scientific, literary, artistic, educational or educational activities carried out independently, as well as independent activities of doctors, lawyers, engineers, architects, dentists and accountants.

(1). Without prejudice to the provisions of articles 16, 18 and 19, salaries, salaries and similar remuneration obtained by a resident of a Contracting State on account of employment may be subject to taxation in that State only, unless the employment is exercised in the other Contracting State. If employment is exercised in the latter State, the remuneration derived therefrom may be subject to taxation in that State.

(2). Notwithstanding the provisions of paragraph 1, remuneration obtained by a resident of a Contracting State on the basis of employment in the other Contracting State may only be taxed in the former State if

(a) the employee does not remain in total in the other State, in one or more periods, more than one hundred and eighty-three days during the fiscal year concerned; and

(b) remuneration is paid for or on behalf of a person who is not a resident of the other State; and

(c) remuneration is not borne by a permanent establishment or a fixed basis which the person for whom work is carried out in the other State.

(3). Notwithstanding the preceding provisions of this article, remunerations earned on account of employment on board a ship or aircraft in international traffic may be subject to taxation in the Contracting State where the place of effective management of the undertaking is located.

Participations, attendance allowances and similar remunerations which a resident of a Contracting State obtains as a member of a Board of Directors or of a company resident of the other Contracting State may be subject to taxation in that other State.

Notwithstanding the provisions of Articles 14 and 15, the rents obtained by the professionals of the spectacle, such as the Artists of theatre, cinema, broadcasting or television and the Musicians, as well as by the athletes, for their personal activities in this regard, may be subject to taxation in the Contracting State where they act.

(1). Remuneration paid by or from funds created by the Federal Republic, a Land, or one of its autonomous bodies, authorities or local authorities to a natural person for services rendered to them, may be subject to taxation in the Federal Republic. These fees are exempt from Spanish tax, unless they are paid to a Spaniard who does not have German nationality at the same time.

(2). Remuneration paid by or from funds created by the Spanish State, or one of its autonomous bodies, authorities or local administrations to a natural person for services rendered to them, may be subject to taxation in Spain. These remunerations are exempt from German tax, unless they are paid to a German national who does not have Spanish nationality at the same time.

(3). The provisions of Articles 15, 16 and 17 apply to remuneration paid for services rendered in connection with commercial or industrial activities carried out by a Contracting State, a Land, or one of its autonomous bodies, authorities or local administrations.

(4). The provisions of paragraphs 1 and 2 also apply to remuneration paid, in the case of the Federal Republic, by Deutsche Bundesbank and Deutsche Bundesbahn and Deutsche Bundespost, and in the case of Spain, by the National Network of Spanish Railways (RENFE).

(1). Pensions and similar remuneration paid to a resident of a Contracting State in consideration of previous employment may only be taxed in that State.

(2). Notwithstanding the provisions of paragraph 1, pensions and similar remuneration paid by or from funds created by a Contracting State, a Land, or one of its autonomous bodies, authorities or local authorities, in consideration of previous employment, are tax-exempt in the other Contracting State.

(3). Paragraph 2 also applies to pensions and other remuneration, whether periodic or not, paid to a natural person by a Contracting State, a Land, or one of its autonomous agencies, local authorities or administrations, in compensation for damage or damage suffered as a result of hostilities or political persecution.

The amounts which a student or trainees (including ‘Volontär’ or ‘Praktikant’), who is or has previously been a resident of a Contracting State and who is in the other Contracting State for the sole purpose of continuing his studies or completing his training, shall not be subject to taxation in the latter State, provided that such amounts come from sources outside that State;

The income of a resident of a Contracting State not expressly mentioned in the preceding articles may be taxed only in that State.

(1). Property constituted by immovable property, as defined in article 6, paragraph 2, may be taxed in the Contracting State in which the property is located.

(2). Assets consisting of movable property forming part of the assets of a permanent establishment of an Enterprise, or movable property belonging to a fixed base used for the provision of professional services, may be taxed in the Contracting State in which the permanent establishment or fixed base is located.

(3). Vessels and aircraft engaged in international traffic and assets other than immovable property, having an interest in their operation, may be subject to taxation only in the Contracting State where the place of effective management of the undertaking is located.

(4). All other assets of a resident of a Contracting State may be subject to taxation only in that State.

