Share Purchase Details
📊 Financial Transaction Breakdown
The Financial Transaction Tax (FTT), popularly known as the Tobin Tax, is an indirect state tax approved under Law 5/2020, of October 15. It levies a flat 0.2% on the acquisition of shares in Spanish companies listed on a regulated market, provided their market capitalization exceeds €1 billion (as of December 1st of the preceding year). This tax only applies to stock purchases, not sales, regardless of where the transaction is executed or the nationality of the broker.
🔍 Exempt Assets and Exclusions
To support market liquidity and encourage long-term savings, Law 5/2020 excludes many assets. The following are completely exempt from the 0.2% tax:
- Foreign Companies: Purchases of shares in non-Spanish companies (e.g., Apple, ASML, Shell).
- Small and Mid-Cap Spanish Companies: Any Spanish corporation with a market valuation below €1 billion.
- Mutual Funds and ETFs: Purchases of units in collective investment schemes or exchange-traded funds (ETFs).
- Fixed Income: Purchases of government bonds, treasury bills, and corporate debt.
- Primary Market: Shares subscribed during an Initial Public Offering (IPO) or a capital increase.
📝 Worked examples
Example 1: Purchasing Telefónica shares for €10,000
Profile: A retail investor buys shares of Telefónica (a Spanish listed company with a market cap > €1 billion) through her online broker for €10,000.00.
- Investment amount: €10,000.00
- Telefónica market cap: > €1 billion (Subject)
- Tax rate: 0.20%
Example 2: Investing in a Spanish mid-cap company (Exempt)
Profile: Purchases shares of a medium-sized Spanish construction company for €15,000.00. Its market capitalization is €450 million.
- Investment amount: €15,000.00
- Company market cap: €450 million (< €1B - Exempt)
- Tax rate: 0.00%
Example 3: International investment in a US company (Exempt)
Profile: Purchases shares in Microsoft on the US NASDAQ market for an equivalent value of €20,000.00.
- Investment amount: €20,000.00
- Corporate residency: United States (Exempt)
- Tax rate: 0.00%
⚠️ Common mistakes
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Thinking you must file a tax return: Individual investors do not need to submit any form. The law shifts the tax responsibility to the financial intermediary (your broker or bank), which automatically charges the 0.2% at the time of purchase and files monthly reports with the AEAT.
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Calculating the tax on full intradía trades: If you buy and sell shares of the same company on the same day, the Tobin Tax is only charged on your net buying position at the market close. For instance, if you buy €10,000 of Telefónica in the morning and sell €6,000 in the afternoon, you only pay 0.2% on the remaining net balance of €4,000.
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Forgetting to check the AEAT official list: Every December, the Spanish tax office publishes the definitive list of corporations subject to the tax for the coming year. It is important to check this list, as companies near the €1 billion mark can enter or exit the tax’s scope from one year to the next.
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Expecting FTT on derivative contracts (CFDs, Options): Derivatives are exempt from this tax because they do not involve the physical acquisition of actual underlying corporate shares (even if used for speculative purposes).
❓ Frequently Asked Questions (FAQ)
The financial intermediary executing the purchase order is responsible for filing the tax. However, the broker legally passes the 0.2% cost directly to the buyer's account as part of the transaction fees.
Most large Spanish corporations in the Ibex 35 index (such as Iberdrola, Inditex, Banco Santander, BBVA, Telefónica, Repsol, or CaixaBank) are subject, as they comfortably exceed the €1 billion market valuation threshold.
No. Cryptocurrencies are not classified as negotiable securities or shares in Spanish companies. Therefore, buying crypto assets remains outside the scope of the FTT.
Yes. The tax applies to the acquisition of shares in subject Spanish companies regardless of the broker's location. Foreign brokers are required to report and pay the tax to the Spanish Treasury.
Yes. Physical investment gold and precious metals are not subject to the Tobin Tax. The tax is strictly limited to corporate equity shares.
They do not affect the tax. Splits alter the number of shares and their nominal unit price, but they do not change the total cash value of the transaction executed by the investor.
No. Share transfers resulting from inheritances or donations are free of charge and are exempt from the FTT. The tax only applies to acquisitions for consideration (purchased shares).
No. The law does not establish any minimum exemption threshold: the 0.2% tax applies from the first euro on any eligible purchase transaction.