Spain and Romania sign convention to eliminate double taxation and prevent tax evasion

Once in force the Convention, signed in Bucharest, will replace the previous convention, signed between the Kingdom of Spain and the Government of the Socialist Republic of Romania on 24 May 1979, which will cease to be applicable to relations between the two States.

The new Convention improves and updates certain articles of the Convention to adapt them to both the needs deriving from current economic and trade relations between Spain and Romania, as well as the successive changes that have been introduced in the Model Tax Convention of the OECD and within the framework of the BEPS Project of the OECD and of the G-20 to fight base erosion and profit shifting.

One of the aims of the new Convention is to step up both Romanian investment in Spain and Spanish investment in Romania, as well as to take yet another step forward by the State in its commitment to renegotiate all those conventions to eliminate the double imposition of taxation which, both due to the passage of time and to the close economic relations that it maintains with certain countries, need to be adapted to the new circumstances.

Non official translation