(1). In the case of a resident of the Federal Republic, the tax shall be determined as follows:

(a) Unless the provisions of subparagraph (b) apply, all Spanish source income and all assets located in Spain which, in accordance with this Agreement, may be taxed in Spain shall be excluded from the basis of the German tax. However, the Federal Republic has the right to take such income or assets into account in calculating the applicable tax rate. In the case of dividends, the exclusion applies only where dividends:

(aa) are paid to a capital company (Kapitalgesellschaft), resident of the Federal Republic, by a capital company, resident of Spain, provided that the first company holds at least 25 per cent of the capital of the second, or

(bb) They consist of a distribution of profits by a society of persons in the sense that article 10, paragraph 4, of this Convention attributes to them.

Also excluded from the basis of the German tax are shares or shares whose dividends, when paid, are to be excluded from the tax base, as provided for in the case immediately preceding.

(b) The Spanish tax paid in accordance with this Agreement for income from Spanish sources or for goods located in Spain shall be deducted from the fees of the German tax corresponding to these income or goods, in the following cases:

(aa) dividends not covered by subparagraph (a) above;

(bb) interest: if these interests are obtained by a banking institution and, pursuant to Decree-Law 19/1961 of 19 October, are taxed in Spain less than 10 per 100 of its gross amount, 10 per 100 of the gross amount of such interest shall be deducted from the quota;

(cc) fees;

(dd) remuneration under Article 18(2) paid to a German national who does not have Spanish nationality at the same time;

(ee) income from immovable property or the assets made up of such property, where such assets are not effectively linked to a permanent establishment located in Spain.

(2). In the case of a resident of Spain, the tax shall be determined as follows:

(a) Incomes or assets which, in accordance with the provisions of this Agreement may be taxed in the Federal Republic, are, without prejudice to the provisions of paragraph (b) exempt from Spanish tax, but in order to calculate the tax corresponding to the remaining income or assets of this person, Spain may apply the tax rate which would correspond if such income or assets were not exempted.

(b) The required German income tax which, in accordance with the provisions of Article 10 (2) and (3), Article 11, (2), Article 12 (2) and Article 18 (1), may be taxed in the Federal Republic and is not exempt from Spanish tax, shall be deducted from the fees of the Spanish tax. The German tax on income from real estate situated in the Federal Republic which is not actually linked to a permanent establishment situated in the Federal Republic, and on the assets constituted by such immovable property, shall be deducted from the fees of the Spanish tax on such income or property. However, in all these cases the deduction may not exceed the part of the tax, calculated before the deduction, corresponding to the income obtained or property located in the Federal Republic. The tax paid in the Federal Republic shall also be deducted from the contributions of the respective Spanish taxes on account, in accordance with the provisions of this paragraph.

(1). Nationals of one Contracting State shall not be subject in the other Contracting State to any taxes or obligations relating thereto which are not or are more burdensome than those to which nationals of the latter State who are under the same conditions are or may be subject.

(2). In particular, nationals of one Contracting State who are subject to taxation in the other Contracting State shall be entitled to all exemptions, reliefs and tax reductions granted, in view of marital status or family burdens, to nationals of the other Contracting State under the same conditions.

(3). The term ‘national’ means:

(a) in respect of the Federal Republic, all those who are German in accordance with article 116 (1) of the Basic Law of the Federal Republic of Germany and all companies whose status as such derives from the laws in force in the Federal Republic.

(b) in respect of Spain, all natural persons who, according to the Civil Code, possess Spanish nationality and all companies whose status as such derives from the laws in force in Spain.

(4). Stateless persons shall not be subject in a Contracting State to any taxes or obligations relating thereto which are not or are more burdensome than those to which nationals of that State who are under the same conditions are or may be subject.

(5). A permanent establishment held by an enterprise of one Contracting State in the other Contracting State shall not be subject to taxation in that State in a less favourable manner than the enterprises of the latter State carrying out the same activities.

This provision does not oblige a Contracting State to grant to residents of the other Contracting State the personal deductions, reliefs and tax reductions it grants to its own residents in view of their marital status or family burdens.

(6). Enterprises of a Contracting State whose capital is wholly or partly owned or controlled, directly or indirectly, by one or more residents of the other Contracting State shall not be subject in the Contracting State referred to above to any tax or obligation relating thereto which is not or is more burdensome than those to which the like Enterprises of the first Contracting State are or may be subject.

