Company: BBVXF
Filing Date: 2025-01-08
Form Type: 424B5
Source: 0001193125-25-003393
Chunk: 111

Company: BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
Filing Date: 2025-01-08
Form: 424B5
Chunk 111
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 Spain, causing significant devastation in the Valencia region in particular. The floods have caused significant casualties, disruption in operations and the movement of goods, and property damage and other economic losses. The impact of this natural disaster on BBVA, the Target Company and/or their respective customers and counterparties could be material. See “ Risk Factors—Macroeconomic and Geopolitical Risks—Political, economic and social conditions in Spain may have an adverse effect on our business, financial condition and results of operations” and “ —Business Risks—The Group is exposed to various risks in connection with climate change” in the 2023 Form 20-F. New Tax on Credit Institutions in Spain On December 19, 2024, the Spanish Congress passed the law that transposes EU Council Directive 2022/2523. This new law creates a new tax on the net interest income and commissions of certain credit institutions in Spain, including BBVA. The taxable base of this new tax is the positive balance of net interest income and the net commissions derived from the activity carried out in Spain, reduced by €100 million. The net taxable base cannot be negative, and the applicable tax rate varies from 1% to 7%. Certain reductions and deductions from the tax quota are provided for in the law. The new tax will apply for the first three consecutive tax periods starting on or after January 1, 2024. For a discussion of risks related to a potential increase in the tax burden of the BBVA Group, see “ Risk Factors—Regulatory, Tax, Compliance and Reporting Risks—The Group is exposed to tax risks that may adversely affect it” in the 2023 Form 20-F. U.S. Presidential Election On November 6, 2024, Donald J. Trump was declared the winner of the 2024 presidential election in the United States. The president-elect advocated during the course of his campaign for certain policies, including greater trade protectionism, including the imposition of significant tariffs on Mexican imports into the United States, greater restrictions on border crossings into the United States and greater restrictions on illegal immigrants present in the United States, among others. These policies, if pursued once the president-elect assumes office on January 20, 2025, may slow economic growth in, or otherwise adversely affect, Mexico in the coming years, including by reducing the sale in the United States of goods manufactured in Mexico, and the volume of remittances received in Mexico. Following the news of the election outcome, the value of the Mexican