Company: BCDRF
Filing Date: 2025-10-31
Form Type: 424B5
Source: 0001193125-25-260533
Chunk: 106

Company: Banco Santander, S.A.
Filing Date: 2025-10-31
Form: 424B5
Chunk 106
---
 advice in relation to the EU FTT.

15

Notwithstanding the above, please bear in mind that Spain has implemented a Spanish tax on
financial transactions which came into force on January 16, 2021. For more details see section “Taxation—Spanish Taxation—E. Spanish FTT.”

The implementation of the Global Minimum Tax may adversely affect Banco Santander’s future effective tax rates

On December 14, 2022, the Council of the EU approved Directive 2022/2523 on ensuring a global minimum level of taxation (“Global
Minimum Tax”) for multinational enterprise groups and large-scale domestic groups in the EU. This directive introduces minimum effective taxation of 15% for multinational enterprise groups and large-scale domestic groups with annual revenues
of at least €750 million in the consolidated financial statements in at least two of the four prior fiscal years.

Taxpayers
included in the scope of the Global Minimum Tax should calculate their effective tax rate for each jurisdiction where they operate, and pay a “top-up tax” (as defined and detailed in the
abovementioned directive) for the difference between their effective tax rate per jurisdiction and the 15% minimum rate. It is reasonable to expect that Banco Santander would be included in the scope of the Global Minimum Tax.

In addition, Directive 2022/2523 follows closely the OECD Inclusive Framework on Base Erosion and Profit Shifting and should be transposed by
the Member States throughout 2023, entering into force generally on 1 January 2024. The OECD is working on the implementation guides and has recently approved a report on safe harbours in order to simplify the implementation of these rules.

The implementation of the Global Minimum Tax may adversely impact, among others, Banco Santander’s (i) future effective tax
rates; (ii) the jurisdictions in which our profits are determined to be earned and taxed; and (iii) the application of available tax credits.

Prospective investors are advised to seek their own professional advice in relation to the Global Minimum Tax.

The market value of the securities is likely to be limited by early redemption features

Early redemption features are likely to limit the market value of the securities. During any period when Banco Santander may redeem the
securities, the market value of those instruments generally will not rise substantially above the price at which they can be redeemed. Banco Santander may be expected to redeem the securities when its cost of borrowing is lower than the interest
rate on the securities. At those times,