New rules will facilitate privately held companies’ access to bond financing and reassure Spanish investors.
On June 28, 2014, Law 10/2014, on the organization, supervision and solvency of credit institutions (Law 10/2014), entered into force. Additional Provision One of Law 10/2014 provided for a long-awaited reform of the Spanish special tax regime for qualifying bond offerings (previously, set out in Additional Provision Two of Law 13/1985, on ratios of investment, equity and information obligations of financial intermediaries (Law 13/1985)).
Law 13/1985 provided for a special tax regime that allowed, inter alia, an interest withholding tax exemption with respect to bonds issued by, among others, Spanish financial institutions and publicly held companies (as well as wholly owned subsidiaries of such entities resident in Spain or in a European Union member state) and bonds held by non-Spanish resident investors who did not maintain a permanent establishment in Spain — subject to the fulfillment of certain requirements.
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