Taxation of interest on loans granted to Valvest in Spain (2025)

In Spain, interest earned from loans granted to entities like Valvest is considered investment income and is taxed at progressive rates:

• 19% on the first €6,000
• 21% on income between €6,000 and €50,000
• 23% on income between €50,000 and €200,000
• 27% on income between €200,000 and €300,000
• 28% on income exceeding €300,000

Declaring foreign interest income

As a tax resident in Spain, you are required to declare your worldwide income, including interest received from foreign sources such as loans to Valvest. This income must be included in your annual Spanish tax return.

Avoiding double taxation

Spain has tax treaties with many countries, including the Netherlands, to prevent double taxation. According to the Spain-Netherlands tax treaty, interest income from Valvest is taxable in Spain.

Example calculation

If you receive €1,000 in interest from a loan to Valvest, the taxation in Spain would be:

• Income tax (19%): €1,000 × 19% = €190
• Net amount received: €1,000 - €190 = €810

Spanish tax declaration

It is essential to correctly report this foreign interest income in your Spanish tax return. You must fill out the appropriate forms and attach any required documentation. Consulting the Spanish tax authorities or a tax expert is recommended for precise guidance.