Skip to main content

Taxing of Government Bonds and Warrants


 Coupon


1. Qualification
The amount of the interest earned - coupon – is considered income received from returns on capital during the year it was received.


2. Taxation
Interest -coupons- generated by Bonds and Government Debentures shall be taxed at 19% for taxable bases up to 6,000 €. Taxable bases between 6,000 € and 50,000 € shall be taxed at 21%, and taxable bases exceeding 50,000 € shall be taxed at 23%.


3. Withholdings
Tax is withheld on account of Personal Income Tax with respect to this return (19%).


 Transfer or Redemption


1. Qualification
Earnings generated on the transfer or redemption of Government Bonds or Warrants are considered income received from returns on capital and are subject to Personal Income Tax.


2. Taxation
These earnings are calculated as the difference between the transfer or redemption value and the acquisition or subscription price of the Bonds or Warrants being transferred or redeemed.

However, earnings calculated thus may be reduced by accessory expenses in the purchase and sale, if correctly justified.

Net yield shall be taxed at 19% for taxable bases up to 6,000 €. Taxable bases between 6,000 € and 50,000 € shall be taxed at 21%, and taxable bases exceeding 50,000 € shall be taxed at 23%.


3. Withholding
Earnings from the transfer or redemption of Government Bonds and Warrants are not subject to withholding on account of Personal Income Tax, except in the case of account contracts based on transactions with those securities ("financial accounts") or in the event of operation of "anti money-laundering” regulations on the coupon.   

.