Andorra

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

1. This Convention applies to income taxes payable by each of the Contracting States or their political subdivisions or local authorities, irrespective of the system of their levy.

2. Income taxes are those that tax the whole or any part of the income, including taxes on profits resulting from the disposal of movable or immovable property, taxes on the amount of wages or salaries paid by enterprises, as well as taxes on capital gains.

3. The current taxes to which the Convention applies are, in particular:

(a) In Spain:

(i) Personal Income Tax;

(ii) corporation tax;

(iii) Non-Resident Income Tax;

(iv) Local income taxes

(hereinafter referred to as ‘the Spanish tax’);

(b) in Andorra:

(i) Corporate tax;

(ii) Personal Income Tax;

(iii) Income Tax on Economic Activities;

(iv) Tax on the Income of Tax Non-Residents;

(v) Value Added Tax on Real Estate Transfers;

(vi) Local income taxes

(hereinafter referred to as the Andorran tax).

4. The Convention shall also apply to taxes of an identical or similar nature which are established after the signature of the Convention and which are added to or replaced by existing taxes. The competent authorities of the Contracting States shall notify each other of any substantial changes made to their respective tax laws.

1. For the purposes of this Convention, unless a different interpretation is given in its context:

(a) The term ‘Spain’ means the Kingdom of Spain and, used geographically, means the territory of the Kingdom of Spain, including internal waters, airspace, territorial sea and areas outside the territorial sea in which, under international law and under its domestic law, the Kingdom of Spain exercises or may exercise in the future jurisdiction or rights of sovereignty over the seabed, its subsoil and superjacent waters, and its natural resources;

(b) the term 'Andorra' means the Principality of Andorra and, used geographically, designates the territory of the Principality of Andorra;

(c) the words ‘one Contracting State’ and ‘the other Contracting State’ mean Spain or Andorra, depending on the context;

(d) the term ‘person’ includes natural persons, companies and any other grouping of persons;

(e) the term 'company' means any legal person or any entity which is considered a legal person for tax purposes;

(f) the term 'enterprise' applies to the pursuit of any economic activity;

(g) the terms ‘undertaking of a Contracting State’ and ‘undertaking of the other Contracting State’ mean, respectively, an undertaking operated by a resident of a Contracting State and an undertaking operated by a resident of the other Contracting State;

(h) 'international traffic' means any transport carried out by a ship or aircraft operated by an undertaking whose effective head office is situated in a Contracting State, except where the ship or aircraft is operated only between points situated in the other Contracting State;

(i) the expression ‘competent authority’ means:

(i) In Spain: the Minister of Finance and Public Administrations or his authorized representative;

(ii) Andorra: The Minister responsible for finance or his authorized representative.

(j) The term 'national' means:

(i) A natural person possessing the nationality of a Contracting State;

(ii) a legal person, partnership or association incorporated in accordance with the law in force in a Contracting State;

(k) the term 'economic activity' includes the provision of professional services and the carrying out of other activities of an independent nature.

2. For the purposes of the application of the Convention at any time by a Contracting State, any expression or term not defined in the Convention shall have, unless a different interpretation is given in its context, the meaning attributed at that time to it by the law of that State concerning the taxes which are the subject of the Convention, the meaning attributed by the tax law to which it would result from other branches of the law of that State prevails.

1. For the purposes of this Convention, the term ‘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, seat of address or any other criterion of a similar nature, including also that State and its political subdivisions or local entities. This term does not, however, include persons who are subject to taxation in that State solely for the income they obtain from sources located in that State.

2. Where, under the provisions of paragraph 1, a natural person is resident in both Contracting States, his or her situation shall be resolved as follows:

(a) She shall be considered a resident exclusively of the State in which she has permanent housing at her disposal; if she has permanent housing at her disposal in both States, she shall be considered a resident exclusively of the State with which she has closer personal and economic relations (centre of vital interests);

(b) If it is not possible to determine the State in which the person has the centre of his or her vital interests, or if he or she does not have permanent housing at his or her disposal in any of the States, he or she shall be considered a resident exclusively of the State in which he or she habitually lives;

(c) If he or she habitually lives in both States or does not live in either State, he or she shall be deemed to be a resident exclusively of the State of which he or she is a national;

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

3. Where under the provisions of paragraph 1 a person other than a natural person is a resident of both Contracting States, he or she shall be deemed to be a resident exclusively of the State in which his or her place of effective management is located.

1. For the purposes of this Agreement, the term ‘permanent establishment’ means a fixed place of business through which an undertaking carries out all or part of its activity.

