Capital yield and non-resident withholdings: forms 123, 193 and 216

They are three forms from the AEAT (the Spanish tax agency) linked to the same obligation: whoever pays certain incomes must deduct (withhold) a portion and advance it to Hacienda on behalf of the recipient.

Form 123 is the periodic self-assessment (quarterly or monthly) with which you pay the withholdings applied to movable capital yields in favour of residents: dividends, loan interest and other yields subject to personal income tax or corporate tax.

Form 193 is the annual informative summary of form 123: you do not pay anything with it, but it details to Hacienda who was paid and how much was withheld during the financial year. It is mandatory even if the quotas have already been paid quarter by quarter.

Form 216 is the equivalent when the recipient is a non-resident without a permanent establishment in Spain: it includes the withholdings for the Non-Resident Income Tax (IRNR). Its annual summary is form 296.

Natural persons, legal entities and other organisations (including public administrations) that pay movable capital yields subject to withholding are obliged to withhold.

In practice, form 123 and its summary 193 are filed by companies that distribute dividends to their partners and companies or individuals who pay interest on a received loan (for example, a loan from a partner to their own company).

Form 216 (and the annual summary 296) are filed by companies and individuals established in Spain who pay income to a non-resident without a permanent establishment: dividends, interest, royalties or certain services.

The obliged party is always the payer, not the recipient. If you do not withhold when you should have, Hacienda can claim the unpaid quota from you, plus surcharges, interest and, where applicable, a penalty. Managora assumes this control for you.

For movable capital yields paid to residents (form 123), the general withholding rate is 19%: it applies to dividends as well as loan interest and other movable capital yields.

For payments to non-residents without a permanent establishment (form 216), dividends and interest are taxed at 19%; royalties at 24% generally and at 19% when the recipient resides in the European Union, Iceland, Norway or Liechtenstein.

There are relevant internal exemptions: interest paid to residents in another European Union State with information exchange is exempt, and dividends that a Spanish subsidiary distributes to its EU or European Economic Area parent company can be exempt (parent-subsidiary regime), subject to participation and holding requirements.

In addition to these internal rates, the limits of double taxation treaties apply, which usually lower the withholding. You can see the fee amounts for Managora to manage each form on the procedure's page.

When the recipient resides in a country with a double taxation treaty with Spain, the IRNR withholding is limited to the cap set by that treaty, which is almost always lower than the internal rate.

To apply the reduced rate or the treaty exemption at the time of payment, you must keep the recipient's tax residence certificate, issued by the tax authority of their country. Without this valid certificate, the full internal rate must be applied.

The party obliged to withhold files form 216 even if the result for the period is zero or negative (for example, if you applied a reduced treaty rate or did not actually withhold). The case is different for income exempt from IRNR (article 14 of the Texto Refundido de la Ley del IRNR, the Consolidated Text of the Non-Resident Income Tax Act): generally, they are not included in form 216, except for specific cases such as certain dividends. Managora controls which return corresponds to each situation.

The specific limits vary by country and by type of income, and depend on the participation percentage and the holding period. Managora checks the applicable treaty and the documentation before applying any reduced rate.

Forms 123 and 216 are generally filed quarterly: within the first twenty calendar days of April, July, October and January, referring to the previous calendar quarter.

Large companies (turnover exceeding €6,010,121.04 in the previous financial year) file these forms monthly, within the first twenty days of the month following the settlement period.

The annual informative summaries (form 193 for movable capital and form 296 for non-residents) are filed from 1 to 31 January of the year following the declared financial year. When 31 January falls on a Saturday, Sunday or public holiday, the deadline is moved to the next working day.

If you set up a direct debit for the payment, the filing deadline is usually brought forward a few days from the 20th. All forms must be filed electronically at the Tax Agency's headquarters.

As of July 2026, the 19% rate is maintained for movable capital withholdings for residents and for dividends and interest for non-residents, as well as the general 24% IRNR rate (19% for residents of the EU, Iceland, Norway and Liechtenstein).

Filing is entirely electronic at the Tax Agency's electronic headquarters, using a digital certificate, electronic DNI or Cl@ve (the Spanish electronic identity system). There is no paper filing.

Managora identifies the subject income, calculates the correct withholding (internal or treaty), files each form within the deadline, pays the quota and issues the withholding certificate for the recipient. You only provide the payment details.

For the amount of our fees for each form, please consult the corresponding procedure page: form 123, form 193 and form 216.