Details of the first-time income and capital tax treaty and protocol between Spain and Colombia, signed on 31 March 2005, have become available. The treaty was concluded in the Spanish language and generally follows the OECD Model Convention.

5% on dividends in general and 0% if the beneficial owner is a company that holds directly at least 20% of the capital of the company paying the dividends. The protocol clarifies how the reduced rates apply depending on whether or not the profits have been subject to Colombian tax at the corporate level or the profits have been distributed from exempt profits and certain con…