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

(a) Management offices;

(b) branches;

(c) Offices;

(d) factories;

(e) Workshops;

(f) mines, oil or gas wells, quarries or any other place of extraction of natural resources; and

(g) agricultural, livestock or forestry holdings.

3. A work or a construction or installation project is a permanent establishment only if it lasts for more than 12 months.

4. Notwithstanding the previous provisions of this Article, it is considered that the term ‘permanent establishment’ does not include:

(a) The use of facilities for the sole purpose of storing, displaying or delivering goods or goods belonging to the enterprise;

(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 processing by another undertaking;

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

(e) the maintenance of a fixed place of business for the sole purpose of carrying out any other auxiliary or preparatory activity for the undertaking;

(f) the maintenance of a fixed place of business for the sole purpose of carrying out any combination of the activities referred to in subparagraphs (a) to (e), provided that the whole activity of the fixed place of business resulting from that combination retains its auxiliary or preparatory character.

5. By way of derogation from paragraphs 1 and 2, where a person, other than an independent agent (to which paragraph 6 applies), acts on behalf of an undertaking and has and exercises habitually in a Contracting State powers to conclude contracts on behalf of the undertaking, that undertaking shall be deemed to have a permanent establishment in that State in respect of the activities carried out by that person for the undertaking, unless the activities of that person are limited to those referred to in paragraph 4 and if they have been carried out through a fixed place of business, they have not determined the consideration of that fixed place of business as a permanent establishment in accordance with the provisions of that paragraph.

6. An undertaking is not considered to have a permanent establishment in a Contracting State merely because it carries out its activities in that State through a broker, a general commissioner or any other independent agent, provided that such persons act within the ordinary framework of their activity.

7. The fact that a company resident of a Contracting State controls a company resident of the other Contracting State or that it is controlled by the latter, or that it engages in economic activities in that other State (whether by permanent establishment or otherwise), does not by itself render any of these companies permanent establishment of the other State.

1. Income from immovable property (including income from agricultural or forestry holdings) situated in the other Contracting State may be taxed in that other Contracting State.

2. The term ‘real property’ shall have the meaning attributed to it by the law of the Contracting State in which the property is situated. In any event, the term includes property attached to immovable property, livestock and equipment used on agricultural and forestry holdings, rights to which the private law provisions relating to real estate, the use of immovable property and the right to receive fixed or variable payments in exchange for exploitation, or the granting of exploitation, of mineral deposits, sources and other natural resources apply; ships and aircraft shall not be regarded as immovable property.

3. The provisions of paragraph 1 are applicable to income derived from direct use, lease or shareholding, as well as from any other form of exploitation of immovable property.

4. Where ownership of shares, shares or other rights directly or indirectly confers on the owner of such shares, shares or rights the right to the enjoyment of immovable property, income derived from the direct use, lease or use in any other form of such right of enjoyment may be subject to taxation in the Contracting State in which the immovable property is situated.

5. The provisions of paragraphs 1, 3 and 4 also apply to income derived from the immovable property of an undertaking.

1. The profits of an undertaking of one Contracting State shall be taxable exclusively in that State, unless the undertaking carries out its business in the other Contracting State by means of a permanent establishment situated therein. If the company does so, the profits of the company may be taxed in the other State, but only to the extent that they are attributable to that permanent establishment.

2. Without prejudice to the provisions of paragraph 3, where an undertaking of a Contracting State carries out its activity in the other Contracting State by means of a permanent establishment situated therein, in each Contracting State the profits which it could have obtained from being a separate and independent undertaking carrying out the same or similar activities shall be attributed to that permanent establishment under the same or similar conditions and shall deal entirely independently with the undertaking from 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 shall be permitted, including management and general administrative expenses for the same purposes, whether incurred in the State in which the permanent establishment is located or elsewhere.

4. No profits shall be attributed to a permanent establishment by reason of the mere purchase of goods or goods by that permanent establishment for the enterprise.

5. For the purposes of the preceding paragraphs, the profits attributable to the permanent establishment shall be determined each year by the same method, unless there are valid and sufficient grounds for proceeding otherwise.

6. Where profits include income regulated separately in other articles of this Convention, the provisions of those articles shall not be affected by those of this Article.

1. Profits from operating ships or aircraft in international traffic shall be taxable exclusively in the Contracting State in which the place of effective management of the undertaking is situated.

2. If the place of effective management of a shipping undertaking is on board a ship, it shall be deemed to be located in the Contracting State where the base port of the ship is located, or if there is no such base port, in the Contracting State of which the person operating the ship is resident.

3. The provisions of paragraph 1 also apply to profits from participation in a pool, on a joint holding or on an international operating body.

