Regulatory Alerts2022-12-01
Law 5/2020, of October 15, on the Financial Transactions Tax
The Spanish State enacted Law 5/2020 to impose a financial transactions tax on the acquisition of shares in Spanish companies with a market capitalization exceeding 1 billion euros. The law defines the taxable event as the acquisition of such shares, establishes specific exemptions for primary market operations and group transactions, and designates financial intermediaries as the primary taxpayers responsible for declaration and payment. It further mandates the publication of eligible companies by the Tax Agency and sets out detailed rules for tax bases, liabilities, and compliance procedures.
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