Euro corporate bonds Witholding Tax - IB

Discussion in 'Fixed Income' started by luisHK, Sep 8, 2022.

  1. luisHK

    luisHK

    Hi
    Just started buying euro corporate bonds through IB but wondering what the withholding tax situation is.
    Hold a bunch of USD bonds and there´s no WT on them, I just pay taxes on interests received in Spain (where I´m resident) the following calendar year
    Can´t say a first google search brought clear answers.
    With stocks in Europe different countries charge different withholding tax, up to 15% is fine as I can deduct it from my spanish taxes easily, but over that rate it is a problem (it´s the case with german and swiss stocks, and afaik also with french stocks depending on the broker)
    Any first hand experience feedback would be most welcome !
     
  2. M.W.

    M.W.

    Are you a Spanish resident for tax purposes as well, or are you taxed by uncle sam or others as well?

     
  3. luisHK

    luisHK

    Spanish tax resident, I pay witholding tax to IRS @15% on US stock dividends and 0% on interest payments from US bonds, than I pay some more to Spanish tax authorities-
    Up to 15% I can deduct fully from spanish tax, hence it´s fine
     
    Last edited: Sep 8, 2022