DT17631 - 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.`