(7). This Article applies to all taxes irrespective of their nature and name.

(1). Where a resident of a Contracting State considers that the measures taken by one or both Contracting States entail or may entail for him a charge that is not in conformity with this Convention, irrespective of the remedies provided for by the national law of the States, he may submit his case to the competent authority of the Contracting State of which he is a resident.

(2). This competent authority shall, if it finds the complaint well founded and if it is not in a position to adopt a satisfactory solution, make every effort to resolve the matter through an amicable agreement with the competent authority of the other Contracting State in order to avoid the imposition which does not comply with this Convention,

(3). The competent authorities of the Contracting States shall, by mutual agreement, determine how to apply the limits of taxation set out in Articles 10, 11 and 12.

(4). The competent authorities of the Contracting States shall endeavour to resolve, by amicable agreement, difficulties or to dispel doubts arising from the interpretation or application of this Convention. They may also agree to try to avoid double taxation in cases not provided for therein.

(5). The competent authorities of the Contracting States may communicate directly with each other in order to reach the agreements referred to in the preceding paragraphs. Where it is considered that such agreements can be facilitated through personal contacts, an exchange of views may take place within a committee composed of representatives of the competent authorities of both Contracting States.

(1). The competent authorities of the Contracting States shall exchange the information necessary for the application of this Convention and of the domestic legislation of the Contracting States relating to taxes covered by this Convention as long as the imposition resulting from such legislation is in accordance with the provisions of the Convention. The information thus exchanged shall be kept secret and shall not be disclosed to any person or authority which is not responsible for the settlement or collection of the taxes covered by this Agreement.

(2). Under no circumstances do the provisions of paragraph 1 oblige a Contracting State to

(a) take administrative measures contrary to its legislation or administrative practice or those of the other Contracting State;

(b) to provide information that cannot be obtained on the basis of their own legislation or normal administrative practice or that of the other Contracting State;

(c) transmit information revealing a commercial, industrial, business or professional secret, or a commercial or industrial procedure, or information the communication of which is contrary to public policy.

The provisions of this Convention do not affect the tax privileges enjoyed by diplomatic or consular officials in accordance with the general principles of international law or under special agreements.

This Convention also applies to the Land of Berlin, unless the Government of the Federal Republic of Germany makes a statement contrary to the Spanish Government within three months of the entry into force of this Convention.

(1). This Convention shall be ratified and the instruments of ratification shall be exchanged in Madrid as soon as possible.

(2). This Convention shall enter into force one month after the date of the exchange of instruments of ratification, and thereafter it shall have effect with respect to taxes incurred during the calendar year in which it enters into force and thereafter.

(3). Articles 8 and 22 (3) shall apply, notwithstanding the provisions of paragraph 2, to taxes incurred during the calendar year 1963 et seq.

This Convention shall remain in force indefinitely, but any Contracting State may, before 1 July of any year beginning three years after the entry into force of the Convention, denounce it in writing and through diplomatic channels. In such a case, the Convention shall cease to have effect with respect to taxes levied during the calendar years following the year in which the denunciation is made.

Done at Bonn on 5 December 1996, in duplicate, in the Spanish and German languages, the two texts being equally authentic.

For the Federal Republic of Germany, Carstens. For the Spanish State, José de Erice.

[heading] THE SUBSECRETARY OF THE FEDERAL MINISTERY FOR FOREIGN AFFAIRS

BONN

Sir,

With reference to the agreement signed today between the Federal Republic of Germany and the Spanish State to avoid double taxation and to prevent tax evasion in the matter of income and property taxes, I have the honour to inform you, on behalf of the Government of the Federal Republic of Germany, that the two Contracting States have agreed that the provisions of article 23, paragraph 1, subparagraph (a), concerning dividends, shares and shareholdings apply only when the company resident in Spain obtains its income exclusively or almost exclusively from

(a) the production or sale of goods or goods, leases, services or banking or insurance activities; or

(b) dividends paid by one or more companies resident in Spain, whose income is derived exclusively or almost exclusively from the production or sale of goods or goods, leases, services or banking or insurance activities provided that company holds at least 25 per 100 of the capital of those companies resident in Spain.

In another case, the provisions of article 23, paragraph 1, sub-group (b), and article 22, paragraph 4, respectively, shall apply.

