The France-Spain tax treaty, point by point

The tax treaty between France and Spain on income and wealth taxes was signed in Madrid on October 10, 1995. It is amended by the Multilateral Convention (MLI), which takes effect in 2023. Inheritance tax is governed by a separate treaty, signed in Madrid on January 8, 1963. This page outlines the points we have been able to confirm and explains what it does not cover.

A 1995 text, the MLI since 2023, a 1963 convention for inheritances

The 1995 convention. It was signed in Madrid on October 10, 1995, with a protocol forming an integral part thereof. The administrative list of tax treaties classifies it as covering income and capital (BOI-ANNX-000306, dated April 29, 2026).

The MLI. The convention is amended by the multilateral convention signed on June 7, 2017. Its effects begin in 2023, both for withholding taxes and for taxes on periods beginning on or after January 1, 2023. The administrative list of amended conventions (BOI-ANNX-000511, dated April 29, 2026) gives January 1, 2023, as the date for Spain in both columns. A consolidated text of the convention incorporating the MLI is available, published by the French tax authorities.

The 1963 convention. The Franco-Spanish convention of January 8, 1963, originally dealt with income and inheritance taxes. Its "income" section was replaced by the conventions of 1973 and then 1995. Inheritance taxes are discussed below.

The rules we have confirmed

Who is a resident?

Article 4 of the 1995 Convention governs the case of a person resident in both States. Paragraph 2 of this article establishes, in order: a) the State where the person has a permanent home; if they have such a home in both States, the State with which their personal and economic ties are closer (centre of vital interests); b) if the State where they have their centre of vital interests cannot be determined, or if they do not have a permanent home in either State, the State where they habitually reside; c) failing that, the State of which they are a national; d) if no criterion resolves the matter, the competent authorities shall settle the question by mutual agreement.

When the convention applies, its definition of resident takes precedence over domestic tax domicile. French tax domicile is addressed on our page about leaving France.

Dividends

Paragraph 2(a) of Article 10 caps the tax of the State of source at 15 % of the gross amount of dividends. Paragraph 2(b) provides that dividends are taxable only in the State of which the beneficial owner is a resident, if the beneficial owner is a company subject to corporation tax that is: (i) resident in France and directly holds at least 10 % of the capital of the company paying the dividends, throughout a 365-day period including the date of payment; or (ii) resident in Spain and holds a substantial interest, the conditions of which are not detailed here.

Wages and the 183-day rule

For wages, Article 15 uses the state of residence, unless the employment is performed in the other state. It provides an exception based on duration: the stay in the other state must not exceed a total of 183 days in any twelve-month period (Article 15, paragraph 2(a)). The calculation period is therefore a rolling twelve-month period, not the calendar year. Two other conditions apply: the employer must not be resident in the other state, and the remuneration must not be borne by a permanent establishment or fixed base that the employer has in that state. The full text of the article must be examined before any calculation.

This threshold is not that of Spanish tax residence, which is the subject of our page on living in Spain.

Inheritance: the convention of January 8, 1963

The tax authorities' commentary (BOI-INT-CVB-ESP-20, version in force since November 28, 2024) indicates that Articles 29 to 38 of the 1963 Convention, concerning successions, remain applicable, as do its common provisions (Articles 1 to 7 and 39 to 45). The Convention was approved by Law No. 63-1177 of November 28, 1963, and entered into force on December 29, 1963. It applies to the estates of persons who died on or after November 29, 1963.

It targets the estates of individuals resident in France or Spain at the time of death. The taxes concerned are, in France, inheritance tax and, in Spain, inheritance and gift tax.

Two rules are confirmed by extracts from the text:

• The buildings are subject to inheritance tax only in the State where they are located (Article 30).
• Other intangible assets, including bank assets, are subject to inheritance tax only in the State where the deceased was resident at the time of his death (Article 34).

The rules applicable to tangible movable property, business assets, and the calculation of the rate are set out in the text. They are not detailed here.

What this page does not cover

Interest, royalties, capital gains, pensions, and the elimination of double taxation are not detailed here and can be found in the consolidated text. The same applies to the MLI clause on entitlement to benefits. The application of the convention to the French wealth tax (IFI) is not addressed.

Numerical example (fictitious profile)

Situation. A salaried employee, resident of France, fictitious profile, is employed by a French company. He makes three business trips to Spain during the same period of twelve consecutive months: 70, 60 and 40 days.

Issue. He wonders which state can tax the remuneration of days worked in Spain. The 183-day threshold of Article 15 serves as his benchmark.

Strategy. He keeps a daily tally over any period of twelve consecutive months, then has the other two conditions of the article examined.

Result. His three stays total 170 days: the 183-day threshold is not exceeded, with a margin of 13 days. A fourth stay of 20 days would bring the total to 190 days: the threshold would be exceeded by 7 days. This is not sufficient to reach a conclusion: the conditions relating to the employer and the permanent establishment still need to be examined.

What changes depending on your situation

• Your residence as defined in the agreement.
• The nature of the income: dividend, salary, other income.
• The number of days spent in each state, over each period of twelve consecutive months.
• The nature and location of your assets, for inheritance purposes: real estate, bank accounts, other assets.
• The effects of MLI on your situation.

An article should be read in light of the facts in your case, and no result is guaranteed in advance.