1. 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 a Contracting State and of an undertaking of the other Contracting State,

and in either case the two undertakings are, in their commercial or financial relations, bound by accepted or imposed conditions which differ from those which would be agreed by independent undertakings, the profits which would have been obtained by one of the undertakings in the absence of such conditions, and which in fact have not been realized because of them, may be included in the profits of that undertaking and, consequently, subject to taxation.

2. Where a Contracting State includes in the profits of an enterprise of that State - and consequently serious - those of an enterprise of the other State that has already been subject to taxation in that other Contracting State, and that other State recognizes that the profits thus included are profits that would have been realized by the enterprise of the State mentioned first if the terms agreed between the two companies had been those that would have agreed upon independent companies, that other State shall make such adjustment as may be appropriate to the amount of the tax that has taxed those profits. The other provisions of this Convention shall be taken into account in determining such adjustment and the competent authorities of the Contracting States shall be consulted if necessary.

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

2. However, such dividends may also be subject to taxation in the Contracting State in which the company paying the dividends resides and in accordance with the law of that State, but if the beneficial owner of the dividends is a resident of the other Contracting State, the tax thus required may not exceed:

(a) 5 per cent of the gross amount of dividends if the beneficial owner is a company (excluding companies of persons – partnerships) holding directly at least 10 per cent of the capital of the company that pays the dividends;

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

The competent authorities of the Contracting States shall, by mutual agreement, lay down the detailed rules for the application of these limits. This paragraph does not affect the company's taxation in respect of the profits from which dividends are paid.

3. The term ‘dividends’ within the meaning of this Article means the income from shares, shares or enjoyment bonds, parts of mines, founder's bonds or other rights allowing participation in profits other than credit, as well as income from other social shares subject to the same tax regime as the income from shares or shares under the law of the State of residence of the distribution company.

4. The provisions of paragraphs 1 and 2 do not apply if the beneficial owner of the dividends, resident of one Contracting State, carries out in the other Contracting State, of which the company paying the dividends is resident, an economic activity through a permanent establishment located there, and the share of the dividends is effectively linked to that permanent establishment. In such a case, the provisions of Article 7 shall apply.

5. Where a company resident of one Contracting State obtains profits or income from the other Contracting State, that other State may not require any tax on dividends paid by the company, except to the extent that such dividends are paid to a resident of that other State or the share generated by the dividends is effectively linked to a permanent establishment located in that other State, or 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.

6. Where income obtained by a permanent establishment located in one Contracting State is transferred to the other Contracting State, the first Contracting State may require additional taxation, which may not exceed the rate of taxation of 5 per cent, on the amounts transferred from the income of the permanent establishment.

1. Interest from one Contracting State and paid to a resident of the other Contracting State may be taxed in that other Contracting State.

2. However, such interests may also be subject to taxation in the Contracting State from which they come and in accordance with the law of that State, but if the beneficial owner of the interest is a resident of the other Contracting State, the tax thus required may not exceed 5 per cent of the gross amount of interest. The competent authorities of the Contracting States shall, by mutual agreement, lay down the detailed rules for the application of this limit.

3. Notwithstanding the provisions of paragraph 2, interest from a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State only if the recipient of the interest is its beneficial owner and if the beneficial owner is a Contracting State, one of its political subdivisions, one of its local entities or legal persons of public law wholly belonging to those bodies; or if the interest is paid by one of these States, political subdivisions or local entities.

4. The term ‘interest’ within the meaning of this Article means income from claims of any kind, with or without a mortgage guarantee or a benefit-sharing clause of the debtor, and in particular income from public securities and income from bonds or bonds, including premiums and lots attached to such securities, as well as any other income subject to the same regime as income from capital provided by the tax legislation of the State from which the income comes. Penalties for late payment are not considered interest for the purposes of this article.

5. The provisions of paragraph 1 do not apply if the beneficial owner of the interest, resident of one Contracting State, carries out in the other Contracting State, from which the interest is derived, an economic activity through a permanent establishment located in that other State, and the credit generated by the interest is effectively linked to that permanent establishment. In such a case, the provisions of Article 7 shall apply.

6. Where due to special relations between the debtor and the beneficial owner, or between them and third parties, the amount of interest in the light of the claim for payment exceeds that agreed by the debtor and the creditor in the absence of such relationships, the provisions of this article shall apply only to the latter amount. In such a case, the excess amount shall be taxable in accordance with the law of each Contracting State, taking into account the other provisions of this Convention.

7. Interest is considered to come from a Contracting State where the debtor is a resident of that State. However, where the debtor of interest, whether or not resident of a Contracting State, has in a Contracting State a permanent establishment in respect of which the debt for which the interest is paid has been incurred and the latter is borne by the said permanent establishment, such interest shall be deemed to have come from the Contracting State in which the said permanent establishment is situated.

