Spain signed on April 1st an agreement with Hong Kong for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income.

The tax treaty is based in the OECD Tax Convention and it regulates taxation on dividends paid in either way between residents in Spain and Hong Kong, as well as incomes such as interest and royalties, among other issues.

Furthermore, the agreement will include an article on the exchange of information under the terms established by the model agreement from the OECD.

The signing of this agreement strengthens the bilateral economic relations that exists between Spain and Hong Kong, removing barriers to reciprocal investment and increasing legal security for investors. Moreover, under this agreement, Hong Kong will lose its tax haven status in Spain since the moment it comes into force.

If you would like to download this Agreement, please follow this link.