Dividends are taxed. Therefore, if you invest in foreign shares, you may have to pay taxes on dividends both in Spain and in the country of origin of the security. This is known as double taxation on dividends. However, in order to promote foreign investment, Spain has several bilateral agreements that allow investors to benefit from a reduction of taxes on their international dividends.

In this link, we explain what you should do to enjoy a more favorable tax treatment if you invest in U.S. and Canadian shares.

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