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V1287-18 ·17 May 2018 ·consulta-vinculante Medium impact
Tax

Disability compensation is subject to Income Tax, while foreign pensions may be exempt

A worker resident in Spain has requested clarification regarding the tax treatment of compensation for contract termination due to illness and a disability pension. The Directorate General for Taxes (DGT) indicates that the compensation is taxed as employment income, whereas the pension may be exempt provided certain requirements are met.

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2018-05-17PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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