1. Fees from one Contracting State and the beneficial owner of which is a resident of the other Contracting State may be taxed in that other Contracting State.

2. However, such royalties may also be subject to taxation in the Contracting State from which they come and in accordance with the law of that State, but if the beneficial owner of the royalties is a resident of the other Contracting State, the tax thus required may not exceed 5 per 100 of the gross amount of the royalties. The competent authorities of the Contracting States shall, by mutual agreement, lay down the detailed rules for the application of this limit.

3. The term 'royalties' within the meaning of this Article means the amounts of any kind paid for the use, or the granting of use, of copyrights, including cinematographic films and telefilms and recordings intended for radio or television broadcasting, patents, trademarks or trade marks, designs, drawings, formulas or secret procedures, or for information relating to industrial, commercial or scientific experience.

4. The provisions of paragraph 1 do not apply if the beneficial owner of the royalties, resident of one Contracting State, carries out in the other Contracting State, from which the royalties come, an economic activity through a permanent establishment located in that other State, and the right or for which the royalties are paid is effectively linked to that permanent establishment. In such cases the provisions of Article 7 shall apply.

5. The fees shall be deemed to come from a Contracting State where the debtor is a resident of that State. However, where the debtor of the royalties, whether or not he is a resident of a Contracting State, has in one of the Contracting States a permanent establishment in respect of which the obligation to pay the royalties has been entered into and which the latter bears the burden thereof, such fees shall be deemed to come from the State in which the permanent establishment is situated.

6. Where, on account of the special relations between the debtor and the beneficial owner of the royalties, or of those between them and third parties, the amount of the royalties, taking into account the use, right or information for which they are paid, exceeds that for which the debtor and beneficial owner would have agreed in the absence of such relationships, the provisions of this article shall apply only to the latter amount. In such a case, the excess amount shall be taxable in accordance with the law of each Contracting State, taking into account the other provisions of this Convention.

1. Profits that a resident of one Contracting State obtains from the disposal of immovable property as defined in article 6 located in the other Contracting State may be taxed in that other State.

2. Gains from the disposal of movable property forming part of the assets of a permanent establishment held by an undertaking of one Contracting State in the other Contracting State, including gains from the disposal of that permanent establishment (either with the enterprise as a whole or with the enterprise as a whole), may be taxed in that other Contracting State.

3. Profits from the disposal of ships or aircraft operated in international traffic or movable property affected by the operation of such vessels or aircraft shall be taxable exclusively in the Contracting State in which the place of effective management of the undertaking is situated.

4. Profits obtained by a resident of a Contracting State from the disposal of shares or similar rights, the value of which derives in more than 50 per cent, directly or indirectly, from immovable property situated in the other Contracting State, may be taxed in that other State.

However, this subparagraph does not apply to profits arising from the disposal of shares of a company trading on a recognised securities market in one or both of the Contracting States.

5. Profits resulting from the disposal of shares representing a direct or indirect holding of at least 25 per cent in the capital of a company resident in a Contracting State may be taxed in that State.

6. Gains from the disposal of shares or other rights that directly or indirectly grant the owner of such shares or rights the right to the enjoyment of immovable property located in one Contracting State may be subject to taxation in that other State.

7. Profits arising from the disposal of any property other than those referred to in paragraphs 1, 2, 3, 4, 5 and 6 shall be taxable exclusively in the Contracting State in which the transferor resides.

1. Without prejudice to articles 15, 17 and 18, salaries, wages and other similar remuneration obtained by a resident of a Contracting State on account of employment shall be taxable only in that State unless the employment is exercised in the other Contracting State. If the employment is thus exercised, the remuneration derived therefrom may be subject to taxation in that other State.

2. By way of derogation from paragraph 1, remuneration obtained by a resident of a Contracting State on account of employment in the other Contracting State shall be taxable only in the State referred to above where:

(a) The recipient shall remain in the other State for a period or periods of not more than 183 days together in any twelve-month period beginning or ending in the fiscal year concerned; and

(b) the payer is a non-resident employer of the other State, or is paid on its behalf; and

(c) remuneration is not supported by a permanent establishment held by the employer in the other State.

3. Notwithstanding the foregoing provisions of this Article, remunerations obtained from dependent work carried out on board a ship or aircraft operated in international traffic shall be taxed exclusively in the Contracting State in which the place of effective management of the undertaking is situated.

Remuneration as an adviser and other similar remuneration which a resident of a Contracting State obtains as a member of a board of directors of a company resident of the other Contracting State may be taxed in that other State.

