The Court of Justice of the European Union rules on the neutralisation of the Spanish withholding tax discrimination affecting US RICs: the iShares case (C-139/25)

On 17 September 2026, the Court of Justice of the European Union (the “CJEU”) delivered its judgment in Case C-139/25, iShares Europe ETF (the “Judgment”), in response to a question referred by the Spanish Supreme Court (order of 11 February 2025).

iShares Europe ETF (“iShares”), a US Regulated Investment Company (“RIC”), received dividends from Spanish companies during 2007 to 2010, subject to a 15% withholding tax under the Spain-US tax treaty. Spanish investment funds meeting equivalent conditions are instead taxed at 1% on the same dividends. iShares claimed a refund of the difference, arguing this disparity breached the free movement of capital under Article 63 TFEU.

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