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V0932-16 10 March 2016 · SG de Fiscalidad Internacional Criterion in force
IRNR · rescate de plan de pensiones

Private pension withdrawal not taxable in Spain if Dominican fiscal residency proven

A consultant residing fiscally in the Dominican Republic asks whether Spanish private pension withdrawals are taxable in Spain. The DGT responds that, as it is not a pension from prior employment, Article 21 of the Double Taxation Agreement applies, and income is only taxable in the country of residence.

The question raised

Question posed: Whether, in accordance with the provisions of the Convention for the avoidance of double taxation with the Dominican Republic, the withdrawal of the aforementioned private pension plan would be taxed in Spain.

The DGT's ruling

If the consultant proves their tax residence in the Dominican Republic, the Convention for the avoidance of double taxation applies. As these are not pensions by reason of past employment (Article 18), the withdrawal is considered 'other income' under Article 21. Therefore, this income may only be taxed in the Dominican Republic and not in Spain.

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