I should be grateful if you would confirm your agreement with the above, and in this case this Note and your reply will be considered a part of the Convention.

Please accept, Your Excellency, the testimony of my highest consideration.

His Excellency Mr. José de Erice, Ambassador of Spain,

SPAIN AMBASSED

BONN

Mr. Undersecretary,

I have the honour to acknowledge receipt of your letter dated today, which translated reads as follows:

“With reference to the agreement signed today between the Federal Republic of Germany and the Spanish State to avoid double taxation and to prevent tax evasion in the area of income and property taxes, I have the honour to inform you on behalf of the Government of the Federal Republic of Germany that the two Contracting States have agreed that the provisions of article 23, paragraph 1, subparagraph (a), concerning dividends, shares and shares, shall apply only when the company resident in Spain obtains its income exclusively or almost exclusively, from

(a) the production or sale of goods or goods, leases, services or banking or insurance activities; or

(b) dividends paid by one or more companies resident in Spain, whose income is derived exclusively or almost exclusively from the production or sale of goods or goods, leases, services or banking or insurance activities, provided that company holds at least 25 per 100 of the capital of those companies resident in Spain.

In another case, the provisions of article 23, paragraph 1, subparagraph (b), and article 22, paragraph 4, respectively, shall apply,

I should be grateful if you would confirm your agreement with the above, and in that case this letter and your reply will be considered as part of the Convention.'

I have the honour to convey to you the agreement of my Government on the above.

Please accept, Your Excellency, the testimony of my highest consideration.

His Excellency Professor Doctor Carstens, Under-Secretary of the Federal Ministry for Foreign Affairs.

THE SUBSECRETARIAT OF THE FEDERAL MINISTERY FOR FOREIGN AFFAIRS

BONN

Sir,

With reference to the agreement signed today between the Federal Republic of Germany and the Spanish State to avoid double taxation and to prevent tax evasion in respect of income and property taxes, I have the honour to inform you, on behalf of the Government of the Federal Republic of Germany, that the two Contracting States have agreed that the provisions of article 24 shall also apply to the Spanish rate applicable for the issue of work permits to persons of German nationality or their dependants and to any similar German rate that may be required of persons of non-German nationality or their dependants.

I should be grateful if you would confirm your agreement with the above, and in this case this Note and your reply will be considered a part of the Convention.

Please accept, Your Excellency, the testimony of my highest consideration.

His Excellency Mr. José de Erice, Ambassador of Spain.

SPAIN AMBASSED

BONN

Mr. Undersecretary,

I have the honour to acknowledge receipt of your letter dated today, which translated reads as follows:

"With reference to the Agreement signed today between the Federal Republic of Germany and the Spanish State to prevent double taxation and to prevent tax evasion in the matter of income and property taxes, I have the honour to inform you, on behalf of the Government of the Federal Republic of Germany, that the two Contracting States have agreed that the provisions of Article 24 shall also apply to the Spanish rate applicable for the issue of work permits to persons of German nationality or their dependants and to any similar German rate that may be required of persons of non-German nationality or their dependants.

I should be grateful if you would confirm your agreement with the above, and in that case this letter and your reply will be considered as part of the Convention.'

I have the honour to convey to you the agreement of my Government on the above.

Please accept, Your Excellency, the testimony of my highest consideration.

His Excellency Professor Doctor Carstens, Under-Secretary of the Federal Ministry for Foreign Affairs.

Therefore, having seen and examined the thirty articles and their annexed letters that make up that Convention, having heard the Commission on Treaties of the Spanish Courts, in compliance with the provisions of article 14 of its Organic Law, I come to approve and ratify as far as it provides, as I hereby approve and ratify it, promising to comply with it, observe it and ensure that it is implemented and observed in a timely manner in all its parts, for the purpose of its further validation and firmness, I will issue this instrument of ratification signed by Me, duly sealed and endorsed by the undersigned Minister of Foreign Affairs.

[ignore]Dated in Madrid on July 13th, one thousand nine hundred and sixty-seven.

FRANCE FRANCE

The Minister for Foreign Affairs,

FERNANDO MARY CASTIELLA AND MAÍZ

The Exchange of Instruments of Ratification of this Agreement was verified in Madrid on 14 February 1968 and will enter into force, in accordance with Article 29, on 14 March 1968.