1. By way of derogation from Articles 7 and 14, the rents which a resident of a Contracting State obtains from the exercise of his personal activity in the other Contracting State as an artist of the spectacle, such as an actor in theatre, cinema, radio or television, or as a musician, or as an athlete, may be subject to taxation in that other State.

2. Notwithstanding Articles 7 and 14, where the income derived from the activities carried out by an artist or athlete personally and in that capacity is attributed not to the artist himself or to another person, such income may be taxed in the Contracting State in which the activities of the artist or athlete are carried out.

3. The income referred to in this article includes those of an accessory nature derived from benefits related to the personal notoriety of an artist or athlete resident of a Contracting State, provided that they are obtained by reason of their presence in the other Contracting State and come from that other State.

4. Notwithstanding the provisions of paragraph 1 and 2, income derived from activities carried out personally and as such by a performer or sportsman resident of a Contracting State in the other Contracting State may only be taxed in the first Contracting State where such activities carried out in the other State are financed mainly by public funds of the first State, its political subdivisions or local entities or its legal persons governed by public law.

Without prejudice to Article 18(2), pensions and similar remuneration paid to a resident of a Contracting State on account of previous employment shall be taxable exclusively in that State.

1. (a) Salaries, salaries and other similar remuneration paid by a Contracting State or by one of its political subdivisions or local entities to a natural person for services rendered to that State or to that subdivision or entity shall be taxable exclusively in that State.

(b) Such salaries, salaries and similar remuneration shall, however, be taxable only in the other Contracting State where the services are provided in that State and the natural person is a resident of that State and is a national of that State without at the same time being a national of the first State.

2. (a) Notwithstanding paragraph 1, pensions and similar remuneration paid by a Contracting State or by one of its political subdivisions or local entities, either directly or from constituted funds, to a natural person on the basis of services provided to that State or to that subdivision or entity, shall be taxable exclusively in that State.

(b) However, such pensions and similar remuneration shall be taxable only in the other Contracting State where the natural person is a resident and a national of that State without at the same time being a national of the first State.

3. The provisions of Articles 14, 15, 16 and 17 apply to salaries, salaries, pensions and other similar remuneration paid for services rendered in the context of an economic activity carried out by a Contracting State or by one of its political subdivisions or local authorities.

The amounts received to cover the costs of maintenance, study or practical training by a student, apprentice or trainees who is, or was, immediately before arriving in a Contracting State, resident of the other Contracting State and who is in the State referred to first for the sole purpose of continuing his studies or practical training, may not be subject to taxation in that State provided they come from sources outside that State.

1. The income of a resident of a Contracting State, regardless of its origin, not mentioned in the previous articles of this Convention, shall be taxable exclusively in that State.

2. Paragraph 1 does not apply to income, other than that derived from immovable property within the meaning of Article 6(2), where the beneficiary of such income, resident of a Contracting State, carries out an economic activity in the other Contracting State through a permanent establishment situated in that other State, and the right or for which the income is paid is effectively linked to that permanent establishment. In such a case, the provisions of Article 7 shall apply.

1. In Spain, double taxation shall be avoided in accordance with the provisions of its domestic legislation or in accordance with the following provisions in accordance with Spanish domestic law:

(a) Where a resident of Spain obtains income which, in accordance with the provisions of this Convention, may be taxed in Andorra, Spain shall permit:

(i) The deduction of the income tax of that resident in the amount of the income tax paid in Andorra;

(ii) the deduction of corporation tax actually paid by the company which distributes the dividends corresponding to the profits from which the dividends are paid, in accordance with Spain's domestic law.

However, such deduction may not exceed the part of the income tax, calculated before the deduction, corresponding to the income that may be taxed in Andorra.

(b) Where under any provision of this Agreement the income obtained by a resident of Spain is tax-exempt in Spain, Spain may, however, take into account the exempt income in calculating the tax on the rest of the income of that resident.

2. In Andorra, double taxation shall be avoided in accordance with the provisions of its domestic legislation or in accordance with the following provisions in accordance with Andorran domestic law:

(a) Where a resident of Andorra obtains income which, in accordance with the provisions of this Agreement, may be taxed in Spain, Andorra shall accept a deduction in the income tax of that resident from an amount equal to the tax paid in Spain.

However, in either case, such deduction may not, in any case, exceed the part of the income tax, calculated before the deduction, corresponding, as the case may be, to the taxation of Spain.

(b) Where, in accordance with any provision of the Convention, income obtained by a resident of Andorra is exempt from taxation in that State, Andorra may, however, take into account exempt income for the purpose of calculating the amount of tax on the rest of the income of that resident.

