DT17631 - DT: Spain: double taxation agreement, Exchange of Notes.
Accordingly:
paragraph (3) of Article 6 of the Convention shall be deleted
and replaced by the following:
`3. The provisions of paragraph 1 of this Article shall apply
to income derived from the direct use, letting, or use in any other
form of immovable property but shall not apply to income derived
from the ownership of time-share rights in respect of immovable
property situated in a Contracting State which are owned by a
resident of the other Contracting State and which may be used for a
period or periods which in the aggregate do not exceed four weeks
in any calendar year. In the computation of the period or periods,
for the purposes of this paragraph, there shall be taken into
account all time-share rights owned by a resident of a Contracting
State in respect of immovable property situated in the other
Contracting State.`;
the following new paragraph shall be inserted immediately
after paragraph 4 of Article 13 of the Convention:
`5. Notwithstanding the provisions of paragraph 1 of this
Article, capital gains from the alienation of time-share rights
which may be used for periods not exceeding four weeks in any
calendar year shall be taxable only in the Contracting State of
which the alienator is a resident. In the computation of the period
or periods, for the purposes of this paragraph, there shall be
taken into account all time-share rights owned by a resident of a
Contracting State in respect of immovable property situated in the
other Contracting State.`; and
the following new paragraph shall be inserted immediately
after paragraph 4 of Article 23 of the Convention:
`5. Notwithstanding the provisions of paragraph 1 of this
Article, capital represented by time- share rights of a resident of
a Contracting State which may be used for periods not exceeding
four weeks in any calendar year shall be taxable only in that
State. In the computation of the period or periods, for the
purposes of this paragraph, there shall be taken into account all
time-share rights owned by a resident of a Contracting State in
respect of immovable property situated in the other Contracting
State.`
