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A Spanish tax resident withdrawing from a Canadian pension plan faces a 25% retention. The DGT examines the Spain-Canada CDI (arts. 18 and 23) and concludes Spain taxes income as resident state; if the amount qualifies as pension, Canada may retain up to the lower of 15% of gross amount or the rate payable as a Canadian resident; if it is an annuity, the Canadian limit is 15%, except for fixed-rate payments where no limit applies.
The tax team reviews your specific situation.
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