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 that other State who are under the same conditions, in particular with regard to residence, are or may be subject. Notwithstanding Article 1, this provision shall also apply to persons who are not residents of one or any of the Contracting States.

2. Permanent establishments held by an undertaking of one Contracting State in the other Contracting State shall not be subject to taxation in that State in a less favourable manner than undertakings of that other State carrying out the same activities. This provision may not be interpreted as obliging 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.

3. Unless the provisions of Article 9(1) of Article 11(4) or Article 12(4) apply, interest, royalties and other expenses paid by an undertaking of a Contracting State to a resident of the other Contracting State shall be deductible to determine the profits subject to taxation of that undertaking under the same conditions as if they had been paid to a resident of the State referred to first.

4. Undertakings 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 State referred to above to any tax or obligation relating thereto which is not or is more burdensome than those to which other similar undertakings of the State referred to in the first instance are or may be subject.

5. By way of derogation from Article 2, the provisions of this Article apply to all taxes irrespective of their nature and name.

1. Where a person considers that the measures taken by one or both Contracting States involve or may entail for him an imposition which is not in conformity with the provisions of this Convention, irrespective of the remedies provided for by the domestic law of those States, he may submit his case to the competent authority of the Contracting State of which he is resident or, if Article 22 (1) applies, to that of the Contracting State of which he is a national. The case must arise within three years of the first notification of the measure involving an imposition not in accordance with the provisions of the Convention.

2. The competent authority shall, if the complaint appears to it to be well founded and if it cannot in itself reach 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 an imposition not in conformity with the Convention. The agreement shall apply irrespective of the time limits provided for by the domestic law of the Contracting States.

3. The competent authorities of the Contracting States shall endeavour to resolve any difficulties or doubts arising from the interpretation or application of the Convention by means of an amicable agreement. They may also agree to try to avoid double taxation in cases not covered by the Convention.

4. The competent authorities of the Contracting States may communicate directly with each other in order to reach agreement within the meaning of the preceding paragraphs. Where it is considered that such an agreement may be facilitated by an oral exchange of views, it may be carried out through a commission composed of representatives of the competent authorities of the Contracting States.

1. The competent authorities of the Contracting States shall exchange information which is likely to be relevant to the application of this Convention, or to the administration or application of national law relating to taxes of any kind or designations required by the Contracting States, their political subdivisions or local authorities, to the extent that such taxation is not contrary to the Convention. The exchange of information is not limited by Articles 1 and 2.

2. Information received by a Contracting State pursuant to paragraph 1 shall be kept secret in the same manner as information obtained under the domestic law of that State, and shall be communicated only to the persons or authorities (including courts and administrative bodies) responsible for the management or collection of the taxes referred to in paragraph 1, for their effective application or for the prosecution of non-compliance with such taxes, for the determination of appeals relating thereto, or for the supervision of such activities. These persons or authorities shall use this information only for these purposes. They may disclose the information at public court hearings or in court judgements.

Notwithstanding the above, information received by a Contracting State may be used for other purposes where, under the law of both States, it may be used for such other purposes and the competent authority of the State providing the information authorizes such use.

3. Under no circumstances may the provisions of paragraphs 1 and 2 be interpreted as obliging 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 which cannot be obtained on the basis of their own legislation or in the exercise of their normal administrative practice or that of the other Contracting State; and

(c) provide information revealing business, industrial, commercial or professional secrecy or an industrial process, or information the communication of which is contrary to public policy (‘ordre public’).

4. Where a Contracting State requests information pursuant to this Article, the other Contracting State shall use the measures available to it to gather information for the purpose of obtaining the information requested, even if that other State may not need such information for its own tax purposes. The above obligation is limited by paragraph 3, but in no case may Contracting States interpret such limitations as a basis for refusing the exchange of information solely because of the absence of national interest in it.

5. In no case shall the provisions of paragraph 3 be interpreted as allowing a Contracting State to refuse the exchange of information solely because it is held by banks, other financial institutions or by any person acting in a representative or fiduciary capacity, including designated agents, or because it relates to property rights in a person.

The provisions of this Convention shall not affect the tax privileges enjoyed by members of diplomatic missions or consular offices and members of permanent delegations to international organizations in accordance with the general principles of international law or under the provisions of special agreements.

1. The Governments of the Contracting States shall notify each other, through diplomatic channels, that the internal procedures required in each Contracting State for the entry into force of this Convention have been complied with.

2. The Convention shall enter into force within three months of the date of receipt of the last of the notifications referred to in paragraph 1, and its provisions shall take effect:

(a) For taxes not withheld at source, for fiscal years beginning from the date on which the Convention enters into force; and

(b) in all other cases, from the date on which the Convention enters into force.

