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V0426-14 17 February 2014 · SG de Fiscalidad Internacional Criterion in force
IRPF · residencia fiscal

British state pension taxed in Spain under IRPF rules

A British national resident in Spain asks whether their British state basic pension, funded by the UK government and private companies, is subject to Spanish taxation. The DGT rules that as it is not a public pension for public sector services, the double taxation treaty applies.

The question raised

Place of taxation of the Basic State Pension.

The DGT's ruling

As it is not a public pension for services rendered to the Public Sector, Article 18 of the Convention between Spain and the United Kingdom applies. According to this article, pensions paid in consideration of past employment to a resident of a Contracting State may be taxed only in that State. Therefore, the pension shall be taxed in Spain in accordance with domestic Personal Income Tax legislation.

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