Spain and the United States have signed a new double-taxation agreement which aims to boost investment flows between the two countries, Spain’s budget ministry said Monday.
The new agreement adapts a 1990 tax treaty “to the needs of existing economic and commercial ties,” it said in a statement.
“I am sure that signing this agreement will give a definitive boost to US investments in Spain and that it will cause our firms to bet strongly on expanding their business in the United States,” Spain’s budget secretary, Miguel Ferre, said in a statement.
The United States was the fourth-largest source of foreign direct investment in Spain last year, behind Britain, France and The Netherlands, according to Spanish government figures.
US investment totalled 1.44 billion euros ($1.79 billion) in 2011, accounting for 6.4 percent of the total gross foreign direct investment in Spain last year.