This Convention shall remain in force until its denunciation by one of the Contracting States. Any Contracting State may denounce the Convention, through diplomatic channels, by written notification to that effect at least six months before the end of any calendar year commencing after a period of five years from the date of its entry into force. In such a case, the Convention shall cease to have effect:

(a) For taxes not withheld at source, for fiscal years beginning after the end of that calendar year; and

(b) in all other cases, after the end of that calendar year.

In faith, the signatories, duly authorized to do so, have signed this Convention.

Made in double copy in Andorra la Vella on 8 January 2015, in the Spanish and Catalan languages, both texts being equally authentic.

At the time of signing the Convention between the Kingdom of Spain and the Principality of Andorra to prevent double taxation of income taxes and to prevent tax evasion, the signatories have agreed on the following provisions which will form an integral part of the Convention.

I. Right to benefit from the Convention.

(1) Contracting States declare that their domestic rules and procedures with respect to abuses of the rule (including tax treaties) apply to the treatment of such abuses.

(2) This Convention shall not prevent Contracting States from applying their domestic rules on international tax transparency ‘Controlled Foreign Company Rules (CFCs)’.

(3) Notwithstanding the other provisions of this Convention, benefits granted under this Convention shall not be granted in respect of an income element where it is reasonable to consider, taking into account all relevant facts and circumstances, that the agreement or operation which directly or indirectly generates the right to receive such benefit has as its main objectives the acquisition of such benefit, except where it is determined that the granting of the benefit in such circumstances is in conformity with the object and purpose of the Convention.

(4) The benefits of this Convention shall not be deemed to be granted to a person other than the actual beneficiary of income from the other Contracting State.

(5) If this Convention provides that an element of income is taxable only in one of the Contracting States, the other Contracting State may tax that element only if that element of income is not subject to taxation in the first Contracting State.

(6) Where, pursuant to the provisions of this Convention, an income benefits from a tax advantage in one of the Contracting States and in accordance with the domestic law of the other Contracting State, a person is subject to taxation on a fraction of that income and not on the total amount, the tax advantage agreed by the first State shall not apply in the part of the income not subject to taxation.

(7) With regard to the application of the above provisions, the competent authorities of the Contracting States shall consult each other for the purpose of applying those provisions, taking into account the particular circumstances of the case.

II. With regard to article 4 (Tax residence).

Persons covered by the special scheme provided for in transitional provision 3 of the Andorran Law 5/2014 of 24 April, on personal income tax, shall not be entitled to the application of this Agreement.

III. In relation to Article 6(4) (Real estate rents) and Article 13(6) (Capital gains).

Income derived from immovable property may not be attributed to those who are entitled to the enjoyment of such immovable property under a multi-proprietary contract, where their enjoyment does not exceed two weeks per calendar year.

IV. In relation to article 10 (Dividends).

The provisions of Article 10, paragraph 2 (a) and (b) shall not apply to dividends distributed by an anonymous listed Investment Company in the Real Estate Market (SOCIMI) regulated by Spanish Law 11/2009 of 26 October 2009 on anonymous listed Investment Companies in the Real Estate Market (SOCIMI) or any successor laws. In this case, if the actual beneficiary of the dividends is a resident of Andorra, the tax thus required may not exceed 15 per 100.

V. With regard to articles 10 (Dividends), 11 (Interests), 12 (royalties).

In order to obtain the benefits provided for in Articles 10, 11 and 12, residents of the other Contracting State must, unless the competent authorities have otherwise agreed, submit a residence certificate indicating the nature and amount or value of the income issued by the competent authority of the other State.

VI. Assistance in tax collection.

Considering the readiness of the Kingdom of Spain and the Principality of Andorra to improve and expedite administrative cooperation relations in tax matters, the Contracting States undertake to initiate, when the new legal framework of the Principality of Andorra is fully defined and effectively implemented, negotiations for the signing of an administrative agreement on mutual assistance in the collection of their tax claims.

VII. In relation to Article 24 Exchange of Information.

1. In relation to the exchange of information upon request under Article 24 of this Convention, the provisions of the Agreement between the Principality of Andorra and the Kingdom of Spain for the exchange of information in tax matters signed on 14 January 2010 shall apply until 1 January 2016. From that date, the provisions of that Agreement shall be replaced by the provisions of this Convention.

2. Requests for information made under the Convention and those pending reply on 1 January 2016 shall be processed in accordance with the provisions of this Convention, in accordance with the guidelines set out in the following points:

i. The competent authority of a Contracting State shall provide, upon request, information for the purposes set out in Article 24. Such information shall be exchanged irrespective of whether the conduct under investigation could constitute a criminal offence under the laws of that Contracting State if such conduct had occurred in that State.

ii. It is understood that the exchange of information may be requested only after all the usual sources of information of the Contracting State requiring the information, available to it under its domestic tax procedure, have been exhausted, without risking that this would adversely affect its purposes or that it might lead to disproportionate difficulties.

iii. If expressly requested by the competent authority of a Contracting State, the competent authority of the other Contracting State shall provide information under article 24, to the extent permitted by its domestic law, in the form of witness statements and authenticated copies of original documents.

iv. Each Contracting State declares that, for the purposes expressed in Article 24, its competent authorities are empowered to obtain and provide, upon request, information of any kind with tax significance concerning the legal and effective ownership of any person.

v. The rights and safeguards applicable under the domestic law of the Contracting States shall not be deemed to prevent or unduly impede the effective exchange of information by thwarting the efforts of the requesting State.

I saw. The ‘predictably relevant’ criterion shall be understood to be intended to provide for an exchange of tax information as wide as possible and, at the same time, to clarify that States are not free to undertake indefinite searches for evidence (‘fishing expeditions’), or to request information of doubtful relevance with regard to the tax status of a particular taxpayer.

Requests for information shall be as detailed as possible including the following information:

(a) The identity of the person under inspection or investigation. This information may consist of the name or other sufficient information to enable its identification;

(b) a statement of the type of information requested showing its nature and the manner in which the requesting State prefers to receive it;

(c) the tax purpose for which the information is sought;

(d) the reasons why the information requested is likely to be relevant to the administration and application of the tax legislation of the requesting State, as regards the person identified in subparagraph (a) of this point;

(e) the reasons why the requested information is considered to exist in the other Contracting State or whether a person under the jurisdiction of the other Contracting State possesses it or has it under its control or may obtain it;

(f) to the extent possible, the name and address of persons suspected of possessing or keeping under control the information requested;

(g) a declaration certifying that the request is in conformity with the legal and administrative practices of the requesting State and that the requesting State could obtain the information in accordance with its legislation or through treaty administrative channels in similar circumstances, in response to a valid request from a Contracting State under this Convention;

(h) a statement certifying that the requesting State has exhausted all available means within its jurisdiction to obtain the information, unless this entails disproportionate difficulties.

The above requirements contain procedural requirements that must be interpreted in such a way as not to spoil the effective exchange of information.

vii. The competent authority of one Contracting State shall send the requested information as soon as possible to the other Contracting State. In order to ensure a prompt response, the competent authority of the Contracting State referred to first:

(a) acknowledge receipt of the request in writing to the competent authority of the other Contracting State at the latest within 10 days of its receipt.

(b) Notify the competent authority of the other Contracting State of any defects in the application within 60 days of acknowledgement of receipt.

(c) Contracting States shall make their best efforts to obtain and exchange the information required within a period of not more than six months from the acknowledgement of receipt, unless due to the complexity of the information requested or the difficulties presented in obtaining it, a longer period is required. In such cases, the requested State shall notify the requesting State of such a situation, as well as of the estimated time to deliver the information.

The temporary restrictions referred to in this Article in no way affect the validity and legality of the information exchanged under this Convention.

(d) The information shall be deemed to have been exchanged in accordance with the provisions of article 24 of this Convention even if it has been provided after the deadlines set.

viii. The rights and guarantees accorded to persons in a Contracting State shall be deemed to apply in that Contracting State in the course of the information exchange procedure.

ix. Information provided to an requesting State under this Convention shall not be disclosed to any foreign authority.

x. Without prejudice to the entry into force of the Convention, requests for information may be made in respect of those financial years for which information may have been requested under the Agreement between the Principality of Andorra and the Kingdom of Spain for the exchange of information in tax matters signed on 14 January 2010.

3. Andorra shall be in a position to exchange information automatically as soon as it effectively adopts the common standard set by the OECD for the automatic exchange of financial information under a bilateral or multilateral agreement for the full implementation of Article 24 of this Convention.

In faith, the signatories, duly authorized to do so, have signed this Protocol.

Made in double copy in Andorra la Vella on 8 January 2015, in the Spanish and Catalan languages, both texts being equally authentic.

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This Convention shall enter into force on 26 February 2016, within three months of the date of receipt of the last of the notifications, as set out in Article 26 thereof.

Madrid, November 27, 2015.–The Technical General Secretary of the Ministry of Foreign Affairs and Cooperation, P. S. (Real Decree 342/2012 of 10 February), the Deputy Technical Secretary General of the Ministry of Foreign Affairs and Cooperation, Celia Abenza Rojo.